Attachment 1 - City of Richmond ACFR FY2021 - FINAL - V3.pdf — Richmond City Council, February 15, 2022

Annual Comprehensive
Financial Report
For The Year Ended
eune 30, 2021
Richiond California
The City of

City of Richmond
California
Financial Report
Fiscal Year Ended June 30, 2021
Prepared by the Finance Department
Belinda Brown
Finance Director/Treasurer

This Page Left Intentionally Blank
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
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INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Organizational Chart .................................................................................................................................................... xi List of Elected and Appointed Officials .................................................................................................................... xii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... .................................. 24 Statement of Activities ..................................................................................................... ..................................... 26 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... .................... 31 Reconciliation of the Governmental Fu nds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 32 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 33 Reconciliation of the Govern mental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 34 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds .............................................................................. ............... 36 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 38 Statement of Cash Flows – Proprietary Funds ................................................................................ ............... 40 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 43 Statement of Changes in Fiduciary Net Position – Fidu ciary Funds .......................................................... 44 Notes to Basic Financial Statements ......................................................................................... .......................... 47 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
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Required Supplemental Information:

Budget and Budgetary Accounting ...................................................................................................................... 177 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 179 Community Development and Loan Programs Special Revenue Fund ..................................................... 180 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ........................... 182 Schedule of Contributions – Miscellaneous Plan ........................................................................................................ 184 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ....................................... 186 Schedule of Contributions – Safety Plan ............................................................................................................... 188 Schedule of Changes in the Net Pension Liability and Related Ratios:

General Pension Plan ..................................................................................................................................................... 190 Police and Firemen’s Pension Plan ........................................................................................... .......................... 192 Garfield Pension Plan ....................................................................................................... ................................... 194 Schedule of Contributions:

General Pension Plan ........................................................................................................ ................................... 196 Police and Firemen’s Pension Plan ............................................................................................................................. 196 Garfield Pension Plan ....................................................................................................... ................................... 196 Schedule of Investment Returns:

Police and Firemen’s Pension Plan ........................................................................................... .......................... 197 General Pension Plan ..................................................................................................................................................... 197 Garfield Pension Plan ....................................................................................................... ................................... 197 Other Post-Employment Benefits Plan Schedules - OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Relate d Ratios ........................................................... 198 Schedule of Plan Contributions .............................................................................................. ........................... 199 Schedule of Investment Returns .............................................................................................. .......................... 199 Other Post-Employment Benefits Plan Schedules -RPOA Plan:

Schedule of Changes in the Net OPEB Liability and Relate d Ratios ........................................................... 200 Schedule of Plan Contributions .............................................................................................. ........................... 201 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Fund s ....................................................................... 208 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................ ....... 212 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
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Supplementary Information (Continued):

Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Governmental Funds:

State Gas Tax Fund ......................................................................................................... ................................. 216 General Purpose Fund ....................................................................................................... .............................. 217 Paratransit Operations Fund ................................................................................................ .......................... 218 Employment and Training Fund ............................................................................................... .................... 219 Public Safety Fund ......................................................................................................... .................................. 220 Lighting and Landscaping Districts Fund .................................................................................... ................ 221 Developer Impact Fees Fund ................................................................................................. ......................... 222 Secured Pension Override Fund .............................................................................................. ...................... 223 Richmond Neighborhood Stabilization Corporation Fund ....................................................................... 224 Rent Control Fund .......................................................................................................... ................................. 225 Cost Recovery Fund ......................................................................................................... ................................ 226 Environmental and Community Investment Agreement Fund ................................................................ 227 2005 Pension Obligation Bonds Fund ......................................................................................... .................. 228 General Debt Service Fund .................................................................................................. ........................... 229 Civic Center Debt Service Fund ............................................................................................. ........................ 230 General Capital Improvement Fund ........................................................................................... .................. 231 Measure C/J Fund ........................................................................................................... ................................ 232 Harbor Navigation Fund ..................................................................................................... ........................... 233 Combining Statements of Net Position – Nonmajor Enterprise Funds ........................................................... 2 35 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds .............................................................................. ......... 236 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ........................................................... 237 Combining Statement of Net Position – Internal Service Funds ................................................................... 239 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ...................................................................................... ..................... 240 Combining Statement of Cash Flows – Internal Service Funds .................................................................. .. 241 Combining Statement of Fiduciary Net Position – Pension Trust Funds.................................................... 244 Combining Statement of Changes in Fiduciary Net Positi on – Pension Trust Funds ............................... 245 Combining Statement of Fiduciary Net Position – Privat e Purpose Trust Funds ...................................... 246 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ................. 247 Sub-Combining Statement of Fiduciary Net Position –
Successor Agency to the Richmond Community Redevelopment Agency ............................................. 248 Sub-Combining Statement of Changes in Fiduciary Net Position – Successor Agency to the Richmond Community Redevelopment Agency ............................................. 250 Combining Statement of Fiduciary Net Position – Custodial Funds ........................................................... 2 54 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 256 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
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STATISTICAL SECTION
Net Position by Component Last Ten Fiscal Years .............................................................................. .............. 264 Changes in Net Position Last Ten Fi scal Years ................................................................................................... 266 Fund Balances of Governmental Funds Last Ten Fiscal Years .................................................................... ..... 268 Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years ...................................................... 270 Assessed and Estimated Actual Value of Taxable Property La st Ten Fiscal Years ....................................... 272 Property Tax Rates – All Overlapping Governments Last Te n Fiscal Years .................................................. 274 Principal Property Tax Payers Current Year and Nine Ye ars Ago .................................................................. 276 Property Tax Levies and Collections Last Ten Fiscal Years .................................................................... .......... 277 Utility Users Tax Collections Last Ten Fiscal Years ... ........................................................................................ 278 Utility Users Tax Direct Rates On Charges For Services Last Ten Fiscal Years ............................................. 279 Top Ten Utility Users Taxpayers .............................................................................................. ............................ 280 Ratio of Outstanding Debt by Type Last Ten Fiscal Years ...................................................................... .......... 281 Revenue Bond Coverage 1999, 2006, 2008, 2010A, 2010B, 2017A and 2019B Wastewater Revenue Bonds Last Ten Fiscal Years ......................................................................................... ...................... 282 Revenue Bond Coverage 1996, 1999, 2004, 2007 and 2009 Port Terminal Lease Revenue Bonds, Note and Point Potrero Lease Revenue Bonds Last Ten Fiscal Years ............................................. 283 General Bonded Debt – Pension Obligation Bonds Last Ten Fiscal Years ...................................................... 28 4 Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds and Refunding Bonds Last Ten Fiscal Years ....................................................................................................... .................................... 285 Computation of Direct and Overlapping Debt ................................................................................... ................ 286 Computation of Legal Bonded Debt Margin ...................................................................................... ................ 287 Demographic and Economic Statistics Last Ten Calendar Years .................................................................. ... 288 Principal Employers Current Year and Nine Years Ago .... ............................................................................... 289 Full-Time Equivalent City Government Employees by Func tion Last Ten Fiscal Years .............................. 290 Operating Indicators by Function/Program Last Ten Fiscal Years ............................................................... .. 291 Capital Asset Statistics by Function/Program Last Ten Fiscal Years ........................................................... ... 292 v

FINANCE DEPARTMENT
450 CIVIC CENTER PLAZA
RICHMOND, CA 94804
(510) 620-6740
December 31, 2021
Citizens of the City of Richmond
The Honorable Mayor and
Members of the City Council
We are pleased to present the Annual Comprehe nsive Financial Report (ACFR) of the City of Richmond, California (City). The Finance Depart ment has prepared this report to present the financial position and the results of the City’s operations for the fiscal year ended June 30, 2021, and the cash flows of its proprietary fund types for the year then ende d. The basic financial statements and supporting schedules have been pr epared in compliance with Article IV, Section 1(b)3 of the City Charter, with California Government Code Sections 25250 and 25253, and in accordance with generally accepted accounting principles (GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB).

This report consists of management’s represen tations concerning the fi nances of the City.

Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.

The City Council is required to adopt an initial budget for the fiscal year to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution.

This resolution constitutes the maximum authori zed expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by City Council.

Expenditures are controlled at the fund level for all budgeted departments within the City. This is the level at which expenditures may not legally exceed appropriations.

The City’s financial statements have been audite d by an independent auditing firm of licensed certified public accountants. Th e objective of the in dependent audit was to provide reasonable vi
assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audi t involved examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements; assessing the accounting principles used and significant estimates ma de by management, and evaluating the overall financial statement presentation. The independent auditor conclude d, based upon the audit, that there was reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2021, but with a disclaimer of opinion for business-type activities as it relates to the Richmond Housing Authority Enterprise Fund and the aggregate discretely presented component units, as the financial st atements of the Richmond Housing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2021. The Independent Auditors ’ Report is presented as the first component of the Financial Section of this report.

Accounting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

The Reporting Entity and Its Services
The City has defined its reporting entity in acc ordance with GAAP that provide guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. This ACFR pres ents information on the activities of the city and its component units.

As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, pa rt of the City’s operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the ba sic financial statements to emphasize their legal separateness from the City. Each blended com ponent unit has a June 30 year-end. The City’s three discretely presented component units ar e RHA Properties, RHA Housing Corporation and RHA RAD LLC. Please see note 1 for a detailed discussion of the financial reporting entity.

The City’s component units and assessment dist ricts are as follows: the Richmond Housing Authority, the Richmond Joint Powers Financing Authorit y, the Richmond Neighborhood Stabilization Corporation, the Richmond Surplu s Property Authority a nd Harbor Navigation, Country Club Vista and Atlas Interchange Special Assessment Districts. The City also has one inactive component unit, Richmond Parking Authority.
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Profile of the Government
The City of Richmond was chartered as a city in 1909, and is located 16 miles northeast of San Francisco, directly across San Francisco Bay. Richmond is on a peninsula separating San Francisco Bay (on the south) and San Pablo Bay (to the nort h), spanning 32 total miles of shoreline. The City's total area is 56.1 square miles, 33.8 of which is land area and 22.3 water area. Richmond is situated near major metropolitan cities and majo r new growth areas. San Francisco is within 35 minutes from Richmond by freeway; Oakland is 20 minutes; San Jose is approximately one hour's drive to the south and Sacramento , the state capitol, is approximately 90 minutes to the east.

Central Marin County is 15 minu tes from Richmond directly acro ss the Richmond-San Rafael Bridge. Freeways provide direct access from Richmond to major new growth areas along Interstate 80 north and east to Vallejo, Fairfield and Sacramento; along Interstate 680 in central Contra Costa County; and south along Interstate 880 to the San Jose area.

Richmond’s population is 111,785. The population within a 30-mile radius of Richmond is over

3.7 million, and within a 70-mile radius is approximately 7.8 million. Richmond is located on the western shore of Contra Costa County, and is the largest city in the "West County" region consisting of five cities: Richmond, El Cerrito, San Pablo, Hercules and Pinole.

The City of Richmond provides a full range of municipal services, in cluding police and fire protection, construction and maintenance of highways, streets and infrastructure, library services, storm water and municipal sewer systems, wastewater treatment facility and the administration of recreational activities and cultural events. The City also operates the Richmond Memorial Convention Center and the Port of Richmond.

The City Council is the govern ing body of the City and has si x members elected at-large to alternating 4-year terms. The Ma yor is elected at large and is a seventh member of the City Council. The City of Richmond is a Council-Manager form of government. The City Manager, appointed by the Mayor and Council, has administrative authority to manage administrative and fiscal operations of the City. In addition to the City Manager, the City Attorney, City Clerk and Investigative Appeals Officer are appointed by the Mayor and Council.

The mission of the City of Richmond is:

The City of Richmond provides services that enhance economic vitality, the environment and the quality of life of our community.

Factors Affecting Financial Condition
The information presented in the financial stat ements is perhaps best understood when it is considered from the broader pers pective of the specific envir onment within which the City operates.
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Local economy
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. The City’s allocated amount was $27.7 million. The City received the first installment in the amount of $13.8 million in August 2021 and the second installment is to be received in July 2023.

COVID-19 pandemic is still having significant impacts on the City of Richmond’s tax revenues. Revenue reduction reflected in Transi ent Occupancy Tax (TOT), and fees and rentals collected by both the Police Depa rtment and Community Services. The TOT decreased 43% in FY2020-21 compared to FY2019-20. When compared to FY2018-19, a full year pf pre-pandemic activity, the decrease is 56%. Due to facility closures and changes to other activities, some departments saw significant decreases to revenue co llected for either services provided or rental of facilities. For example, Community services saw a decrease of 60% for recreation program fees collected in FY2020-21, compared to FY2019-20. When compared to FY2018-19, the decrease is 70%. Revenue collection and projections for fiscal year 2022 have been budgeted conservatively and will require close monitoring and review.

Significant Events and Accomplishments
The City of Richmond is commi tted to providing excellent muni cipal services to its diverse residents and visitors. Highlights of the City’s activities and accomplishments for the fiscal year ended June 30, 2021 include the following:

Library and Community Services:

Community Services Department (CSD)
x The Recreation Department’s Ca mp Achieve was featured on the cover of Western Cities Magazine in the August 2020 issue.
x The Recreation Department star ted an in-person after scho ol program at the Richmond Recreation Complex from March 2021 - June 2021. The program offered: social interaction, games, sports (including tennis), art projects, homework assistance, snacks, and meeting new friends.

Employment and Training Department
x EDD awarded Richmond $274,300 of the total $1.8 million award to improve career pathways for English Language Learners. The Richmond Workforce Development Board was selected through a competitive selection process to implement programs that develop critical job skills that English Language Learners (ELL) need to enter careers in growing local industries.

Library – Literacy for Every Adult Program (LEAP)
x LEAP makes a positive difference in the lives of individual people and in the community at large. During this fiscal ye ar, LEAP has aided 14 individuals in earning their GED or High School Diploma. This success is despite the ch allenges of COVID, the difficultly of remote learning, and the economic hardships placed on our students.

Public Works:

Water Resource Recovery Department
• The City of Richmond's Water Resource Recovery Department administers the Sewer Lateral Grant Program. The program reimburses eligible homeowners in the Richmond Municipal Sewer District (RMSD No. 1) for some of the cost to replace their sewer lateral.

ACKNOWLEDGEMENTS
The preparation of this ACFR represents the culmination of a concerted team effort by the entire staff of the Finance Department. They should be commended for their professionalism, dedication, efficiency, and their personal commitment and determination demonstrated through long days of focused attention to produce this exemplary document.

In addition, staff in all City departments should be recognized for responding so positively to the requests for detailed information that accompanies each annual audit. The role of Badawi & Associates, Certified Public Accountants, should also be acknowledged as a significant contribution to a fine product.

Finally, we wish to express our sincere appreciation to the Mayor and City Council for providing policy direction and a firm foundation of support for the pursuit of excellence in all realms of professional endeavors.

Respectfully submitted,
Finance Director/Treasurer
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People of RichmondPeople of Richmond
Mayor and City CouncilMayor and City Council
City Manager
Laura Snideman
City Manager
Laura Snideman
Public Works Director
Joe Leach
Public Works Director
Joe Leach
Richmond Rent BoardRichmond Rent Board
Confidential
Investigative Appeals
Officer
(Police Commission)
Confidential
Investigative Appeals
Officer
(Police Commission)
City Clerk
Pam Christian
City Clerk
Pam Christian
City Attorney
Teresa Stricker
City Attorney
Teresa Stricker
Executive Assistant
Irene Lozano
Executive Assistant
Irene Lozano
Director of
Information Technology
Sue Hartman
Director of
Information Technology
Sue Hartman
Community
Development Director
Lina Velasco
Community
Development Director
Lina Velasco
Director of Library and
Community Services
LaShonda White
(Interim)
Director of Library and
Community Services
LaShonda White
(Interim)
Fire Chief
Michael Smith (Interim)
Fire Chief
Michael Smith (Interim)
Police Chief
Bisa French
Police Chief
Bisa French
Deputy City Manager
Economic Development
Shasa Curl
Deputy City Manager
Economic Development
Shasa Curl
Deputy City Manager
Internal Services
Anil Comelo (Interim)
Deputy City Manager
Internal Services
Anil Comelo (Interim)
Economic
Development/
Special Events
Economic
Development/
Special Events
Arts & CultureArts & Culture
Public HousingPublic Housing
Environmental &
Health In itiatives
Environmental &
Health In itiatives
Property
Management
Property
Management
PatrolPatrol
TrafficTraffic
In vestigatio nsIn vestigatio ns
Admi ni stration and
Support
Admi ni stration and
Support
Fire PreventionFire Prevention
Emergency Services Emergency Services
Emergency
Operations
Emergency
Operations
TrainingTraining
LibraryLibrary
RecreationRecreation
Neighborhood &
Volunteer Services
Neighborhood &
Volunteer Services
TransportationTransportation
Employment &
Training
Employment &
Training
Engineering and
Capi ta l Improve ment
Program (CIP)
Engineering and
Capi ta l Improve ment
Program (CIP)
Building MaintenanceBuilding Maintenance
Wa ter Re source
Recovery
Wa ter Re source
Recovery
FleetFleet
Public Works
Maintenance and
Abat em en t
Public Works
Maintenance and
Abat em en t
Parks MaintenanceParks Maintenance
Planni ngPlanni ng
BuildingBuilding
Code EnforcementCode Enforcement
Housing PolicyHousing Policy
RDA Successor
Agency
RDA Successor
Agency
Network ServicesNetwork Services
Appl icati on Se rvi ce sAppl icati on Se rvi ce s
KCRT
(Cable TV)
KCRT
(Cable TV)
FinanceFinance
Human ResourcesHuman Resources
Staff Development
and Training
Staff Development
and Training
Depa rtme nt of
Children & Youth
Depa rtme nt of
Children & Youth
Office of
Neighborhood Safety
Office of
Neighborhood Safety
ECIA Grant
Administration
ECIA Grant
Administration
Admi ni stration and
Support
Admi ni stration and
Support
Duplication & Mail Duplication & Mail
PortPort
Rent Program
Nicolas Traylor
Rent Program
Nicolas Traylor
Rev. 6.4.2021
Organizational Chart
xi

CITY OFFICIALS
JUNE 30, 2021

CITY COUNCIL
Mayor.......................................................................................................................................................................................................................................................................Tom Butt Vice Mayor ........................................................................................................................................................................................................................................... Demnlus Johnson III Councilmember ........................................................................................................................................................................................................................................... Nathaniel Bates Councilmember .......................................................................................................................................................................................................................................... Claudia Jimenez Councilmember ........................................................................................................................................................................................................................................ Eduardo Martinez Councilmember ........................................................................................................................................................................................................................................ Gayle McLaughlin Councilmember ................................................................................................................................................................................................................................................. Melvin Willis

ADMINISTRATION AND EXECUTIVE MANAGEMENT
City Manager .............................................................................................................................................................................................................................................. Laura Snideman Deputy City Manager, Economic Development ................................................................................................................................................................................................. Shasa Curl Deputy City Manager, Internal Services ( Interim) .............................................................................................................................................................................................Anil Comelo City Attorney ................................................................................................................................................................................................................................................. Teresa Stricker City Clerk ................................................................................................................................................................................................................................................... Pamela Christian Community Development Director .................................................................................................................................................................................................................. Lina Velasco Director of Information Technology ................................................................................................................................................................................................................. Sue Hartman Director of Library and Community Services (Interim) ............................................................................................................................................................................. LaShonda White Finance Director ............................................................................................................................................................................................................................................. Belinda Brown Fire Chief (Interim) ......................................................................................................................................................................................................................................... Michael Smith Human Resources Director (Interim) .................................................................................................................................................................................................................... Marc Fox Police Chief ........................................................................................................................................................................................................................................................ Bisa French Public Works Director .......................................................................................................................................................................................................................................... Joe Leach Rent Control Executive Director ................................................................................................................................................................................................................... Nicolas Traylor xii
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Richmond, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements. We were engaged to audit the financial statements of the discretely presented component units as of and for the year ended June 30, 2021. These financial statements collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements The City’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally acce pted in the United States of America; this includes 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.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financia l statements are free from material misstatement.

Because of the matter described in the Basis for Disclaimer of Opinion paragraph, we were not able to provide a basis for an audit opinion on the business-type activities, Richmond Housing Authority Enterprise Fund, and the aggregate discretely presented component units.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Page 2 ends

2 Except for the matter described in the Basis for Disc laimer of Opinion on the business-type activities, Richmond Housing Authority Enterprise Fund, and th e aggregate discretely presented component units paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Summary of Opinions
Opinion Unit Type of Opinion .

Governmental Activities Unmodified Business-Type Activities Disclaimer Aggregate Discretely Presented Component Units Disclaimer Major Governmental Funds:

General Fund Unmodified Community Development and Loan Programs Special Revenue Unmodified Major Enterprise Funds:

Richmond Housing Authority Disclaimer Port of Richmond Unmodified Municipal Sewer Unmodified Aggregate Remaining Fund Information Unmodified Basis for Disclaimer of Opinion
The financial statements of the Richmond Hous ing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2021. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 10.85%, 22.20%, and 6.19% of the assets, net position, and revenues, respectively, of the City’s business-type activities. The financial activities of the RHA Properties, RHA Housing Corporation and RHA RAD LLC are included in the City’s financial activities as discretely presented component units and represent the City’s only discretely presented component units.

Disclaimer of Opinion
Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit ev idence to provide a basis for an audit opinion on the financial statements of the business-type activities, Richmond Housing Authority Enterprise Fund, and the aggregate discretely presented component units of the City. Accordingly, we do not express an opinion on these financial statements.

Unmodified Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the General Fund, the Community Development and Loan Programs Special Revenue Fund, the Port of Richmond Enterprise Fund, the Municipal Sewer Enterprise Fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

Page 3 ends

3 changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America require that the management’s discussion and analysis, budgetary comparison in formation, and required pension and other post- employment benefits information on pages 5-18 and 177-201 be presented to supplement the basic financial statements. Such information, 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 su pplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information an d 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.

Other Information
Our audit was conducted for the purpose of forming opin ions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, supplemental information and statistical sections are presented for purposes of additi onal analysis and are not a required part of the basic financial statements.

The supplemental 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. Such information has been subjected to the auditing proc edures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

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

Page 4 ends

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2021 on our consideration of the City’s internal cont rol 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 internal control over financial reporting or on comp liance. 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.

Badawi & Associates, CPAs
Berkeley, California
December 31, 2021

5 MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2021
This narrative overview and analysis of the City of Richmond’s (the “City”) Basic Financial Statements for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with the accompany ing transmittal letter, basic financ ial statements and notes to the financial statements.

FINANCIAL HIGHLIGHTS
x The City’s total net position increased by $65 million during the fiscal year attributed to a $40 million increase in governmental and $25 million increase in business-type activities. x The liabilities and deferred inflows of the governmental activities of the City exceeded its assets and deferred outflows at the close of the most recent fiscal year by $258.7 million (net deficit).

Alternatively, the assets and deferred outflows of the business-type activities of the City exceeded its liabilities and deferred inflows by $88.1 million.
x At June 30, 2021, the City’s unrestricted net deficit (governmental and business-type activities) totaled $570 million, a $28.3 million decrease from prior year. The unrestricted net deficits represent the net unfunded liabilities of the government. Over time, increases and decreases in this account will allow the reader to determine if the City’s condition is im proving or deteriorating. Restricted net position for governmental and business-type activities increased by a net $22 million to $117.2 million. x The City’s financial statements include a disclaimer of opinion on the financial statements of the Richmond Housing Authority Enterprise Fund (“RHA”), a blended component unit included in the City’s business-type activities, and three discretely presented component units, RHA Properties, RHA Housing Corporation and RHA RAD LLC. As of June 30, 2021, the net position of RHA is $19.5 million or 22% of the City’s business-type activities. Additional information about the disclaimer of opinion can be found in the Independent Auditor’s Report. x The City’s General Fund contingency reserve policy to the minimum 15% of the General Fund’s next year’s budgeted appropriations or $24.8 million and the balance was $22.4 million at June 30, 2021. x The Net Pension Liability of $352.3 million, representing an accounting measure of the City’s unfunded pension obligation, increased by $11.9 million from $340.4 million. The City reports $103.8 million in the Other Post-Employment Benefit (OPEB) liability for this fiscal year which is a decrease of $15.4 million from the $119.2 million obligation reported in the prior year. x The City’s General Fund revenue and other financing sources (uses) exceeded expenditures by $10.4 million in fiscal year 2021. This is primarily attrib utable to other taxes and sales tax fee revenues in excess of expectations for the year.

OVERVIEW OF FINANCIAL STATEMENTS
The City’s basic financial statements are compri sed of government-wide financial statements, fund financial statements, and notes to the financial statem ents. This report also contains other required supplementary information in addition to the basic financial statements themselves. 6 Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business.

The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.

Both of the government-wide financial statements dist inguish functions of the City that are principally supported by taxes and grants, governmental activities, and business-type activities, which are intended to recover all or a significant portion of their costs through user fees and charges. The City’s activities include five blended component units which consist of the Richmond Housing Authority, Richmond Joint Powers Financing Authority, Richmond Neighborhood Stabil ization Corporation, Richmond Surplus Property Authority and Richmond Parking Authority. Although legally separate, the City is financially accountable for the activities of these entities which are therefore shown as blended as part of the primary government.

RHA Properties, RHA Housing Corporation and RHA RAD LLC are discretely presented component units of the City that are legally separate reporting ent ities but are important because the City is financially accountable for them.

The government-wide financial statements can be found on pages 24-27 of the financial report.

Fund Financial Statements
Fund Financial statements are designed to report information about the groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives.

The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds – Governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resour ces available at the end of the fiscal year. Such information may be useful in determining what financ ial resources are available in the near future to finance the City’s programs.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the informat ion presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
7 The City has 20 governmental funds, of which two are considered major funds for presentation purposes.

Each major fund is presented separately in the gover nmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The City’s two major funds are the General Fund and the Community Development and Loan Programs Special Revenue Fund. The basic governmental fund financial statements can be found on pages 31-34 of the financial report. Data from the other eighteen governmental funds are combined into a single, aggregated presentation and reported separately on pages 208-215 of the financial report.

Proprietary Funds – Proprietary funds of the City are two type s: (1) enterprise funds; and (2) internal service funds. The City maintains six enterprise funds that provide the same type of information as the government-wide financial statements, only in more detail. The City maintains four internal service funds to account for its vehicle operations, risk mana gement program, police telecommunications and compensated absences. The proprietary fund financial statements can be found on pages 36-41.

Fiduciary Funds – Fiduciary funds are used to account for reso urces held for the benefit of third parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The fiduciary funds for the City consist of Pension Trust Funds, City OPEB Plan Trust Fund, RPOA OPEB Plan Trust Fund, Pt. Molate Private-Purpose Trust Fund, Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund and Custodial Funds. The fiduciary funds financial statements for these funds can be found on pages 43-44.

The notes provide additional information that is essentia l to 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 47-173 of this report.
8 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Government-wide Net Position
This Comparative financial information includes the long-term and short-term information about the City’s overall financial condition. Below to provide the reader with highlights of changes from the prior year.

9 Government-wide Activities
The following table indicates the changes in net position for governmental and business-type activities:

FY2021 FY2020 FY2021 FY2020 * FY2021 FY2020
Revenues:

Program revenues:

Charges for serv ices 26,130 $ 29,574 $ 43,150 $ 43,086 $ 69,280 $ 72,660 $ Operating grants/contributions 29,316 25,354 3,772 4,028 33,088 29,382 Capital grants/contributions 4,387 4,987 13 322 4,400 5,309 General revenues:

Property taxes-current collections 65,075 63,005 - - 65,075 63,005 Sales taxes 48,998 44,537 - - 48,998 44,537 Utility user taxes 45,241 45,553 - - 45,241 45,553 Documentary transfer taxes 19,858 8,708 - - 19,858 8,708 Other taxes 7,424 7,127 - - 7,424 7,127 Unrestricted Intergovernmental 6,594 5,368 - - 6,594 5,368 Use of money and property 1,461 2,947 146 770 1,607 3,717 Gain on sale of capital assets 71 82 - - 71 82 Other 1,357 1,992 - - 1,357 1,992 Total revenues 255,912 239,234 47,081 48,206 302,993 287,440 Expenses:

General government 47,854 43,496 - - 47,854 43,496 Public safety 93,442 108,948 - - 93,442 108,948 Public works 33,980 45,051 - - 33,980 45,051 Community development 4,433 4,115 - - 4,433 4,115 Cultural & recreation 9,006 10,410 - - 9,006 10,410 Housing & redevelopment 3,108 2,808 - - 3,108 2,808 Interest and fiscal charges 12,825 14,897 - - 12,825 14,897 Richmond Housing Authority - - 3,608 5,834 3,608 5,834 Port of Richmond - - 6,263 7,745 6,263 7,745 Municipal Sewer - - 20,467 21,768 20,467 21,768 Richmond Marina - - 228 241 228 241 Storm Sewer - - 1,796 1,965 1,796 1,965 Cable TV - - 789 672 789 672 Total expenses 204,648 229,725 33,151 38,225 237,799 267,950 Excess (Deficiency) of Revenues
Over (Under) Expenses 51,264 9,509 13,930 9,981 65,194 19,490 Transfers (11,280) 87 11,280 (87) - - Changes in Net Position 39,984 9,596 25,210 9,894 65,194 19,490 Net position (deficit) at beginning of
year (July 1, 2020 restated) (298,728) (307,789) 62,971 54,849 (235,757) (252,940) Net position (deficit) at end of year (258,744)$ (298,193) $ 88,181 $ 64,743 $ (170,563) $ (233,450) $ * Governmental Activities beginning balance was restated and increased by $0.54 million.

Business-type Activities beginning balance was restated and decreased by $1.77 million in the Richmond Housing Authority, Port of Richmond, Municipal Sewer, Cable TV, and Sorm Sewer.

City of Richmond's Changes in Net Position
For the Years Ended June 30, 2021 and 2020
(in thousands)
Governmental Activities Business-type Activities Totals

10 Governmental Activities

Governmental activities increased the City’s net position by $39.9 million, accounting for 61% of the City’s total increase in net position of $65.1 million. Total revenues of $255.9 million exceeded expenses of $204.6 million by $51 million. Revenues increased $16.6 million or 6.9% primarily due to an increase in Document Transfer Tax. That category went fro m $8.7 million in fiscal year 2020 to $19.8 million in fiscal year. Expenses decreased $25 million or 10% from prior year primarily due to decreases in public safety, and public works.

Business Type Activities

Business-type activities increased the City’s net position by $25.2 million. Key factors contributing to the increase in business-type activities are as follows:

 The Richmond Housing Authority’s (“RHA”) net position increase by $10.6 million, resulting from an operating loss of $2.7 million, offset by grant income of $2 million and net transfers of $11.3 million.

 The Port of Richmond (“Port”) reported operating income of $4.7 million. During the year, the Port incurred $0.3 million of interest expense which resulted in a $4.4 million increase in net position.

 The Municipal Sewer fund reported operating income of approximately $12.2 million. There were $4.9 million of non-operating expenses the majority of which represented interest and swap expenses incurred on various Wastewater Debt issues, resulting in a $7.4 million increase in net position.

 Other Enterprise funds had a combined $2.6 million increase in net position, with operating income of approximately $1.2 million.

Net Program (Expenses) Revenues

Comparisons of the cost of services by function for the City’s government-wide activities are shown in the preceding tables, along with the revenues used to cover the net expenses.

The following table details the net program costs for each of the governmental activities functions:

Total governmental activities expenses of $204.6 million were offset by $59.8 million in program revenues in fiscal year 2021. Program revenues are derived directly from the program itself or from parties outside Net (Expenses)
Expenses Revenues Revenues
Functions
General government 47,854,126$ 15,654,728 $ (32,199,398) $ Public safety 93,441,711 6,419,995 (87,021,716) Public works 33,979,639 17,706,850 (16,272,789) Community development 4,433,192 20,591,632 16,158,440 Cultural and recreational 9,006,470 1,085,617 (7,920,853) Housing and redevelopme 3,108,240 (1,626,016) (4,734,256) Interest on long-term debt 12,825,356 - (12,825,356) Total 204,648,734$ 59,832,806 $ (144,815,928) $
Governmental Activities
Expenses and Program Revenues
11 Total governmental activities expenses of $204.6 million were offset by $59.8 million in program revenues in fiscal year 2021. Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the government’s general revenues. During the fiscal year, the net costs funded by the City’s general revenues were $144.8 million.

As reflected in the pie chart below, 44% of the governmental program revenues came from Charges for Services, which includes licenses and permits and fees, fines, forfeitures and penalties, and several other revenues. The remaining 56% percent of government al program revenues come from Operating Grants and Capital Grants Contributions which include restricted revenues such as Gas Tax, Transportation and Sales Tax, and Federal/State Grants.

General revenues are all other revenues not categorized as program revenues and include property taxes, sales taxes, utility users’ tax, do cumentary transfer taxes, investment earnings, grants and contributions not related to specific programs and other miscellaneous general revenues. Total general revenues from governmental activities were $196 million in fiscal year 2021. The three largest components of general revenues received were Property Taxes-current collections of $65 million, Sales Taxes of $49 million and Utility User Taxes of $45 million. The following graph shows the City’s general revenues by source.

Charges for
Services
44%
Operating Grants
& Contributions
49%
Capital Grants &
Contributions
7%
Program Revenues by Source
Governmental Activities

12 The following table details net program costs for business-type activities:

Business-type activities revenue exceeded expenses by $13.8 million, as Municipal Sewer, the Port of Richmond and other Enterprise Funds contributed net revenues of $7. 3 million, $4.4 million, and $2.1 million respectively.

As reflected in the pie chart below, 92% of th e business-type program revenues came from Charges for Services and the remaining 8% were derived from Operating and Capital Grants.

Property Taxes
33%
Sales Taxes
25%
Utility User
Taxes
23%
All Other
19%
Program Net (Expenses)
E xpenses Rev enues Rev enues
Business-type Activities
Richmond Housing Authority 3,607,603$ 2,910,687 $ (696,916) $ Port of Richmond 6,263,232 10,704,024 4,440,792 Municipal Sewer 20,466,640 27,772,641 7,306,001 Richmond Marina 227,391 574,453 347,062 Storm Sewer 1,796,422 3,826,858 2,030,436 Cable TV 788,957 1,145,936 356,979 Total 33,150,245$ 46,934,599 $ 13,784,354 $ E xpenses and Program Rev enues
Business-type Activities
General Revenues by Source
Governmental Activities
13 Program Revenues by Source
Business-Type Activities
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial capacity.

At the end of the fiscal year, the City’s governmental funds reported total fund balances of $130.1 million, an increase of $17.5 million, or 15.6% from prior year. Financial highlights for the City’s major funds are discussed below:

General Fund The General Fund is the primary operating fund of the City. It is used to report the financial results of the daily operations of the City. The majo r revenue sources are utility users’ tax, sales tax and property taxes. The major expenditures are salaries and administrative expenses. The City’s general fund revenues increased by $15.3 million or 9.0% while and expenditures decreased by $828 thousand or 0.5%.

The increase in revenues is primarily due to the increased collection of both Sales Tax and Documentary Transfer Tax. Sales Tax increased by $4.4 million or 10% while Documentary Transfer Tax increased by $11.4 million, an increase of over 73.3%. The Sales Tax increase is a result of renewed business activity that had either slowed down or shut down completely during the height of the COVID-19 restrictions. The Documentary Transfer Tax increase stems from the co mbination of some very high dollar property sales coupled with the voter approved tiered rate structure where sales over $10 million are taxed at the rate of 3% of the sale amount.

General Fund expenditures stayed relatively flat with a modest decrease of 0.5%. In Other Financing Sources, there was a significant increase to Operating Transfers-Out. The net increase of $7.8 million or

90.9% is due to a combination of changes. The three main items accounting for this decrease were (1) the CAD/RMS services related to the consortium disba ndment in 2020 where the General Fund transferred Charges for
Services
92%
Operating
Grants &
Contributions
8%
Capital Grants
& Contributions
0%
14 $3.0 million to the CAD Dispatch Fund, (2) a decrease in various General Fund subsidies to other funds including decrease was $1.6 million transferred to the Kids First program in 2020 but zero funds transferred in 2021, and (3) and increase of $10.3 million stemming from the Richmond Housing Authority Write-off of disallowed and uncollectible costs.

At the end of the current fiscal year, the total fund balance increased by $10.4 million from the prior year to $49.1 million. The General Fund reported an unassigned fund balance of $22.4 million, and committed of $9.8 million which represents the following:

Community Development and Loan Programs This fund was established to account for the receipt of Community Development Block Grant, HOME Invest ment Partnership Program and Neighborhood Stabilization Program grant monies and the use of the gr ants. In conjunction with the dissolution of the Redevelopment Agency, this fund also accounts for the low and moderate income housing activities of the City as Housing Successor to the former Redevelopment Agency’s low and moderate income housing activities. As of June 30, 2021, fund balance is $31.2 million which represents a $1.9 million increase from prior year.

Proprietary Funds:

The City’s proprietary funds are enterprise and internal service funds. Proprietary funds provide the same type of information found in the government-wide financial statements but in more detail.

The City’s major enterprise funds are the Richmond Housing Authority, Port of Richmond, and Municipal Sewer.

Richmond Housing Authority . The Richmond Housing Authority (RHA) provides decent affordable housing for low and very low-income residents of Richmond through federally funded housing programs.

RHA’S net position increases $10.6 million to $19.5 million at June 30, 2021.

The Port of Richmond The Port of Richmond (“Port”) is a public enterprise established by the City and is administered as a department of the City. Op erations include the marine terminal facilities and commercial property rentals. The Port’s net position increased by $4.4 million to $15.8 million. The increase is partially due to lower debt service interest expenses and lower contractual service expenses.

Municipal Sewer Fund This fund is used to account for a variet y of sewer service-related revenues and expenses. Municipal Sewer’s net position increased $7.4 million to $49.8 million at June 30, 2021. 15 GENERAL FUND BUDGETARY HIGHLIGHTS
The adopted budget, excluding tran sfers, bond premium and proceeds from sale of property, reflected $155.8 million in estimated revenues and $163.5 million in appropriations.

Budget adjustments reflect extensive analysis and updates arising from Expenditure Review, and Council approved amendments that occurred during the fiscal year.

The final amended budget included a $10.4 million increase in estimated revenue and a $5.2 million increase in appropriations. Actual revenues of $178.8 million were $1 2.6 million more than adjusted operating revenue budget, a variance of 8%. Key elem ents of the variances in revenues are discussed as follows:

Property Taxes totaled $ 45.1 million which is $1 million more than the Revised Budget and $ $1.2million more than the original budget. The increase stems from increases in residual Redevelopment Property Tax Trust Fund (RPTTF) after Recognized Obligation Paym ents Schedule (ROPS) or, in other words, more than expected Successor Agency Residual and Pass-through revenue.

Utility Users Tax (UUT) totaled $45.2 million which was $677 thousand more than expected. The bulk of the increase was in tax collected related to telecommu nications and pre-paid wireless collected at stores and by the State.

Sales Taxes totaled $48.9 million which was $4.6 million above the Revised Budget and $8 million more than the Original Bu dget. This corres ponded to increases in the regular Sales Tax and proportional increases in both half cent Sales Tax measures.

Licenses, Permits and Fees totaled $5.9 million which was $164 thousand more than the Revised Budget amount. The bulk of this stemmed from the collection of Medical Marijuana Permits. The previous years’ saw significant increases due to the collective efforts from the Business License Division, Code Enforcement, Rent Control and Muni Services. It le d to payments from new customers that included, in many cases, past due amounts up to three years back. The majority of the new businesses were residential rental properties. The subsequent years, these businesses just paid the yearly flat rate. The budget did not reflect this expected increase.

The final adjusted appropriations were $168.7 mil lion, an increase of $5.2 million from the original adopted budget appropriation of $163.5 million. The adopted budget appropriation was increased primarily due to increase adjustments in General Government, Public Safety and Capital Outlay. The final budget appropriation for transfers out was $5.4 millio n, an increase of $427 thousand from the original adopted budget appropriation of $4.9 million. The increase was primarily due to adjustments to RHA, and Economic Development transfer for capital project.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its gove rnmental and business-type activities as of June 30, 2021 amounted to $487.9 million, net of accumulated depreciation. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure and construction in progress is illustrated below:
16 The City’s infrastructure assets are recorded at historical cost in the government-wide financial statements.

Additional information about the City’s capital asset s can be found in Note 5 on pages 77-79 in the financial statements.

17 Debt Administration:

Long Term Debt – The City’s total debt outstanding at June 30, 2021 decreased $16.7 million from $422.5 million to $405.8 million.

Revenue Bonds had a decrease due to the termination of the 2008A Wastewater SWAP agreement, and the defeasance & refunding of a portion of the 2010B Wastewater Bond.

Lease Revenue Bonds had a decrease due to large principal payment to the 2019B JPFA Lease Revenue Refunding Bond (Pt Potrero) and the 2019A JPFA Lease Revenue Refunding Bond (Civic Center) Pension Obligation Bonds had a decrease due to large principal payment to the 2005 POB and decrease in SWAP payments

The City does not have any general obligation bonds as of June 30, 2021.

Economic Factors, Next Year’s Budget and Inflation Rates

The City’s economic base has mostly recovered from the slowdown related to the effects of the COVID- 19 restrictions. Property values assessed by the County as of January 1, 2021 have increased by 0.15% over the prior year. Flat Assessed Valuation (AV) pr imarily stemmed from a decreased valuation of the Chevron Refinery in Richmond. While the CPI growth was 1.036%, and there was significant property sales during the year, the refinery assessment by the County went from approximately $3 billion in FY2019-20, to under $2.7 billion. Residual Redevel opment Property Tax Trust Fund (RPTTF) after Recognized Obligation Payments Schedule (ROPS) payments have gone from $600 thousand in fiscal year 2015-16 to $2.5 million in fiscal year 2016-17, to $4.0 million in fiscal year 2017-18, to $5.7 million in fiscal year 2018-19, and to $6.5 million in both FY2019-20 and FY2020-21. Sales Tax has rebounded to above pre-pandemic levels. Sales Tax in FY2018-19 was $47.7 million, in FY2019-20, dipped down to $44.5 million, and finally rebounded to $49.0 million in FY2020-21.

In November 2018, Richmond voters approved Measure H which called for a new tiered calculation for the Documentary Transfer Tax. The tax rate goes up based on the sale price of the property. The rate of

0.70% did not change for sales under $1 million, but for sales from $1 million and above the rates changed accordingly:

FY2021 FY2020 FY2021 FY2020 FY2021 FY2020
Revenue bonds - $ - $ 137,886,366$ 141,391,552 $ 137,886,366 $ 141,391,552 $ Lease revenue bonds 103,543,451 107,666,888 13,604,419 17,940,892 117,147,870 125,607,780 Pension obligation bonds 140,816,305 144,339,640 - - 140,816,305 144,339,640 Total bonds payable 244,359,756 252,006,528 151,490,785 159,332,444 395,850,541 411,338,972 Loans payable 1,023,223 1,156,440 3,338,388 3,435,667 4,361,611 4,592,107 Capital leases 5,642,605 6,661,806 - - 5,642,605 6,661,806 Total outstanding debt 251,025,584$ 259,824,774 $ 154,829,173 $ 162,768,111 $ 405,854,757 $ 422,592,885 $ Outstanding Debt
June 30, 2021 and 2020
Governmental Activities Business-Type Activities Totals 18 Measure H
Even before the new tiered system, the Documentary Transfer Tax was one of the most volatile of revenue streams for the City. A few sales can have a dramatic impact on the General Fund. In FY2017-18, before the new tiered rate structure was approved and put in place, the transfer tax collected totaled $6.5 million.

In FY2018-19, with half a year a year of the rate stru cture, the tax collected went up to $8.0 million. In FY2019-20 it went up modestly to $8.7 million. Finall y, in FY2020-21, due to a few very large sales it increased significantly to $19.9 million.

In November 2020, Richmond voters approved Measure U which significantly changed the calculation for the Business License Tax. Currently, most business pay a tax based on number of employees or location.

Measure U imposes a calculation based on Gross Receipts. The percentage charged varies based on both the type of business and the amount of gross receipts with the new rates ranging from 0.06% to 0.68% for businesses and 1.08% to 2.4% for rental properties. The new methodology was expected to bring in an additional $6.4 million for the City once impl emented in FY2021-22. Due to changes in both implementation date (moved from July 1, 2021 to January 1, 2022) and Rent Control credits (fees paid by landlords of small rental units serves as credits to the Business Tax) the amount collected in FY2021-22 will be lower than originally forecasted.

The City continues to closely monitor revenue and expenditures through monthly variance reports to assure adherence to budget controls. Simultaneously, position control is strictly enforced, ensuring that any employee hired is moving into a funded position. For the upcoming fiscal year, staff is working to to align the budget forecast with City Council priorities, review the City’s organizational structure, and provide recommended actions for fiscal sustainability.

This will include planning and addressing pension and Other Post-Employment Benefits (OPEB) funding.

Additionally, the City continues to analyze the structural integrity of all funds and identify additional cost reductions and efficiencies.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all of its citizens, taxpayers, customers, investors and creditors. Ques tions concerning any of the information provided in this report or requests for additional information shou ld be addressed to the City of Richmond, Finance Department, 450 Civic Center Plaza, Richmond, CA 94804. Alternatively, you may send your inquiries via e-mail to [email protected].

BASIC

FINANCIAL STATEMENTS
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20 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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23 City of Richmond
Statement of Net Position
June 30, 2021
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 137,599,623$ 50,863,729 $ 188,463,352 $ Restricted cash and investments 15,301,838 13,957,785 29,259,623 Receivables:

Accounts, net 14,209,371 6,780,481 20,989,852
Interest 41,633 13,402 55,035
Grants 6,083,133 206,508 6,289,641
Loans ---
Internal balances 15,642,760 (15,642,760) -
Prepaids and supplies 637,513 - 637,513
Total current assets 189,515,871 56,179,145 245,695,016 Noncurrent assets:

Due from developer - 11,221,743 11,221,743
Loans 46,299,190 - 46,299,190
Property held for resale 78,016 - 78,016
Net pension asset 4,441,073 - 4,441,073 Capital assets:

Nondepreciable 58,596,943 40,154,105 98,751,048
Depreciable 744,532,487 356,786,684 1,101,319,171
Less accumulated depreciation (516,973,793) (195,165,429) (712,139,222) Total capital assets 286,155,637 201,775,360 487,930,997 Total noncurrent assets 336,973,916 212,997,103 549,971,019 Total assets 526,489,787 269,176,248 795,666,035

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 41,852,998 1,537,803 43,390,801 Deferred outflows of resources - OPEB 2,981,744 152,293 3,134,037 Deferred ouflows - change in fair value of derivative instruments 35,965,971 - 35,965,971 Deferred charge on refunding - 6,247,725 6,247,725
Total deferred outflows of resources 80,800,713 7,937,821 88,738,534

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 16,828,865 8,721,491 25,550,356 Interest payable 1,194,997 2,508,603 3,703,600
Refundable deposits 881,371 471,362 1,352,733
Unearned revenue 6,516,377 - 6,516,377
Derivative instrument at fair value 35,965,971 - 35,965,971 Compensated absences - due within one year 35,782 153,064 188,846 Claims liabilities - due within one year 13,033,895 - 13,033,895 Long-term debt - due within one year 15,649,018 6,681,656 22,330,674 Total current liabilities 90,106,276 18,536,176 108,642,452 Noncurrent liabilities:

Unearned revenue - 2,962,194 2,962,194
Compensated absences 13,081,217 46,981 13,128,198
Claims liabilities 31,358,444 - 31,358,444
Long-term debt 235,376,566 148,147,517 383,524,083
Net pension liability 340,627,781 11,745,894 352,373,675 Net OPEB liability 98,856,405 4,944,993 103,801,398
Total noncurrent liabilities 719,300,413 167,847,579 887,147,992 Total liabilities 809,406,689 186,383,755 995,790,444

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 5,671,678 202,155 5,873,833 Deferred inflows of resources - OPEB 50,956,440 2,347,335 53,303,775 Total deferred inflows of resources 56,628,118 2,549,490 59,177,608

NET POSITION
Net investment in capital assets 206,419,763 75,738,268 282,158,031 Restricted for:

Capital projects 8,173,583 - 8,173,583
Debt service 11,850,076 13,859,999 25,710,075
Housing and redevelopment 18,849,330 - 18,849,330
Community development projects 64,528,624 - 64,528,624
Total restricted 103,401,613 13,859,999 117,261,612
Unrestricted (568,565,683) (1,417,443) (569,983,126)
(258,744,307)$ 88,180,824 $ (170,563,483)$ Total net position Primary Government
See accompanying Notes to Basic Financial Statements
24 RHA RHA Housing RHA
Properties Corporation RAD LLC
-$ 4,759$ - $ ---
---
---
---
- - 14,510,000
---
---
- 4,759 14,510,000
---
---
---
- - - ---
---
---
---
---
- 4,759 14,510,000
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
---
- - - ---
---
---
---
---
---
---
---
---
- 4,759 14,510,000
-$ 4,759$ 14,510,000$ Component Unit
s
25 City of Richmond
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 46,917,122 $ 13,777,010 $ 978,177 $ 899,541 $ 15,654,728$ Public safety 94,378,715 3,674,412 2,495,729 249,854 6,419,995 Public works 33,979,639 7,198,221 8,850,916 1,657,713 17,706,850 Community development 4,534,280 665,999 18,345,791 1,579,842 20,591,632 Cultural and recreational 9,006,470 814,073 271,544 - 1,085,617 Housing and redevelopment 3,007,152 - (1,626,016) - (1,626,016) Interest on long-term debt 12,825,356 - - - - Total governmental activities 204,648,734 26,129,715 29,316,141 4,386,950 59,832,806 Business-type activities
Richmond Housing Authority 3,607,603 861,943 2,048,744 - 2,910,687 Port of Richmond 6,263,232 10,704,024 - - 10,704,024 Municipal Sewer 20,466,640 27,759,474 - 13,167 27,772,641 Richmond Marina 227,391 574,453 - - 574,453 Storm Sewer 1,796,422 2,103,928 1,722,930 - 3,826,858 Cable TV 788,957 1,145,936 - - 1,145,936 Total business-type activities 33,150,245 43,149,758 3,771,674 13,167 46,934,599 Total primary government 237,798,979$ 69,279,473 $ 33,087,815 $ 4,400,117 $ 106,767,405 $ Component units:

RHA Properties - - - - - RHA Housing Corporation 50 - - - -

RHA RAD LLC - - - - - Total component units 50$ - $ - $ - $ - $ General Revenues:

Taxes:

Property taxes - current collections
Sales taxes
Utility user taxes
Documentary transfer taxes
Other taxes
Total taxes
Unrestricted intergovernmental
Use of money and property
Gain (loss) from sale of capital assets
Other
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements
26 Governmental Business-Type RHA RHA Housing RHA
Activities Activities Total Properties Corporation RDA LLC (31,262,394)$ - $ (31,262,394)$ (87,958,720) - (87,958,720) (16,272,789) - (16,272,789) 16,057,352 - 16,057,352 (7,920,853) - (7,920,853) (4,633,168) - (4,633,168) (12,825,356) - (12,825,356) (144,815,928) - (144,815,928) - (696,916) (696,916) - 4,440,792 4,440,792 - 7,306,001 7,306,001 - 347,062 347,062 - 2,030,436 2,030,436 - 356,979 356,979 - 13,784,354 13,784,354 (144,815,928) 13,784,354 (131,031,574)
- - - - (50) -
- - - - (50) -
65,075,408 - 65,075,408 - - - 48,998,406 - 48,998,406 - - - 45,240,705 - 45,240,705 - - - 19,857,680 - 19,857,680 - - - 7,424,135 - 7,424,135 - - - 186,596,334 - 186,596,334 - - - 6,593,602 - 6,593,602 - - - 1,461,004 145,810 1,606,814 - - - 71,458 - 71,458 - - - 1,357,022 - 1,357,022 - - - (11,279,988) 11,279,988 - - - - 184,799,432 11,425,798 196,225,230 - - - 39,983,504 25,210,152 65,193,656 - (50) - (298,727,811) 62,970,672 (235,757,139) - 4,809 14,510,000 (258,744,307)$ 88,180,824 $ (170,563,483)$ - $ 4,759$ 14,510,000$ Primary Government Component Units
Net (Expense) Revenue
and Changes in Net Position
27 This page intentionally left blank
28 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 GOVERNMENTAL FUND FINANCIAL STATEMENTS
The funds described below were determined to be major governmental funds by the City in the current fiscal year.

Individual nonmajor governmental funds may be found in the supplemental section.

The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.

The Community Development and Loan Programs Special Revenue Fund accounts for the receipt of Community Development Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program grant monies and the use of the grants. The Fund also accounts for the low and moderate income housing activities of the City as Housing Successor to the former Redevelopment Agency. Related to the grant disallowed costs discussed in the notes to the financial statements, the City purchased certain loans that had previously been funded with Community Development Block Grant and HOME funds. The grants and loan programs are to be used to provide, within the City of Richmond, new affordable housing, improve existing conditions, assist homeless and disabled with housing, and to expand economic opportunities in business, and employment for low and moderate income residents. 30 City of Richmond
Balance Sheet
Governmental Funds
June 30, 2021
Community
Development Othe r Total
General and Loan Governmental Governmental
Fund Program s Funds Funds
ASSETS
Cash and investments 33,213,554$ 5,399,224 $ 46,949,540 $ 85,562,318 $ Restricted cash and investments - 2,007,696 12,060,716 14,068,412 Receivables:

Accounts, net 11,562,758 2,292 2,635,321 14,200,371
Interest 10,836 1,915 12,690 25,44
1 Grants 29,677 172,449 5,881,007 6,083,133
Loans 3,041,758 42,478,419 779,013 46,299,190
Due from other funds 5,732 - - 5,732
Advances to other funds 13,062,225 - - 13,062,225
Property held for resale - 78,016 - 78,016
Prepaids and supplies 637,513 - - 637,513
Total assets 61,564,053 50,140,011 68,318,287 180,022,351

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 6,242,621 75,645 8,900,866 15,219,132 Refundable deposits 215,438 - 665,933 881,37 1
Due to other funds - - 5,732 5,732
Unearned revenue 3,615,918 - 2,900,459 6,516,377
Total liabilities 10,073,977 75,645 12,472,990 22,622,612 Deferred inflows of resources:

Unavailable revenue 2,376,034 18,849,330 6,055,015 27,280,379 Total deferred inflows of resouces 2,376,034 18,849,330 6,055,015 27,280,379 Fund Balances:

Nonspendable 14,399,738 - - 14,399,738
Restricted - 31,215,036 48,946,958 80,161,994
Committed 9,800,000 9,800,000
Assigned 2,436,475 - 2,521,099 4,957,574
Unassigned 22,477,829 - (1,677,775
) 20,800,054
Total fund balances 49,114,042 31,215,036 49,790,282 130,119,360 Total liabilities, deferred inflows
of resources, and fund balances 61,564,053$ 50,140,011 $ 68,318,287 $ 180,022,351 $ See accompanying Notes to Basic Financial Statements
31 Total Fund Balances - Total Governmental Funds 130,119,360$ Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciabl
e 58,596,943$ (2,826,937 )$ 55,770,006
Depreciable, net 227,558,694 (5,102,152 ) 222,456,542
Total capital assets 286,155,637$ (7,929,089 )$ 278,226,548 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position. 10,351,005
Unavailabl
e revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 27,280,379 In th
e Government-Wide Financial Statements , deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 41,371,442 Deferred outflows of resources related to OPEB 2,937,303 Deferred inflows of resources related to pension (5,608,373) Deferred inflows of resources related to OPEB (50,271,453) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (35,782) $ 35,782 $ - $ Interest payable (1,194,997) 9,717 (1,185,280) Long-term debt - due within one year (15,649,018) 251,951 (15,397,067) Compensated absences - due in more than one year (13,081,217) 75,445 (13,005,772) Long-term debt - due in more than one year (235,376,566) 1,736,079 (233,640,487) Net pension liability/asset (336,186,708) 3,678,178 (332,508,530) Net OPEB liability (98,856,405) 1,443,023 (97,413,382 ) Total long-term liabilities (700,380,693)$ 7,230,175 $ (693,150,518 ) Net Position of Governmental Activities (258,744,307)$
City of Richmond
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
32 City of Richmond
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2021
Community
Development Other Total
General and Loan Governmental Governmental
Fund Program s Funds Funds
REVENUES:

Property taxes 45,140,902 $ - $ 25,153,585$ 70,294,487 $ Sales taxes 48,998,406 - - 48,998,406 Utility user taxes 45,240,705 - - 45,240,705 Other taxes 27,066,292 - - 27,066,292 Licenses, permits and fees 3,235,491 665,999 14,415,062 18,316,552 Fines, forfeitures and penalties 454,778 - 692 455,470 Use of money and property 107,022 202,108 163,086 472,216 Intergovernmental 803,692 1,579,842 21,528,800 23,912,334 Charges for services 6,730,499 - 8,641,090 15,371,589 Rent 699,301 - - 699,301 Other 403,034 898,903 189,377 1,491,314 Total revenues 178,880,122 3,346,852 70,091,692 252,318,666 EXPENDITURES:

Current:

General government 30,245,217 - 16,247,767 46,492,984 Public safety 96,372,052 - 2,247,410 98,619,462 Public works 24,754,571 - 7,278,273 32,032,844 Community development - 505,501 5,201,909 5,707,410 Cultural and recreational 9,087,406 - 718,644 9,806,050 Housing and redevelopment - 945,529 2,179,259 3,124,788 Capital outlay 113,178 - 5,968,835 6,082,013 Debt service:

Principal 910,082 - 13,513,000 14,423,082 Interest and fiscal charges 137,257 - 6,907,538 7,044,795 Total expenditures 161,619,763 1,451,030 60,262,635 223,333,428

REVENUES OVER (UNDER)
EXPENDITURES 17,260,359 1,895,822 9,829,057 28,985,238 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 71,458 - - 71,458 Transfers in 9,454,780 - 6,069,525 15,524,305 Transfers out (16,318,786) - (10,714,975) (27,033,761) Total other financing sources (uses) (6,792,548) - (4,645,450) (11,437,998) Net change in fund balances 10,467,811 1,895,822 5,183,607 17,547,240 FUND BALANCES (DEFICITS):

Beginning of year 38,646,231 29,319,214 44,606,675 112,572,120 End of year 49,114,042$ 31,215,036 $ 49,790,282 $ 130,119,360 $ See accompanying Notes to Basic Financial Statements
33 City of Richmond
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds 17,547,240$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 6,309,279
Depreciation expens e on capital asset s was reported in th e Government-Wide Statement of Activities , but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (10,428,862) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (125,790) Debt proceeds provide current financial resource s to governmental funds , but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayment
s 14,423,082
Capital appreciation bond accretion (6,729,666)
Amortization of bonds premium 863,438
Interest payable 168,165
Current year employer pension and OPEB contribution s are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 39,468,325
Pension expens
e is reported in th e Government-Wide Statement of Activitie s does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (39,668,043) OPEB expens e is reported in th e Government-Wide Statement of Activitie s does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. 13,584,158 Unavailable revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 1,939,642
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 2,632,536
Change in Net Position of Governmental Activities 39,983,504$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
34 PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for operations financed and operated in a manner similar to a private business enterprise.

The intent of the City is that most of the cost of providing goods and services be financed primarily through user charges.

The concept of major funds extends to proprietary funds. The City has identified the funds below as major proprietary funds in the current fiscal year.

Generally accepted accounting principles do not provide for the disclosure of budget versus actual comparisons regarding proprietary funds that are major.

The Richmond Housing Authority fund accounts for all funds provided by the Department of Housin g and Urban Development (HUD) to assist low income families in obtaining decent, safe and sanitary housing.

The Port of Richmond fund accounts for all financial transactions relating to the City-owned marine terminal facilities and commercial property rentals.

The Municipal Sewer fund account s for all financial transaction s relating to the Cit y's Wastewater Collection and Treatment. Services are on a user charge basis to residents and business owners located in Richmond. 35 City of Richmond
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2021
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
ASSETS
Current assets:

Cash and investments 2,754,022 $ 3,257,402 $ 39,028,273 $ 5,824,032 $ Restricted cash and investments 97,786 150,62 7 13,619,646 89,726 Receivables:

Accounts, net 238,43 1 6,028,758 78,503 434,789
Interest - 672 11,243 1,487
Grants 206,508 - - -
Total current assets 3,296,747 9,437,459 52,737,665 6,350,034 Noncurrent assets
:

Receivables:

Due from developer 11,221,743 - - -
Advances to other funds - - - -
Capital assets:

Nondepreciable 1,708,686 4,937,160 29,653,565 3,854,694 Depreciable 44,836,474 87,500,286 189,100,926 35,348,998 Less accumulated depreciation (30,158,605) (55,946,334) (75,942,119) (33,118,371) Net capital assets 16,386,555 36,491,112 142,812,372 6,085,32 1 Total noncurrent assets 27,608,298 36,491,112 142,812,372 6,085,32 1 Total assets 30,905,045 45,928,57 1 195,550,037 12,435,355

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 584,453 217,455 425,93 1 309,964 Deferred outflows of resources - OPEB 59,616 16,259 46,880 29,538 Deferred charge on refunding - - 6,247,725 -
Total deferred outflows of resources 644,069 233,714 6,720,536 339,502

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,602,423 293,306 6,491,825 333,937 Interest payable - 96,750 2,315,458 96,395
Due to other funds - - - - Refundable deposits 143,766 238,423 - 89,173
Compensated absences - current 3,073 5,81 1 102,443 41,737 Claims payable - current - - - -
Long-term debt - current - 4,100,000 2,480,000 101,656
Total current liabilities 1, 749,262 4,734,290 11,389,726 662,898 Noncurrent liabilities:

Advances from other funds - 13,062,225 - 2,580,535
Unearned revenue 1,814,047 520,000 36,280 591,867
Compensated absences 13,146 22,797 5,200 5,838
Claims payable ----
Long-term debt 1,001,530 9,504,419 135,406,366 2,235,202 Net pension liability 4,464,114 1,660,942 3,253,302 2,367,536 Net OPEB liability 1,935,762 527,935 1,522,213 959,083
Total noncurrent liabilities 9,228,599 25,298,318 140,223,36 1 8,740,061 Total liabilities 10,977,861 30,032,608 151,613,087 9,402,959

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 76,829 28,586 55,993 40,747 Deferred inflows of resources - OPEB 918,886 250,605 722,578 455,266 Total deferred inflows of resources 995,715 279,19 1 778,571 496,013

NET POSITION (DEFICIT)
Net investment in capital assets 15,385,025 22,886,693 33,718,087 3,748,463 Restricted for debt service - 150,62 7 13,619,646 89,726 Unrestricted 4,190,513 (7,186,834) 2,541,182 (962,304)
Total net position 19,575,538$ 15,850,486 $ 49,878,915 $ 2,875,885 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
36 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
50,863,729$ 52,037,305 $
13,957,785 1,233,426
6,780,481 9,000
13,402 16,192
206,508 -
71,821,905 53,295,923
11,221,743 -
- 2,580,535
40,154,105 2,826,937
356,786,684 24,784,013
(195,165,429) (19,681,861)
201,775,360 7,929,089
212,997,103 10,509,624
284,819,008 63,805,547
1,537,803 481,556
152,293 44,44
1 6,247,725 -
7,937,821 525,997
8,721,491 1,609,733
2,508,603 9,717
- -
471,362 -
153,064 35,782
- 13,033,895
6,681,656 251,95 1
18,536,176 14,941,078
15,642,760 -
2,962,194 -
46,981 75,445
- 31,358,444
148,147,517 1,736,079
11,745,894 3,678,178
4,944,993 1,443,023
183,490,339 38,291,169
202,026,515 53,232,247
202,155 63,305
2,347,335 684,987
2,549,490 748,292
75,738,268 7,174,485
13,859,999 -
(1,417,443) 3,176,520
88,180,824$ 10,351,005 $
37 City of Richmond
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Richmond Housing Port of Municipal Other Enterprise
Authority Richmond Sewe r Funds
OPERATING REVENUES:

Rental 427,343 $ - $ - $ - $ Service charges - 2,800,099 27,759,474 3,244,57 1
Lease income - 7,809,710 - 579,696
Other 434,600 94,215 - 50
Total operating revenues 861,943 10,704,024 27,759,474 3,824,317 OPERATING EXPENSES:

Salaries and benefits 62,911 449,534 1,251,923 670,75 1 General and administrative 2,597,050 1,636,96 1 9,863,869 1,832,695 Maintenance 941,732 294,062 573,845 -
Depreciation - 3,544,329 3,581,983 130,65 1
Claims losses ----
Other 5,910 7,909 249,17 1 -
Total operating expenses 3,607,603 5,932,795 15,520,791 2,634,097 OPERATING INCOME (LOSS) (2,745,660) 4,771,229 12,238,683 1,190,220 NONOPERATING REVENUES (EXPENSES):

Interest income 575 3,719 120,417 21,099
Grants 2,048,744 - - 1,722,930
Interest expense - (330,437) (4,945,849) (178,673)
Total nonoperating revenues (expenses) 2,049,319 (326,718) (4,825,432) 1,565,356 Income (loss) before
contributions and transfers (696,341) 4,444,511 7,413,251 2,755,576 CONTRIBUTIONS AND TRANSFERS:

Capital contributions -- 1 3 , 1 6 7-
Transfers in 11,435,028 - - -
Transfers out
(68,262) -- (86,778)
Total contributions and transfers 11,366,766 - 13,167 (86,778) Change in net position 10,670,425 4,444,511 7,426,418 2,668,798 NET POSITION:

Beginning of year, as restated 8,905,113 11,405,975 42,452,497 207,087 End of year 19,575,538$ 15,850,486 $ 49,878,915 $ 2,875,885 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
38 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
427,343$ - $
33,804,144 21,737,290
8,389,406 -
528,865 -
43,149,758 21,737,290
2,435,119 3,492,528
15,930,575 1,097,35 1
1,809,639 1,780,97 1
7,256,963 985,343
- 13,476,986
262,990 1,005
27,695,286 20,834,184
15,454,472 903,106
145,810 289,507
3,771,674 1,292,953
(5,454,959) (82,498)
(1,537,475) 1,499,962
13,916,997 2,403,068
13,167 -
11,435,028 426,018
(155,040) (196,550)
11,293,155 229,468
25,210,152 2,632,536
62,970,672 7,718,469
88,180,824$ 10,351,005 $
39 City of Richmond
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers/interfund services 4,695,718 $ 10,242,797 $ 27,775,903 $ 4,433,434 $ Payments to suppliers (3,774,281) (1,877,077) (8,856,762) (1,741,693) Payments to employees (452,790) (656,163) (1,581,608) (879,209) Insurance premiums and claims paid ----
Net cash provided by (used in) operating activities 468,647 7,709,557 17,337,533 1,812,532

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) (15,255,272) (286,375) 901,396 (46,719) Receipts from other governments 3,091,786 - - -
Transfers in 11,435,028 - - -
Transfers out
(68,262) -- (86,778)
Net cash provided by (used in)
noncapital financing activities (796,720) (286,375) 901,396 (133,497)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts - - 13,167 1,722,930
Acquisition of capital assets - - (9,430,481) (1,702,010) Principal payments on capital debt - (3,945,000) (2,515,000) (97,279) Interest paid - (748,210) (5,633,851) (182,686)
Net cash provided by (used in)
capital and related financing activities - (4,693,210) (17,566,165) (259,045) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 575 3,613 145,832 25,423 Net cash provided by (used in) investing activities 575 3,613 145,832 25,423 Net cash flows (327,498) 2,733,585 818,596 1,445,413 CASH AND INVESTMENTS - Beginning of year 3,179,306 674,444 51,829,323 4,468,345 CASH AND INVESTMENTS - End of year 2,851,808$ 3,408,029 $ 52,647,919 $ 5,913,758 $

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

Operating income (loss) (2,745,660)$ 4,771,229 $ 12,238,683 $ 1,190,220 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 3,544,329 3,581,983 130,65 1
Changes in assets and liabilities:

Receivables, net 2,755,944 (461,227) 16,429 17,250
Accounts payable and accrued liabilities (226,505) 19,355 1,830,123 90,348 Refundable deposits (3,084) 42,500 - 654
Unearned revenue 1,077,831 - - 591,867
Compensated absences payable 4,078 (99,967) (19,439) (13,542) Claims payable ----
Net pension liability and deferred outflows/inflows 7,854 2,923 5,725 4,165 Net OPEB liability and deferred outflows/inflows (401,811) (109,585) (315,971) (199,081) Net cash provided by (used in) operating activities 468,647$ 7,709,557 $ 17,337,533 $ 1,812,532 $ Business-type Activities
See accompanying Notes to Basic Financial Statements
40 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
47,147,852$ 22,103,102 $
(16,249,813) (1,609,394)
(3,569,770) (3,965,175)
- (12,325,014)
27,328,269 4,203,519
(14,686,970) 9,703,154
3,091,786 -
11,435,028 426,018
(155,040) (151,591)
(315,196) 9,977,581
1,736,097 1,292,953
(11,132,491) (2,003,389)
(6,557,279) (242,336)
(6,564,747) (83,682)
(22,518,420) (1,036,454)
175,443 338,761
175,443 338,76 1
4,670,096 13,483,407
60,151,418 39,787,324
64,821,514$ 53,270,73 1$
15,454,472$ 903,106 $
7,256,963 985,343
2,328,396 365,812
1,713,321 1,269,933
40,070 -
1,669,698 -
(128,870) (179,588)
- 1,151,972
20,667 6,474
(1,026,448) (299,533)
27,328,269$ 4,203,519 $
41 FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are presented separately from the Government-Wide and Fund financial statements.

Trust funds are used to account for assets held by the City as a trustee agent for individuals, private organizations, or other governments.

Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.

The financial activities of the Trust and Custodial funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements. 42 City of Richmond
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Pension Private-Purpose
Trust Funds Trust Funds Custodial Funds
ASSETS
Cash and investments - $ 7,075,368$ 6,572,233 $ Restricted cash and investments 1,226,909 17,705,972 923,497 Pension and OPEB plan cash and investments:

Local Agency Investment Fund 186,062 - - Mutual fund investments 13,042,440 - - Accounts receivable - 33,665 - Interest receivable 467 22,272 2,005 Grants receivable - 451,406 - Loans receivable - 1,021,000 - Prepaids and other assets - 5,716,860 - Total assets 14,455,878 32,026,543 7,497,735

DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - 436,160 - Total deferred outflows of resources - 436,160 -

LIABILITIES
Accounts payable and accrued liabilities - 266,262 5,656 Interest payable - 697,901 - Long-term debt:

Due within one year - 6,645,000 - Due in more than one year - 53,465,925 - Total liabilities - 61,075,088 5,656 NET POSITION:

Restricted for employees' pension and OPEB benefits 14,455,878 - - Held in trust for other governments - (28,612,385) - Restricted for individuals, organizations, and other governments - - 7,492,079 Total net position 14,455,878$ (28,612,385) $ 7,492,079 $ See accompanying Notes to Basic Financial Statements.
43 City of Richmond
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Pension Private-Purpose
Trust Funds Trust Funds Custodial Funds
ADDITIONS:

Property taxes -$ 12,927,768$ 1,204,334 $ Contributions to trust - employers 1,256,029 451,406 1,501,073 Net investment income:

Net increase (decrease) in fair value of investments 2,392,584 - - Interest income 214,608 1,046,644 27,306 Less investment management fees (72,568) - - Gain from sale of property - 925,585 - Total additions 3,790,653 15,351,403 2,732,713 DEDUCTIONS:

Community development - 1,970,023 - Pension and OPEB benefits 1,864,713 - - Payments in accordance with trust agreements - 211,835 - Interest and fiscal charges - 4,128,651 975,778 Other - - 500,856 Total deductions 1,864,713 6,310,509 1,476,634 Change in net position 1,925,940 9,040,894 1,256,079 NET POSITION:

Beginning of year, as restated 12,529,938 (37,653,279) 6,236,000 End of year 14,455,878$ (28,612,385) $ 7,492,079 $ See accompanying Notes to Basic Financial Statements.
44 45

NOTES TO BASIC

FINANCIAL STATEMENTS
46 This page intentionally left blank.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
47 1. SUMMARY OF SIGNIFICAN T ACCOUNTING POLICIES
The basic financial statements of the City of Richmond , California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting princi ples. The City’s significant accounting policies are described below.

A. Financial Reporting Entity
The City was incorporated in 1905 under the laws of the State of California and adopted its charter in 1909. The City operates under a Council-Manager form of government and provides the following services to its citizens as authorized by its charte r: police and fire protection, planning and community development, streets and roads, parks and recreation, sewage treatment, drainage and capital projects. In addition, the City has a port, marina, municipal and storm sewer enterprises, a housing authority, a joint powers financing authority, and a parking authority which is inactive.

The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financ ial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The discretely presented component unit, on the other hand, is reported in a separate column in the basic financial statements to emphasize it is legally separate from the government.

Primary Government
The financial statements of the primary government of the City include the activities of the City as well as the Richmond Housing Authority, the Richmond Joint Powers Financing Authority, the Richmond Neighborhood Stabilization Corpor ation, the Richmond Parking Authority and the Richmond Surplus Property Authority all of which are controlled by and dependent on the City. While these are separate legal entities, their financial activities are integral to those of the City. Their financial activities have been aggregated and merged (termed “blended”) with those of the primary government of the City in the accompanying financial statements.

Blended Component Units
Richmond Housing Authority (Housing Authority) – Formed in 1941 as a separate legal entity under the provisions of the Housing Act of 1937, the Housing Authority was established to use funds provided by the Department of Housing and Urban Development (HUD) to rehabilitate local deteriorated housing and to subsidize low-income families in obtaining decent, safe, and sanitary housing needs.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
48 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Blended Component Units, Continued
Although the Housing Authority is a separate legal enti ty, it is an integral part of the City. The City exercises significant financial and management control over the Housing Authority and members of City Council serve as the governing board of the Housing Authority. The financial statements of the Housing Authority are included in the City’s basic financial st atements as an enterprise fund. Separate financial statements for the Housing Authority may be obtained by contacting the Richmond Housing Authority, 330 24th Street, Richmond, California 94804.

Richmond Joint Powers Financing Authority (JPFA) – A joint exercise of powers authority formed on December 1, 1989, by and between the City and the former Redevelopment Agency, the JPFA was created to assist the City, the Redevelopment Agency, and other local public agencies in financing and refinancing capital improvements and working capital pursuant to the Marks-Roos Local Bond Pooling Act of 1985.

The JPFA is authorized to purchase obligations of the City, Redevelopment Agency, and other local public agencies.

Although the JPFA is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the JPFA and the members of the City Council serve as the Board of Directors. The operations of the JPFA are included in the City’s basic financial statements as a debt service fund. Separate financial statements for the JPFA may be obtained by contacting the Office of Finance, City of Richmond, 450 Civic Center Plaza, Richmond, California 94804.

Richmond Neighborhood Stabilization Corporation (RNSC) – A California nonprofit public benefit Corporation formed in July 2009 by the City and the former Redevelopment Agency under the laws of the State of California. The Corporation was organize d for the purpose of administering and operating the City’s Neighborhood Stabilization Program (NSP), which includes purchasing, developing, financing, rehabilitating, land banking and/or demolishing bl ighted properties and foreclosed or abandoned properties utilizing the NSP funds or other public and private funding sources, and assisting the City and the Agency in providing affordable home ownership opportunities for households of low and moderate income by facilitating the financing necessary for th e sale and resale of deed-restricted affordable ownership units to low and moderate income households at affordable costs, and other similar functions.

The Corporation is governed by a board of directors consisting of the City Manager, the Finance Director, and five other City and Housing Authority Directors. Al though the RNSC is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the RNSC and members of the Board of Directors are ap pointed by City Council and City management has operational responsibility for the RNSC. The operatio ns of the RNSC are included in the City’s basic financial statements as a special revenue fund. Se parate financial statements for the RNSC may be obtained by contacting the Office of Finance, Ci ty of Richmond, 450 Civic Center Plaza, Richmond, California 94804.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021

49 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

A. Financial Reporting Entity, Continued

Blended Component Units, Continued

Richmond Surplus Property Authority – Formed to become the owner of certain property declared surplus by the U.S. Government, the Authority is a separa te legal entity but it is an integral part of the City. The City exercises significant financial and management control over the Authority and members of the City Council serve as the governing board of the Authority. The Authority was reactivated in fiscal year 2011 to facilitate certain Port of Richmond transactions. The financ ial activities of the Authority are included in the Port of Richmond Enterprise Fund. Separate financial statements are not issued for the Authority.

Richmond Parking Authority (Parking Authority) – Formed in 1975 pursuant to the provisions of California statutes for the purpose of financing the cons truction of off-street parking facilities. Although the Parking Authority is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the Parking Authority and members of the City Council serve as the governing board of the Parking Authority. The Parking Authority is inactive.

Discretely Presented Component Units

RHA Properties – A joint powers agreement between the City and the Housing Authority formed in 2004 for the purpose of owning and managing the operat ions of an affordable housing residential complex known as The Hilltop at Westridge Apartments in the City, dedicated to the needs of elderly persons. The City and the Housing Authority funded the acquisition of this complex through the issuance of debt. The City and Housing Authority exercise significant financial and management control over RHA Properties and appoint members of the Board of Directors, however RHA Properties manages its own programs separate from the City or the Housing Authority. Therefore, the financial activities of RHA Properties are discretely presented in the RHA Properties Component Unit column of the Statement of Net Position and the Statement of Activities.

RHA Housing Corporation – RHA Housing Corporation was incorporated and registered on January 26, 2004 as a California nonprofit public benefit corporat ion to benefit and support the RHA with respect to the Easter Hill development. RHA Housing Corporat ion entered into RAD Conversion redevelopment activities and it acts as the sole and managing me mber of RHA RAD LLC. The Corporation’s fiscal year ends on December 31. The City and Housing Author ity exercise significant financial and management control over RHA Housing Corporation and appoint members of the Board of Directors, however RHA Housing Corporation manages its own programs separa te from the City or the Housing Authority.

Therefore, the financial activities of RHA Housing Corporation are discretely presented in the RHA Housing Corporation Component Unit column of the Statement of Net Position and the Statement of Activities. Separate financial stat ements for RHA Housing Corporation may be obtained by contacting the Richmond Housing Authority, 330 24th Street, Richmond, California 94804.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
50 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Discretely Presented Component Units, Continued
RHA RAD LLC – A California limited liability company was formed on July 11, 2013 by RHA Housing Corporation, the sole and managing member. The company is operated exclusively to further the tax exempt charitable purposes of the sole and managi ng member to provide affordable housing for low- income persons where no adequate housing exists for such persons, and to own and operate housing for the benefit of low-income persons who are in need of affordable, decent, safe and sanitary housing and related services, where an inadequate supply of housing exists for such persons. The City and Housing Authority exercise significant financial and management control over RHA RAD LLC and RHA Housing Corporation is the sole member of RHA RAD LLC, however RHA RAD LLC manages its own programs separate from the City or the Housing Authority. Therefore, the financial activities of RHA RAD LLC are discretely presented in the RHA RAD LLC Component Unit column of the Statement of Net Position and the Statement of Activities. Separate financial statements for RHA RAD LLC may be obtained by contacting the Richmond Housing Authority, 330 24th Street, Richmond, California 94804.

In order for the Authority to proceed in its particip ation into the RAD Program as discussed in Note 16, RHA RAD LLC shall act as the managing general partner of RHA RAD Housing Partnership LP.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self-balancing accounts that comprise its assets , liabilities, deferred outflows/inflows of resources, fund equity, revenues, and expenditures or expenses. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. Fiduciary activities of the City are not included in these statements; they are presented separately.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
51 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, Continued
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of 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 of 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.

The Government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows/inflows of resources and liabilities, includ ing capital assets as well as infr astructure assets and long-term liabilities, are included in the Statement of Net Position. The Statement of Activities presents all the City’s revenues, expenses and other changes in Net Position . Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total column. In the Statement of Activities, internal service fund transactions have been eliminated. However, transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/from other funds
x Advances to/from other funds
x Transfers in/out
The City applies all applicable GASB pronou ncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and in the aggregate for all non-major funds. An accompanying schedule is pr esented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide financial statements.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
52 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued
All governmental funds are accounted for on the “c urrent financial resources” measurement focus and the modified accrual basis of accounting. Accordingl y, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

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

Accordingly, revenues are recorded when received su ch as business licenses and fines and penalties in cash, except that revenues subject to accrual (generally ninety days after the fiscal year-end) are recognized when due. The primary revenue sources which have been treated as susceptible to accrual by the City are property taxes, sales taxes, transient occupancy taxes, franchise taxes, certain other intergovernmental revenues, and earnings on investme nts. Expenditures are recorded in the accounting period in which the related fund liability is incurred also generally ninety days after the fiscal year end.

Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences between the two approaches.

The City reports the following major governmental funds in the accompanying financial statements:

General Fund – the General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.

Community Development and Loan Programs Special Revenue Fund – accounts for the receipt of Community Development Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program grant monies and the use of the grants. The Fund also accounts for the low and moderate income housing activities of the City as Housing Successor to the former Redevelopment Agency. Related to the grant disallowed costs discussed in Note 4, the City purchased certain loans that had previously been funded with Community Development Block Grant and HOME funds. The grants and loan programs are to be used to provid e, within the City of Richmond, new affordable housing, improve existing housing conditions, assi st homeless and disabled with housing, and to expand economic opportunities in business, and employment for low and moderate income residents.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
53 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund and in the aggregate for all non-major funds. A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements.

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

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred, regardless of when cash changes hands.

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

The City reports the following major enterprise funds as proprietary funds of the City:

Richmond Housing Authority – This fund accounts for all funds provided by the Department of Housing and Urban Development (HUD) to assist low income families in obtaining decent, safe and sanitary housing.

Port of Richmond – This fund accounts for all financial transactions relating to the City-owned marine terminal facilities and commercial property rentals.

Municipal Sewer – This fund accounts for all financia l transactions relating to the City’s Wastewater Collection and Treatment. Services are on a user charge basis to residents and business owners located in Richmond.

The City also reports the following proprietary fund type:

Internal Service Funds – The funds account for insurance reserves, equipment services and replacement and police telecommunications, all of which are provided to other departments on a cost- reimbursement basis.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
54 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position, and a Statement of Changes in Fiduciary Net Position. The City’s Fiduciary funds represent Pension and OPEB Trust funds, Private-Purpose Trust funds and Cust odial funds. Custodial funds are cu stodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Pension Trust funds and Private- Purpose Trust funds are accounted for on an econom ic resources measurement focus under the accrual basis of accounting.

The City reports the following fiduciary fund types:

Trust Funds - The Pension and OPEB Trust Funds account for assets held by the City as an Agent for various functions. The General Pension, Police and Firemen’s and Garfield Pension Funds account for the accumulation of resources to be used for retiree pension payments at appropriate amounts and times in the future. The Pt. Molate Private-Purpose Trust Fund is used to account for assets held by the City as an agent for the U.S. Navy and a priv ate developer for the cleanup of Point Molate as discussed in Note 16. The Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund was established as of February 1, 2012 to account for the activities of the Successor Agency to the former Richmond Community Redevelopment Agency as discussed in Note

17. The financial activities of the Trust Funds are excluded from the Government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.

Custodial Funds – These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments, including special assessment districts within the City and non-public organizations. The financial activities of these funds are excluded from the government-wide financial statement, but are presented in separate Fiduciary Fund financial statements.

C. Cash and Investments
The City maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed as cash and investments on the balance sheet for governmental funds and the statements of net position for proprietary and fiduciary funds. Investments are stated at fair value.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
55 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued C. Cash and Investments, Continued
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3) , certain disclosure requirements for deposits and investment risks were made in the following areas:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified includin g use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one-year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significan t other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not have any investments measured using Level 3 inputs as of June 30, 2021.

The City participates in an investment pool manage d by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “cash and investments” in the accompanying basic financial statements.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash and equivalents defined above.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
56 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued D. Prepaids and Supplies
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial stat ements. The cost of prepaid items is recorded as expenditures/expenses when consumed, rather than when purchased. Prepaid items in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.

Supplies are valued at cost using the weighted av erage method. Supplies of the governmental funds consist of expendable supplies held for consumption. The cost is re corded as an expenditure in the governmental funds at the time individual inventor y items are consumed rather than when purchased.

Reported governmental fund inventories are equa lly offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.

E. Capital Assets
Capital assets are valued at historical cost or at estimated acquisition value on the date donated. If actual historical costs are not available, assets have been valued at approximate historical cost. The City’s policy is to capitalize assets costing at least $5,000, and th e Housing Authority’s policy is to capitalize assets costing at least $1,000. Depreciation is recorded on a straight-line basis over the following estimated useful lives:

Infrastructure includes streets systems, parks and recreation lands and improvement systems, storm water collection systems, and buildings combined with site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system is divided into subsystems. For example, the street system includes pavement, curbs and gutters, sidewalks, medians, streetlights, traffic control devices such as signs, signals and pavement markings, landscaping and land.

In the case of the initial capitalization of general infrastructure assets reported by governmental activities, the City chose to include all such items regardless of their acquisition date or amount.

Net interest costs incurred during the construction of capital assets for the business-type and proprietary funds are capitalized as part of the asset’s cost.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
57 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued F. Property Held for Resale
Property held for resale is accounted for at the lower of cost or net realizable value or agreed upon sales price if a disposition agreement has been made with a developer.

The City received five properties for resale in fisc al year 2013 with a book value of $573,822 from the acceptance of a deed in lieu of foreclosure on the pr operty related to developer defaults on prior loans under the Richmond Neighborhood Stabilization loan program discussed in Note 4. These properties were rehabilitated during fiscal years 2014 and 2015 in creasing the carrying value by a total of $749,716 and $39,303, respectively. In fiscal year 2014, the Ci t y r e c e i v e d a n a d d i t i o n a l f o u r p r o p e r t i e s w i t h a carrying value of $648,238. Six properties were sold in fiscal year 2016, the remaining two properties held for resale had a book value of $671,255 as of June 30, 2017. In fiscal year 2018, one property was sold during the year, and the carrying value of the one re maining property held for resale was $78,016 as of June 30, 2021.

G. Property Taxes
The State of California’s Constitution limits the combined maximum property tax rate on any given property to one percent of its assessed value except for voter approved incremental property taxes.

Assessed value equals purchase price and may be adjusted by no more than two percent per year unless the property is modified, sold, or transferred. The State Legislature distributes property tax receipts from among the counties, cities, school districts, and other districts.

Contra Costa County assesses properties and bills for and collects property taxes as follows:

The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed. Property taxes levied are recorded as revenue in the fiscal year of levy.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021

58 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

H. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial st atement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The first item that qualifies for reporting in this category is the deferred charge on refunding re ported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also has deferred outflows of resources related to change in fair value of derivative instruments, pensions and OPEB as discussed in Notes 7, 11, and 12.

In addition to liabilities, the stat ement of net position or balance sh eet report a separate section for deferred inflows of resources. This separate financial statement elemen t, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not b e r e c o g n i z e d a s a n i n f l o w o f r e s o u r c e s ( r e v e n u e ) until that time. The first item which qualifies for reporting in this category arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: loans receivable, grants receivable and interest on interfund advances. See Note 8 for further discussion . The City also has deferred inflows of resources related to pensions and OPEB as discussed in Notes 11 and 12. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

I. Net Position and Fund Balances

Net Position

In the City-wide financial statements, Net Position is classified as follows:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation plus deferred outflows of resources associated with the refunding of related capital debt, reduced by outstanding debt that was used for the acquisition, construction, or improvement of these capital assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments. In addition, net position restricted for pension benefits are restricted as a result of enabling legislation.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.”

When an expense is incurred for purposes for which bo th restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
59 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued I. Net Position and Fu nd Balances, Continued
Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified based on sp ending constraints imposed on the use of resources.

For programs with multiple funding sources, the Ci ty prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

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

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by the same formal action of the City Council. The highest level of formal action of the City Council is an Ordinance.

Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee, during the budget approval process or via budget amendments in accordance with the City’s adopted budget policy. This category includes encumbrances; nonspe ndables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

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

J. Compensated Absences
Compensated absences comprise unused vacation and certain other compensated time off, which are accrued and charged to expense as earned. Governmental funds include only amounts that have matured, while their long-term liabilities are recorded in the Statement of Net Position.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
60 1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued K. Bond Issuance Costs, Original Issue Discounts and Premiums and Deferred Charge on Refunding For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Any differences between proprietary refunded debt and the debt issued to refund it, called a deferred charge on refunding, is amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter. The deferr ed charge on refunding is reported as a deferred i n f l o w o r o u t f l o w o f r e s o u r c e s , a s a p p l i c a b l e . B o n d i s s u a n c e c o s t s , o t h e r t h a n p r e p a i d i n s u r a n c e , a r e expensed in the year incurred.

L. Pension
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) 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 refund s of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plans and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Trust and the PARS Trust. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

2. CASH AND INVESTMENTS
The City maintains a cash and investment pool for a ll funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related funds.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
61 2. CASH AND INVESTMENTS, Continued
The following is a summary of cash and investments at June 30, 2021:

A. Classification
Cash and investments at June 30, 2021 consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $31,128,826 at June 30, 2021. Bank balances before reconciling items were a positive amount of $36,499,665 at June 30, 2021. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The remaining amount was collateralized with securities held by pledging the financial institutions.

Primary Government:

Local Agency Investment Funds (LAIF) 74,999,067 $
CalTrust Short-Term Fund 102,265,767
CalTrust Medium-Term Fund 87,973
Money Market Mutual Funds (U.S. Securities) 4,485,11 1
Held by Trustee:

Money Market Mutual Funds (U.S. Securities) 36,600,190
Investment Agreement 1,039,778
Guaranteed Investment Contracts 625,001
Total investments 220,102,887
Cash in banks and on hand - Primary Government 31,124,067 Cash in banks - RHA Housing Corporation 4,759
Total cash on hand and deposits 31,128,826
Total cash and investments 251,231,713 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
62 2. CASH AND INVESTMENTS, Continued
B. Deposits, Continued
The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

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

C. Investments Authorized by the Code and the City’s Investment Policy Under the provisions of the City’s Investment Policy, and in accordance with California Government Code, the following investments are authorized:

Investments are stated at fair value using the aggregate method in all funds, resulting in the following investment income in all funds for the year ended June 30, 2021:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
63 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code an d the City’s Investment Policy, Continued The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally, the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021 include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage backed securities, entitle their purchasers to receive a share of the cash flows from a pool of asse ts such as principal and interest repayments from a pool of mortgages (such as collateralized mortgage obligations) or credit card receivables.

At June 30, 2021, the City had $74,999,067 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.000083 was used to calculate the fair value of the investments in LAIF.

The City reports its investment in CalTrust at the fair value amount provided by CalTrust, which is the same as the value of the pool shares. The balance in the Short-Term Fund is available for withdrawal on demand and the balance in the Medium-Term Fund is available for withdrawal upon two days’ notice, and is based on the accounting records maintained by CalTrust. Included in CalTrust’s investment portfolio are: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States government-spons ored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligatio n secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities. CalTrust’s Short-Term Fund has a target portfolio duration of 0 to 2 years and CalTrust’s Medium-Term Fund has a target portfolio duration of 1.5 to 3.5 years. At June 30, 2021 the Short-Term Fund investments matured in an average of 332 days and the Medium-Term Fund investments matured in an average of 722 days.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
64 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code an d the City’s Investment Policy, Continued Money market funds and mutual funds are available for withdrawal on demand and as of June 30, 2021 have an average maturity from 40 to 49 days.

Prohibited Investments
Under the City’s Investment Policy, the City imposed restrictions on investments. The City cannot invest in any funds in inverse floaters, range notes, or interest only Separate Trading of Registered Interest and Principal of Securities (STRIPS) that are derived from a pool of mortgages, or in any security that could result in zero interest accrual if held to maturity (other than money market mutual funds).

D. Investments Authorized by the Code an d the Housing Authority’s Investment Policy The California Government Code allows the Authority to invest in the following; provided approved percentages and maturities are not exceeded. The tabl e below also identifies certain provisions of the California Government Code:

There are no restrictions on the maximum amount invested in each security type or maximum that can be invested in any one issuer.

The Authority does not have reverse repurchase agreements.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
65 2. CASH AND INVESTMENTS, Continued
E. Investments Authorized by Debt Issues and Lease Agreements Under the terms of the City’s and Authority’s debt issues and lease agreements, the City and Authority are subject to various restrictions in the type, maturi ty and credit ratings of investments of the unspent proceeds of these issues. These restrictions are generally no more restrictive than those listed above regarding investment of the City’s and Authority’s funds. In addition, some bond indentures authorize investments in guaranteed investment contracts and investment agreements with maturity dates that coincide with the applicable debt maturities. At June 30, 2021, the City and Authority were in compliance with the terms of all these restrictions.

F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
66 2. CASH AND INVESTMENTS, Continued
G. 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. Presented below is the actual rating at June 30, 2021 for each investment type:

H. Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk for the current year.

I. 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
67 2. CASH AND INVESTMENTS, Continued
I. Fair Value Hierarchy, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:

J. Concentration of Credit Risk
The City had no significant investments in the securities of any individual issuers, other than U.S.

Treasury securities, investment pools and money market funds at June 30, 2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
68 3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
Due to/from other fund balances arise in the normal course of business and represent short-term borrowings occurring as a result of expenditures wh ich are paid prior to the receipt of revenues. These balances are expected to be repaid shortly after the end of the fiscal year when revenues are received.

Current amounts due from one fund to another at June 30, 2021 were as follows:

B. Advances To/From Other Funds
At June 30, 2021 the funds below had made advances which were not expected to be repaid within the next year.

Under the terms of a May 2013 Memorandum of Understanding (MOU) between the Housing Authority and RHA Properties, RHA Properties had paid a financial sanction imposed by the Office of the Inspector General (OIG) of $2,257,799 to the Housing Authority from the sale proceeds of the Westridge at Hilltop Apartments. The Housing Authority used those proceeds to retire outstanding debt owed to the General Fund in fiscal year 2017. The Department of Ho using and Urban Development (HUD) disputed the use of the sale proceeds for the repayment of the Gene ral Fund loan, as discussed in Note 16. Although management disputed HUD’s claim, in April 2018 the City and RHA entered into a settlement agreement with HUD under which the City agreed to retu rn $2,096,527 to the Housing Authority, which reestablished the General Fund’s loan to the Housing Authority.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
69 3. INTERFUND TRANSACTIONS, Continued
B. Advances To/From Other Funds, Continued
During fiscal year 2018, the prior short- term amount due to the General Fund of $119,443 to the Housing Authority for Hope VI was added to the advance. The balance of the advance was $2,215,970 as of June 30, 2021. This advance was written off during the fiscal year due to the inability of the Housing Authority to repay it.

In fiscal 2007, the former Redevelopment Agency advanced $174,067 to the Richmond Housing Authority Enterprise Fund, collateralized by a deed of trust on the Westridge at Hilltop Apartments, to assist the Authority with its lease payments for the 2003 A-S Multifamily Housing Revenue Bonds. The loan bears interest of 3%. In fiscal 2012, the advance receivable was transferred to the City as Housing Successor to the former Redevelopment Agency and is recorded in the Community Development and Loan Programs Special Revenue Fund. This advance was written off during the fiscal year du e to the inability of the Housing Authority to repay it.

In fiscal years 2007 through 2014, the General Fund and the Municipal Sewer and Storm Sewer Enterprise Funds made advances to the Richmond Housing Authority Enterprise Fund for police, sewer, and other services as well as the Housing Authority’s empl oyee payroll. The advance repayment terms were amended in April 2010 and the advance bears no interest and was payable in 135 monthly installments of $30,000 and one final installment of $22,446 on or before August 1, 2021. On June 28, 2011 the agreement was amended to make the monthly payments $50,000 for the remaining 71 payments, starting July 1, 2011, and one final installment of $36,634. However, in lieu of monthly payments, repayment may be in a lump sum on August 1, 2021. During fiscal year 2013 , $6,600,000 of the advance was assumed by RHA Properties and was classified as a loan receivable, as discussed in Note 4. No repayments were made during fiscal year 2021 and the remaining balance of the interfund advance as of June 30, 2021 is $1,068,847. This advance was written off during th e fiscal year due to the inability of the Housing Authority to repay it.

In fiscal 2006 the General Fund established repayment terms for its advance of $17,139,855 to the Port of Richmond Enterprise Fund to assist the Port with various lease transactions and other projects. The advance did not bear interest for the first three years; the next five years it bore an interest rate of 4%, with the balance payable on or before June 30, 2015. The advance repayment terms were amended in October 2013, effective June 30, 2013, to convert the accrued unpaid interest of $745,119 to principal and reduce the advance balance by $842,877, and the advance no longer bears interest. Annual principal payments of $150,000 are due beginning June 30, 2014 through June 30, 2066, with a final principal payment of $32,593 due on June 30, 2067, and in addition to those payments, the annual berthing cost of the vessel Red Oak Victory at the Port that is to be paid by the Gene ral Fund will instead offset and reduce the principal balance of the advance based on an established rental schedule. Historical rental payments from August 2004 to June 30, 2012 totaling $842,877 were applied to the principal balance of the loan as of June 30, 2013.

Another provision of the amended agreement provides that upon the sale of any Port property, including Terminal One and Terminal Four, the proceeds from the sale are to be used to repay and reduce the principal balance of the advance. The balance of the advance as of June 30, 2021 is $13,062,225.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
70 3. INTERFUND TRANSACTIONS, Continued
B. Advances To/From Other Funds, Continued
In fiscal 2008 the General Fund advanced $1,758,342 to the Storm Sewer Enterprise Fund for the purpose of providing a clean storm sewer system and street sweeping activities. In fiscal year 2009 the advance was moved to the Insurance Reserves Internal Servic e Fund. The advance bears interest of 4.34% and is payable as follows: Semi-annual principal and interest payments in the amount of $52,460 are to be made April 30 and December 31 of each year commencing in December 2009 until December 2038. The final interest payment of $52,298 and the outstanding principal balance is due April 30, 2039. The Storm Sewer Enterprise Fund did not make the required payments during fiscal years 2015, 2016, 2017, 2018, 2019, 2020, and 2021; therefore unpaid interest of $73,150 was added to the balance of the loan. The balance of the advance and accrued interest as of June 30, 2021 is $2,580,535.

C. Transfers In/Out
With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of the transfers is to move General Fund resources to provide an annual subsidy to the Cost Recovery Fund and other non-major governmental funds, as well fund debt service, pension costs and capital projects. Transfers between funds during the fiscal year ended June 30, 2021 were as follows:

None of these transfers were unusual or non-recurring in nature, except for the transfer from General Fund to the Richmond Housing Authority Fund to write off interfund borrowings in the Authority Fund due to inability to repay, the Secured Pension Override Special Revenue Fund to the General Fund in the amount of $9,171,451 to fund current year pension contributions to CalPERS, which is included in transfers from Non-Major Governmental Funds, and the transfer from the General Fund to the Community Development and Loan Programs Special Revenue Fund related to the purchase of loans discussed in Note 4.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
71 4. NOTES AND LOANS RECEIVABLE
At June 30, 2021, notes and loans receivable consisted of the following:

Balance at
June 30, 2021
General Fund:

RHA RAD Project Loan 745,510 $
Deferred Loans 353,334
Infill Phase II Loan 1,464,886
Nevin Court Homeowner Development Project 478,028
Subtotal - General Fund Loans 3,041,758
Richmond Neighborhood Stabilization Loans 779,013
Community Development Block Grant, Home Investment
Partnership Program, EDA, CALHome Loans and City Loans
Deferred Loans 3,333,871
Home Improvement Program Loans 794,315
Rental Rehabilitation Loans 378,310
The Carquinez Project 148,490
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,436,714 Lillie Mae Jones Project Loan 988,460
Greater Richmond Interface Program 892,638
CALHome Program 2,446,323
RHA RAD Project Loan 3,732,603
Subtotal - CDBG, HOME, EDA, CALHome Loans, City Loans 15,151,724 Housing Successor Loans:

Rental Rehabilitation Loans 20,000
The Carquinez Project 1,152,508
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,283,645 Lillie Mae Jones Project Loan 1,999,301
Miraflores Loan 3,201,291
MacDonald Place Senior Housing 3,722,901
Greater Richmond Interface Program 296,066
Silent Second Mortgage Loans 1,788,014
Deferred Loans 758,127
Chesley Avenue Mutual Housing Development 6,188,187
Easter Hill Project 4,756,268
RHA RAD Project Loan 1,160,387
Subtotal - Housing Successor Loans 27,326,695
Total Notes and Loans Receivable 46,299,190 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
72 4. NOTES AND LOANS RECEIVABLE, Continued
RHA RAD Project
In December 2014, the General Fund loaned $700,000 to the Richmond Housing Authority Enterprise Fund for predevelopment costs related to the Triangle Court and Friendship Manor Rental Assistance Demonstration (RAD) Projects.

In December 2015, the loan agreement was replaced and the City entered into an amended agreement to loan $5,400,000 to the RHA Housing Corporation for the furtherance of the development of the RAD Projects as discussed in Note 16. Funding for the loan was revised in fiscal year 2018 and is as follows: $700,000 from the City’s General Fund, $3,600,000 will come from housing-in-lieu fund s and $1,100,000 from the Housing Successor funds. The hous ing-in-lieu funds and Housing Successor Funds are included in the Community Development and Loan Programs Fund. RHA Housing Corporation assigned the loan agreement and associated obligations to RHA RAD Housing Partners L.P. on December 22, 2015 upon closing of the financing for the rehabilitation of the RAD projec ts. See Note 16 for additional information related to the RAD projects. The loan is secured by a leasehold deed of trust, assignment of rents and security agreement. The loan bears simple interest of 1% and th e loan is repayable from residual receipts, as defined in the loan agreement, starting May 1 of the year after issuance of the Certificate of Completion, and unpaid principal and accrued interest is due December 1, 2070 . As noted above, $700,000 of the General Fund loan was disbursed in December 2014 and the balance at June 30, 2021, including accrued interest, was $745,510.

As of June 30, 2021, $4,892,990 of the funds had been drawn down from the Housing Successor Community Development and Loan Programs Fund.

Deferred Loans
Deferred loans are granted to low and moderate income families to assist them in purchasing their homes.

Emergency repair loans not exceeding $10,000 funded by the HOME Investment Partnership Program (HIPP) are provided to low income families in Richmond to assist them in rehabilitating their existing housing units.

These loans are required to be repaid over a period of 15 years to 30 years.

During fiscal year 2019, the City’s General Fund purchased a portion of the deferred loans in the amount of $353,335 and the loans were transferred to the General Fund.

Scattered Site Infill Housing Development (Infill Phase II) Under a loan agreement dated September 30, 2010, the City loaned Community Housing Development Corporation of North Richmond $1,198,013 to fund construction of 36 townhomes to be made available for very-low and low income households. Funding for the loan was as follows: $602,556 in HOME funds, $266,000 in CDBG funds and $329,457 in CDBG-R. Alth ough the developer has not drawn down all of the proceeds from the HOME funds portion of the loan , the Department of Housing and Urban Development (HUD) has indicated that future drawdowns will not be reimbursed by the grantor. Related to the grant disallowed costs discussed in Note 17, during fiscal year 2018 the City purchased $1,331,709 of the loan balance that had previously been funded with Community Development Block Grant and HOME funds.

During fiscal year 2019, the City’s General Fund purchased the loan balance in the amount of $1,099,594 and the loan and accrued interest of $265,104 were transferred to the General Fund.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
73 4. NOTES AND LOANS RECEIVABLE, Continued
Scattered Site Infill Housing Development (Infill Phase II), Continued The current funding was for predevelopment activities in conjunction with the construction and development of the townhomes. The loan is secured by a deed of trust on the property. The outstanding balance of the loan bears simple interest at the rate of 3% per year. The pa yment of principal and interest is deferred and due at the end of the term due September 30, 2065. As of June 30, 2021, $1,464,886 had been drawn down on the loan.

Nevin Court Homeowner Development Project
In May 2005, the City entered into an agreement with Community Housing and Development Corporation of North Richmond (Development), in the original amount of $227,000 to construct and develop 10 single family homes for low and moderate income households. The agreement was amended in November 2008, to increase the loan to $377,000. In fiscal year 2010, the Development drew down $343,839, in fiscal year 2016 an additional $21,453 was drawn, and the outstanding balance of the loan is $490,203, which includes accrued interest of $124,911. The loan bears interest of 3% per year and the unpaid balance is due in November 2063.

During fiscal year 2019, the City’s General Fund purchased the loan balance in the amount of $365,292 and the loan and accrued interest of $124,911 were transferred to the General Fund. As of June 30, 2021, $478,028, which includes accrued interest of $43,947, had been drawn down on the loan.

Richmond Neighborhood Stabilization Loans
The Richmond Neighborhood Stabilization Corporatio n (RNSC) operates a residential rehabilitation loan program financed by Department of Housing and Urban Development grants that have passed through the City under its Neighborhood Stabilization Program (NSP 1) and additional allocation under the third round of funding referred to as (NSP3). The program prov ides affordable home ow nership opportunities for households of low and moderate income by facilit ating the development financing necessary for the purchase, rehabilitation, and resale of deed-restricted affordable ownership units. During fiscal year 2014, the City foreclosed on seven of the loans with a carrying value of $780,153 and reacquired the properties which have been recorded as property held for resale as disc ussed in Note 2. As of June 30, 2021, the total balance of outstanding loans for NSP1 was $779,013 and no NSP3 loans had been issued. Loans are payable upon the resale of improved properties.

Home Improvement Program Loans
“Silent second” mortgage loans are provided to low and moderate income first time homebuyers as gap financing to provide the minimum amount needed to close the gap between the primary lender’s requirements and the borrower’s ability to pay down payments or closing costs.

Home improvement program loans include amortized loans to assist low income families in Richmond in the improvement of their homes. The interest rates for these loans range from 0% to 3% and are payable over a period of 15 to 30 years.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
74 4. NOTES AND LOANS RECEIVABLE, Continued
Rental Rehabilitation Loans
Rental Rehabilitation Loans help make rental units affordable to low and very low income housing families.

Loans assist private and non-profit owners in purchasing and rehabilitating existing multifamily housing units.

The Carquinez Project
Under a loan agreement dated Nove mber 14, 2008, the former Redevelopment Agency loaned Carquinez Associates, L.P. $1,000,000 to fund rehabilitation of a five-story buildin g, with 36 apartm ents housing low- income seniors. On August 23, 2010 the agreement was amended to provide the Developer with a total amount of $1,301,000. Funding for the loan is as follows: $1,152,510 funded by Series 2007 Bonds and $148,900 funded by CDBG. Repayments on the loan are to be made from residual receipts as defined in the agreement.

The loan does not bear interest and the unpaid pr incipal balance is due in November 2043. With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Lo w and Moderate Income Housing Fund, including the balance of the Carquinez loan as of February 1, 2012.

Creely Avenue Housing Rehabilitation (Arbors)
On September 15, 2006, the former Redevelopment Agency and the City loaned Arbors Preservation Limited Partnership the amount of $2,558,557, to construct ex tremely low, very low and low income rental housing units and a new community room on Creely Avenue. On October 31, 2008, the loan was amended to provide the developer a total loan amount of $3,208,113. Funding for the loan is as follows: $2,160,282 in HOME funds, $103,377 in CDBG funds and $1,594,057 in 2007 Series B bond funds. Although the developer has not drawn down all of the proceeds from the HOME funds portio n of the loan, the Department of Housing and Urban Development (HUD) has indicated that future drawdown s will not be reimbursed by the grantor. The loan bears simple interest at the rate of 3% per year. All un paid principal and interest on the loan is due on April 29, 2063. With the dissolution of the Redevelopment Ag ency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Arbors loan as of February 1, 2012.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
75 4. NOTES AND LOANS RECEIVABLE, Continued
Lillie Mae Jones Project
On January 19, 2010, the former Redevelopment Agency and the City entered into an agreement with Lillie Mae Jones Plaza, L.P. and the Community Housing De velopment Corporation of North Richmond to loan $3,119,000 to construct and provide 26 housing units to very low and low income households. Funding for the loan is as follows: $1,081,291 in HOME funds, $84,000 in Section 108 funds and $1,953,709 in 2007 Series B bonds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will not be reimbursed by the grantor. The loan bears an interest rate of 3% per year and repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest is due in January 2065. The agreement was amended in November 2011, due to securing a $293,884 loan from County of Contra Costa with Mental Health Services Act, which specifies that two units are required to be available to and occupied by Mental Health Services Act Eligible Tenants pursuant to the County Regulatory Agreement with Lillie Mae Jones Plaza, L.P. With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Lillie Mae Jones loan as of February 1, 2012. As of June 30, 2021, Lillie Mae Jones has drawn down $2,987,761.

EDA Loans
The Agency’s Revolving Loan Fund (RLF) is a commun ity based program with the goal of fostering local economic growth through the creation and retention of employment opportunities for Richmond residents and complementing community and individual develo pment initiatives. With the dissolution of the Redevelopment Agency as discussed in Note 18, the EDA loan program that was funded with grant funds from the Economic Development Administration is now administered by the City effective February 1, 2012.

As of June 30, 2021, the loan was transferred to CHDC and the amount is $0.

CALHome Program
The CALHome loan program provides housing assistance to Richmond residents to assist with first-time homeowner down payments or rehabilitation projects fo r owner-occupied homes. The loans are secured by deeds of trust on the properties. Principal and interest on the loans are deferred for 30 years, unless otherwise specified in the promissory note. With the dissolution of the Redevelopment Agency as discussed in Note 18, the CALHome loan program that was funded with gran t funds is now administered by the City effective February 1, 2012.

Housing Successor Loans
With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activi ties and as a result City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of certain loans discussed above and all of the loans below as of February 1, 2012.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
76 4. NOTES AND LOANS RECEIVABLE, Continued
Miraflores Loan
Under an amended loan agreement dated June 21, 20 11, the City agreed to loan Community Housing Development Corporation of North Richmond and Eden Housing, Inc., $1,465,000 to fund the construction of 110 senior housing units for low and moderate income residents. Fu nding for the loan is as follows:
$449,000 in CDBG funds, $925,000 in HOME funds, and $91,000 Redevelopment Agency Low and Moderate Income Housing Fund funds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will not be reimbursed by the grantor.

Related to the grant disallowed costs by HUD in previous years, the City purchased $1,208,258 of the loan balance that had previously been funded by CDBG an d HOME funds and the loans were transferred to the Housing Successor. With the dissolution of the Redevelopment Agency as discussed in Note 18, the portion of the Miraflores loan that was funded by the Redevelopment Agency’s Low and Moderate Income Housing Fund was assumed by the City as Housing Successor.

The loan does not bear interest and the unpaid princi pal balance was due September 22, 2015, unless it was converted to a permanent loan. The loan was converted in to a permanent loan on June 25, 2015. In addition to the converted permanent loan, the Housing Successor approved an additional predevelopment loan in the amount of $1,500,000. As of June 30, 2021, $3,201,291 of the loan had been drawn down.

MacDonald Place Senior Housing
On June 26, 2007, the former Redevelopment Agency agreed to loan MacDonald Housing Partners, L.P., and Richmond Labor and Love Community Development Corporation the amount of $4,720,000, to construct senior housing units, a management office, small meeting rooms and ancillary retail use, and a separate space for community services. The loan’s principal is due 57 years from the date of disbursement. The loan bears simple of interest of 2% per year payable from any re sidual receipts available from the prior calendar year with an additional 1% per year, but only to the extent that funds are available to pay such contingent interest from the Agency’s share of residual receipts, as defined in the agreement.

Heritage Park Development
In 1999, the former Redevelopment Agency loaned Hilltop Group, LP a total of $500,000, collateralized by deeds of trust and bearing interest at an effective rate of 1½% starting September 2004. The loans were used to finance the development of the Heritage Park Develo pment in the City. Monthly installments of interest and principal in the total amount of $3,115 are payable through September 1, 2019.

Silent Second Mortgage Loans
Loans were provided to qualifying individuals for the difference between the amount received by the individuals who qualified for low and moderate income housing loans and the amount needed to purchase the homes. The loans are to be forgiven in the future if the property owners do not sell or refinance the property.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
77 4. NOTES AND LOANS RECEIVABLE, Continued
Chesley Avenue Mutual Housing Development
On December 1, 2003, the former Redevelopment Agency loaned Chesley Avenue Limited Partnership the amount of $4,741,492, which includes accrued interest of $1,272,798 to construct very low and low income housing units. The loan’s principal is due in 2058; interest is payable starting May 1, 2006, at the rate of 2% per annum or in the amount of 95% of any residual receipts remaining from the prior year, whichever is less.

As of June 30, 2021, $6,188,187, which includes accrue d interest of $1,446,695, had been drawn down on the loan.

Easter Hill Project
The loan from the former Redevelopment Agency to Easter Hill Development, L.P. is providing financial assistance in the development of the Easter Hill Proj ect. The Easter Hill Project consists of single and multifamily home components. Easter Hill Development, L.P. shall use the loan to pay for predevelopment, acquisition and construction costs. The outstanding balance of the loan bears simple interest at the rate of 2% per year. Repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest on the loan is due February 1, 2069.

5. CAPITAL ASSETS
The following is a summary of capital assets for governmental activities:

Balance at Balance at
July 1, 2020 Additions Retirements Transfers Adjustment June 30, 2021 Governmental Activities
Capital assets not being depreciated:

Land 29,468,867 $ 292,421 $ - $ - $ (5,399,724)$ 24,361,564 $ Construction in progress 29,311,328 7,231,841 - (2,262,959) (44,831) 34,235,379 Total capital assets not being depreciated 58,780,195 7,524,262 - (2,262,959) (5,444,555) 58,596,943 Capital assets being depreciated:

Buildings and improvements 155,736,112 46,206 - 1,100,084 - 156,882,402 Machinery and equipment 47,122,474 742,072 - - - 47,864,546 Land improvements and infrastructure 533,222,939 - - 1,162,875 5,399,725 539,785,539 Total cap ital assets being depreciated 736,081,525 788,278 - 2,262,959 5,399,725 744,532,487 Less accumulated depreciation for:

Buildings and improvements (48,618,286) (3,500,479) - 1,071,271 (179,876) (51,227,370) Machinery and equipment (38,926,693) (1,750,728) - - 179,876 (40,497,545) Land improvements and infrastructure (418,014,608) (6,162,999) - (1,071,271) - (425,248,878) Total accumulated depreciation (505,559,587) (11,414,206) - - - (516,973,793) Capital asset being depreciated, net 230,521,938 (10,625,928) - 2,262,959 5,399,725 227,558,694 Governmental activity capital assets, net 289,302,133$ (3,101,666) $ - $ - $ (44,830)$ 286,155,637$ City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
78 5. CAPITAL ASSETS, Continued
Governmental activities depreciation expenses for capital assets is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program for the year ended June 30, 2021 were as follows:

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

Balance at Balance at
July 1, 2020 Additions Retirements Transfers Adjustments June 30, 2021 Business-type Activities
Capital assets not being depreciated:

Land 7,195,986 $ - $ - $ - $ - $ 7,195,986$ Construction in progress 21,825,629 7,656,932 - - 3,475,558 32,958,119 Total capital assets not being depreciated 29,021,615 7,656,932 - - 3,475,558 40,154,105 Capital assets being depreciated:

Buildings and improvements 79,908,481 - - - - 79,908,481 Machinery and equipment 17,840,183 - - - - 17,840,183 Infrastructure 259,038,020 - - - - 259,038,020 Total capital assets being depreciated 356,786,684 - - - - 356,786,684 Less accumulated depreciation for:

Buildings and improvements (55,479,053) (754,669) - - - (56,233,722) Machinery and equipment (15,062,439) (591,661) - - - (15,654,100) Infrastructure (117,366,975) (5,910,632) - - - (123,277,607) Total accumulated depreciation (187,908,467) (7,256,962) - - - (195,165,429) Capital asset being depreciated, net 168,878,217 (7,256,962) - - - 161,621,255 Business-type activity capital assets, net 197,899,832$ 399,970 $ - $ - $ 3,475,558$ 201,775,360 $ City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
79 5. CAPITAL ASSETS, Continued
Included in buildings and improvements is the Rich mond Housing Authority’s Hacienda Property with a net book value of $7,203,134 at June 30, 2021 has been uninhabitable for an extended period of time and as a result necessitates major rehabilitation. The property was appraised in July 2019 at $6,290,000 “as is” and Mercy Housing is in negotiation with the City and th e Housing Authority to acquire the improvements and to undertake significant renovation that would result in to 150 units, a fitness center and a library. The current site encompasses a total of 2.98 acres of land which is intended to be split into two parcels upon approval by HUD for which the currently improved portion of 1.9 41 acres will be subject to a ground lease to Mercy Housing and the remaining 1.043 acres will be retained by the City for future development.

Business-type activities depreciation expenses for capital assets allocated to each program for the year ended June 30, 2021 were as follows:

6. COMPENSATED ABSENCES PAYABLE
Changes in compensated absence liabilities for the year ended June 30, 2021 were as follows:

The long-term portion of governmental activities co mpensated absences is liquidated primarily by the General Fund. Compensated absences for business-type activities are liquidated by the fund that has recorded the liability.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
80 7. LONG-TERM DEBT
A. Governmental Activities
Following is a summary of governmental activities long-term debt transactions during the fiscal year ended June 30, 2021:

Bonds Payable
Bonds payable at June 30, 2021 consisted of the following:
1999 Series A City of Richmond Taxable Lim ited Obligation Pension Bonds – Original Issue $36,280,000
The bonds were issued to fund a portion of the unfunded accrued actuarial liability in the City’s pension plans together with the prepayment of certain pension benefit costs of the Beneficiaries and to pay the costs of issuance associated with the issuance of the bonds. Interest rates vary from 6.37% to a maximum of 7.39% and are payable semiannually on February 1, and August 1. The term bonds consist of $8,960,000 due August 1, 2020 with an interest rate of 7.57% and $3,435,000 due August 1, 2029 with an interest rate of 7.62%. The bonds are payable from certain pension tax override revenues received by the City from a special tax pursuant to City Council Ordinance 9-99 adopted by the City Council on March 30, 1999. Principal and interest paid for the curren t fiscal year and total pension tax revenues were $1,086,838 and $11,352,354, respectively.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
81 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
1999 Series A City of Richmond Taxable Lim ited Obligation Pension Bonds – Original Issue $36,280,000, Continued
The annual debt service requirements on the bonds are as follows:
2005 Taxable Pension Funding Bonds – Original Issue $114,995,133 These Bonds from direct placements were issued to prepay the unfunded liability of the Miscellaneous and Safety pension plans provided through the California Public Employees’ Retirement System. The Bonds consist of three series as shown below:

Credit Adjustment – The Bonds were issued on November 1, 2005 in a private placement at the initial interest rates. Included in the Indenture were provis ions which adjust the initial interest rates on each series based on the City’s meeting certain conditions. As a result of the City issuing its June 30, 2005 financial statements and receiving an upgraded credit rating of A3 by Moody’s by May 1, 2006, the initial interest rates were reduced by 1/10th of one percent.

Current Interest Bonds – The Series 2005A Bonds were fully repaid during fiscal year 2015.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
82 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2005 Taxable Pension Funding Bonds – Original Issue $114,995,133, Continued Capital Appreciation Bonds – The Series 2005B-1 Bonds and 2005B-2 Bonds are capital appreciation bonds, which means no interest is paid until the Adjusted Maturity Value is reached on the Full Accretion Date.

Capital appreciation bonds are issued at a deep disc ount which then “accretes” over time. The discount on these bonds represented as the effective interest rate on each series is shown above.

Mandatory Index Rate Conversion – On the respective Full Accretion Date, the Series 2005B-1 or 2005B- 2 Bonds convert from Capital Appreciation Bonds to Index Rate Bonds. From that date forward, the Bonds bear interest at a rate based on the 1 month LIBOR index plus 1.4%. This rate fluctuates according to the market conditions and is limited to 17 percent per year. Following the applicable Full Accretion Date, interest on the converted bond series is due semiannually each February 1 and August 1. The Series 2005B- 1 Bonds are due in annual installments from 2014 to 2023 ranging from $4,468,000 to $11,593,000.

The 2005B-2 Bonds are due in annual installments from 2024 to 2034 ranging from $6,466,000 to $18,538,000.

Optional Auction Rate Conversion – On the respective Full Accretion Date, the 2005B-1 and the 2005B-2 Bonds may be converted to Auction Rate Bonds provided that certain conversion requirements are met.

Auction rates fluctuate according to the market conditions and is lim ited to a maximum 17 percent per year and a minimum of 80 percent of the LIBOR index rate. The Series 2005B-1 Bonds did not convert to auction rate bonds, and were instead converted to index rate bonds, as discussed above.

Swap Agreements – The City entered into two interest rate swap agreements related to the 2005B-1 and 2005B-2 Bonds. The interest rate swap related to the 2005B-1 Bonds became effective August 1, 2013 while the 2005B-2 Bonds does not become effective until August 1, 2023, in the same amount as the outstanding principal balances of the Bonds on that date. The co mbination of the variable rate bonds and a floating swap rate will create synthetic fixed-rate debt for the City. The synthetic fixed rate for the 2005B-1 Bonds was 7.0745% at June 30, 2021.

At June 30, 2021, the Bonds consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
83 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2005 Taxable Pension Funding Bonds – Original Issue $114,995,133, Continued The annual debt service requirements are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
84 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2016 – Original Issue - $28,390,000
On February 1, 2016, the Authority issued Series 2016 Lease Revenue Bonds in the amount of $28,390,000. The proceeds from the Bonds were used to pay the obligations of the City related to the termination of the interest rate swap agreement and the option on swap agreement (swaption) related to the Authority’s Series 2009 Lease Revenue Refunding Bonds and to pay the costs associated with the issuance of the Series 2016 Bonds. On February 3, 2016 the interest rate swap agreement and the swaption related to the Series 2009 Bonds were terminated with a swap termination payment of $28,554,000.

The Bonds bear interest rates of 4.00% to 5.50%. Principal payments are due annually on November 1 through 2037 and semi-annual interest payments are due May 1 and November 1 commencing on May 1, 2016.

At June 30, 2021, the 2016 Bonds consisted of the following:

The annual debt service requirements are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
85 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2019A – Original Issue - $63,970,000
The Series 2019A Bonds are being issued to: redeem $77,315,000 outstanding principal amount of the Authority’s Lease Revenue Refunding Bonds (Civic Center Project) Series 2009, purchase a reserve facility for deposit into the reserve account established for the Series 2019A Bonds, fund a deposit into the Interest Account within the Revenue Fund to capitalize a portion of the interest due on May 1, 2020, and pay costs associated with the issuance of the Series 2019A Bonds. The Bonds are payable solely from, and secured solely by, Revenues of the Authority, consisting primarily of Base Rental Payments to be received by the Authority from the City of Richmond under a Facility Lease, dated as of August 1, 2019, by and between the City and the Authority, for the right to use and the occupancy of certain real property and facilities.

The Series 2019A Bonds will mature on November 1 an nually commencing November 1, 2020. Interest o n t h e S e r i e s 2 0 1 9 A B o n d s i s p a y a b l e a t t h e r a t e o f 5 % o n N o v e m b e r 1 a n d M a y 1 o f e a c h y e a r , commencing May 1, 2020. The refunding resulted in an overall debt service savings of $29,893,316. The net present value of the debt service savings is called an economic gain and amounted to $25,000,596.

At June 30, 2021, the 2019A Bonds consisted of the following:

The annual debt service requirements are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
86 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Interest Rate Swap and Swaption Agreements
The City entered into an interest swap agreement in connection with the 2005B-1 Taxable Pension Funding Bonds. The transaction allows the City to create a synthetic fixed rate or a synthetic variable rate on the Bonds, protecting it against increases and decreases in short-term interest rates and fair value. The various risks associated with the swap agreements are disclosed below. For the swap agreement pertaining to the 2005B-2 Taxable Pension Funding Bonds, the disclosure is included below, but the swap agreement does not become effective until August 1, 2023.

On May 13, 2015, Moody’s Investor Services (“Moody’s”) downgraded the City’s issuer rating from “A1” to “Ba1” and the rating on its 1999 Taxable Limited Obligation Pension Bonds from “A2” to “Baa2”. In addition, the City and its Wastewater Enterprise bonds were placed under review for possible downgrades. On August 4, 2015, Moody’s further downgraded the City’s issuer rating from “Ba2” to “Ba1” and its rating on the City’s Taxable Pension Obligation Bonds and 1999 Taxable Limited Obligation Pension Bonds (“POB’s) from “Baa2”. In addition, Moody’s downgraded its rating on the City’s Wastewater Revenue Bonds, Series 2006A to “Baa2” from “A2”. On November 21, 2018, Moody’s upgraded the City’s issuer rating to “Baa3” from “Bal” and the Pension Obligation Bond rating from “Ba1” to “Ba2”. On September 1, 2015, Standard and Poor’s Rating Services (“S&P”) lowered the City’s Issuer Credit Rating from “AA-” to “BBB+” placing the City on CreditWatch. Other credit ratings downgrades included S&P’s assigned underlying rating (SPUR) for the Wastewater Enterprise Fund that was lowered from “A+” to “BBB”.

Moody’s downgrade of the City’s issuer rating to “Ba1” resulted in allowing the counterparty, JPMorgan Chase Bank, NA (“JPM”) to declare an Additional Termination Event (ATE) with the interest rate swaps the City entered in conjunction with the 2005 Taxable POBs (2007 Swaps). This means that JPM could exercise a right to terminate the 2007 Swaps and demand immediate payment of an approximately $31.5 million settlement amount that represented the present value of the City’s expected future performance obligations under the 2007 Swaps at the time of the AT E. The City entered into a restructuring of certain of its obligations through the issuance by the Ri chmond Joint Powers Financing Authority of Lease Revenue Bonds Series 2016A (tax-exempt) to fund the cost of terminating the Civic Center Swaps relating to the Richmond Joint Powers Financing Authority Series 2009 Civic Center Lease Revenue Bonds held by Royal Bank of Canada (RBC). RBC simultaneously entered into a novation of the 2007 Swaps with JPM. By terminating the Civic Center Swaps, the City reduced RBC’s credit exposure to the City sufficiently to allow RBC to accept the additional credit exposure associated with stepping into JPM’s position in the 2007 swaps through novation. Contemporaneous with the novation from JPM to RBC, RBC and the City amended and restated the 2007 Swaps, including eliminating the existence of the ATE by removing reference to a Moody’s rating in the ATE provisions, reducing the Standard & Poor’s rating threshold for a future ATE to BBB- from BBB and pr oviding a mandatory early termination of the 2007 Swaps in 2023. The early termination will require the City to either refund or restructure the 2007 Swap at that date if a termination payment is due at the time. In addition, terminating the Civic Center Swaps eliminated the risk of an ATE with respect to the Civic Center Swaps, which require the City to maintain its Issuer Credit Rating at the current level of BBB+ to avoid an ATE.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
87 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Interest Rate Swap and Swaption Agreements, Continued
The City’s issuer credit rating from S&P was BBB+ as of June 30, 2017. On December 4, 2017, the City received an updated issuer credit rating from S&P up grading the previous BBB+ issuer credit rating to an A- issuer credit rating.

Terms. The terms, including the counterparty credit ratings of the outstanding swaps, as of June 30, 2021, are included below. The swap agreements contain scheduled reductions to the outstanding notional amount on an annual basis.

Hedging Derivatives - Pay-Fixed, Receive-Variable Swap Agreements For the following Pay-Fixed, Receive-Variable swap ag reements, the City owes interest calculated at a fixed rate to the counterparty of the swaps. In return, the counterparty owes the City interest based on a variable rate that approximates the rate required by the Bonds. Debt principal is not exchanged; it is only the basis on which the swap receipts and payments are calculated.

Fair value. Fair value of the swaps takes into consid eration the prevailing interest rate environment, the specific terms and conditions of each transaction and any upfront payments that may have been received.

Fair value was estimated using the zero-coupon discounting method. This method calculates the future payments required by the swaps, assuming that the current forward rates implied by the LIBOR swap yield curve are the market’s best estimate of futu re spot interest rates. These payments are then discounted using the spot rates implied by the curre nt yield curve for a hypothetical zero-coupon rate bond due on the date of each future net settlement on the swap. The swaps are classified in Level 2 of the fair value hierarchy, using a market approach that considers observable swap rates commonly quoted for the full term of the swaps.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
88 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Hedging Activities - Pay-Fixed, Receive-Variable Swap Agreements, Continued As of June 30, 2021, the fair value for the each of the outstanding swaps was in favor of the respective counterparties. The fair value represents the maximum loss that would be recognized at the reporting date if the counterparty failed to perform as contracted. The City has accounted for the change in fair value of each of the effective hedges as noted below:

Credit risk. The fair values of the swaps represent the City’s credit exposure to the counterparties. As of June 30, 2021, the City was not exposed to credit risk on the outstanding swaps because the swaps had negative fair values. However, if interest rates change and the fair value of the swaps were to become positive, the City would be exposed to credit risk.

Interest rate risk. The City will be exposed to interest rate ri sk for the Pay-Fixed, Receive-Variable swaps only if the counterparty to the swaps defaults or if the swaps are terminated.

Basis risk. Basis risk is the risk that the interest rate paid by the City on the underlying variable rate bonds to the bondholders temporarily differs from the variab le swap rate received from the counterparty. The City bears basis risk on the Pay-Fixed, Receive-Variable swaps. The swaps have basis risk since the City receives a percentage of the LIBOR Index to offset the actual variable bond rate the City pays on the underlying Bonds. The City is exposed to basis risk should the floating rate that it receives on a swap be less than the actual variable rate the City pays on the bonds. Depending on the magnitude and duration of any basis risk shortfall, the expected cost of the basis risk may vary.

A portion of this basis risk is tax risk. The City is exposed to tax risk when the relationship between the taxable LIBOR based swap and tax-exempt variable rate bond changes as a result of a reduction in federal and state income tax rates. Should the relationship between LIBOR and the underlying tax- exempt variable rate bonds converge the City is exposed to this basis risk.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
89 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Pay-Fixed, Receive-Variable Swap Agreements, Continued
Termination risk. The City may terminate if the other party fails to perform under the terms of the contract.

The City will be exposed to variable rates if the counterparties to the swap contracts default or if the swap contracts are terminated. A termination of the swap contracts may also result in the City’s making or receiving a termination payment based on market interest rates at the time of the termination. If at the time of termination the swaps have a negative fair value, the City would be liable to the counterparty for a payment equal to the swap’s fair value.

Swap payments and associated debt. Using rates as of June 30, 2021, debt service requirements of the City’s outstanding fixed rate 2005 Taxable Pension Funding Bonds and net swap payments, assuming current interest rates remain the same for their term, are as follows. The 2005B-2 Bond is not included in the table, because the swap is not effective until August 1, 2023. As rates vary, net swap payments will vary.

Loans Payable
Loans payable from direct borrowing at June 30, 2021 consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
90 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
California Energy Commission Phase 1 – Original Amount $621,558 On April 22, 2013, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $621,558. The purpose of the loan is to provide funding for the replacement of street lighting with new LED lights. The loan bears a 3% interest rate and is due in semi-annual payments in December and June through December 2025.

The annual debt service requirements on the loan are as follows:

California Energy Commission Phase 2 – Original Amount $1,239,036 During fiscal year 2015, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $1,239,036. The purpose of the loan is to provide funding for the replacement of street lighting with new LED lights. Th e loan bears interest at 1% and is due in semi- annual payments in December and June through June 2030.

The annual debt service requirements on the loan are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
91 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Capital Leases
Capital leases payable from direct borrowing at June 30, 2021 consisted of the following:

Qualified Energy Conservation Lease – Original Amount $1,052,526 On December 22, 2010 the City entered into a direct borrowing capital lease with Bank of America in the amount of $1,052,526 to finance the purchase and installation of energy conservation equipment at various City-owned buildings. The City received an allocation of the national Qualified Energy Conservation Bond which includes a direct subsidy from the United States Treasury for the interest payable on the bonds under the Hiring Incentives to Restore Employment Act (HIRE Act). The subsidy will be payable on or about the date that the City makes its debt service payments and is equal to 59.79% of the interest payable on the lease. The subsidy received in fiscal year 2019 was $23,026. The lease bears interest at a rate of 6.79% and principal and interest payments are due semi-annually each June 15 and December 15 commencing on December 15, 2011 through June 15, 2026.

The annual debt service requirements on the capital lease are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
92 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Recovery Zone Economic Development Lease – Original Amount $1,316,000
On December 22, 2010 the Authority entered into a direct borrowing capital lease with Bank of America in the amount of $1,316,000 to finance the improvements to three of the City’s fire stations and a senior center. The City agreed to lease the three fire stations to the Authority in exchange for lease payments in the amount of the debt. The Authority received the lease proceeds under an allocation of the National Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009, which includes a direct subsidy from the United States Treasury for the interest payable on the Bonds. The lease subsidy will be payable on or about the date that the Authority makes its debt service payments and is equal to 45% of the interest payable on the lease upon filing of a request by the Authority.

The total subsidy received in fiscal year 2019 was $19, 824. The lease bears interest at a rate of 6.50% and principal and interest payments on the lease are due semi-annually each June 15 and December 15, commencing on June 15, 2011, through 2026.

The annual debt service requirements on the capital lease are as follows:

Holman Capital Corporation Lease #4 – West Contra Costa Family Justice Center - Original Amount $2,000,000
On November 1, 2012 the City entered into a direct borrowing lease agreement with Holman Capital Corporation in the amount of $2,000,000 to finance improvements to the City’s West Contra Costa Family Justice Center. The lease bears an interest rate of 3.17%. Principal and interest payments on the lease are due semi-annually on each July 14 and January 14 commencing on July 14, 2013 through January 14, 2023.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
93 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Holman Capital Corporation Lease #4 – West Contra Costa Family Justice Center - Original Amount $2,000,000, Continued
The annual debt service requirements on the capital lease are as follows:

Street Light Capital Lease - Original Amount $4,641,936 On July 31, 2013 the City entered into a direct borrowing lease agreement with Bank of America in the amount of $4,641,936 to finance the purchase of streetlights and the associated upgrade costs. The lease bears an interest rate of 2.55%. Principal and inte rest payments on the lease are due semi-annually on each October 30 and April 30 commencing on April 30, 2014 through October 30, 2026.

The annual debt service requirements on the capital lease are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
94 7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Holman Capital Corporation Lease #5 – Fire Apparatus Equipment Lease - Original Amount $2,687,645 On May 17, 2018 the City entered into a direct borrowing lease agreement with Holman Capital Corporation in the amount of $2,687,645 to finance the purchase of one Spartan Ladder Truck and two Spartan Pumper Trucks, which are pledged as collateral for the lease. The lease bears an interest rate of

3.91%. Principal and interest payments on the lease are due quarterly on each August 17, November 17, February 17, and May 17 commencing on August 17, 2018 through May 17, 2028.

The annual debt service requirements on the capital lease are as follows:

B. Business-Type Activities
The following is a summary of long-term debt of business-type activities during the fiscal year ended June 30, 2021:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
95 7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Bonds payable at June 30, 2021 consisted of the following:

Richmond Joint Powers Financing Authority Point Potrero Lease Revenue Bonds, Series 2019B – Original Issue ($20,580,000)
The Series 2019B Bonds are being issued to: (i) defease and redeem on a current basis all of the Authority’s $26,830,000 outstanding Point Potrero Lease Revenue Bonds, Series 2009A and (ii) pay certain costs associated with the issuance of the Series 2019B Bonds. The Series 2019B Bonds are payable solely from, and secured solely by, Revenues of the Authority, cons isting primarily of Base Rental Payments to be received by the Authority from the City under a Facility Lease, dated as of August 1, 2019, by and between the City of Richmond and the Authority, for the right to use and the possession of certain real property and facilities, consisting of Wharves No. 7 and 8 at the Point Potrero Marine Terminal of the Port of Richmond. The amount of the Base Rental Payments is calculated to be sufficient to pay principal of and interest on the Series 2019B Bonds when due. Interest on the Series 2019B Bonds is payable on May 1 and November 1 of each year, commencing November 1, 2019. The refunding resulted in an overall debt service savings of $4,351,195. The net present value of the debt service savings is called an economic gain and amounted to $4,177,680.

At June 30, 2021 the 2019B Bonds consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
96 7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Joint Powers Financing Authority Point Potrero Lease Revenue Bonds, Series 2019B – Original Issue ($20,580,000), Continued
The annual debt service requirements on the 2019B Bonds are as follows:

Richmond Wastewater Revenue Bonds Taxable Buil d America Bonds, Series 2010B – Original Issue $41,125,000
On October 7, 2010 the City issued Series 2010B Wastewater Revenue Bonds Taxable Build America Bonds in the amount of $41,125,000. The proceeds of these Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system. The taxable 2010B Bonds were sold as “Build America Bonds” pursuant to the American Recovery and Reinvestment Act of 2009. The interest on Build America Bonds was not tax-exempt and therefore the bonds carried a higher interest rate. However, this higher interest rate was offset by a subsidy payable by the United States Treasury equal to 35% of the interest payable on the Bonds. The subsidy was be payable on or about the date that the City makes its debt service payments. During the fiscal year ended June 30, 2019, the City issued Series 2019B Wastewater Revenue Bonds to partially refund and defease $36,480,000 of the 2010B Bonds (described below). The bonds were paid in full as of June 30, 2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
97 7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bonds, Series 2017A – Original Issue $33,530,000 On July 19, 2017 the City issued Series 2017A Wastewater Revenue Bonds in the amount of $33,530,000.

The proceeds from the Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system and to refund all of the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2006A. Principal payments are due annually on August 1. Interest rates on the Bonds range from 2% to 5.25% and payments are due semiannually on August 1 and February 1 beginning February 1, 2018. The bonds mature on August 1, 2047.

At June 30, 2021 the Series 2017A Bonds consisted of:

The annual debt service requirements on the 2017A Bonds are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
98 7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000) On June 26, 2019 the City issued Series 2019A Wastewater Revenue Bonds and the 2019B Wastewater Revenue Refunding Bonds in the amounts of $22,510,000 and $66,075,000, respectively. The proceeds from the 2019A Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system. The proceeds from the 2019B Bonds were used to refund all of the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2008A, and to partially refund and defease the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2010B. The outstanding balance of the defeased 2010B Bonds was $36,480,000 at June 30, 2019. Principal payments are due annually on August

1. Interest rates on the Bonds range from 3% to 5% and payments are due semiannually on August 1 and February 1 beginning February 1, 2020. The refundin g resulted in an overall debt service savings of $6,799,507. The net present value of the debt service savings is called an economic gain and amounted to $4,738,022. The bonds mature on August 1, 2049.

At June 30, 2021 the Series 2019A Bonds consisted of:

The annual debt service requirements on the 2019A Bonds are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
99 7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000), Continued At June 30, 2021 the Series 2019B Bonds consisted of:

The annual debt service requirements on the 2019B Bonds are as follows:

Pledge of Wastewater Revenues
The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay the 2017A, 2019A and 2019B Bonds through 2050. The Municipal Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $206,801,213. The Municipal Sewer Enterprise Fund’s principal and interest paid for th e current year, and total customer net revenues were $8,148,851 and $15,510,420, respectively.

Notes and Loans Payable – Direct Borrowing
Notes and loans payable at June 30, 2021, consisted of the following:

For the Years
Ending June 30, Principal Interest Total
2022 1,115,000 $ 3,018,975 $ 4,133,975 $
2023 1,170,000 2,961,850 4,131,850
2024 2,815,000 2,862,225 5,677,225
2025 2,930,000 2,718,600 5,648,600
2026 3,050,000 2,569,100 5,619,100
2027-2031 17,300,000 10,373,750 27,673,750 2032-2036 21,225,000 4,064,325 25,289,325 2037-2041 16,470,000 1,166,475 17,636,475 Total 66,075,000$ 29,735,300 $ 95,810,300 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
100

7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Notes and Loans Payable – Direct Borrowing, Continued
T h e C i t y h a s f o u r d i r e c t b o r r o w i n g l o a n a g r e e m e n t s w i t h t h e C a l i f o r n i a D e p a r t m e n t o f B o a t i n g a n d Waterways for total borrowings of $3,772,278. Procee d s f r o m t h e l o a n s w e r e u s e d t o f i n a n c e m a r i n a construction projects. The loans bear interest at rates ranging from 4.5% to 7.9% and are due in annual installments through August 2042. The total amount outstanding at June 30, 2021 was $2,336,857.

The annual debt service requirements on these loans are as follows:

RHA RAD Housing Partners, LP Promissory Note
On December 17, 2014, the Housing Authority’s Co mponent Unit, RHA Housing Corporation, entered into an agreement with the City and promised to pay the City a principal amount of $700,000, plus accrued interest. The proceeds of the Note were then lo aned from RHA Housing Corporation to the Housing Authority to finance acquisitions and development of the properties undergoing rehabilitation work in conjunction with a RAD conversion (Friendship M anor/Triangle Court). On December 22, 2015, the official closing of the RAD conversion took place, at which time the Note was assigned to a newly created entity, RHA RAD Housing Partners, L.P. The Note payable to the City was assigned from RHA Corporation to RHA RAD Housing Partners, L.P. al ong with a note receivable from the Housing Authority. The principle balance shall bear 1% simple interest. The term of the Note shall expire fifty- five years after. The balance of the promissory note at June 30, 2019 was $700,000.

In fiscal year 2015, the City had advanced the $700,000 to the Richmond Housing Authority Enterprise Fund, however, in fiscal year 2016 that loan was assigned to RHA RAD Housing Partners L.P. as discussed in Note 4. Therefore, the Richmond Housing Authority Enterprise Fund now owes this amount to RHA RAD Housing Partners L.P. and the interfund advance was converted to long-term debt in fiscal year 2016.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
101

7. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Contra Costa County Loan Payable
On December 1, 2019, the Richmond Housing Authority entered into a loan agreement with the County of Contra Costa in the amount of $401,523 to assist in the repair of the elevators at Nevin Plaza which is a 142 unit public housing development for senior and di sabled residents. The loan repayment is deferred for 20 years unless a transfer or default occurs prior to the 20 years term. The loan bear no interest.

C. Events of Default, Termination Even ts and Subjective Acceleration Clauses Below is a summary of certain events of defaul t and termination events with finance related consequences, along with the subjective acceleration clauses, as applicable, for all of the City’s outstanding long-term debt obligations. Each agre ement may contain additional events of default, termination events or other subjective acceleration clauses.

Events of default Termination events Subjective
with finance-related with finance-related acceleration
consequences consequences clauses
Governmental Activities
Bonds Payable
Pension Obligation Bonds - 1999 Series A (A) N/A (A)
Pension Funding Bond Series 2005 (Direct Placement) (A) N/A (A) JPFA Lease Revenue Refunding Bonds - 2009 (B) (B) N/A
JPFA Lease Revenue Bonds - 2016 (B) (B) N/A
JPFA Lease Revenue Bonds - 2019 (B) (B) N/A
Loans Payable
California Energy Commission Loan #1 (C) (C) (C)
California Energy Commission Loan #2 (C) (C) (C)
Capital Leases
Qualified Energy Conservation Lease (D) (D) N/A
JPFA Recovery Zone Economic Development Lease (E) (E) N/A Holman Capital Corporation Lease #4 (F) (F) N/A
Street Light Capital Lease (G) (G) N/A
Holman Capital Corporation Lease #5 (H) (H) N/A
Business-Type Activities
Bonds Payable
2019B Point Potrero Lease Revenue Bonds (B) (B) N/A
Wastewater Revenue Bonds Series 2017A (A) N/A (A)
Wastewater Revenue Bonds Series 2019A (I) N/A (I)
Wastewater Revenue Bonds Series 2019B (I) N/A (I)
Notes and Loans Payable
California Department of Boating and Waterways (J) (J) (J) RHA RAD Housing Partners L.P. Promissory Note (K) (K) (K) City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
102

7. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (A) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. (B) If the City fails to pay rental payable when due or the Authority fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. In the event of default, the Authority has the option to exercise the right of entry and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent rent. (C) Events of default include the failure to comply with any of the terms in the loan agreement, failure to pay principal or interest when due, failure of the City to undertake in a timely way the activities for which said Loan Agreement was executed, failure of the Ci ty to obtain prior written Commission approval before undertaking a change in the scope of the activities for which said Loan Agreement was executed, or the City becoming insolvent or bankrupt. On the occurrence of any event of default, the Commission may declare all or any portion of the principal and a ccrued interest on the loan to be immediately due and payable. If the City fails to comply with the terms of the loan agreement, the Commission may declare the agreement to have been breached and be released from any further performance. (D) Events of default include: (a) Failure to (i) pay any rental payment or other payment required to be paid under the agreement within 10 days after the date when due or (ii) maintain insurance as required; (b) failure to observe and perform any covenant, condition or agreement for a period of 30 days after written notice; (c) any false, incorrect or misleading statements, representations or warranties made by the City pursuant to the agreement; (d) any default occurs under any other agreement for borrowing money, lease financing of property; (e) the City file s becomes insolvent or files for bankruptcy. In the event of default, the lessor has the right to take various steps, including take possession of the equipment or accelerate the repayment of the principal and outstanding interest. (E) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding balances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediatel y due and payable. In the event of default, the Authority has the option to exercise the right of entry and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent lease payments. (F) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding balances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
103

7. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (G) If the City fails to pay lease payments when due or observe other covenants in the lease agreement, the outstanding balances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. Upon events of default, the Energy Commission may terminate the Agreement upon five days written notice to the City.
(H) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding balances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediatel y due and payable. In the event of default, the Lessor has the option to exercise the right of entry and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent lease payments. (I) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. In the event of default, the City is required to transfer all Net Revenues held by the City to the Trustee, except as noted in the Indenture of Trust.
(J) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. In the event of default, the Department of Boating and Waterways has the option to declare all unperformed obligations immediately due and payable without further demand or notice to the City. (K) Events of default include the failure to repay th e principal and any interest on the loan within ten days of receipt of written notice that such payment is due pursuant to the loan documents, breach of covenants included in the loan documents, or becoming insolvent or bankrupt. In the event of default, the principal and accrued interest are immediately due and payable.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
104

7. LONG-TERM DEBT, Continued
D. Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. At June 30, 2021, the balances of these Districts’ outstanding debt were as follows:

Richmond JPFA Reassessment Revenue Refunding Bonds, Series 2016 (Country Club Vista) $5,940,000 E. Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or morally obligated to pa y these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuer s. At June 30, 2021, the balance of this issuers’ outstanding debt was as follows:

Richmond Community Foundation, Richmond Housing Rehabilitation Program, Social Impact Bonds, Taxable Series 2015A $3,000,000 City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
105

8. UNAVAILABLE AND UNEARNED REVENUE
At June 30, 2021, the following unavailable revenues were recorded in the Fund Financial Statements because the funds were not available to finance expenditures of the current period:

At June 30, 2021, the following unearned revenues were recorded in the City-wide financial statements on the Statement of Net Position:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
106

9. FUND BALANCE AND NET POSITION
A. Fund Balance Classification
Detailed classifications of the City’s fund balances, as of June 30, 2021, are below:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
107

9. FUND BALANCE AND NET POSITION, Continued
B. Contingency Reserve Policy
In fiscal year 2016, the City Council updated the fund balance policy to require the City to maintain a year-end contingency reserve balance of a minimum of 15% of the next year’s budgeted General Fund expenditures. This is the minimum needed to maintain the City’s creditworthiness and to adequately provide for economic and legislative uncertainties, cash flow needs and contingencies. City Council approval is required before any cash can be withdrawn from the reserve fund. The Council shall have the discretion to use the reserve for one time emergencie s only and not to be used for ongoing expenses. At the time of City Council approval of any use of reserves, a Stabilization Policy laying out the plans for restoration of reserves must be simultaneously put in place with the Council’s approval. The City’s cash reserve as of June 30, 2021, which is a component of unassigned fund balance of the General Fund, is $22,477,829 which is approximately 12.5% of fiscal year 2021-22 budgeted General Fund expenditures. As the City experiences net revenue gains in future years, the cash balance must continue to be maintained at or above to 15% of total expenditures, following th e stabilization policy, in order to allow the City to build up its capacity to handle future short term economic downturns or emergencies without cutting services.

C. Deficit Fund Balances and Accumulated Deficits
At June 30, 2021, the following funds had deficit fund balance or deficit net position, which will be eliminated by future revenues:

D. Restatement of Net Position
During fiscal year 2021, the City continued to reconcile the activities of the Richmond Housing Authority for fiscal years 2017, 2018, 2019, 2020, and 2021. As a result, beginning net position in the Richmond Housing Authority Enterprise Fund has been restated and decreased in the amount of $2,307,404. The City also restated its beginning net position the of the Governmental Activities, Business Type Activities, Richmond Housing Authority fund, the Port of Richmond fund, Municipal Sewer fund, nonmajor enterprise funds and the Insurance Reserve fund to correct the allocation of OPEB erroneously recorded in prior years.

In addition, the City has restated the beginning fu nd balance of Business-type Activities Fund and increased in the amount of $535,094. For Non-Major Enterprise Fund, the beginning fund balance was restated and increased in the amount of $42,247 and for Insurance Reserves Fund, the beginning fund balance was restated and decreased in the amount of $480,172.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
108

9. FUND BALANCE AND NET POSITION, Continued
D. Restatement of Net Position, Continued
Governmental
Activities
Business-type
Activ ities
Richmond
Housing
Authority Fund
Port of
Richmond
Fund
Municipal
Sew er Fund
Non-Major
Enterprise
Fund
Insurance
Reserve Fund
Custodial
Funds
Net Position as prev iously
reported at June 30, 2020 (298,192,717)$ 64,742,982 $ 10,049,921 $ 11,291,778 $ 43,236,443 $ 164,840 $ 526,175 $ - $ Prior Period Adjustments:

Correct interfund activities - (2,307,404) (2,307,404) - - - - - OPEB Allocation (535,094) 535,094 1,162,596 114,197 (783,946) 42,247 (480,172) - GASB 84 Implementation - - - - - - - 6,236,000 Net Position as restated at
June 30, 2020 (298,727,811)$ 62,970,672 $ 8,905,113 $ 11,405,975 $ 42,452,497 $ 207,087 $ 46,003 $ 6,236,000 $ Government-w ide
Financial Statements Fund Statements
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
109

10. EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following funds incurred departmental expenditures in excess of appropriations.

Excess of Expenditures
Fund/Department over Appropriations
General Purpose Fund
General Government 1,179,000 $
Community Development 8,989
Housing and redevelopment 437
Lighting and Landscaping Districts Fund
Public works 74,679
Developer Impact Fees Fund
Public Safety 79,430
Publlic works 414,829
Cultural and recreational 28,345
Capital outlay 654,260
Richmond Neighborhood Stabilization Corporation Fund
Housing and development 30,826
General Debt Service Fund
Interest and fiscal charges 849
Civic Center Debt Service Fund
Principal 77,315,000
Interest and fiscal charges 11,213
General Capital Improvement Fund
Capital outlay 839,634
Measure C/J Fund
Publlic works 716,192
Capital outlay 985,430
Secured Pension Override Fund
General Government 6,563
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
110

11. DEFINED BENEFIT PENSION PLANS
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2021:

A. California Public Employees’ Retirement System Pension Plans I. General Information about the CalPERS Pension Plan
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscel laneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by Ca lPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalP ERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
111

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued I. General Information about the CalPERS Pension Plan, Continued The City’s employees hired on or before December 31, 2012 participate in the Miscellaneous Plan under the 2.7% @ 55 Benefit Formula or the Safety Plan under the 3.0% @ 50 (Police) or 3.0% @ 55 (Fire) Benefit Formula. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The City’s employees hired on or after January 1, 2013 participate under the Miscellaneous Plan 2.0% @ 62 Benefit Formula or the 2.7% @ 57 (Police and Fire) Benefit Formula.

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
112

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued I. General Information about the CalPERS Pension Plan, Continued Beginning in fiscal year 2016, CalPERS collects employer contributions for each Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar am ounts are billed on a monthly basis. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans were $10,090,307 and $14,418,684, respectively, as noted in the tables above.

Employees Covered – As of the June 30, 2019 actuarial valuation date and the June 30, 2020 measurement date, the following employees were covered by the benefit terms for each Plan:

As of June 30, 2021, the City had 413 active employees in the Miscellaneous Plan and 220 active employees in the Safety Plan.

Contributions – Section 20814(c) of the California Public Em ployees’ 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 un funded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Contributions for the measurement period were $13,783,427 for the Miscellaneous Plan and $19,355,578 for the Safety Plan.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
113

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability
The City’s net pension liability for each Plan is meas ured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 ro lled forward to June 30, 2 020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – For the measurement period ended June 30, 2020, the total pension liabilities were determined by rolling forward the June 30, 20 19 total pension liability. The June 30, 2020 total pension liabilities were based on the following actuarial methods and assumptions:

Miscellaneous (1) Safety (1)
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increase Varies by Entry Age and Service Varies by Entry Age and Service Mortality (1) Derived using CalPERS’ membership
data for all funds
Derived using CalPERS’ membership data
for all funds
Post Retirement Benefit Increase Contract COLA or 2.50% until Purchasing Power ProtectionAllowance
floor on purchasing power applies,

2.50% thereafter
Contract COLA or 2.50% until Purchasing
Power ProtectionAllowance floor on
purchasing power applies, 2.50%
thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
114

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for each Plan was 7.15%.

The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Reti rement Fund (PERF) will be made at the current member contribution rates and that contributions fr om employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. 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 for each Plan.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long- term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent ex pected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
115

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions ap plied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
116

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued III. Changes in the Net Pension Liability
The changes in the Net Pension Liability as of the June 30, 2020 Measurement Date for each Plan follows:

Miscellaneous Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 Measurement Date 504,296,912 $ 373,530,332 $ 130,766,580 $ Changes in the year:

Service cost 7,529,439 - 7,529,439 Interest on the total pension liability 34,974,846 - 34,974,846 Differences between actual and
expected experience (4,393,691) - (4,393,691) Contribution - employer - 13,778,755 (13,778,755) Contribution - employees - 2,749,990 (2,749,990) Net investment income - 18,237,576 (18,237,576) Administrative expenses - (526,586) 526,586 Benefit payments, including refunds of
employee contributions (29,018,486) (29,018,486) - Net changes 9,092,108 5,221,249 3,870,859 Balance at June 30, 2020 Measurement Date 513,389,020 $ 378,751,581 $ 134,637,439 $ Safety Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 Measurement Date 676,597,009 $ 469,826,178 $ 206,770,831 $ Changes in the year:

Service cost 10,958,278 - 10,958,278 Interest on the total pension liability 47,218,257 - 47,218,257 Differences between actual and
expected experience (2,189,929) - (2,189,929) Contribution - employer - 19,362,087 (19,362,087) Contribution - employees - 4,232,707 (4,232,707) Net investment income - 22,875,702 (22,875,702) Administrative expenses - (662,340) 662,340 Benefit payments, including refunds of
employee contributions (38,982,005) (38,982,005) - Net changes 17,004,601 6,826,151 10,178,450 Balance at June 30, 2020 Measurement Date 693,601,610 $ 476,652,329 $ 216,949,281 $ Totals - Miscellaneous and Safety Plans 1,206,990,630 $ 855,403,910 $ 351,586,720 $ Increase (Decrease)
Increase (Decrease)
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
117

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued III. Changes in the Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were ca lculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

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

IV. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $45,199,642. At June 30, 2021, the City reported deferred outflows of resources an d deferred inflows of resources related to pensions from the following sources:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
118

11. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued IV. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued $35,754,074 reported as deferred outflows of reso urces 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
119

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans
I. Plan Descriptions and Funding Policies
The City administers three single-employer pens ion plans which are funded entirely by City contributions. These are the General Pension Plan, Police and Firemen’s Pension Plan, and Garfield Pension Plan (collectively, the “Plans”). The General Pension Plan, a defined benefit pension plan, covers ten former City employees (or their beneficiaries) not covered by CalPERS, all of whom have retired. The Police and Firemen’s Pension Plan, a defined benefit pension plan, covers twenty-seven retired police and fire personnel (or their beneficiaries) employed prio r to October 1964. The Garfield Pension Plan is a defined benefit pension plan established for a retired police chief. The Plans provide retirement, disability, and death benefits based on the employee’s years of service, age and final compensation. Benefit provisions for the Plans are established by City Ordinance. No separate financial statements are issued for the Plans.

The City established the Secured Pension Override Special Revenue Fund to which proceeds of a special incremental property tax levy voted by the citizens of the City of Richmond are credited for the payment of benefits under the City’s pension plans. The incr emental property tax revenue received for the year ended June 30, 2021 was $11,352,354, and the City used the funds to pay General Pension Plan and the Police and Firemen’s Pension Plan contributions of $319,025 and $937,004, respectively.

Police and Firemen’s Pension Plan – Funding for the Plan is provided from the Secured Pension Override Special Revenue Fund. Employees were vested after five years of service. Members of the Plan are allowed normal retirement benefits after 25 or more continuo us years of service. The City is required under its charter to contribute the remaining amounts necessary to fund the Plan using the entry age- normal actuarial method as specified by Ordinance. Management of the Plan is vested in the Pension Board which consists of seven members: the Mayor, City Manager, Director of Finance, two members appointed by the Mayor, with the concurrence of four members of the City Council, each of whom shall be and remain a resident of the City in order to be a member of the Board and serve a term of five years, one representative of the Police Department and one representative of the Fire Department.

The Plan is closed to new members. Retirement benefi ts for Plan members are calculated as one-half of the annual salary attached to the rank or position held by the retiree one year prior to the date of retirement. Surviving spouses receive 100% of the retiree’s pension. Benefit terms provide for annual cost- of-living adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustments are an increase each year for changes in the salary attached to the retiree’ s rank in the year before retirement.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
120

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
I. Plan Descriptions and Fun ding Policies, Continued
General Pension Plan – Retirement and other benefits are paid from the assets of the Plan and from related investment earnings. The City is required un der its charter to contribute the remaining amounts necessary to fund the Plan using the entry age-normal actuarial method as specified by Ordinance.

Management of the Plan is vested in the General Pension Board which consists of seven members: the Mayor, City Manager, Director of Finance, two members appointed by the Mayor, with the concurrence of five members of the City Council, each of whom shall be and remain a resident of the City in order to be a member of the Board and serve a term of five years, and two members to be elected every five years by secret ballot vote of the rank and file of Plan employees and of Plan employees who have retired and are receiving pensions from the Plan. Four members of the General Pension Board are to be concurred in by four members.

The Plan is closed to new members. Retirement benefi ts for Plan members are calculated as one-half of the average annual salary attached to the position held by the retiree during the three years prior to the date of retirement. Surviving spouses receive 100% of the retiree’s pension. Benefit terms provide for annual cost-of-living adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustments are an automatic increase of 2% per year. City Council may grant additional increases of up to 3% per year to bring the total increase in a given year to 5%.

Garfield Pension Plan – Retirement and other benefits are paid from the assets of the Plan and from related investment earnings. Plan provisions ha ve been established and may be amended upon agreement between the City and Mr. Garfield. Management of the Plan is vested in the City Council.

Mr. Garfield’s pension and any continuation to his spouse receive the same cost-of-living increases as the City’s police employees covered by CalPERS (CalPERS cost-of-living increases include a 2% per year increase, subject to CPI increase constraints, an d purchasing power protection through the CalPERS Purchasing Power Protection Allowance). Mr. Garfield ’s surviving spouse receives 50% of the retiree’s pension.

II. Significant Accounting Policies
City contributions for all plans are recognized when due and the City has made a formal commitment to provide contributions. Benefit payments and refunds are recognized when due and payable in accordance with the terms of the Plan. Administrative costs for all plans, except the investment management fees of the Police and Fireman’s Pension Plan, are paid by the City’s General Fund. The investment management fees are financed through investment earnings. Assets are valued at fair value based on available market information obtained from independent sources.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
121

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets
At June 30, 2021 the pension plans reported assets av ailable for benefits as sh own below. For actuarial purposes, the value of the Plans’ assets were determined to be fair value.

The Wellington Trust Company Fund investments, classi fied in Level 2 of the fair value hierarchy, are valued using the market approach, which uses pric es and other information generated from market transactions, which typically includes securities priced with unadjusted market quotes, evaluated bids, market multiples, and trade information, and also ge nerally includes short term securities valued at amortized cost which approximates market value. The City of Richmond Investment Pool and the California Local Agency Investment Fund (LAIF) are not subject to the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.

Investment Policies
The General Pension and Police and Firemen’s Pensio n Plans’ policies in regard to the allocation of invested assets is established and may be amended by Resolution of the respective Boards. The Plans allow investments in the following:
(a) In investments which are authorized by General law for savings banks. (b) In investments other than those specified in su bdivision (a) hereof, including, but not limited to, corporate bonds and securities, common stocks, preferred stocks, investments in real estate and investment trusts, provided that the total amount inve sted pursuant to this subdivision shall not exceed fifty percent (50%) of the total amount of funds invested pursuant to this section, and provided further that the following conditions are met:
(1) Any stocks or other corporate securities, in wh ich funds are invested, except stocks of banks, insurance companies or mutual funds, shall be registered on a national securities exchange as provided by the Federal Securities Exchange Act.
(2) The total amount invested in common and preferre d stocks shall not exceed at cost at the time of purchase twenty-five percent of the total amount invested pursuant to this section.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
122

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets, Continued
Investment Policies, Continued
(3) The total amount invested in the common and preferred stocks of any one company shall not exceed at cost of the time of purchase two percent of the total amount invested pursuant to this section and shall not exceed five percent of the outstanding preferred or common stock of that company. (4) No funds shall be invested in the common stocks of any company unless it has paid cash dividends on such stocks in eight of the ten years immediately preceding its purchase by the Board. (5) No funds shall be invested in the stocks or other securities of any company other than a bank or insurance company unless it has assets of at least one hundred million dollars ($100,000,000), or in the stocks or other securities of a bank or insurance company unless it has assets of at least fifty million dollars ($50,000,000).
(6) The total amount invested in real estate and other than real estate owned by or leased to the City of Richmond, which amount may include land, buildings, land and buildings or real estate loans, shall not exceed twenty-five percent of the total amount invested pursuant to this section and such investments shall be restricted to first trust deeds which are insured by the Federal Housing Administration or which are guaranteed by the Veterans Administration.

The Garfield Pension Plan does not have a separate investment policy, therefore it uses the City’s investment policy.

Interest and Credit Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City invests in equities which may be drawn down as needed, subject to terms of the underlying trust agreement. The investments held in th e Pension Trust Funds all mature in less than one year.

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. As of June 30, 2021, the investments in the Pension Trust Funds were not rated.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
123

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets, Continued
Rate of Return
For the year ended June 30, 2021, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, for the Police and Firemen’s, General Pension and Garfield Pension Plans was 22.61%, 0.44% and 0.72%, respectively. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

IV. Net Pension Liability of the Plans
The components of the net pension liability of the City for each of the Plans is the total pension liability, less each Plan’s fiduciary net position.

Actuarial Assumptions. The total pension liability for each plan as of June 30, 2021 was determined based on June 30, 2021 actuarial valuations. The following actuarial assumptions applied to all periods included in the measurement:

Mortality rates were based on the California PERS Mortality Table in its 2017 experience study (based on CalPERS 1997-2015 experience).

Discount Rates. The discount rates used to measure the total pension liability for the Police and Firemen’s Pension Plan, General Pension Plan and Garfield Pension Plan were 3.50%, 1.00%, and 1.00%, respectively, as of June 30, 2021 and 4.50%, 1.98%, and 1.75%, respectively, as of June 2020.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
124

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Net Pension Liability of the Plans, Continued
For the Police and Firemen’s Pension Plan, based on the 5 previous years the City has on average contributed 97% of the Actuarially Determined Contribution (ADC). A sufficiency test was performed including: (1) expected benefit payments for all future years; (2) assuming that 96% of the ADC is contributed to the Plan in future years; (3) assuming that future contribution losses are amortized according to the Plan’s funding policy; (4) using th e Plan’s assumed investment return before the projected asset depletion (if any); and (5) using a 20-year AA tax-exempt general obligation municipal bond index rate of 2.45% (using as a municipal bond rate source the Fidelity 20-Year General Obligation AA Municipal Bond Index as of June 30, 2021) after the projected asset depletion. Based on these parameters, plan assets are projected to be sufficient to pay all future benefits until a de minimus amount of estimated future benefits remain. Therefore, the Plan’s long-term expected rate of return of 3.50% was used as the discount rate.

Based on the 5 previous years the City has on average contributed 78% and 113% of the Actuarially Determined Contribution (ADC) for the General Pension Plan and Garfield Pension Plan, respectively. A sufficiency test was performed including: (1) expected benefit payments for all future years; (2) assuming that 74% of the ADC is contributed to the General Pension Plan and 100% of the ADC is contributed to the Garfield Pension Plan in future years; (3) assuming that future contribution losses are amortized according to the Plans’ funding policies; (4) using the Plans’ assumed investment return before the projected asset depletion (if any); and (5) using a 20-year AA tax-exempt general obligation municipal bond index rate of 2.45% (using as a municipal bond rate source the Fidelity 20-Year General Obligation AA Municipal Bond Index as of June 30, 2021) after the projected asset depletion. Based on these parameters, each of the Plan’s assets are projected to be sufficient to pay all future benefits until a de minimus amount of estimated future benefits remain. Therefore, the long-term expected rate of return of

1.00% was used as the discount rate for each of these Plans.

The long-term expected rate of return on pension pl an investments was determined for each Plan using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation (2.25%). All results are then rounded to the nearest quarter percentage point.

The best-estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best-estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blen ded with forward-looking expectations available in market data.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
125

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Net Pension Liability of the Plans, Continued
Best estimates of geometric real and nominal rates of return for each major asset class included in the Plans’ asset allocation as of the measurement date are summarized below:

Asset Class
Allocation at
Measurement Date
Long-Term Expected
Real Rate of Return
Long-Term Expected
Nominal Rate of
Return
Police and Firemen's Plan:

Domestic Equity 55% 3.66% 5.66%
International Equity 0% 4.26% 6.26%
Fixed Income 35% -0.03% 1.97%
Real Estate and Alternatives 0% 3.38% 5.38%
Cash and Equivalents 10% -0.97% 1.03%
Total 100% 4.19%
Reduced for assumed investment expense -0.60%
Total (weighted avg, rounded to 1/4%) 3.50%
General Pension Plan:

Domestic Equity 0% 3.66% 5.66%
International Equity 0% 4.26% 6.26%
Fixed Income 0% -0.03% 1.97%
Real Estate and Alternatives 0% 3.38% 5.38%
Cash and Equivalents 100% -0.97% 1.03%
Total 100% 0.99%
Reduced for assumed investment expense 0.00%
Total (weighted avg, rounded to 1/4%) 1.00%
Garfield Pension Plan:

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Net Pension Liability of the Plans, Continued
Changes in Assumptions. In addition to the change in the discount rates noted above, changes in assumptions from the prior valuation for each plan was as follows:

Police and Firemen’s Plan:
x The expected investment return and discount ra te decreased from 4.50% to 3.50% to reflect updated capital market assumptions.

General Pension Plan:
x The discount rate was updated from 1.98% to 1.00% to reflect updated GASB 68 trust depletion projections.
x The expected trust investment return on assets decreased from 1.75% to 1.00% to reflect updated capital market assumptions and the plan's anticipated short future duration.

Garfield Pension Plan:
x The expected investment return and discount ra te decreased from 1.75% to 1.00% to reflect updated capital market assumptions.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
127

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
V. Changes in the Net Pens ion Liability of Each Plan
The net pension liability of each Plan is measured as of June 30, 2021 as follows:

Police and Firemen's Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 13,176,626 $ 11,062,378 $ 2,114,248 $ Changes in the year:

Interest on the total pension liability 561,163 - 561,163 Differences between actual and expected experience (3,680,825) - (3,680,825) Changes in assumptions Changes in benefit terms 28,483 - 28,483 Contribution - City - 937,004 (937,004) Contribution - employer - - - Contribution - employees - - - Net investment income - 2,527,138 (2,527,138) Benefit payments, including member contribution refunds (1,412,673) (1,412,673) - Net changes (4,503,852) 2,051,469 (6,555,321) Balance at June 30, 2021 8,672,774 $ 13,113,847 $ (4,441,073) $ Plan fiduciary net position as a percentage of the total pension liability 151.21% General Pension Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 1,995,238 $ 1,170,491 $ 824,747 $ Changes in the year:

Interest on the total pension liability 35,526 - 35,526 Differences between actual and expected experience 106,639 - 106,639 Changes in assumptions Changes in benefit terms 72,660 - 72,660 Contribution - City - 319,025 (319,025) Contribution - employer - - - Contribution - employees - - - Net investment income - 5,501 (5,501) Benefit payments, including refunds of employee contributions (401,991) (401,991) - Net changes (187,166) (77,465) (109,701) Balance at June 30, 2021 1,808,072 $ 1,093,026 $ 715,046 $ Plan fiduciary net position as a percentage of the total pension liability 60.45% Increase (Decrease)
Increase (Decrease)
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
128

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
V. Changes in the Net Pension Li ability of Each Plan, Continued Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the City for each of the Plans, calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:

VI. Actuarially Determined Contributions
As of the June 30, 2020, actuarial valuations used to calculate the actuarially determined contributions (ADC) for each Plan, the ADC’s were determined using the entry-age normal cost method and the assumptions in Note 11B above.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
129

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
VI. Actuarially Determined Contributions, Continued
For the Police and Firemen’s Pension Plan, the City’s contribution policy is to annually contribute an amount equal to (1) amortization of the unfunded liabi lity as a level-dollar over a 10-year closed period as of July 1, 2013, plus (2) future gains and losses amortized over the same period, but not less than five years. Over the past five years, the City has contributed an average of 97% of the Actuarially Determined Contribution.

For the General Pension Plan, the City’s contribution policy is to annually contribute an amount equal to (1) amortization of the unfunded liability as a level-doll ar over a 6-year closed period as of July 1, 2013, plus (2) future gains and losses amortized over the same period, but not less than five years. Over the past five years, the City has contributed an average of 78% of the Actuarially Determined Contribution.

For the Garfield Pension Plan, the City’s contribution policy is to annually contribute an amount equal to (1) amortization of the unfunded liability as a level-doll ar over a 7-year closed period as of July 1, 2013, plus (2) future gains and losses amortized over the same period, but not less than five years. Over the past five years, the City has contributed an average of 113% of the Actuarially Determined Contribution.

The Actuarially Determined Contribution and the actual contributions for each Plan for the year ended June 30, 2021 are presented below:

VII. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense for each of the Plans as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
130

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
VII. Pension Expenses and Deferred Outflows/Inflo ws of Resources Related to Pensions, Continued At June 30, 2021, the City reported deferred outflo ws of resources and deferred inflows of resources related to pensions for these Plans from the following sources:

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

VIII. Plan Financial Statements
The Statement of Net Position for the Plans at June 30, 2021 follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
131

11. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
VIII. Plan Financial Statements, Continued
The Statement of Changes in Plan Net Position for the year ended June 30, 2021 follows:

IX. PARS Defined Contribution Plan
Effective July 1, 2014, the City contracted with the Public Agency Retirement System (PARS), to sponsor a Section PARS 457 FICA Alternative Retirement Plan created in accordance with IRC Sections 3121(b) (7) (F) and 457(b), which is a qualified defined contributi on pension plan covering all eligible part-time, seasonal and temporary employees of the City on that date and hired thereafter.

The Plan requires these employees to contribute 6.2% and the City to contribute 1.3% of the employees pay plus administration costs. The City’s required contributions of $15,534 and the employees’ required contributions of $74,085 were made during the fiscal year ended June 30, 2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
132

12. OTHER POSTEMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB amounts for the year ended June 30, 2021:

A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans Plan Description - In order to qualify for postemployment medical and dental benefits an employee must retire from the City and maintain enrollment in one of the City’s eligible health plans. The City pays a portion of the CalPERS premiums for retirees an d their dependents that vary by employment classification. In addition, the following eligibility ru les and contribution requirements apply for future retirees, followed by current retirees. The City has two plans:

City OPEB Plan
The City is the Plan administrator, while PARS admi nisters the investment trust. The City OPEB Plan does not issue separate financial statements. PARS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from Public Agency Retirement Services, 4350 Von Karman Avenue, Suite 100, Newport Beach, CA, 92660.

RPOA OPEB Plan
The City of Richmond’s Police Officers Association (RPOA) Plan was established during fiscal year 2019 and the RPOA OPEB Plan joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-employer plan administered by CALPERS, consisting of an aggregation of single- employer plans. RPOA members who were actively employed as of January 1, 2017 transferred from the City OPEB Plan to the RPOA OPEB Plan. The CERBT issues a pu blicly available financial report that includes financial statements and required supplementary info rmation. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
133

12. OTHER POSTEMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued A summary of the City OPEB Plan provisions follows:

Classification Eligibility (Age / Service Years) Monthly Premium Paid by City Before/After Medicare Eligibility
Employee Monthly
Contribution (1)
SEIU Local 1021 Service Retirement:
50/20, 51/18, 52/16, 53/14,
54/12, 55/10
Disability Retirement: any age/10
years service
Retiree only or surviving spouse: the lesser of $435 and medical premium Retiree +1 or more: the lesser of $567 and medical premium
Plus PEMHCA Minimum: $136
Retired on or after 7/1/1995: Reimbursement allowed
towards non-PERS plans
None
IFPTE, Miscellaneous Executive
Management, City Council
Service Retirement: Same as SEIU Retiree only or surviving spouse: the lesser of $435 and medical premium Retiree +1 or more: the lesser of $567 and medical premium
Plus PEMHCA Minimum: $136
Effective 1/1/2017: $50
Effective 1/1/2018: $100
Fire Local 188 35/15 Percentage of premium (medical premium minus PEMHCA minimum) for retiree / dependents/surviving spouse up to premium for coverage. Percentage is 90%, increased to
100% after 27 years of service.

Total City contribution, excluding PEMHCA minimum, is
capped at Kaiser non- Medicare eligible premium for
coverage selected.

Plus PEMHCA minimum: $136
Effective 1/1/2017: $200
Effective 1/1/2018: $300
Effective 7/1/2019: $400
Fire Management and Fire Executive
Management
35/15 Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse up to
premium for coverage. Percentage is 80%, increased to 90% after 15 years of service and 100% after 25 years of service.

Total City contribution, excluding PEMHCA minimum, is
capped at Kaiser non-Medicare eligible premium for
coverage selected.

Plus PEMHCA minimum: $136
Effective 1/1/2017: $200
Effective 1/1/2018: $300
Effective 7/1/2019: $400
Police Widows Death in line of duty Full premium of medical, dental and vision None Police Management and Police
Executive Management
50/20, 51/18, 52/16, 53/14,
54/12, 55/10
Service includes non City service
Minimum 5 years City Service
Percentage of premium (medical premium minus PEMHCA
minimum) for retiree/dependents/surviving spouse up to
Kaiser (1) (Pre Medicare) and 2nd highest premium plan
(post Medicare). Percentage is 65% after 10 years of service, increased to 75% after 20 years of service, and 100% after 25 years of service.

Effective 7/1/2017: $300
Effective 7/1/2018: $425
Effective 7/1/2019: $525
Plan Provisions for Future Retirees
(1) Prior to January 1, 2017, active Employees were not required to make monthly contributions.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
134

12. OTHER POSTEMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued Classification Subgroup
Retired July 1, 2007 or later
Retired prior to July 1, 2007
Retired July 1, 2007 or later
Retired November 5, 1999 to June
30, 2007
Retired before November 5, 1999
Fire Local 188
Fire Management Retire on or after 7/1/2006
Retire before 7/1/2006
Same as future retirees
Same as future retirees
Eligible at 35/15
Same as future retirees, but caps are:

Percentage of premium for retiree/dependents/surviving spouse up to Kaiser non- Medicare eligible premium for coverage selected. Percentage is 90%, increased to 100% after 27 years of service.

Plan Provisions for Current Retirees
SEIU Local 1021
IFPTE, Miscellaneous Executive
Management
Monthly Premium Reimbursement Before/After Medicare Eligibility Same as future retirees
Same as future retirees, but caps are:

Retiree only or surviving spouse: $224/$182
Retiree +1 or more: $344/$284
Same as future retirees
Same as future retirees, but caps are:

Retiree only or surviving spouse: $224/$182
Retiree +1 or more: $344/$284
Same as future retirees, but caps are:

Retiree only or surviving spouse: $124/$82
Retiree +1 or more: $244/$184
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
135

12. OTHER POSTEMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued Classification Subgroup
Retire on or after 7/1/2008 but
before 1/1/2017
Retired between 7/1/2004 and
6/30/2008
Retired between 7/1/1997 and
6/30/2004
Retired between 7/1/1994 and
6/30/1997
Retired before 7/1/1994 Plus PEMHCA minimum: $136 Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse including dental and vision. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service
Reimbursement, excluding the PEMHCA minimum, capped at $210 for single coverage and $300 for 2-party coverage
Premium paid for dental and vision.

Plus PEMHCA minimum: $136
Plan Provisions for Current Retirees (Continued)
Richmond Police Officer Association
(RPOA)
Monthly Premium Reimbursement Before/After Medicare Eligibility Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical, dental, and vision premium or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percenta
ge is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service PEMHCA minimum
Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical premium or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service
City also pays PEMHCA minimum.

Reimbursement capped at $614.

Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical premium minus PEMHCA minimum or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percenta
ge is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service Plus PEMHCA Minimum: $136 City also pays PEMHCA minimum.

Reimbursement capped at $550.

Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse including dental and vision. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service
Premium paid for dental and vision.

Plus PEMHCA minimum $136
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
136

12. OTHER POSTEMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued A summary of the RPOA OPEB Plan provisions follows:

Classification Subgroup
Retired on or after 7/1/2008
Retired between 1/1/1995 (1) and
6/30/2008
Plan Provisions for Current Retirees (Continued)
1) The City did provide medical premium benefits with single and 2-party caps for Police Management that retired prior to January 1, 1995, and as of June 30, 2020 there were two retirees receiving such benefits
Police Management and Police
Executive Management
Monthly Premium Reimbursement Before/After Medicare Eligibility Same as future retirees
Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service.

Retired after 1/1/2007 - Reimbursement capped at Kaiser premium, excluding the PEMHCA minimum, for pre-Medicare and 2nd highest premium plan for post- Medicare for coverage selected
Retired on or before 1/1/2007 - Reimbursement capped at 2nd highest premium plan, excluding the PEMHCA minimum, for coverage selected
Retired on or after 7/1/1995: Reimbursement allowed towards non-PERS plans NOTE: PEMHCA is billed to employers for all CalPERS medical plans. if a member is not enrolled in a PERS plan the employer is not billed.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
137

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued For retirees eligible to continue health benefits, but failing to meet the criterion in the tables above, the City pays the Public Employees Medical and Hospit al Care Act (PEMHCA) minimum, which is $136 in 2021.

City OPEB Plan Membership – As described above, Plan membership varies based on different employee bargaining groups. As of the June 30, 2019 valuatio n date, membership in the City OPEB Plan consisted of the following:

RPOA Plan Membership – As of the June 30, 2019 valuation date, membership in the RPOA OPEB Plan consisted of the following:

B. Funding Policy and Actuarial Assumptions
City OPEB Plan
Funding Policy – During the year ended June 30, 2008, the City joined the Public Agencies Post- Retirement Health Care Defined Benefit Plan, an agen t multiple employer trust administered by Public Agency Retirement Services (PARS). The balance in the City’s PARS trust account as of June 30, 2021 was $32,439,802.

The City’s policy is to partially prefund these benefits by accumulating assets with PARS discussed above along with making pay-as-you-go payments pursuant to Resolution No. 52-06 of June 27, 2006. In July 2016, the City adopted an additional funding policy to place into the PARS trust half of any one-time revenues and half of any year-end surplus in excess of the City’s minimum reserve policy (15%) in an effort to pay down the unfunded lia bility. The City did not make any additional transfers to the PARS Trust in fiscal year 2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
138

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
RPOA OPEB Plan
A new Richmond Police Officers Association (RPOA) contract was implemented on January 17, 2017. The new RPOA plan includes members who were actively employed as of the January 17, 2017 contract date.

The RPOA members were transferred from the OPEB Plan to the new RPOA OPEB Plan during fiscal year 2021.

Funding Policy – The RPOA plan has assets designated for OPEB. These assets are invested in California Employers' Retiree Benefit Trust (CERBT) Strategy 2, which is a qualified irrevocable trust. Annual contributions by the City are made on an ad hoc basis as funds are available. Benefit payments are not expected to be made from the trust in the near future. The City currently pays the annual retiree benefit payments using its general assets plus the annual active member contributions.

The balance in the CERBT trust account was $6,307,879 as of June 30, 2021.

Actuarial Assumptions – The total OPEB liability for each plan was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2021 using standard update procedures. The City OPEB plan valuation used the following actuarial assumptions a pplied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions
Valuation Date June 30, 2019
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 5.75%
Inflation 2.50%
CPI Medical Care 3.75%
Payroll Growth 2.75%
Investment Rate of Return 5.75%
Index Rate for 20 year, tax exempt
municipal bonds

1.92%
Mortality Based on assumptions for Public A
gency Miscellaneous, Police and Fire members
published in the December 2017 CalPERS Experience Study.

Healthcare Cost Trend Rates:

Health - Not Medicare Eligible 6.40% for FY2020, gradually decreasing over several decades to an ultimate rate of 4% in FY2076 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 5.10% for 2022, 5.20% for 2023 and 5.20% for 2024-2051, transitioning to ultimate rate of 4.00% in 2076 and further years Dental To increase 3.75% annually
Vision To increase 2.75% annually
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
139

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
The RPOA OPEB Plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:

Discount rate – The discount rate used to measure the total City OPEB liability was 5.75% for the City OPEB Plan and 5.50% for the RPOA OPEB Plan. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the City OPEB 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 City OPEB plan investments was applied to all periods of projected benefit payments to determine the total City OPEB liability.

Actuarial Assumptions
Valuation Date June 30, 2019
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 5.50%
Inflation 2.50%
CPI Medical Care 3.75%
Payroll Growth 2.75%
Investment Rate of Return 5.50%
Index Rate for 20 year, tax exempt
municipal bonds

1.92%
Mortality Based on assumptions for Public A
gency Police members published in the
December 2017 CalPERS Experience Stud y.

Healthcare Cost Trend Rates:

Health - Not Medicare Eligible 6.40% for FY2020, gradually decreasing over several decades to an ultimate rate of 4% in FY2076 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 5.10% for 2022, 5.20% for 2023 and 5.20% for 2024-2051, transitionin g to ultimate rate of 4.00% in 2076 and further years Dental To increase 3.75% annually
Vision To increase 2.75% annually
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
140

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
Generally accepted accounting principles require that the liability discount rate be the single rate that reflects the following:

A. The long-term expected rate of return on City OPEB plan investments that are expected to be used to finance the payment of benefits, to the extent that (1) the City OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and (2) City OPEB plan assets are expected to be invested using a strategy to achieve that return; and B. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale), to the extent that the conditions in A. are not met. The municipal bond rate source used as of June 30, 2021 the Fidelity 20- Year General Obligation AA Municipal Bond Index.

Changes of assumptions since the prior actuarial valuation for the City OPEB Plan were:
x The long-term investment return assumption was changed from 6.50% to 5.75% based on updated capital market assumptions.
x The discount rate was changed fr om 5.76% to 5.75% based on updated expectations of long-term returns on trust assets and 20-year municipal bond rates. x An underlying wage growth rate of 2.75% per year was added to the salary scale table based on a revised understanding of the CalPERS assumption.

City OPEB Plan
Rate of Return – For the year ended June 30, 2021, the annual money-weighted rate of return on City OPEB Trust Fund investments, net of City OPEB plan investment expense, for the City OPEB Plan was 26.66%.

The money weighted rate of return expresses inve stment performance, net of investment expense, adjusted for the changing amounts actually invested.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
141

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
City OPEB Plan, Continued
Investment Policy – PARS offers different investment portfolios as part of the investment vehicle. The City invests in the “Balanced/Moderately Aggressive Highmark PLUS” portfolio; the primary goal of the Highmark Plus portfolio is growth of principal and income. The major portions of the assets are invested in the equity securities and market fluctuations are expected. The portfolio is constructed to control risk through three layers of diversification as follows:

Investments of the City OPEB Trust Fund at June 30 , 2021 consisted of $32,439,802 invested in mutual funds.

The long-term expected rate of return on City OPEB Plan investments was determined using a building- block method in which best-estimates of expected future real rates of return (expected returns, net of City OPEB Plan investment expense and inflation) are developed for each major asset class. The weighted asset class estimates are combined with the inflation and investment expense assumptions to produce the portfolio long-term expected rate of return. The target allocation for the City OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
142

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
RPOA OPEB Plan
Rate of Return – The long-term expected rate of return on RPOA OPEB Plan investments was determined using a building-block method in wh ich best-estimates of expected future real rates of return (expected returns, net of RPOA OPEB Plan investment expens e and inflation) are developed for each major asset class. The weighted asset class estimates are comb ined with the inflation and investment expense assumptions to produce the portfolio long-term expected rate of return.

Investment Policy – The target allocation for the RPOA OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
143

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
C. Changes in Net OPEB Liability
The changes in the net OPEB liability for the City OPEB Plan is as follows:

Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 120,302,967 $ 22,861,318 $ 97,441,649 $ Changes Recognized for the Measurement Period:

Service Cost 2,072,961 - 2,072,961 Interest on the total OPEB liability 6,846,932 - 6,846,932 Differences between expected and actual experience (1) (140,135) - (140,135) Changes of assumptions 1,173,106 - 1,173,106 Contributions from the employer - 9,515,699 (9,515,699) Contributions from the employee - 623,088 (623,088) Net investment income - 6,562,745 (6,562,745) Administrative expenses - (111,868) 111,868 Benefit payments (2) (7,011,178) (7,011,178) - Net changes 2,941,686 9,578,486 (6,636,800) Balance at June 30, 2021 (Measurement Date) 123,244,653 $ 32,439,804 $ 90,804,849 $ (3) Benefit payments are comprised of $4,503,989 explicit subsidy payments to retirees and $2,507,189 implicit subsidy costs incurred during the measurement period ending 6/30/2021. (1) Due to the difference between expected and actual benefit payments during the measurement period ending 6/30/2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
144

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
C. Changes in Net OPEB Liability, Continued
The changes in the net OPEB liability for the RPOA OPEB Plan is as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
145

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Chang es in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability of both plans, as well as what the net OPEB liabilities would be if it were calculated using the discount rate th at is 1-percentage-point lower or 1-percentage point higher than the current discount rate:

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

City OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%

4.75% 5.75% 6.75%
105,088,635$ 90,804,849 $ 78,834,871 $ RPOA OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%

4.50% 5.50% 6.50%
15,893,234$ 12,996,549 $ 10,610,378 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset)
City OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
79,021,375$ 90,804,849 $ 104,891,041 $ RPOA OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
11,122,153$ 12,996,549 $ 15,503,624 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset) Healthcare Cost Trend
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
146

12. OTHER POSTEMPLOYMENT BENEFITS, Continued
E. OPEB Expense and Deferred Outflows/I nflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense on the City OPEB Plan and RPOA OPEB Plan of ($9,332,976) and $855,064, respectively. At June 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Amounts reported as deferred outflows of resources and deferred inflows of resources related to the City OPEB Plan and RPOA OPEB Plan will be recognized as part of OPEB expense as follows:

City OPEB Plan
Year Annual
Ended June 30, Amortization
2022 (16,141,470)$
2023 (16,911,228)
2024 (6,345,433)
2025 (909,404)
RPOA OPEB Plan
Year Annual
Ended June 30, Amortization
2022 (1,074,676) $
2023 (1,074,676)
2024 (1,074,674)
2025 (1,083,482)
2026 (954,788)
Thereafter (4,599,907)
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
147

13. 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 Co de Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation un til distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.

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

14. RISK MANAGEMENT
The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets; general liability; errors and omissions; injuries to employees; natural disasters; and inverse condemnation. The City began self-insuring its workers’ compensation in 1976. In July 2009 the City joined the California Joint Powers Risk Management Authority (CJPRMA) for general liab ility and employment practices coverage. In April 2009 the City joined the California State Association of Counties Excess Insurance Authority (CSAC EIA) for worker’s compensation insurance. The City has chosen to establish a risk financing internal service fund where assets are accumulated for claim settlements and expenses associated with the above risks of loss up to certain limits.

Excess coverage for the risk categories excluding inverse condemnation is provided by policies with various commercial insurance carriers. Self-insurance and insurance company limits are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
148

14. RISK MANAGEMENT, Continued
CJPRMA
The CJPRMA provides coverage against the following types of loss risks under the terms of a joint powers agreement with the City as follows:

Once the self-insured retention is exhausted on each claim, CJPRMA becomes responsible for payment of future expenses related to the claim. The City paid co ntributions of $1,274,804 for the year ended June 30, 2021. Actual surpluses or losses are shared accordin g to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

Audited financial statements for the CJPRMA are available from CJPRMA, 3201 Doolan Road, Suite 285, Livermore, CA 94551.

CSAC-EIA
C S A C - E I A i s a p u b l i c e n t i t y r i s k p o o l o f c i t i e s a nd counties within California. The CSAC-EIA provides workers’ compensation coverage up to the statutory lim it and the City retains a self-insured retention of $750,000. Loss contingency reserves established by the CSAC-EIA are funded by contributions from member agencies. The City pays an annual contribution to the CSAC-EIA, which includes its pro-rata share of excess insurance premiums, charges for pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the risk pool. The City paid contributions of $383,262 for the year ended June 30, 2021. CSAC- EIA provides insurance through the pool up to a cert ain level, beyond which group purchased commercial excess insurance is obtained. CSAC-E IA is currently fully funded. No provision has been made on these financial statements for liabilities related to possible additional assessments.

Audited financial statements for CSAC-EIA are availabl e from CSAC-EIA, 75 Iron Point Circle, Suite 200, Folsom, CA 95630.

Housing Authority Insurance Group
The Housing Authority is exposed to various risks of loss related to torts: theft, damage, and destruction of assets; errors and omissions; injuries to employees and natural disaster. The Authority joined together with other entities and participates in the Housing Authority Insurance Group, a public entity risk pool currently operating as a common risk management and insurance program for its member entities. The purpose of the Housing Authority Insurance Group is to spread the adverse effects of losses among the member entities and to purchase excess insurance as a group, thereby reducing its cost.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
149

14. RISK MANAGEMENT, Continued
Housing Authority Insurance Group, Continued
The Authority pays annual premiums to Housing Au thority Insurance Group for its property damage insurance as follows:

All of the Housing Authority properties are included in the general liability coverage under the CJPRMA program.

Liability for Self-Insured Claims
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims ) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims is based on case reserves and include amounts for claims incurred but not reported (IBNR), and is recorded in the Insurance Reserves Internal Service Fund. At June 30, 2021, the estimated claims pa yable of $44,392,339 consisting of reserves for both reported and IBNR losses, as well as allocated loss adjustment expenses, have been recorded in the Insurance Reserves Internal Service Fund. The claims payable are reported at their present value using expected future investment yield assumptions of 3% and an 80% confidence level. The undiscounted claims totaled $46,630,000 at June 30, 2021. Changes in the claims liabilities for the years ended June 30, 2021 and 2020 were as follows:

For the years ended June 30, 2021, 2020 and 2019 the amount of settlements did not exceed insurance coverage.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
150

15. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City’s non-major enterprise funds include the following:
x Richmond Marina Fund – Marina operations and maintenance, including berth rentals and use of marina facilities.
x Storm Sewer Fund – Storm sewer management and urban runoff control. x Cable TV Fund – Administration and enforcement of the franchise agreements with two cable television systems, management of a municipal cable channel, departmental video services, media and public information, and telecommunications planning.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
151

15. SEGMENT INFORMATION FOR ENTERPRISE FUNDS, Continued Fiscal 2021 condensed financial information for the Richmond Marina Enterprise Fund is as follows:

Condensed Statement of Net Position
Assets:

Current assets 4,430,839 $
Capital assets 1,518,883
Total assets 5,949,72 2
Liabilities:

Current liabilities 286,024
Long-term liabilities 2,235,20 2
Total liabilities 2,521,22 6
Net position:

Net investment in capital assets (817,975)
Restricted for debt service 89,72 6
Unrestricted 4,156,74 5
Total net position 3,428,49 6$
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Operating revenues:

Lease income 574,453 $
Operating expenses:

General and administrative (36,305)
Depreciatio
n (85,563)
Operating income 452,58 5
Nonoperating revenues (expenses):

Interest income 18,789
Interest expense (105,523)
Income (Loss) Before Contributions and Transfers 365,85 1 Transfers out (86,778)
Change in net position 279,073
Beginning net position 3,149,423
Ending net position 3,428,49 6$
Condensed Statement of Cash Flows
Net cash provided (used) by:

Operating activities 552,573 $
Noncapital and related financin g activities (86,778)
Capital and related financin g activities (206,815)
Investing activities 22,777
Net increase 281,757
Beginning cash and investments 4,008,897
Ending cash and investments 4,290,654 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
152

16. COMMITMENTS AND CONTINGENCIES
A. Lease and Construction Commitments
The Police Department occupies leased premises owne d by DiCon Fiberoptics, Inc. The City’s original lease was a three year lease which expired on December 31, 2009, and it had an option to renew for five (5) one year periods until December 31, 2014. In October 2014, the City and DiCon Fiberoptics, Inc. entered into a new five year lease extension with the term commencing January 1, 2015 through December 31, 2019, with an option to renew for five (5) one year periods until December 31, 2024. The lease calls for minimum monthly lease payments of $147,089.

The Richmond Municipal Sewer District occupies leased premises owned by West County Wastewater District. The City’s original lease was a two year lease which expired on December 31, 2012, with an option to renew for one (1) three year period and one (1) tw o year period until December 31, 2017. In January 2017, the City and West County Wastewater District entered into a first amendment to the ground lease with four possible extensions for terms commencing January 1, 2016 through December 31, 2017; January 1, 2018 through December 31, 2020; and January 1, 2021 through December 31, 2025. The lease calls for minimum monthly lease payments of $195,383.

The City’s future commitments under construction and other projects totale d approximately $125.2 million at June 30, 2021 for various projects.

B. Litigation
The City is involved in various claims and litigation resulting from its normal operations. The ultimate outcome of these matters is not presently determinable. In City management’s opinion these matters will not have a significant adverse effect on the City’s or RHA Properties’ financial position, with two potential exceptions noted below:

In March 2012, a developer and an associated entity filed a complaint in federal court against the United States of America, two individuals, and the City contending breach of contract related to a Land Disposition Agreement (LDA) between the developer and the City for the development of City-owned property for a specific use. The developer and associat ed entity seek damages of $30 million as well as lost profits of over $750 million. The City disputes the allegations and contends that the LDA did not commit the developer or the City to develop the prop erty for the specific use and that the developer’s right to move forward with the development was subject to various federal approvals. The City received a favorable judgement on the matter, but an appeal by the developer and associated entity resulted in the Ninth Circuit reversing the decision, concluding the plaintiffs should be given another opportunity to amend their complaint. The plaintiffs filed an amended complaint and the City answered, denying the plaintiffs’ allegations and asserting affirmative defenses and counterclaims. In April 2018, the City again received a favorable judgement on the matter under which the City will pay no monetary damages to the developer and the developer’s claims were dismissed. Under the terms of the judgment, future proceeds from the sale of the property will be shared equall y between the City and the developer. However, the judgment is being challenged by an environmental rights group. The City may be negatively impacted should the court rule in favor of the group, however any such impact cannot be determined at this time.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
153

16. COMMITMENTS AND CONTINGENCIES, Continued
C. Grant Programs
The City participates in several fe deral and State grant programs. Thes e 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, except as noted under Grant Programs – Disallowed Costs below.

D. Housing Authority – Easter Hill Project
The Authority participates in a number of federally assisted grant programs, principal of which are the Low Income Public Housing Program and the HOPE VI Re vitalization Grant. It is possible that at some future date, it may be determined that the Author ity is not in compliance with applicable grant requirements. The amounts, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Authority does not expect such disallowed amounts, if any, to materially affect the financial statements.

In June 2000, the Richmond Housing Authority received a $35 million grant (HOPE VI Grant) from the U.S. Department of Housing and Urban Development (“HUD”) for the revitalization of the former Easter Hill Public Housing Project. The original Easter Hill site, owned by the Richmond Housing Authority, included 300 units on 21 acres in the Cortez/Stege neighborhood of Richmond.

The California Tax Credit Committee, City of Richmond, Bank of America, Silicon Valley, Federal Home Loan Bank, California Housing Finance Agency, the Richmond Housing Authority along with the $35 million dollar HUD grant financed this $120 million revi talization effort. Physical costs are estimated to be approximately $108 million and life services, relocation, acquisition, administrative and other costs are estimated to be approximately $12 million. The physical development includes approximately 320 rental and homeownership units to replace the 300 rental units originally at the site and 273 remaining units at the time of grant approval. Amenities at the revitalized site include a pool and a 5,000 square feet community room with facilities for an after school program, computer center, gymnasium and conference room.

In addition, pursuant to the same agreement, the Authority is entitled to receive reimbursement for certain costs it has incurred in development of these projects. Upon completion of the project, the Authority recorded $14,276,909, representing reimbursement from the developer which had been recorded in the accompanying financial statements as due from developer. The balance outstanding as of June 30, 2021 is $11,221,743.

In 2002, the Authority chose the development team of McCormack Baron Salazar, Inc. and Em Johnson Interest, Inc. to develop the site. Em Johnson Interest has developed the 82 homeownership units affordable to low, moderate and market rate buyers. McCormack Baron was charged with the development of 300 rental units, affordable to ho useholds 60% or below the area median income for Contra Costa County.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
154

16. COMMITMENTS AND CONTINGENCIES, Continued
D. Housing Authority – Eas ter Hill Project, Continued
Thus far, all new construction rental units at the form er Easter Hill site have been developed. Thirty-six rehab rental units at the site have been constructed. The remaining 202 rental units at the site have been leased. Similarly, all 82 homeownership units at the former Easter Hill and Cortez sites have been constructed. All homeownership units have been sold.

E. RHA Properties – Status of Operations
RHA Properties having sold Westridge at Hilltop Apartm ents is at the point of being an entity with no activity. It is idle and available to be used in the future. Management currently has no further plans for the entity.

F. Point Molate – Pollution Remediation
In September 2008, the City entered into an Early Transfer Cooperative Agreement (ETCA) with the United States Department of the Navy the (Navy) to facilitate the transfer of 41 acres of property that was formerly the Naval Fuel Depot Point Molate (Point Molate). The ETCA identifies certain known pollution issues with the property, and the Navy is the respon sible party. However, under the provisions of the ETCA, the Navy advanced $28 million to the City representing the estimated cost of cleanup, and the City committed to manage the project. Any pollution found that was not caused by the Navy’s use of the land is to be paid by the City, however, as of June 30, 2021, no additional pollution has been identified.

The City also entered into an agreement in September 2008 with a Developer to sell approximately 134 acres of land located on Point Molate along with the 41 acres of which the Navy is to transfer to the City.

The Developer is to complete the cleanup on behalf of the City in accordance with the requirements of the ETCA. The City committed to pass-through the funds received from the Navy to the Developer.

In April 2010, the City and Developer entered into an agreement to establish a fiscal agent escrow account to maintain the funds held for the remediation of Point Molate. The funds advanced by the Navy are to be held in escrow with a fiscal agent and the agent is responsible for disbursing funds to the Developer as costs are incurred. The terms of the agreement are e ffective until a certificate of completion is issued for the remediation of the property.

Under the terms of the agreements with the Navy and the Developer, the City does not retain responsibility for the cleanup of the known pollution. The City is merely acting as a pass-thru of the grant funds from the Navy to the Developer and the activiti es for the project are reported in the Pt. Molate Private-Purpose Trust Fund.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
155

16. COMMITMENTS AND CONTINGENCIES, Continued
G. Other – Major Taxpayer
In fiscal year 2009, a major business license taxpayer filed a complaint challenging the legality of Measure T, a voter initiative that took effect on January 1, 2009. Measure T amended the City’s business license tax calculation for manufacturers. Although the City be lieved Measure T to be lawful, the court ruled on December 17, 2009 that the tax was unconstitutional . The court ruled in favor of the business license taxpayer awarding a refund of the $20.5 million Measure T taxes paid. The City filed an appeal, however in May 2010 the taxpayer and the City entered into a settlement agreement in order to achieve certainty in the tax revenue that the City will receive from the taxpayer over the next 15 years. The agreement provides for annual payments from the taxpayer rangin g from $4 million to $13 million starting July 1, 2011, with payments totaling $114 million. In addition, the agreement incorporated the prior settlement of a dispute over fiscal year 2006, 2007 and 2008 utility user’s taxes totaling $28 million that was paid in four installments beginning in fisc al year 2009. Payments totaling $9 8 million were received under the settlement agreements in fiscal years 2011 through 2021.

In fiscal year 2015, the City entered into an Environmental Community Investment Agreement (ECIA) with the same taxpayer that provides for funding to the City and other community agencies totaling $80 million over the next ten years. During fiscal year 2021, the City received $8 million that is restricted for use on pre-approved projects, and the City has received $56 million to date.

H. Police Communications Systems
The City administered program to provide records ma nagement and dispatch services to participating local agencies. The participating agencies, which including the City, are responsible for maintenance and system enhancements. The City is required to account for the enhancement in a separate account which is shown in the Police Telecommunications Internal Service Fund. The program dissolved effective June 30, 2017. The distribution of the funds the City holds for enhancement from all participating agencies began in fiscal year 2018 and will be completed by fiscal year 2020.

I. Housing Authority Rental Assistance Demonstration
RHA Rental Assistance Demonstration (“RAD”) Prog ram conversion of the Friendship Manor and Triangle Court public housing sites occurred during the 2016 calendar year (includes both the 2015 and 2016 fiscal years). The RAD project consists of 156 units of Public Housing w ill that were converted to non-profit ownership with Section 8-Project Based Voucher rental subsidy on the two separate properties; all 156 units, except for three units (two are reserved for onsite managers and one for a manager's office), will be used to house low-income residents.

On October 8, 2015, the Department of Housing and Urban Development (HUD) issued and executed the RAD Conversion Commitment (RCC) which represents the agreed upon and approved terms of the RAD conversion transaction.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
156

16. COMMITMENTS AND CONTINGENCIES, Continued
I. Housing Authority Rental Assistance Demonstration, Continued On November 18, 2015, California Tax Credit Alloca tion Committee made a preliminary reservation of federal tax credits in the amount of $1,228,999 accommodated upon executing Tax-Exempt Bond Project to raise funding in the amount of $36.7 million, the approximate estimated cost of the RAD project; of which $16.5 million shall be provided by a third-party Tax Credit investor.

The Authority has partnered with the John Stewart Company and The Richman Group to form a Limited Partnership, RHA RAD Housing Partners L.P., that will complete the conversion, manage the property and own the buildings. The Authority will relinquish the land via a long term ground lease.

In furtherance of the finances provided by the Authority, the City of Richmond loaned $5.4 million to RHA RAD Housing Partners L.P. that will be repaid in 55 years and accrues interest at a rate of 1%. The loan was initially signed with RHA Housing Corporatio n and then it was transferred and reassigned to RHA RAD Housing Partners L.P., as discussed in Note 4.

After the property is placed in service and receives approval of the 8609 documents from the State of California, the Authority will split a developer fee of $2.5 million with its general partner John Stewart Company (70%/30%). The project was converted to permanent financing on June 6, 2019.

RHA RAD Housing Partners L.P. will also receive $732,557 in Public Housing and Capital Improvement funds throughout the January 1, 2016 – December 31, 2016 calendar year to cover the RAD Housing Assistance Program (HAP) Voucher commitments of subsidy for the low income housing units at the two developments. The terms of this requirement are consistent with Notice 2012-32 of the Rental Assistance Demonstration program which requires RAD conversions that close after November 30th of the calendar year to be funded out of Public Housing and Capital Fund Programs until the next calendar year, at which time the Developments will be funded with Section 8 Housing Choice RAD Vouchers.

In a transaction related to the RAD project during the fiscal year ended June 30, 2016, the Richmond Housing Authority transferred capital assets to RHA RAD LLC, which then sold the capital assets to RHA RAD Housing Partners LP with a carrying value of $14, 358,255 in return for two loans receivable in the amounts of $8,891,500 and $5,618,500. These loans are to be repaid in 55 years and bear annual interest rates of 2.82%.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
157

16. COMMITMENTS AND CONTINGENCIES, Continued
J. Marina Bay – Pollution Remediation
The Successor Agency owned a group of land tracts collectively referenced as the “Nine Deed Restricted Properties.” The Successor Agency was named as a responsible party at these sites under a Voluntary Cleanup Agreement with the State Department of Toxic Substances Control (DTSC) to conduct pollution monitoring and remediation. However, the Successor Agency received approval from the DOF to transfer the properties and their maintenance to the City on June 30, 2016. Therefore, the City is now the responsible party at the sites. These nine properties sit within the larger Marina Bay development site. A Remediation Action Plan (RAP) was prepared for Marina Bay in 1993 and included references to each of the Deed Restricted Properties. Eight of the nine deed restricted properties are subject to an Operations & Maintenance (O&M) Plan. The O&M Plans require annual inspections of the cap material and reporting of the findings to DTSC. The O&M Plans also require that a five-year review report be prepared and submitted to DTSC. The five-year review reports describe the inspection and maintenance activities that were performed over the previous five years. The annual inspection costs are estimated at $13,500, with the five year review estimated at $40,000 (this cost includes revising a previously submitted work plan, conducting the review, and preparing the report). The monitoring costs over a five year period are estimated at $125,500. Additionally, costs for environmental consultation to address DTSC concerns at the nine deed the nine deed restricted properties are estimated at $15,000 annually.

The RAP was subsequently amended in 2008 to address Area T, one of the Nine Deed Restricted Properties. The amended RAP subjects the site to groundwater sampling and analysis. The approximate annual costs for the existing groundwater sampling and analysis program is approximately $26,000. The known pollution at this site are petroleum hydrocar bons dissolved in groundwater. Active remediation has been conducted since September 2008 by the former Redevelopment Agency and now by the Successor Agency and the active remediation has been successful at removing a layer of petroleum hydrocarbons on the groundwater. However, the groundwater impacted with dissolved petroleum hydrocarbons is located in close proximity to the Marina Bay harbor. It is anticipated that DTSC will request that the Successor Agency submit a work plan describing the methods to petroleum hydrocarbons at Area T. Groundwater impacted by dissolved petroleum hydrocarbons is anticipated to be required by DTSC. The Successor Agency requested that its consultant prepare a feasibility study and cost analysis to conduct such remediation. The preliminary cost estimate to implement the groundwater remediation program is estimated at $120,000. A plan to maintain the cap on Area T will be prepared and the cost for this plan is $7,500. This preliminary estimate has not been accrued as a liability in the City’s Statement of Net Position. This estimate is also subject to change from price increases or reductions, technology, and changes in applicable laws or regulations.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
158

16. COMMITMENTS AND CONTINGENCIES, Continued
J. Marina Bay – Pollution Remediation, Continued
A Remedial Design Implementation Plan (RDIP) was prepared in 2008 to address Area FM, one of the Nine Deed Restricted properties at Marina Bay. According to the DTSC-approved RDIP for Area FM, the proposed permanent cap will be implemented during site redevelopment activities and will consist of building foundations and slabs, paved walkways and parking areas, landscaping and other features constructed over the site. A Covenant to Restrict Use of Property for Area FM was recorded in March 2005 (Deed Restriction). According to the Deed Restriction, the remedial alternative for the property includes installing and maintaining a temporary 1-foot thick cap over the entire property as an interim measure. In August 2016 a Work Plan was submitted to DTSC to install the interim temporary cap at the unpaved portion of Area FM. DTSC approved the wo rk plan in August 2016. The City is proceeding with working with DTSC to construct a temporary cap on the unpaved portions of Area FM. The cost to prepare a Soil Management Plan, Health and Safety Plan, Work Notice, conduct observation and documentation of the interim cap installation, waste characterization and reporting is $73,200. The cost to construct the interim cap is $953,600. The Deed Restriction also requires the preparation of an Operations and Maintenance (O&M) Plan. The cost to prepare the O&M Plan is $8,000.

K. Other Commitments and Contingencies
The Authority and its component units RHA Hous ing Corporation and RHA RAD LLC entered into several arrangements including a Co-Guarantor Contribution Agreement with third parties as participants in a tax credit bonds project to accommodate the required funding to convert two properties from a conventional public housing project to a rental assistance demonstration program, as discussed in Note 16.I.

L. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that po rtion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are automatically reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end. Encumbrances outstanding as of June 30, 2021 were as listed below:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
159

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibit all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1

26. ABx1 26 and AB1484 created three regulatory authorities, the Successor Agency Oversight Board, State Controller and Department of Finance (DOF), to review former Agency’s asset transfers, obligation payments and wind down activities. ABx1 26 specif ically directs the State Controller to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require th e State Controller to order the asset returned to the Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency. The State Controller’s Office completed its asset transfer review in Novemb er 2013 and the State ordered the return of certain assets to the Successor Agency to the Redevelopment Agency. The City complied with certain aspects of the State’s order during fiscal year 2013 by returning applicable capital assets to the Successor Agency and the Oversight Board retroactively approved other prior transfers to the City and the State has indicated that no further action is necessary. The State also ordered the return of assets previously transferred to the City as Housing Successor totaling $16,460,848, because the transfer of the housing assets had not been approved by the Oversight Board. The Oversight Board adopted a Resolution on February 25, 2014 retroactively approving the transfer of the loans to the Housing Successor.

Effective January 31, 2012, the Redevelopment Ag ency was dissolved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and the remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.

Under the provisions of AB 1484, the City can elect to become the Housing Successor and retain the housing assets. The City elected to become the Ho using Successor and on February 1, 2012, certain housing assets were transferred to the City’s Low and Moderate Income Housing Fund which is included in the Community Development and Loan Programs Special Revenue Fund. The activities of the Housing Successor are reported in the Low and Moderate Income Housing Asset Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
160

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
A. Redevelopment Dissolution, Continued
The City also elected to become the Successor Ag ency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to an d liabilities were assumed by the Successor Agency.

ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012. As of July 1, 2018, Contra Costa County has formed a county-wide Oversight Board to oversee the activities of all Successor Agencies within the County, including Richmond. The activities of the Successor Agency ar e subject to review and approval of the Oversight Board, which is comprised of seven members, incl uding one member of City Council and one former Redevelopment Agency employee appointed by the Mayor.

AB1484 required the Successor Agency to complete two due diligence reviews – one for the low and moderate income housing assets of the Successor Agency (Housing DDR), and a second for all other balances of the Successor Agency (Non-housing DDR). The due diligence reviews were to calculate the balance of unencumbered balances as of June 30, 2012 available to be remitted to the County for disbursement to taxing entities. The Successor Agency submitted both due diligence reviews to the State Department of Finance for review and approval. The Department of Finance approved the Housing DDR, after making an adjustment, and the Successor Agency remitted the unencumbered balance of $4,067,242 to the County in November 2014. The Department of Finance approved the Non-housing DDR in December 2014, and no funds were required to be remitted to the County. The Successor Agency received a Finding of Completion on December 9, 2014.

The activities of the Successor Agency are reported in the Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Cash and investments of the Successor Agency as of June 30, 2021 are discussed in Note 2 above.

Information presented in the following footnotes repres ents other assets and liabilities of the Successor Agency as of June 30, 2021.

B. Loans Receivable
The Successor Agency assumed non-housing loans re ceivable of the Redevelopment Agency as of February 1, 2012. The Redevelopment Agency engaged in programs designed to encourage economic development. Under these programs, grants or loans were provided under favorable terms to developers who agreed to expend these funds in accordance with the Agency’s terms.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
161

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
B. Loans Receivable, Continued
Ford Assembly Building Loan
Under a loan agreement dated November 22, 2004 between the Redevelopment Agency and Ford Point LLC, the Redevelopment Agency agreed to loan $3,000,000 to fund improvements to the Ford Assembly Building, collateralized by a Deed of Trust. After a period of variable interest rates, the loan has converted to a fixed 5% interest rate. Interest and principal payments are due semi-annually through 2025. The balance of the loan was $1,021,000 as of June 30, 2021.

C. Capital Assets
The Successor Agency assumed the non-housing capi tal assets of the Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital as sets are valued at their estimated fair market value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.

During the fiscal year 2019, the Successor Agency sold the remaining land with a prior carrying value of $4,313,167.

D. Long-term Obligations
The following is a summary of long-term debt transactions during the year ended June 30, 2021:

Balance Balance Due Within Due in More
July 1, 2020 Additions (A) Retirements (B) June 30, 2021 One Year than One Year Bonds Payable 51,801,216 $ 20,949,709 $ (27,330,000) $ 45,420,925 $ 5,195,000 $ 40,225,925 $ Loans payable from direct borrowing 16,875,000 - (2,185,000) 14,690,000 1,450,000 13,240,000 Notes payable from direct borrowing 9,966,022 - (9,966,022) - - - Total 78,642,238 $ 20,949,709 $ (39,481,022) $ 60,110,925 $ 6,645,000 $ 53,465,925 $ (A) Includes bond accretion for capital appreciation bonds totaling $851,732. (B) Retirements of bonds payable includes principle retirements in the amount of $5,705,000.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
162

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Bonds Payable
Bonds payable at June 30, 2021 consisted of the following:
1998 Harbour Redevelopment Project Tax Allocation Refunding Bonds Series A – Original Issue $21,862,779
The bonds were issued by the Agency to refinance a portion of the 1991 Harbour Redevelopment Project Tax Allocation Refunding Bonds, refinance certain lo ans from the City to the Agency, which were used by the City to finance certain publicly owned capital projects, finance certain redevelopment activities within the Harbour Redevelopment Project Area, fund a reserve account and pay certain costs of issuance of the 1998 bonds. The bonds mature annually through 2023, in amounts ranging from $50,000 to $1,130,000. Interest rates vary from 3.5% to a maximum of 5.2% and are payable semiannually on January 1 and July 1. The bonds are secured by a pledge of tax revenues derived from taxable property within the Harbour Project Area. On March 27 , 2014, the Agency issued the Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B which resulted in the defeasance of the outstanding balance of the current interest po rtion of the bonds in the amount of $9,180,000, as discussed below.

At June 30, 2021, the Bonds consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
163

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
1998 Harbour Redevelopment Project Tax Allocation Refunding Bonds Series A – Original Issue $21,862,779, Continued
The annual debt service requirements on the bonds are as follows:

Richmond Community Redevelopment Agency Subordinate Tax Allocation Bonds Series 2007A and Series B - Original Issue Series A $65,400,000, Series B $9,772,622 On July 12, 2007 the Redevelopment Agency issued Series 2007A Subordinate Tax Allocation Bonds in the amount of $65,400,000. The proceeds from the Bonds were used to pay the amount of $22,000,000 to the City to assist with the financing of the Civic Center Project, and to fund other Redevelopment Agency projects.

The 2007A Subordinate Tax Allocation Bonds were issu ed as variable auction rate bonds with interest calculated every thirty-five days, however, the Agency entered into a 29-year interest rate swap agreement for the entire amount of its 2007A Subordin ate Tax Allocation Bonds. In fiscal year 2010 the Agency experienced a significant decline in tax incremen t revenue. In order to bring debt service in line with current revenues and maintain compliance with the required 1.4:1 tax increment to debt service coverage ratio, the Agency suspended a number of projects originally funded by the 2007A Bonds and applied approximately $36 million of the unspent 2007A proceeds and other available funds along with the proceeds from the issuance of the Subordinate Tax Allocation Refunding Bonds, Series 2010A to refund the outstanding balance of the 2007A Bonds. As part of the issuance of the 2010A Bonds, the interest rate swap agreement associated with the 2007A Bonds was amended and restated as discussed with the Series 2010A Bonds below.

On July 12, 2007 the Redevelopment Agency issued Series 2007B Housing Set-Aside Subordinate Tax Allocation Capital Appreciation Bonds in the amount of $9,772,622 at interest rates ranging from 5.57% to 6.40%. The proceeds from the 2007B Bonds will be used to finance certain low and moderate income housing activities of the Redevelopment Agency. The 2007B Bonds mature annually through 2037, in amounts ranging from $465,000 to $2,020,000. The 2 007B Bonds are secured by a pledge of subordinated housing and non-housing tax revenues.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
164

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Richmond Community Redevelopment Agency Subordinate Tax Allocation Bonds Series 2007A and Series B - Original Issue Series A $65,400,000, Series B $9,772,622, Continued At June 30, 2021, the 2007B Bonds consisted of the following:

The annual debt service requirements on the 2007B Bonds are as follows:
2010 Subordinate Tax Allocation Refunding Bonds Series A – Original Issue $33,740,000 The 2010A Bonds were issued on March 31, 2010 by the Agency. The proceeds of the 2010A Bonds were used to refund all of the outstanding Series 2007A Subordinate Tax Allocation Bonds. Interest rates range from 3.00% to 6.125% and are payable semiannually on March 1 and September 1. The 2010A Bonds mature annually through 2037 and are secured by a pledge of certain tax increment revenues derived from taxable property within the Merged Project Area.

For the Years
Ending June 30, Principal
2022 1,030,000 $
2023 1,085,000
2024 1,145,000
2025 1,175,000
2026 1,230,000
2027-2031 5,800,000
2032-2036 4,175,000
2037 835,000
Total 16,475,000 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
165

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
2010 Subordinate Tax Allocation Refunding Bonds Series A – Original Issue $33,740,000, Continued In connection with the issuance of the Series 20 07A Subordinate Tax Allocation Bonds, the Agency entered into a swap agreement for $65,400,000, the entire amount of the 2007 A Bonds. With the issuance of the 2010A Bonds, the Agency amended and restated the swap agreement. The amended agreement requires the Agency to make and receive payments based on variable interest rates. The Agency will make payments based on a variable interest rate equal to 100% of SIFMA plus a fixed percentage of 0.83% and the Agency will receive variable rate interest payments equal to 68% of 1- month LIBOR from the swap counterparty. With the issuance of the 2014 Successor Agency to the Richmond Redevelopment Agency Refunding Bonds, the Successor Ag ency amended the swap agreement to subordinate the termination payment provisions of the swap agreement to the debt service on the 2014 Bonds.

The bonds were paid off during the fiscal year ended June 30, 2021 and the swap agreement was terminated
Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B – Original Issue Amounts $25,795,000 and $1,655,000, respectively The 2014 A & B Bonds were issued on March 27, 2014 by the Successor Agency to the Richmond Community Redevelopment Agency. The proceeds of th e Bonds, together with other available funds, were used to refund and defease the outstanding balance of the current interest portion of the 1998 Harbour Redevelopment Project Tax Allocation Refunding Bonds Series A, and the outstanding balances of the Richmond Joint Powers Financing Authority Tax Allocation Revenue Bonds Series 2000 A & B and Richmond Joint Powers Financing Authority Tax Allo cation Revenue Bonds Series 2003A. Interest rates range from 1.40% to 5.00% and is payable semiannually on March 1 and September 1. The 2014A Bonds mature annually on each September 1 through 2025 while the 2014B Bonds mature annually on each September 1 through 2018. Both Bonds are secured by a pledge of Redevelopment Property Tax Trust Fund revenues. The outstanding balances of the defeased debt as of June 30, 2021 were as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
166

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
At June 30, 2021, the 2014 A & B Bonds consisted of the following:

The annual debt service requirements on the A & B bonds are as follows:

Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2021 Series A & B – Original Issue Amounts $15,070,000 and $2,655,000, respectively On December 18, 2020, the Redevelopment Agency issued Series 2020A&B Community Redevelopment Agency Refunding Bonds. The proceeds was used to repay a portion of the obligations of the Successor Agency under a Loan Agreement (Housing), dated as of October 1, 2004, by and between the Former Agency and the Richmond Joint Powers Financing Authority that secures payment of the Richmond Joint Powers Financing Authority Housing Set-Aside Tax Allocation Revenue Bonds, Series 2004B (Tax- Exempt) in the outstanding principal amount of $720,000, and refund the $21,625,000 outstanding principal amount of Richmond Community Rede velopment Agency Subordinate Tax Allocation Refunding Bonds (Merged Project Areas), 2010 Series A (the “2010A Bonds” and, together with the 2004 Loan Agreement, the “Prior Obligations”)
The Series 2021 Refunding Bonds will each be issued as fully registered Bonds and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Series 2021 Refunding Bonds, as more fully described in APPENDIX G. The Series 2021 Refunding Bonds will be dated the date of delivery and issued i n r e g i s t e r e d f o r m i n d e n o m i n a t i o n s o f $ 5 , 0 0 0 o r a ny integral multiple of $5,000 and will mature on September 1 of each year in the amounts as set forth on the inside cover page. Interest on the Series 2021 Refunding Bonds will be payable on each March 1 and September 1, commencing September 1, 2021.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
167

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2021 Series A & B – Original Issue Amounts $15,070,000 and $2,655,000, respectively, Continued At June 30, 2021, the bond premium consisted of the following:

The annual debt service requirements on the A & B bonds are as follows:

Loans Payable
The Richmond Joint Powers Financing Authority (Authority) has issued the Bonds listed below to assist in financing the Agency’s operations. The Authority has retained reserve amounts required under the respective Bond indentures and loaned the net proceeds of these Bond issues to the Agency. The Authority is responsible for paying principal and inte rest on the Bonds; the Agency is responsible for making payments to the Authority in the amounts shown below.

The outstanding balances of loans pa yable to the Authority at June 30, 2021 came from the Bond issues listed below:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
168

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Loan from the Authority dated August 1, 2003
In 2003, the Authority issued 2003 Tax Allocation Re venue Bonds Series A and Series B in the original amount of $28,580,000. The net proceeds of the bond issue were loaned to the Agency to provide funding for certain capital improvements and to repay the Ci ty of Richmond $18,000,000 in partial payment of prior obligations. Under the terms of the loan agreement between the Agency and the Authority dated August 1, 2003, repayment of the loan is being made from certain tax increment revenues derived from taxable property within the Post-2004 Limit Area pledged by the Agency for the purpose of loan repayment. On March 27, 2014, the Agency issued the Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B which resulted in the refunding and defeasance of the outstanding balance of the 2003 Series A Bonds in the amount of $12,910,000, as discussed above.

At issuance, the Bonds were insured by MBIA Insurance Corporation (which was reinsured by National Public Finance Guarantee Corporation (“NPFGC”)). On December 5, 2017, Kroll Bond Rating Agency downgraded its insurance financial strength rating for NPFGC from ‘AA+’ to ‘AA’ and subsequently withdrew the rating citing business reasons. On January 17, 2018, Moody’s Investors Service (“Moody’s”) downgraded its insurance financial strength rating on NPFGC from ‘A3’ to ‘Baa2’. As a result of the foregoing, Moody’s downgraded its Insured Rating on the Bonds from ‘A3’ to ‘Baa2’. On February 13, 2019, S&P Global Ratings (formerly Standard and Poor ’s Ratings Services) upgraded its Local Currency Long-Term and Underlying Ratings on the Bonds from ‘A+’ to ‘AA-‘.

The annual debt service requirements on the 2003 Series B loan as of June 30, 2021 are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
169

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Loan from the Authority dated October 1, 2004
In 2004, the Authority issued the 2004 Tax Allocation Revenue Bonds Series A and Series B in the original amounts of $15,000,000 and $2,000,000, respectively. Th e net proceeds of the bond issue were loaned to the Agency to provide funding for certain capital improvements, low/moderate income housing and to repay the City of Richmond $6,367,031 in prior obligations. Under the terms of the loan agreement between the Agency and the Authority dated August 1, 2003, repayment of the loan is being made from certain subordinate housing and non-housing tax increment revenues derived from the taxable property within the Merged Project Area pledged by the Agency for the purpose of loan repayment.

The annual debt service requirements for these loans as of June 30, 2021 are as follows:

Pledge of Redevelopment Tax Increment Revenues
The Bond issues and loans payable to the Authorit y discussed above consist of senior and parity obligations secured by future tax increment revenues. The pledge of all future tax increment revenues (housing and non-housing revenue) ends upon repayment of $68,339,963 remaining debt service on the Bonds and loans which is scheduled to occur in 2037.

With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. In addition, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only rece ives the funds necessary to fulfill its approved obligations. Total property taxes available for dist ribution to the Successor Agency and other taxing entities for fiscal year 2021 calculated by the Co unty Auditor–Controller were $39,950,300. The total received by the Successor Agency for fiscal year 2021 debt service and other enforceable obligations was $13,966,821, which the Successor Agency used along with cash on-hand to pay debt service of $19,792,245.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
170

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
D. Long-term Obligations, Continued
Notes Payable
SERAF Loan $ -
SERAF Loan
The State of California adopted AB26 4X in July 2009 which directs that a portion of the incremental property taxes received by the redevelopment agen cies, be paid instead to the County supplemental educational revenue augmentation fund (SERAF) in fiscal years 2010 and 2011. The Agency did not have the resources to make these payments and instead was able to enter into a structured payment plan agreement with the State Department of Finance that allows the payments to the County to be made over a ten year period. The loan bears interest at a rate of 2%. Payments of principal and interest are due on an annual basis, commencing May 10, 2014. The loan was paid off during the fiscal year ended June 30, 2021.

Debt Without Agency or City Commitment
A special assessment district has been established in an area of the Agency to provide improvements to properties located in that district. Properties in the district are assessed for the cost of improvements: these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The Agency is not legally or morally ob ligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance Agency funds to repay these debts in the event of default.

One District, Marina Westshore Community Facilities District No. 1998-1, had issued Community Facilities District No. 1998-1 Special Tax Bonds which had a remaining balance outstanding of $1,980,000 at June 30, 2021.

Conduit Debt
The Agency has assisted private-sector entities by sponsoring their issuance of debt for purposes the Agency deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The Agency is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance Agency funds to repay these debts in the event of default by any of these issuers. At June 30, 2021, the balances of these issuers’ outstanding debts were as follows:

Baycliff Apartment Project, 2004 Revenue Bonds $0
Crescent Park Apartment Project, 2007 Series A & Series A-T Revenue Bonds 21,704,219 City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021

171

17. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued

E. Commitments and Contingencies

State Approval of Enforceable Obligations

The Successor Agency prepares a Recognized Ob ligation Payment Schedule (ROPS) annually that contains all proposed expenditures for the subsequent twelve-month period. The ROPS is subject to the review and approval of the Oversi ght Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a futu re period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

18. SUBSEQUENT EVENTS

During December 2019, the Novel Corona Virus Disease (COVID-19) was discovered. The COVID-19 was subsequently declared a world-wide pandemic by the World Health Organization on March 11, 2020. On March 4, 2020, California State Governor Gavin Newsom proclaimed a State of Emergency as a result of the threat of the COVID-19 in the State of California, lead ing to the Contra Costa County Health Officer issuing a stay-at-home directive on March 16, 2020. This halte d all business within Contra Costa County outside of essential activities.

The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. The City’s allocated amount was $27.7 million. The City received the first installment in the amount of $13.8 million in August 2021 and the second installment is to be received in July 2023.

COVID-19 pandemic is still having significant impacts on the City of Richmond’s tax revenues. Revenue reduction reflected in Transient Occupancy Tax (TOT), and fees and rentals collected by both the Police Department and Community Services. The TOT decreased 43% in FY2020-21 compared to FY2019-20. When compared to FY2018-19, a full year of pre-pandemic activity, the decrease is 56%.Due to facility closures and changes to other activities, some departments saw si gnificant decreases to revenue collected for either services provided or rental of facilities. For exam ple, Community services sa w a decrease of 60% for recreation program fees collected in FY2020-21, comp ared to FY2019-20. When compared to FY2018-19, the decrease is 70%. Revenue collection and projections for fiscal year 2022 have been budgeted conservatively and will require close monitoring and review.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
172

19. NEW ACCOUNTING STANDARDS
Accounting Standards Adopted
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. Statement No. 84 establishes criteria for identifying fiduciary activities of all state and local go vernments. Activities meetin g the criteria should be reported in a fiduciary fund in the basic financial statements. This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund wh en an event has occurred th at compels the entity to disburse fiduciary resources. The provisions of Statement No. 84 are effective for fiscal years beginning after December 15, 2019. Management has implemented this Statement on its financial statements.

In August 2018, GASB issued Statement No 90, Majority Equity Interests . Statement No. 90 improves the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and improves the relevance of financial statement information for certain component units. The provisions of Statement No. 90 are effective for fiscal years beginning after December 15, 2019 with earlier implementation encouraged. This Statement is not applicable to the City.

In March 2020, GASB issued Statement GASB No. 93, Replacement of Interbank Offered Rates. Statement No. 93 requires a government to terminate he dge accounting when it renegotiates or amends a critical term of a hedging derivative instrument, such as the reference rate of a hedging derivati ve instrument’s variable payment. In addition, in accordance with Statement No. 87, Leases, as amended, replacement of the rate on which variable payments depend in a lease contract would require a government to apply the provisions for lease modifications, including remeasurement of the le ase liability or lease receivable. The provisions of Statement No. 93 has multiple effective dates. This Statement is not applicable to the City.

In October 2021, GASB issued Statement GASB No. 98, The Annual Comprehensive Financial Report. Statement No. 98 establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and loca l governments. Management has implemented this Statement on its financial statements.

New Accounting Standards
In June 2017, GASB issued Statement No. 87, Leases. Statement No. 87 increases the usefulness of entities’ financial statements by requiring recognition of certain le ase assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishe s a single model for lease accounting based on the foundational principle that leases are financings of th e right to use an underlying asset. The provisions of Statement No. 87 are effective for fiscal years beginning after December 15, 2020. Management has not yet determined the impact of this Statement on its financial statements.

In June 2018, GASB issued Statement No 89, Accounting for Interest Cost Incurred before the End of a Construction Period. Statement No. 89 enhances the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and simpli fies accounting for interest cost incurred before the end of a construction period. The provisions of Statement No. 89 are effective for fiscal years beginning after December 15, 2020. Management will determine the impact of this statement on its financial statements with the 2021-22 Comprehensive Annual Financial Report.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2021
173

19. NEW ACCOUNTING STANDARDS, Continued
In May 2019, GASB issued Statement No 91, Conduit Debt Obligations . Statement No. 91 provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. Th is Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The provisions of Statement No. 91 are ef fective for fiscal years beginning after December 15, 2021 with earlier implementation encouraged. Management has not yet determined the impact of this Statement on its financial statements.

In January 2020, GASB issued Statement No. 92, Omnibus 2020. Statement No. 92 is to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements.

The provisions of Statement No. 92 has multiple effe ctive dates. Management has not yet determined the impact of this Statement on its financial statements.

In March 2020, GASB issued GASB Statement No. 94, Public-Private and Public -Public Partnerships and Availability Payment Arrangements . Statement No. 94 is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs), and also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). The provisions of Statement No. 94 are effective for fiscal years beginning after June 15, 2022. Management has not yet determined the impact of this Statement on its financial statements.

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

Statement No. 96 provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The provisions of Statement No. 96 are effective for fiscal years beginning after June 15, 2022. Management has not yet determined the impact of this Statement on its financial statements.

In June 2020, GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. Statement No. 97 will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements will also enhance the re levance, consistency, and comparabil ity of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans . The provisions of Statement No. 97 has multiple effective dates. Management has not yet determined the impact of this Statement on its financial statements. 174
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175

REQUIRED

SUPPLEMENTARY INFORMATION
176
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2021

BUDGET AND BUDGETARY ACCOUNTING
Budgeting Procedures
The City adopts a budget annually to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and c annot legally be exceeded except by subsequent amendments of the budget by the City Council.

The City uses an encumbrance system as an extension of normal budgetary accounting for the General Fund, special revenue funds, and capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year- end.

An operating budget is adopted each fiscal year on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the General Fund, certain Special Revenue Funds (State Gas Tax, General Purpose, Paratransit Operations, Public Safety, Lighting and Landscaping Districts, Developer Impact Fees, Community Development and Loan Programs, Richmond Neighborhood Stabilization Corporation, Rent Control, Cost Recovery and Environmental Community Investment Agreement) and the debt service funds (2005 Pension Obligation Bonds, General Debt Service and Civic Center Debt Service). Public hearings are conducted on the proposed budgets to review all appropriations and sources of financing. Capital projects funds are budgeted on a project length basis and are therefore not comparable on an annual basis.

Expenditures are controlled at the fund level for all budgeted departments within the City. This is the level at which expenditures may not legally exceed appropriations. Budgeted amounts for the Statement of Revenues, Expenditures and Changes in Fun d Balances-Budget and Actual include budget amendments approved by City Council.
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City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 43,928,806$ 44,065,406 $ 45,140,902 $ 1,075,496 $ Sales taxes 40,995,626 44,379,717 48,998,406 4,618,689
Utility user taxes 44,506,312 44,562,759 45,240,705 677,946 Other taxes 13,704,709 21,111,956 27,066,292 5,954,336
Licenses, permits and fees 3,278,527 3,028,527 3,235,49 1 206,964 Fines, forfeitures and penalties 831,966 641,966 454,778 (187,188) Use of money and property 236,079 236,079 107,022 (129,057) Intergovernmental 633,589 705,78 1 803,692 97,91 1
Charges for services 6,582,729 6,441,690 6,730,499 288,809 Rent 952,124 855,349 699,30 1 (156,048)
Other 196,496 197,296 403,034 205,738
Total revenues 155,846,963 166,226,526 178,880,122 12,653,596 EXPENDITURES:

Current:

General government 30,621,129 33,437,084 30,245,217 3,191,867 Public safety 95,582,986 98,066,670 96,372,052 1,694,618 Public works 25,218,946 25,293,864 24,754,57 1 539,293
Cultural and recreational 9,673,494 9,500,997 9,087,406 413,59 1 Capital outlay 347,761 1,368,736 113,178 1,255,558
Debt service:

Principal 1,910,082 910,082 910,082 -
Interest and fiscal charges 139,668 139,668 137,257 2,41 1 Total expenditures 163,494,066 168,717,101 161,619,763 7,097,338

REVENUES OVER (UNDER)
EXPENDITURES (7,647,103) (2,490,575) 17,260,359 19,750,934 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 55,000 70,215 71,458 1,243 Transfers in 9,258,229 9,267,60 1 9,454,780 187,179
Transfers out (4,961,206) (5,388,927) (16,318,786) (10,929,859) Total other financing sources (uses) 4,352,023 3,948,889 (6,792,548) (10,741,437) Net change in fund balances (3,295,080)$ 1,458,314 $ 10,467,811 9,009,497 $ FUND BALANCES (DEFICITS):

Beginning of year 38,646,231
End of year 49,114,042$
Budgeted Amounts
179
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development and Loan Programs Special Revenue Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 1,239,010$ 1,239,010 $ 665,999 $ (573,011)$ Use of money and property 239,166 239,166 202,108 (37,058) Intergovernmental 635,201 635,201 1,579,842 944,64 1
Other 1,187,472 1,187,472 898,903 (288,569)
Total revenues 3,300,849 3,300,849 3,346,852 46,003 EXPENDITURES:

Current:

Community development 2,254,547 2,569,470 505,50 1 2,063,969 Housing and redevelopment 1,463,673 1,486,128 945,529 540,599 Capital outlay 300,000 300,000 - 300,000
Total expenditures 4,018,220 4,355,598 1,451,030 2,904,568

REVENUES OVER (UNDER)
EXPENDITURES (717,371) (1,054,749) 1,895,822 2,950,571 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 78,000 90,455 - (90,455) Total other financing sources (uses) 78,000 90,455 - (90,455) Net change in fund balances (639,371)$ (964,294) $ 1,895,822 2,860,116 $ FUND BALANCES (DEFICITS):

Beginning of year 29,319,214
End of year 31,215,036$
Budgeted Amounts
180
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181
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/ 2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total Pension Liability
Service cost 7,529,439$ 7,652,864 $ 7,637,812 $ 8,053,459 $ Interest 34,974,846 34,315,542 33,323,855 32,804,753
Differences between actual
and expected experience (4,393,691) (331,531) (4,642,948) (4,464,966) Changes in assumptions - - (3,224,832) 25,548,824
Changes in benefits ----
Benefit payments, including refunds
of employee contributions (29,018,486) (27,565,398) (25,970,450) (25,074,448) Net change in the total pension liability 9,092,108 14,071,477 7,123,437 36,867,622 Total pension liability - beginning 504,296,912 490,225,435 483,101,998 446,234,376 Total pension liability - ending (a) 513,389,020$ 504,296,912 $ 490,225,435 $ 483,101,998 $ Plan Fiduciary Net Position
Contributions - employer 13,778,755 $ 12,156,723 $ 10,489,795 $ 8,860,295 $ Contributions - employee 2,749,990 2,843,043 2,894,84 1 2,996,354 Net investment income 18,237,576 23,350,283 28,880,923 35,805,938 Plan to plan resource movement - - (842) (50,018)
Administrative expense (526,586) (259,047) (542,721) (481,651) Changes in benefits ----
Benefit payments, including refunds
of employee contributions (29,018,486) (27,565,398) (25,970,450) (25,074,448) Other miscellaneous income (expense) - 842 (1,030,636) - Net change in plan fiduciary net position 5,221,249 10,526,446 14,720,910 22,056,470 Plan fiduciary net position - beginning 373,530,332 363,003,886 348,282,976 326,226,506 Plan fiduciary net position - ending (b) 378,751,581$ 373,530,332 $ 363,003,886 $ 348,282,976 $ Net pension liability - ending (a) - (b) 134,637,439 $ 130,766,580 $ 127,221,549 $ 134,819,022 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 73.77% 74.07% 74.05% 72.09% Covered payroll 35,129,597 $ 36,295,759 $ 35,725,31 1$ 35,964,798 $ Net pension liability as a percentage of
covered payroll 383.26% 360.28% 356.11% 374.86%
Notes to the schedule:
* Fiscal year 2015 was the 1st year of implementation.

Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the Ju ne 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2 019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes in Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to

7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 per cent discount rate. 182
6/30/2017 6/30/2016 6/30/2015
6/30/2016 6/30/2015 6/30/2014
7,200,571$ 7,446,410 $ 7,816,868 $
32,305,003 31,414,256 30,597,498
(3,484,064) (5,280,549) -
- (7,116,200) -
---
(23,917,069) (23,302,793) (23,007,539)
12,104,441 3,161,124 15,406,827
434,129,935 430,968,81 1 415,561,984
446,234,376$ 434,129,935 $ 430,968,81 1$
8,093,834$ 7,189,716 $ 6,661,038 $
3,087,656 3,141,565 3,195,699
1,630,388 7,502,958 51,867,728
(4,762) (6,885) -
(205,714) (379,925) -
---
(23,917,069) (23,302,793) (23,007,539)
---
(11,315,667) (5,855,364) 38,716,926
337,542,173 343,397,537 304,680,61 1
326,226,506$ 337,542,173 $ 343,397,537 $
120,007,870$ 96,587,762 $ 87,571,274 $

73.11% 77.75% 79.68%
36,638,889$ 36,151,102 $ 37,210,225 $
327.54% 267.18% 235.34%
183
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/ 2021 6/30/2020 6/30/2019 6/30/2018 Actuarially determined contribution 14,438,844 $ 13,783,427 $ 12,150,650 $ 10,436,250 $ Contributions in relation to actuarially determined contributions (14,438,844) (13,783,427) (12,150,650) (10,436,250) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 32,686,024 $ 35,129,597 $ 36,295,759 $ 35,725,31 1$ Contributions as a percentage of covered payroll 44.17% 39.24% 33.48% 29.21% Notes to the schedule:

Valuation date: 6/30/2019 6/30/2017 6/30/2016 6/30/2015 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Payroll growth
Salary increases
Investment rate of return
Retirement age
Mortality rate table
* Fiscal year 2015 was the 1st year of implementation.

7.50% for 2015 to 2018, 7.375% for 2019 and 7.25% for 2020, net of pension plan investment and administrative expenses, including inflation.

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

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
Market Value of Assets. For details, see June 30 Funding Valuation Report.

Entry age normal
For details, see June 30 Funding Valuation Report

2.625%

2.875%
Varies by Entry Age and Service.
184
6/30/2017 6/30/2016 6/30/2015
8,867,763$ 8,084,584 $ 7,178,549 $
(8,867,763) (8,084,584) (7,178,549)
-$ - $ - $
35,964,798$ 36,638,889 $ 36,151,102 $

24.66% 22.07% 19.86%
6/30/2014 6/30/2013 6/30/2012
185
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2021 6/30/ 2020 6/30/2019 6/30/2018 Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total Pension Liability
Service cost 10,958,278$ 11,313,128 $ 11,391,456 $ 11,650,927 $ Interest 47,218,257 46,009,128 44,562,419 43,264,626
Differences between actual
and expected experience (2,189,929) 433,759 413,272 797,969 Changes in assumptions - - (2,676,340) 35,109,898
Benefit payments, including refunds
of employee contributions (38,982,005) (37,105,985) (35,123,568) (33,620,000) Net change in the total pension liability 17,004,601 20,650,030 18,567,239 57,203,420 Total pension liability - beginning 676,597,009 655,946,979 637,379,740 580,176,320 Total pension liability - ending (a) 693,601,610$ 676,597,009 $ 655,946,979 $ 637,379,740 $ Plan Fiduciary Net Position
Contributions - employer 19,362,087 $ 16,658,515 $ 14,016,085 $ 12,699,049 $ Contributions - employee 4,232,707 4,238,132 4,226,345 4,471,008 Net investment income 22,875,702 29,333,974 36,380,672 45,166,243 Plan to plan resource movement - - (1,062) 50,018
Administrative expense (662,340) (326,144) (684,883) (607,337) Benefit payments, including refunds
of employee contributions (38,982,005) (37,105,985) (35,123,568) (33,620,000) Other miscellaneous income (expense) - 1,062 (1,300,605) - Net change in plan fiduciary net position 6,826,151 12,799,554 17,512,984 28,158,98 1 Plan fiduciary net position - beginning 469,826,178 457,026,624 439,513,640 411,354,659 Plan fiduciary net position - ending (b) 476,652,329$ 469,826,178 $ 457,026,624 $ 439,513,640 $ Net pension liability - ending (a) - (b) 216,949,28 1$ 206,770,83 1$ 198,920,355 $ 197,866,100 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 68.72% 69.44% 69.67% 68.96% Covered payroll 34,316,884 $ 35,870,534 $ 34,439,607 $ 37,273,957 $ Net pension liability as a percentage of
covered payroll 632.19% 576.44% 577.59% 530.84%
Notes to the schedule:
* Fiscal year 2015 was the 1st year of implementation.

7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 per cent discount rate. 186
6/30/2017 6/30/2016 6/30/2015
6/30/2016 6/30/2015 6/30/2014
10,297,536$ 10,142,245 $ 10,167,167 $
41,950,593 40,142,006 38,254,517
2,950,295 3,799,388 -
- (9,563,090) -
(30,593,589) (28,747,508) (27,199,743)
24,604,835 15,773,04 1 21,221,941
555,571,485 539,798,444 518,576,503
580,176,320$ 555,571,485 $ 539,798,444 $
11,488,714$ 10,652,64
1$ 9,352,438 $
4,607,993 3,797,568 3,348,408
2,062,417 9,408,186 64,842,562
4,762 3,476 -
(258,432) (477,249) -
(30,593,589) (28,747,508) (27,199,743)
---
(12,688,135) (5,362,886) 50,343,665
424,042,794 429,405,680 379,062,015
411,354,659$ 424,042,794 $ 429,405,680 $
168,821,661$ 131,528,69 1$ 110,392,764 $

70.90% 76.33% 79.55%
37,352,212$ 36,161,966 $ 35,479,947 $
451.97% 363.72% 311.14%
187
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/ 2021 6/30/2020 6/30/2019 6/30/2018 Actuarially determined contribution 21,315,23 1$ 19,355,578 $ 16,363,802 $ 14,013,858 $ Contributions in relation to actuarially determined contributions (21,315,231) (19,355,578) (16,363,802) (14,013,858) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 33,272,769 $ 34,316,884 $ 35,870,534 $ 34,439,607 $ Contributions as a percentage of covered payroll 64.06% 56.40% 45.62% 40.69% Notes to the schedule:

Valuation date: 6/30/2019 6/30/2017 6/30/2016 6/30/2015 Methods and assumptions used to determine contribution rates:

7.50% for 2015 to 2018, 7.375% for 2019 and 7.25% for 2020, net of pension plan investment and administrative expenses, including inflation.

Entry age normal
For details, see June 30 Funding Valuation Report

2.63%

2.875%
Varies by Entry Age and Service.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
188
6/30/2017 6/30/2016 6/30/2015
12,696,582$ 11,492,798 $ 10,650,057 $
(12,696,582) (11,492,798) (10,650,057)
-$ - $ - $
37,273,957$ 37,352,212 $ 36,151,966 $

34.06% 30.77% 29.46%
6/30/2014 6/30/2013 6/30/2012
189
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
General Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2021 6/30/ 2020 6/30/2019 6/30/2018 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total Pension Liability
Interest 35,526$ 57,712 $ 70,585 $ 80,100 $ Differences between actual
and expected experience 106,639 - 150,123 -
Changes in assumptions 72,660 66,443 102,792 (20,669)
Benefit payments, including refunds
of employee contributions (401,991) (424,760) (494,605) (524,939) Net change in the total pension liability (187,166) (300,605) (171,105) (465,508) Total pension liability - beginning 1,995,238 2,295,843 2,466,948 2,932,456 Total pension liabilty - ending (a) 1,808,072$ 1,995,238 $ 2,295,843 $ 2,466,948 $ Plan Fiduciary Net Position
Contributions - employer 319,025 $ 503,714 $ 812,56 1$ 814,594 $ Contributions - donations and other income ----
C o n t r i b u t i o n s - m e m b e r ----
Net investment incom
e 5,501 23,724 8,124 2,207
Benefit payments, including member
contribution refunds (401,991) (424,760) (494,605) (524,939) Net change in the total pension liability (77,465) 102,678 326,080 291,862 Plan fidcuiary net position - beginning 1,170,491 1,067,813 741,733 449,87 1 Plan fidcuiary net position - ending (b) 1,093,026$ 1,170,49 1$ 1,067,813 $ 741,733 $ Net pension liability - ending (a) - (b) 715,046 $ 824,74 7$ 1,228,030 $ 1,725,215 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 60.5% 58.7% 46.5% 30.1% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
* Fiscal year 2014 was the 1st year of implementation.
190
6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2017 6/30/2016 6/30/2015 6/30/2014
92,742$ 107,632 $ 128,954 $ 147,247 $ 40,459 - 345,786 -
- - 322,312 -
(584,272) (623,662) (672,546) (592,105)
(451,071) (516,030) 124,506 (444,858)
3,383,527 3,899,557 3,775,05 1 4,219,909
2,932,456$ 3,383,527 $ 3,899,557 $ 3,775,05 1$ 73,592$ 602,970 $ 602,970 $ 602,970 $ ----
----
3,35
1 2,255 2,017 (837)
(584,272) (623,662) (672,546) (592,105)
(507,329) (18,437) (67,559) 10,028
957,200 975,637 1,043,196 1,033,168
449,87
1$ 957,200 $ 975,637 $ 1,043,196 $ 2,482,585$ 2,426,327 $ 2,923,920 $ 2,731,855 $

15.3% 28.3% 25.0% 27.6%
n/a n/a n/a n/a
n/a n/a n/a n/a
191
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Police and Firemen's Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/ 2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total Pension Liability
Interest 561,163$ 606,022 $ 952,312 $ 1,031,753 $ Differences between actual
and expected experience (3,680,825) - (3,103,425) -
Changes in assumptions 28,483 - 1,037,914 -
Benefit payments, including refunds
of employee contributions (1,412,673) (1,793,082) (2,170,136) (2,656,508) Net change in the total pension liability (4,503,852) (1,187,060) (3,283,335) (1,624,755) Total pension liability - beginning 13,176,626 14,363,686 17,647,02 1 19,271,776 Total pension liabilty - ending (a) 8,672,774$ 13,176,626 $ 14,363,686 $ 17,647,02 1$ Plan Fiduciary Net Position
Contributions - employer 937,004 $ 937,004 $ 1,270,466 $ 1,270,466 $ Net investment income 2,527,138 584,954 645,593 589,027 Benefit payments, including member
contribution refunds (1,412,673) (1,793,082) (2,170,136) (2,656,508) Other deductibles ----
Net change in the total pension liability 2,051,469 (271,124) (254,077) (797,015) Plan fidcuiary net position - beginning 11,062,378 11,333,502 11,587,579 12,384,594 Plan fidcuiary net position - ending (b) 13,113,847$ 11,062,378 $ 11,333,502 $ 11,587,579 $ Net pension liability - ending (a) - (b) (4,441,073) $ 2,114,248 $ 3,030,184 $ 6,059,442 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 151.2% 84.0% 78.9% 65.7% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
* Fiscal year 2014 was the 1st year of implementation.
192
6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2017 6/30/2016 6/30/2015 6/30/2014
1,111,386$ 1,214,089 $ 1,464,746 $ 1,579,762 $ 261,891 - (323,462) -
- - 1,380,854 -
(2,859,902) (3,140,552) (3,074,421) (3,436,887)
(1,486,625) (1,926,463) (552,283) (1,857,125)
20,758,401 22,684,864 23,237,147 25,094,272
19,271,776$ 20,758,40 1$ 22,684,864 $ 23,237,147 $ 1,270,466$ 1,222,197 $ 740,235 $ 740,235 $ 1,340,997 (165,490) 369,240 2,968,492
(2,859,902) (3,140,552) (3,074,421) (3,436,887)
- - - (3,424,568)
(248,439) (2,083,845) (1,964,946) (3,152,728)
12,633,033 14,716,878 16,681,824 19,834,552
12,384,594$ 12,633,033 $ 14,716,878 $ 16,681,824 $ 6,887,182$ 8,125,368 $ 7,967,986 $ 6,555,323 $

64.3% 60.9% 64.9% 71.8%
n/
a n/a n/a n/a
n/a n/a n/a n/a
193
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Garfield Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/ 2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total Pension Liability
Interest 4,877$ 7,756 $ 17,334 $ 19,334 $ Differences between actual
and expected experience 51,995 - (220,079) -
Changes in assumptions 10,397 10,225 (1,426) -
Benefit payments, including refunds
of employee contributions (50,048) (49,067) (77,703) (94,323) Net change in the total pension liability 17,221 (31,086) (281,874) (74,989) Total pension liability - beginning 303,693 334,779 616,653 691,642 Total pension liabilty - ending (a) 320,914$ 303,693 $ 334,779 $ 616,653 $ Plan Fiduciary Net Position
Contributions - employer - $ - $ 102,140$ 102,140 $ Net investment income 1,984 6,914 7,024 2,627
Benefit payments, including member
contribution refunds (50,048) (49,067) (77,703) (94,323) Net change in the total pension liability (48,064) (42,153) 31,461 10,444 Plan fidcuiary net position - beginning 297,069 339,222 307,76 1 297,317 Plan fidcuiary net position - ending (b) 249,005$ 297,069 $ 339,222 $ 307,76 1$ Net pension liability - ending (a) - (b) 71,909 $ 6,624 $ (4,443) $ 308,892 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 77.6% 97.8% 101.3% 49.9% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
* Fiscal year 2014 was the 1st year of implementation.
194
6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2017 6/30/2016 6/30/2015 6/30/2014
19,517$ 21,615 $ 28,597 $ 30,759 $ 67,810 - (45,458) -
- - 64,544 -
(92,474) (90,660) (88,883) (87,140)
(5,147) (69,045) (41,200) (56,381)
696,789 765,834 807,034 863,415
691,642$ 696,789 $ 765,834 $ 807,034 $ 102,140$ 102,140 $ 102,140 $ 102,140 $ 1,517 933 577 227
(92,474) (90,660) (88,883) (87,141)
11,183 12,413 13,834 15,226
286,134 273,72
1 259,887 244,66 1
297,317$ 286,134 $ 273,72 1$ 259,887 $ 394,325$ 410,655 $ 492,113 $ 547,147 $

43.0% 41.1% 35.7% 32.2%
n/a n/a n/a n/a
n/a n/a n/a n/a
195
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Schedule of Contributions - Last 10 Years
(1) (3)
Actuarially Contribution (4) (5)
Determined (2) Deficiency Covered ADC / Covered
Fiscal Year Contribution Employer (Excess) Employee Employee Payroll Ended (ADC) Contributions (1) - (2) Payroll (1) / (4)
General Pension Plan
June 30, 2011 486,092 $ 486,092 $ - $ n/a n/a June 30, 2012 455,662 148,186 307,476 n/a n/a June 30, 2013 502,278 660,992 (158,714) n/a n/a June 30, 2014 602,970 602,970 - n/a n/a June 30, 2015 602,970 602,970 - n/a n/a June 30, 2016 750,016 602,970 147,046 n/a n/a June 30, 2017 750,016 73,592 676,424 n/a n/a June 30, 2018 947,219 814,594 132,625 n/a n/a June 30, 2019 947,219 812,561 134,658 n/a n/a June 30, 2020 469,402 503,714 (34,312) n/a n/a June 30, 2021 312,462 319,025 (6,563) n/a n/a Police & Firemen's Pension Plan
June 30, 2011 2,257,912 $ - $ 2,257,912$ n/a n/a June 30, 2012 1,596,771 - 1,596,771 n/a n/a June 30, 2013 1,813,721 1,596,771 216,950 n/a n/a June 30, 2014 740,235 740,234 1 n/a n/a June 30, 2015 740,235 740,235 - n/a n/a June 30, 2016 1,270,466 1,222,197 48,269 n/a n/a June 30, 2017 1,270,466 1,270,466 - n/a n/a June 30, 2018 1,389,612 1,270,466 119,146 n/a n/a June 30, 2019 1,389,612 1,270,466 119,146 n/a n/a June 30, 2020 937,004 937,004 - n/a n/a June 30, 2021 937,004 937,004 - n/a n/a Garfield Pension Plan
June 30, 2011 76,692 $ 76,692 $ - $ n/a n/a June 30, 2012 78,731 - 78,731 n/a n/a June 30, 2013 92,092 77,000 15,092 n/a n/a June 30, 2014 102,140 102,140 - n/a n/a June 30, 2015 102,140 102,140 - n/a n/a June 30, 2016 78,987 102,140 (23,153) n/a n/a June 30, 2017 78,987 102,140 (23,153) n/a n/a June 30, 2018 86,103 102,140 (16,037) n/a n/a June 30, 2019 86,103 102,140 (16,037) n/a n/a June 30, 2020 - - - n/a n/a June 30, 2021 - - - n/a n/a 196
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
Schedule of Contributions - Last 10 Years, Continued
Notes to Schedule:

Actuarially determined contribution rates are calculated as of the end of the fiscal year in which contributions are reported from the July 1, 2019 Actuarial Valuation.

Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation (short-term)
Salary increases used to estimate future
increases to pensions
Discount rate, net of investment expenses
Retirement age
Mortality
(A) There is no amortization of unfudned liability if the plan is more than 100% funded.

Schedule of Investment Returns - Last 10 Years*
Annual money-weighted rate
of return, net of investment
expense 2021 2020 2019 2018 2017 2016 2015 2014
General Pension Plan 0.44% 1.54% 0.64% 1.00% 0.50% 0.30% 0.30% 0.10% Police and Firemen's Pension
Plan 22.61% 5.11% 5.51% 4.90% 11.80% -1.20% 2.40% 3.90% Garfield Pension Plan 0.72% 2.18% 1.93% 1.00% 0.60% 0.40% 0.30% 0.40% * Fiscal year 2014 was the 1st year of implementation.

Investment Gains & Losses: Straight-line amortization over a closed 5-year period.

Effects of Assumptions Changes and Experience Gains and Losses:

Police and Firemen's Plan General Pension Plan Garfield Pension Plan n/a n/a
5 years 1 year (A)
Market value of assets Market value of assets Market value of assets (based on CalPERS 1997 - 2015 experience)
Straight-line amortization over a closed period equal to the average of the expected remaining service lives of all members that are provided with pensions through the pension plan. Since the plan no longer has active members, the effects of assumption changes and experience are recognized immediately.

1.00%
Closed to new members
Entry age normal cost Entry age normal cost Entry age normal cost California PERS Mortality Table in its 2017 experience study

3.50%
Closed to new members

1.00%
Closed to new members

2.00% 2.00% 2.00%
n/a
197
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021

OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES
OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/202 1 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability
Service cost 2,072,96 1$ 4,292,499 $ 3,452,679 $ 6,730,397 $ 7,558,987 $ Interest 6,846,932 7,222,766 7,625,498 7,927,217 7,064,307 Chan
ges in benefit terms - - (19,910,800) - -
Differences between actual
and expected experience (140,135) (28,723,614) - (2,816,969) - Changes in assumptions 1,173,106 (42,412,472) (1,409,953) 8,715,168 (15,340,529) Benefit payments (7,011,178) (7,753,129) (7,247,073) (6,861,529) (6,497,645) Net change in the total OPEB liability 2,941,686 (67,373,950) (17,489,649) 13,694,284 (7,214,880) Total OPEB liability - beginning 120,302,967 187,676,917 205,166,566 191,472,282 198,687,162 Total OPEB liabilty - ending (a) 123,244,653$ 120,302,967 $ 187,676,917 $ 205,166,566 $ 191,472,282 $ Plan Fiduciary Net Position
Contributions - employer 9,515,699 $ 12,720,085 $ 6,714,785 $ 13,599,120 $ 13,218,475 $ Contributions - employee 623,088 642,475 532,288 765,475 278,850 Net investment income 6,562,745 709,908 1,170,454 632,089 227,394 Administrative expense (111,868) (89,764) (81,950) (49,169) (11,250) Benefit payments (7,011,178) (7,753,129) (7,247,073) (6,861,529) (6,497,645) Plan to Plan transfer (1) - - (1,879,640) - -
Net change in the total OPEB liability 9,578,486 6,229,575 (791,136) 8,085,986 7,215,824 Plan fidcuiary net position - beginning 22,861,318 16,631,743 17,422,879 9,336,893 2,121,069 Plan fidcuiary net position - ending (b) 32,439,804$ 22,861,318 $ 16,631,743 $ 17,422,879 $ 9,336,893 $ Net OPEB liability - ending (a) - (b) 90,804,849 $ 97,441,649 $ 171,045,174 $ 187,743,687 $ 182,135,389 $ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 26.32% 19.00% 8.86% 8.49% 4.88% Covered employee payroll 46,698,024 $ 50,016,647 $ 49,511,523 $ 65,359,713 $ 66,774,795 $ Net OPEB liability as a percentage of
covered employee payroll 194.45% 194.82% 345.47% 287.25% 272.76% (1) Transferred to the RPOA Plan established in fiscal year 2019. * Fiscal year 2017 was the 1st year of implementation.
198
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan, Continued Schedule of Plan Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2021 6/30/2020 6/30/2019 6/30/ 2018 6/30/2017 Contractually required
contributions (CRC) (1) 7,011,178 $ 7,753,129 $ 7,247,073 $ 6,861,529 $ 6,497,645 $ Contributions in relation to the CRC (7,011,178) (7,753,129) (7,247,073) (6,861,529) (6,497,645) Contribution deficiency (excess) - $ - $ - $ - $ - $ Notes:
(1) The City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units pro vide for various benefit levels as discussed in the Notes to the Financial Statements. Contributions reported include the implicit subsidy.

Schedule of Investment Returns - Last 10 Years*
Fiscal Year Ended: 6/30/2021 6/30/2020 6/30/2019 6/30/ 2018 6/30/2017 Annual money weighted rate of return,
net of investmentment expense 26.66% 3.48% 6.74% 6.30% 10.75% * Fiscal year 2017 was the 1st year of implementation.
199
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued RPOA OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/202 1 6/30/2020 6/30/2019 Total OPEB Liability
Service cost 1,871,012$ 2,053,367 $ 1,939,517 $ Interest 800,939 850,944 764,597
Changes in benefit terms - - 21,995,467
Differences between actual
and expected experience 10,367 (1,784,304) -
Changes in assumptions (9,082,375) 401,383 -
Benefit payments (277,277) (156,536) (82,673)
Net change in the total OPEB liability (6,677,334) 1,364,854 24,616,908 Total OPEB liability - beginning 25,981,762 24,616,908 - Total OPEB liabilty - ending (a) 19,304,428$ 25,981,762 $ 24,616,908 $ Plan Fiduciary Net Position
Contributions - employer 1,028,868$ 1,851,964 $ - $ Contributions - employee 453,163 425,213 82,673
Net investment income 935,134 170,322 -
Plan to Plan transfer (1) - - 1,879,640
Benefit payments (277,277) (156,536) (82,673)
Administrative expense (2,612) - -
Net change in the total OPEB liability 2,137,276 2,290,963 1,879,640 Plan fidcuiary net position - beginning 4,170,603 1,879,640 - Plan fidcuiary net position - ending (b) 6,307,879$ 4,170,603 $ 1,879,640 $ Net OPEB liability - ending (a) - (b) 12,996,549 $ 21,811,159 $ 22,737,268 $ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 32.68% 16.05% 7.64% Covered employee payroll 16,100,126$ 16,699,113 $ 17,404,407 $ Net OPEB liability as a percentage of
covered employee payroll 80.72% 130.61% 130.64%
(1) Transferred from the OPEB Plan.
* Fiscal year 2019 was the 1st year of implementation.
200
City of Richmond
Required Supplementary Information
For the year ended June 30, 2021
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued RPOA OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan, Continued Schedule of Plan Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2021 6/30/2020 6/30/2019
Contractually required contributions (CRC) (1) 1,028,868 $ 1,851,964 $ 82,673 $ Contributions in relation to the CRC (1,028,868) (1,851,964) (82,673) Contribution deficiency (excess) -$ - $ - $ Notes:
(1) The City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units pro vide for various benefit levels as discussed in the Notes to the Financial Statements. Contributions reported include the implicit subsidy. * Fiscal year 2019 was the 1st year of implementation.
201
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202

SUPPLEMENTARY

INFORMATION
203
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204

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
State Gas Tax Fund accounts for the subventions received from state gas taxes under the provision of the Streets and Highways Code. State gas taxes are restricted for street construction activities including location of underground utilities, geotechnical work relating to identification of so il and groundwater contamination, materials sampling, and testing.

General Purpose Fund accounts for other restricted monies that are to be used for the specific purposes for which the funds were set up.

Paratransit Operations Fund accounts for monies used to provide subsidized, accessible transportation to the seniors and disabled residents of the City of Richmond and the adjacent unincorporated areas of West Contra Costa County.

Employment & Training Fund is a fund set up to plan, administer and operate job training programs for the adult and youth residents of Richmond.

Public Safety Fund records the receipt and use of grant monies under the Local Law Enforcements Block Grant Program, Office of Traffic Safety Grants, OES Grants, FEMA Grants, and various other grants.

Lighting and Landscaping Districts Fund was set up to account for maintenance services in the nature of landscaping, lighting, cleaning provided to the Hilltop parking lot area, the Marina Way Development area, and the Marina Bay area.

Developer Impact Fees Fund is used to account for monies received from fees levied by the City on new commercial and residential projects. These funds will be used to mitigate the additional public safety and infrastructure costs resulting from these development projects.

Secured Pension Override Fund records the receipt of Pension Tax override collected through property taxes for payment of pension contributions.

Richmond Neighborhood Stabilization Corporation Fund accounts for the activities of the Corporation.

Rent Control Fund is used to account for fees paid by landlords to find the operation of Richmond's Fair Rent, Just Cause for Eviction, and Homeowner Protection programs.

Cost Recovery Fund is used to record the receipt and use of monies for services provided to the public and developers.

Environmental and Community Investment Agreement (ECIA) Fund accounts for funding received from Chevron in conjunction with the Chevron Modernization Project Environmental and Community Investment Agreement to fund various projects and programs within the City of Richmond. 205
NONMAJOR GOVERNMENTAL FUNDS (Continued)
Debt Service Funds
2005 Pension Obligation Bonds Debt Service Fund receives transfers from the General Fund and the Pension Tax Override Fund, and pays the debt service on the 2005 Pension Obligation Bonds.

General Debt Service Fund accounts for monies received in connection with the 1995A and the 1999 Series A Pension Obligation Bonds and the related payments on such debt. The 1995 Series A bonds were to refinance the cost of capital improvements, and the 1999 Series A bonds were issued to fi nd a portion of the unfunded accrued actuarial liability in the Pension Fund.

Civic Center Debt Service Fund accounts for principal and interest payments on the Civic Center Project Lease Revenue Bonds.

Capital Projects Funds
General Capital Improvement Fund accounts for monies designated for capital improvement projects.

Measure C/J Fund was set up when the voters of Contra Costa County approved Measure C providing for the creation of the Contra Costa County Transportation Authority. The half-cent transportation sales tax was renewed under Measure J, effective April 1, 2009. The Authority collects one-half percent sales and use tax. Twenty percent of this tax is allocated to the City of Richmond to be used for the improvement of local transportation, including streets and roads in accordance with Measure C and Measure J compliance.

Harbor Navigation Fund records expenses relating to the construction of certain public improvements relating to the Port of Richmond consisting of dredging and deepening of the Richmond Harbor. 206
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207
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Paratransit Employment
State Gas Tax General Purpos e Operations and Training
Fund Fund Fund Fund
ASSETS
Cash and investments 4,008,432$ 1,557,533 $ 412,314 $ 2,345,449 $ Restricted cash and investments - - - 1,398
Receivables:

Accounts, net 257,813 167 230 46,076
Interest 1,134 540 62 - Grants - 1,720,090 35,903 916,825
Loans ----
Total assets 4,267,379 3,278,330 448,509 3,309,748

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 1,025,792 1,086,862 50,587 377,173 Refundable deposits ----
Due to other funds ----
Advances to other funds ----
Unearned revenue - 327,422 - 600
Total liabilities 1,025,792 1,414,284 50,587 377,773
Deferred inflows of resources:

Unavailable revenue - 1,580,079 35,903 456,335
Total deferred inflows of resouces - 1,580,079 35,903 456,335 Fund Balances:

Restricted 3,241,587 283,967 362,019 -
Assigned - - - 2,475,640
Unassign e d ----
Total fund balances 3,241,587 283,967 362,019 2,475,640 Total liabilities, deferred inflows
of resources, and fund balances 4,267,379$ 3,278,330 $ 448,509 $ 3,309,748 $ Special Revenue Funds
208
Richmond
Lighting and Develope r Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
286,947$ 1,404,342 $ 10,251,759 $ 144,998 $ - $ 1,179,244$ ---- 124,772 -
29,443 1,496 - - - 9,376
101 454 3,139 - 11 376 ------
---- 779,013 -
316,491 1,406,292 10,254,898 144,998 903,796 1,188,996
9,373 47,188 402,676 - - 39,02 1
------
---- 1 , 7 6 3-
------
----- 4 9 9
9,373 47,188 402,676 - 1,763 39,520
- 1,496 - - 779,013 -
- 1,496 - - 779,013 -
307,118 1,357,608 9,852,222 144,998 123,020 1,149,476
------
------
307,118 1,357,608 9,852,222 144,998 123,020 1,149,476
316,49
1$ 1,406,292 $ 10,254,898 $ 144,998 $ 903,796 $ 1,188,996 $ Special Revenue Funds
209
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Environmental
and Community 2005 Pension General
Cost Recovery Investment Obligation Bond s Debt Service Fund Agreement Fund Fund Fund
ASSETS
Cash and investments 2,451,253$ 18,739,152 $ - $ 8,889$ Restricted cash and investments - - 11,845,153 -
Receivables:

Accounts, net 633,007 - - -
Interest 2,084 4,510 - 3 Grants 2,865,324 - - -
Loans ----
Total assets 5,951,668 18,743,662 11,845,153 8,892

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 2,186,057 3,337,085 - - Refundable deposits 665,933 - - -
Due to other funds -- 3 , 9 6 9-
Advances to other funds ----
Unearned revenue 20,093 - - -
Total liabilities 2,872,083 3,337,085 3,969 -
Deferred inflows of resources:

Unavailable revenue 2,859,324 - - -
Total deferred inflows of resouces 2,859,324 - - -
Fund Balances:

Restricted 220,26 1 15,406,577 11,841,184 8,892
Assign e d ----
Unassign e d ----
Total fund balances 220,261 15,406,577 11,841,184 8,892 Total liabilities, deferred inflows
of resources, and fund balances 5,951,668$ 18,743,662 $ 11,845,153 $ 8,892 $ Special Revenue Funds Debt Service Funds
210
Total
Civic Center General Capital Harbo r Nonmajor
Debt Service Improvement Measure C/ J Navigation Governmental Fund Fund Fund Fund Fund s
955,397$ 2,916,040 $ 242,346 $ 45,445 $ 46,949,540$ 39 89,354 - - 12,060,716
- - 1,657,713 - 2,635,32 1
123 - 139 14 12,690 - - 342,865 - 5,881,007
---- 779,013
955,559 3,005,394 2,243,063 45,459 68,318,287
- 15,078 323,974 - 8,900,866
---- 665,933
---- 5 , 7 3 2
-----
2,551,845 - - - 2,900,459
2,551,845 15,078 323,974 - 12,472,990
- - 342,865 - 6,055,015
- - 342,865 - 6,055,015
- 2,990,316 1,657,713 - 48,946,958
- - - 45,459 2,521,099
(1,596,286) - (81,489) - (1,677,775)
(1,596,286) 2,990,316 1,576,224 45,459 49,790,282
955,559$ 3,005,394 $ 2,243,063 $ 45,459 $ 68,318,287$ Capital Projects Funds
211
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Paratransit Employment
State Gas Tax General Purpose Operations and Training
Fund Fund Fund Fund
REVENUES:

Property taxes - $ - $ - $ - $ Licenses, permits and fees - 25,000 - - Fines, forfeitures and penalties - 692 - - Use of money and property 11,113 5,923 381 - Intergovernmental 4,489,591 3,039,844 1,157,832 3,206,590 Charges for services - 394,595 5,920 - Other - 150 - 75,021 Total revenues 4,500,704 3,466,204 1,164,133 3,281,611 EXPENDITURES:

Current:

General government - 1,990,463 776,338 - Public safety - 879,671 - - Public works 2,658,021 75,192 - - Community development - 8,989 - 4,692,920 Cultural and recreational - 322,057 - - Housing and redevelopment - 437 - - Capital outlay 619,466 - - - Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 3,277,487 3,276,809 776,338 4,692,920

REVENUES OVER (UNDER)
EXPENDITURES 1,223,217 189,395 387,795 (1,411,309) OTHER FINANCING SOURCES (USES):

Transfers in - 126,186 - 1,495,705 Transfers out - (126,186) - - Total other financing sources (uses) - - - 1,495,705 Net change in fund balances 1,223,217 189,395 387,795 84,396 FUND BALANCES (DEFICITS):

Beginning of year 2,018,370 94,572 (25,776) 2,391,244 End of year 3,241,587$ 283,967 $ 362,019 $ 2,475,640 $ Special Revenue Funds
212
Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
-$ 1,676,745$ - $ 11,352,354$ - $ - $ - - 3,237,510 - - 2,764,961 - - - - - - 1,410 5,274 35,663 - 145 6,096 258,269 - - - - - - - - - - - 33,301 - - - - 24,796 292,980 1,682,019 3,273,173 11,352,354 145 2,795,853 - - - 6,563 - - 299,396 - 79,431 937,004 - - - 2,444,618 429,829 - - - - - - - - - - - 66,520 - - - - - - - 35,576 2,143,246 - - 601,084 - - - - - - - - - - - - - - - 299,396 2,444,618 1,176,864 943,567 35,576 2,143,246 (6,416) (762,599) 2,096,309 10,408,787 (35,431) 652,607 - 645,563 - - - - - - - (10,263,789) - - - 645,563 - (10,263,789) - - (6,416) (117,036) 2,096,309 144,998 (35,431) 652,607 313,534 1,474,644 7,755,913 - 158,451 496,869 307,118$ 1,357,608 $ 9,852,222 $ 144,998 $ 123,020 $ 1,149,476 $ Special Revenue Funds
213
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Environmental
and Community 2005 Pension General
Cost Recovery Investment Obligation Bonds Debt Service
Fund Agreement Fund Fund Fund
REVENUES:

Property taxes - $ - $ 12,124,486$ - $ Licenses, permits and fees 8,387,591 - - - Fines, forfeitures and penalties - - - - Use of money and property 24,665 62,573 3,281 209 Intergovernmental 718,961 7,000,000 - - Charges for services 2,544,424 - - - Other 6,026 50,083 - - Total revenues 11,681,667 7,112,656 12,127,767 209 EXPENDITURES:

Current:

General government 8,830,541 4,643,862 - - Public safety - 51,908 - - Public works 800,652 153,769 - - Community development - 500,000 - - Cultural and recreational - 330,067 - - Housing and redevelopment - - - - Capital outlay 2,521,583 401,638 - - Debt service:

Principal - - 9,458,000 795,000 Interest and fiscal charges - - 2,143,869 296,687 Total expenditures 12,152,776 6,081,244 11,601,869 1,091,687

REVENUES OVER (UNDER)
EXPENDITURES (471,109) 1,031,412 525,898 (1,091,478) OTHER FINANCING SOURCES (USES):

Transfers in - - - 1,092,338 Transfers out - (325,000) - - Total other financing sources (uses) - (325,000) - 1,092,338 Net change in fund balances (471,109) 706,412 525,898 860 FUND BALANCES (DEFICITS):

Beginning of year 691,370 14,700,165 11,315,286 8,032 End of year 220,261$ 15,406,577$ 11,841,184 $ 8,892 $ Special Revenue Funds Debt Service Funds
214
Total
Civic Center General Capital Harbor Nonmajor
Debt Service Improvement Measure C/J Navigation Governmental Fund Fund Fund Fund Fund s
-$ - $ - $ - $ 25,153,585$ - - - - 14,415,062 - - - - 692 2,613 22 3,523 195 163,086 - - 1,657,713 - 21,528,800 5,696,151 - - - 8,641,090 - - - - 189,377 5,698,764 22 1,661,236 195 70,091,692 - - - - 16,247,767 - - - - 2,247,410 - - 716,192 - 7,278,273 - - - - 5,201,909 - - - - 718,644 - - - - 2,179,259 - 839,634 985,430 - 5,968,835 3,260,000 - - - 13,513,000 4,466,982 - - - 6,907,538 7,726,982 839,634 1,701,622 - 60,262,635 (2,028,218) (839,612) (40,386) 195 9,829,057 2,406,458 303,275 - - 6,069,525 - - - - (10,714,975) 2,406,458 303,275 - - (4,645,450) 378,240 (536,337) (40,386) 195 5,183,607 (1,974,526) 3,526,653 1,616,610 45,264 44,606,675 (1,596,286)$ 2,990,316 $ 1,576,224 $ 45,459 $ 49,790,282$ Capital Projects Funds
215
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Gas Tax Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 11,113$ 11,113 $ Intergovernmental 4,513,317 4,513,317 4,489,59 1 (23,726) Total revenues 4,513,317 4,513,317 4,500,704 (12,613) EXPENDITURES:

Current:

Public works 2,827,121 3,124,644 2,658,02 1 466,623
Capital outlay 1,450,845 1,153,322 619,466 533,856
Total expenditures 4,277,966 4,277,966 3,277,487 1,000,479 Net change in fund balances 235,351$ 235,351 $ 1,223,217 987,866 $ FUND BALANCES (DEFICITS):

Beginning of year 2,018,370
End of year 3,241,587$
Budgeted Amounts
216
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 25,000$ 148,207 $ 25,000 $ (123,207)$ Fines, forfeitures and penalties 19,000 500 692 192
Use of money and property - 1,000 5,923 4,923
Intergovernmental 1,471,859 2,458,423 3,039,844 581,42 1 Charges for services 50,000 50,000 394,595 344,595
Other 17,733 17,733 150 (17,583)
Total revenues 1,583,592 2,675,863 3,466,204 790,341 EXPENDITURES:

Current:

General government 604,977 811,463 1,990,463 (1,179,000) Public safety 318,618 1,102,824 879,67 1 223,153
Public works 1,073 112,814 75,192 37,622
Community development - - 8,989 (8,989)
Cultural and recreational 477,939 493,326 322,057 171,269 Housing and redevelopment - - 437 (437)
Capital outlay 284,000 284,000 - 284,000
Total expenditures 1,686,607 2,804,427 3,276,809 (472,382)

REVENUES OVER (UNDER)
EXPENDITURES (103,015) (128,564) 189,395 317,959 OTHER FINANCING SOURCES (USES):

Transfers in - - 126,186 126,186
Transfers out - - (126,186) (126,186)
Total other financing sources (uses) - - - - Net change in fund balances (103,015)$ (128,564) $ 189,395 317,959 $ FUND BALANCES (DEFICITS):

Beginning of year 94,572
End of year 283,967$
Budgeted Amounts
217
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Paratransit Operations Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 38 1$ 38 1$ Intergovernmental 895,000 895,000 1,157,832 262,832
Charges for services - - 5,920 5,920
Other 20,000 20,000 - (20,000)
Total revenues 915,000 915,000 1,164,133 249,133 EXPENDITURES:

Current:

General government 1,142,342 1,143,292 776,338 366,954
Community development 25,600 24,650 - 24,650
Total expenditures 1,167,942 1,167,942 776,338 391,604

REVENUES OVER (UNDER)
EXPENDITURES (252,942) (252,942) 387,795 640,737 OTHER FINANCING SOURCES (USES):

Transfers in 252,942 252,942 - (252,942)
Total other financing sources (uses) 252,942 252,942 - (252,942) Net change in fund balances -$ - $ 387,795 387,795 $ FUND BALANCES (DEFICITS):

Beginning of year (25,776)
End of year 362,019$
Budgeted Amounts
218
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Employment and Training Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Intergovernmental 8,258,640$ 8,624,536 $ 3,206,590 $ (5,417,946)$ Charges for services 116,371 116,371 - (116,371)
Other 212,940 212,940 75,02 1 (137,919)
Total revenues 8,587,951 8,953,847 3,281,611 (5,672,236) EXPENDITURES:

Current:

Community development 9,703,826 10,069,722 4,692,920 5,376,802 Total expenditures 9,703,826 10,069,722 4,692,920 5,376,802

REVENUES OVER (UNDER)
EXPENDITURES (1,115,875) (1,115,875) (1,411,309) (295,434) OTHER FINANCING SOURCES (USES):

Transfers in 1,495,705 1,495,705 1,495,705 -
Total other financing sources (uses) 1,495,705 1,495,705 1,495,705 - Net change in fund balances 379,830$ 379,830 $ 84,396 (295,434) $ FUND BALANCES (DEFICITS):

Beginning of year 2,391,244
End of year 2,475,640$
Budgeted Amounts
219
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 1,410$ 1,410 $ Intergovernmental 360,335 360,335 258,269 (102,066)
Other - 20,780 33,30 1 12,521
Total revenues 360,335 381,115 292,980 (88,135) EXPENDITURES:

Current:

Public safety 566,811 566,811 299,396 267,415
Total expenditures 566,811 566,811 299,396 267,415 Net change in fund balances (206,476)$ (185,696) $ (6,416) 179,280 $ FUND BALANCES (DEFICITS):

Beginning of year 313,534
End of year 307,118$
Budgeted Amounts
220
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscaping Districts Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 1,678,479$ 1,678,479 $ 1,676,745 $ (1,734)$ Use of money and property - - 5,274 5,274
Total revenues 1,678,479 1,678,479 1,682,019 3,540 EXPENDITURES:

Current:

Public works 2,083,585 2,369,939 2,444,618 (74,679)
Total expenditures 2,083,585 2,369,939 2,444,618 (74,679)

REVENUES OVER (UNDER)
EXPENDITURES (405,106) (691,460) (762,599) (71,139) OTHER FINANCING SOURCES (USES):

Transfers in 645,563 645,563 645,563 -
Total other financing sources (uses) 645,563 645,563 645,563 - Net change in fund balances 240,457$ (45,897) $ (117,036) (71,139) $ FUND BALANCES (DEFICITS):

Beginning of year 1,474,644
End of year 1,357,608$
Budgeted Amounts
221
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Impact Fees Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees -$ 436,278$ 3,237,510 $ 2,801,232 $ Use of money and property - - 35,663 35,663
Total revenues - 436,278 3,273,173 2,836,895 EXPENDITURES:

Current:

Public safety -- 7 9 , 4 3 1 (79,431)
Public works - - 429,829 (429,829)
Cultural and recreational - - 66,520 (66,520)
Capital outlay - - 601,084 (601,084)
Total expenditures - - 1,176,864 (1,176,864) Net change in fund balances -$ 436,278$ 2,096,309 1,660,031 $ FUND BALANCES (DEFICITS):

Beginning of year 7,755,913
End of year 9,852,222$
Budgeted Amounts
222
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Secured Pension Override Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 11,200,793$ 11,200,793 $ 11,352,354 $ 151,56 1$ Total revenues 11,200,793 11,200,793 11,352,354 151,561 EXPENDITURES:

Current:

General government - - 6,563 (6,563)
Public safety 937,004 937,004 937,004 -
Total expenditures 937,004 937,004 943,567 (6,563)

REVENUES OVER (UNDER)
EXPENDITURES 10,263,789 10,263,789 10,408,787 144,998 OTHER FINANCING SOURCES (USES):

Transfers out (10,263,789) (10,263,789) (10,263,789) -
Total other financing sources (uses) (10,263,789) (10,263,789) (10,263,789) - Net change in fund balances -$ - $ 144,998 144,998 $ FUND BALANCES (DEFICITS):

Beginning of year -
End of year 144,998$
Budgeted Amounts
223
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Richmond Neighborhood Stabilization Corporation Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property 766$ 766 $ 145 $ (621)$ Total revenues 766 766 145 (621) EXPENDITURES:

Current:

Housing and redevelopment 4,750 4,750 35,576 (30,826)
Total expenditures 4,750 4,750 35,576 (30,826) Net change in fund balances (3,984)$ (3,984) $ (35,431) (31,447) $ FUND BALANCES (DEFICITS):

Beginning of year 158,451
End of year 123,020$
Budgeted Amounts
224
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Rent Control Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 2,609,056$ 2,609,056 $ 2,764,96 1$ 155,905 $ Use of money and property - - 6,096 6,096
Other - - 24,796 24,796
Total revenues 2,609,056 2,609,056 2,795,853 186,797 EXPENDITURES:

Current:

Housing and redevelopment 2,425,312 2,425,312 2,143,246 282,066 Total expenditures 2,425,312 2,425,312 2,143,246 282,066 Net change in fund balances 183,744$ 183,744 $ 652,607 468,863 $ FUND BALANCES (DEFICITS):

Beginning of year 496,869
End of year 1,149,476$
Budgeted Amounts
225
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cost Recovery Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 6,871,937$ 6,905,005 $ 8,387,59 1$ 1,482,586 $ Use of money and property - - 24,665 24,665
Intergovernmental 22,213,448 28,573,95 1 718,961 (27,854,990) Charges for services 2,195,718 3,495,718 2,544,424 (951,294) Other - - 6,026 6,026
Total revenues 31,281,103 38,974,674 11,681,667 (27,293,007) EXPENDITURES:

Current:

General government 8,338,655 10,801,139 8,830,54 1 1,970,598 Public works 909,949 1,498,517 800,652 697,865
Capital outlay 21,629,581 26,551,616 2,521,583 24,030,033 Total expenditures 30,878,185 38,851,272 12,152,776 26,698,496 Net change in fund balances 402,918$ 123,402 $ (471,109) (594,511) $ FUND BALANCES (DEFICITS):

Beginning of year 691,370
End of year 220,261$
Budgeted Amounts
226
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Environmental and Community Investment Agreement Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 62,573$ 62,573 $ Intergovernmental 9,258,000 9,258,000 7,000,000 (2,258,000) Other - - 50,083 50,083
Total revenues 9,258,000 9,258,000 7,112,656 (2,145,344) EXPENDITURES:

Current:

General government 7,269,907 6,944,807 4,643,862 2,300,945 Public safety 304,569 235,940 51,908 184,032
Public works 303,800 303,800 153,769 150,03 1
Community development 3,500,000 3,500,100 500,000 3,000,100 Cultural and recreational 781,514 781,514 330,067 451,447 Capital outlay 1,826,312 1,894,94 1 401,638 1,493,303
Total expenditures 13,986,102 13,661,102 6,081,244 7,579,858

REVENUES OVER (UNDER)
EXPENDITURES (4,728,102) (4,403,102) 1,031,412 5,434,514 OTHER FINANCING SOURCES (USES):

Transfers out (252,942) (577,942) (325,000) 252,942
Total other financing sources (uses) (252,942) (577,942) (325,000) 252,942 Net change in fund balances (4,981,044)$ (4,981,044) $ 706,412 5,687,456 $ FUND BALANCES (DEFICITS):

Beginning of year 14,700,165
End of year 15,406,577$
Budgeted Amounts
227
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 2005 Pension Obligation Bonds Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 12,124,486$ 12,124,486 $ 12,124,486 $ - $ Use of money and property -- 3 , 2 8 1 3,281
Total revenues 12,124,486 12,124,486 12,127,767 3,281 EXPENDITURES:

Debt service:

Principal 9,458,000 9,458,000 9,458,000 -
Interest and fiscal charges 4,575,500 4,575,500 2,143,869 2,431,63 1 Total expenditures 14,033,500 14,033,500 11,601,869 2,431,631 Net change in fund balances (1,909,014)$ (1,909,014) $ 525,898 2,434,912 $ FUND BALANCES (DEFICITS):

Beginning of year 11,315,286
End of year 11,841,184$
Budgeted Amounts
228
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Debt Service Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 209 $ 209 $ Total revenues - - 209 209 EXPENDITURES:

Debt service:

Principal 795,000 795,000 795,000 -
Interest and fiscal charges 295,838 295,838 296,687 (849) Total expenditures 1,090,838 1,090,838 1,091,687 (849)

REVENUES OVER (UNDER)
EXPENDITURES (1,090,838) (1,090,838) (1,091,478) (640) OTHER FINANCING SOURCES (USES):

Transfers in 1,092,338 1,092,338 1,092,338 -
Total other financing sources (uses) 1,092,338 1,092,338 1,092,338 - Net change in fund balances 1,500$ 1,500 $ 860 (640) $ FUND BALANCES (DEFICITS):

Beginning of year 8,032
End of year 8,892$
Budgeted Amounts
229
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Civic Center Debt Service Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 2,613$ 2,613 Charges for services 5,580,311 5,580,311 5,696,151 115,840 Total revenues 5,580,311 5,580,311 5,698,764 118,453 EXPENDITURES:

Debt service:

Principal 3,260,000 (74,055,000) 3,260,000 (77,315,000) Interest and fiscal charges 4,455,769 4,455,769 4,466,982 (11,213) Total expenditures 7,715,769 (69,599,231) 7,726,982 (77,326,213)

REVENUES OVER (UNDER)
EXPENDITURES (2,135,458) 75,179,542 (2,028,218) (77,207,760) OTHER FINANCING SOURCES (USES):

Payment to refunded bonds escrow agent - (77,315,000) - 77,315,000 Transfers in 2,406,458 2,406,458 2,406,458 -
Total other financing sources (uses) 2,406,458 (74,908,542) 2,406,458 77,315,000 Net change in fund balances 271,000$ 271,000 $ 378,240 107,240 $ FUND BALANCES (DEFICITS):

Beginning of year (1,974,526)
End of year (1,596,286)$
Budgeted Amounts
230
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Capital Improvement Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 22 $ 22 $ Total revenues - - 22 22 EXPENDITURES:

Capital outlay - - 839,634 (839,634)
Total expenditures - - 839,634 (839,634)

REVENUES OVER (UNDER)
EXPENDITURES - - (839,612) (839,612) OTHER FINANCING SOURCES (USES):

Transfers in - 303,275 303,275 -
Total other financing sources (uses) - 303,275 303,275 - Net change in fund balances -$ 303,275$ (536,337) (839,612) $ FUND BALANCES (DEFICITS):

Beginning of year 3,526,653
End of year 2,990,316$
Budgeted Amounts
231
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure C/J Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 3,523$ 3,523 $ Intergovernmental 4,756,391 4,756,391 1,657,713 (3,098,678) Total revenues 4,756,391 4,756,391 1,661,236 (3,095,155) EXPENDITURES:

Current:

Public works - - 716,192 (716,192)
Capital outlay - - 985,430 (985,430)
Total expenditures - - 1,701,622 (1,701,622)

REVENUES OVER (UNDER)
EXPENDITURES 4,756,391 4,756,391 (40,386) (4,796,777) Net change in fund balances 4,756,391$ 4,756,391 $ (40,386) (4,796,777)$ FUND BALANCES (DEFICITS):

Beginning of year 1,616,610
End of year 1,576,224$
Budgeted Amounts
232
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Harbor Navigation Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 195 $ 195 $ Total revenues - - 195 195 Net change in fund balances -$ - $ 195 195 $ FUND BALANCES (DEFICITS):

Beginning of year 45,264
End of year 45,459$
Budgeted Amounts
233

NONMAJOR ENTERPRISE FUNDS
Richmond Marina Fund records revenues collected from berth rentals and the use of the marina facilities. The fund also records expenses incurred for the operation of the facility and for the payment of the loan from the California Department of Boating and Waterways.

Storm Sewer Fund records the revenues from storm sewer fees and transfers from operations reserves. It also records the expenses of maintaining a clean storm sewer system so that the City is in compliance with the federally mandated Storm Water Pollution Prevention Program.

Cable TV Fund was setup for the administration and enforcement of the franchise agreements with two cable television systems, management of municipal cable channel, departmental video services, media and public information, and telecommunications planning. The fund records revenue received from franchise fees and indirect charges to other funds and administration expenses incurred in operating the system. 234
City of Richmond
Combining Statement of Net Position
Nonmajor Enterprise Funds
For the year ended June 30, 2021
Total
Richmond Storm Sewer Cable TV Nonma jor
Marina Fund Fund Fund Enterprise Funds
ASSETS
Current assets:

Cash and investments 4,200,928 $ 953,168 $ 669,936 $ 5,824,032 $ Restricted cash and investments 89,726 - - 89,726
Receivables
:

Accounts, net 138,887 5,579 290,323 434,789
Interest 1,298 - 189 1,487
Total current assets 4,430,839 958,74 7 960,448 6,350,034 Noncurrent assets:

Capital assets:

Nondepreciable 330,794 3,523,900 - 3,854,694
Depreciable 4,338,356 30,889,66 1 120,981 35,348,998
Less accumulated depreciation (3,150,267) (29,847,123) (120,981) (33,118,371) Net capital assets 1,518,883 4,566,438 - 6,085,32 1
Total noncurrent assets 1,518,883 4,566,438 - 6,085,32 1 Total assets 5,949,722 5,525,185 960,448 12,435,355

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension - 46,594 263,370 309,964 Deferred outflows of resources - OPEB - 4,608 24,930 29,538 Total deferred outflows of resources - 51,202 288,300 339,502

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities - 323,610 10,327 333,937 Interest payable 96,395 - - 96,395
Refundable deposits 87,973 1,200 - 89,173
Compensated absences - current - - 41,737 41,737
Long-term debt - current 101,656 - - 101,656
Total current liabilities 286,024 324,810 52,064 662,898 Noncurrent liabilities:

Advances from other funds - 2,580,535 - 2,580,535
Unearned revenue - 591,867 - 591,867 Compensated absences - - 5,838 5,838
Long-term debt 2,235,202 - - 2,235,202
Net pension liability - 355,89 1 2,011,645 2,367,536
Net OPEB liability - 149,582 809,50 1 959,083
Total noncurrent liabilities 2,235,202 3,677,875 2,826,984 8,740,06 1 Total liabilities 2,521,226 4,002,685 2,879,048 9,402,959

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension - 6,125 34,622 40,747 Deferred inflows of resources - OPEB - 71,005 384,26 1 455,266 Total deferred inflows of resources - 77,130 418,883 496,013

NET POSITION (DEFICIT)
Net investment in capital assets (817,975) 4,566,438 - 3,748,463 Restricted for debt service 89,726 - - 89,726
Unrestricted 4,156,745 (3,069,866) (2,049,183) (962,304) Total net position 3,428,496$ 1,496,572 $ (2,049,183)$ 2,875,885 $ 235
City of Richmond
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds
For the year ended June 30, 2021
Total
Richmond Storm Sewer Cable TV Nonmajor
Marina Fund Fund Fund Enterprise Funds
OPERATING REVENUES:

Service charges - $ 2,098,685$ 1,145,886 $ 3,244,571 $ Lease income 574,453 5,243 - 579,696 Other - - 50 50 Total operating revenues 574,453 2,103,928 1,145,936 3,824,317 OPERATING EXPENSES:

Salaries and benefits - 134,662 536,089 670,751 General and administrative 36,305 1,543,522 252,868 1,832,695 Depreciation 85,563 45,088 - 130,651 Total operating expenses 121,868 1,723,272 788,957 2,634,097 OPERATING INCOME (LOSS) 452,585 380,656 356,979 1,190,220 NONOPERATING REVENUES (EXPENSES):

Interest income 18,789 - 2,310 21,099 Grants - 1,722,930 - 1,722,930 Interest expense (105,523) (73,150) - (178,673) Total nonoperating revenues (expenses) (86,734) 1,649,780 2,310 1,565,356 Income (loss) before
contributions and transfers 365,851 2,030,436 359,289 2,755,576 CONTRIBUTIONS AND TRANSFERS:

Transfers out (86,778) - - (86,778) Total contributions and transfers (86,778) - - (86,778) Change in net position 279,073 2,030,436 359,289 2,668,798 NET POSITION:

Beginning of year 3,149,423 (533,864) (2,408,472) 207,087 End of year 3,428,496$ 1,496,572 $ (2,049,183) $ 2,875,885 $ 236
City of Richmond
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the year ended June 30, 2021
Total
Richmond Storm Sewer Cable TV Nonma jor
Marina Fund Fund Fund Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 588,224 $ 2,695,408 $ 1,149,802 $ 4,433,434 $ Payments to suppliers (35,651) (1,463,315) (242,727) (1,741,693) Payments to employees - (179,976) (699,233) (879,209)
Net cash provided by (used in) operating activities 552,573 1,052,117 207,842 1,812,532

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) - (46,719) - (46,719)
Transfers out (86,778) -- (86,778)
Net cash provided by (used in)
noncapital financing activities (86,778) (46,719) - (133,497)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts - 1,722,930 - 1,722,930
Acquisition of capital assets - (1,702,010) - (1,702,010) Principal payments on capital debt (97,279) -- (97,279) Interest paid (109,536) (73,150) - (182,686)
Net cash provided by (used in)
capital and related financing activities (206,815) (52,230) - (259,045) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 22,777 - 2,646 25,423 Net cash provided by (used in) investing activities 22,777 - 2,646 25,423 Net cash flows 281,757 953,168 210,488 1,445,413 CASH AND INVESTMENTS - Beginning of year 4,008,897 - 459,448 4,468,345 CASH AND INVESTMENTS - End of year 4,290,654$ 953,168 $ 669,936 $ 5,913,758 $ ---

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

Operating income (loss) 452,585$ 380,656 $ 356,979 $ 1,190,220 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense 85,563 45,088 - 130,65 1
Changes in assets and liabilities:

Receivables, net 13,77 1 (387) 3,866 17,250
Accounts payable and accrued liabilities - 80,207 10,14 1 90,348 Refundable deposits 654 - - 654
Unearned revenue - 591,867 - 591,867 Compensated absences payable - (14,890) 1,348 (13,542)
Net pension liability and deferred outflows/inflows - 626 3,539 4,165 Net OPEB liability and deferred outflows/inflows - (31,050) (168,031) (199,081) Net cash provided by (used in) operating activities 552,573$ 1,052,117 $ 207,842 $ 1,812,532 $ 237

INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds introduced by GASB Statement No. 34 does not extend to internal service funds because they do not do business with outside parties. GASB Statement No. 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separatel y in the fund financial statements, including the funds below.

Insurance Reserves Fund is used t o report activitie s related t o employees' claim s due t o industrial in juries and activities related to general claims against the City for damages incurred.

Equipment Services and Replacement Fund is used to report activities related to maintenance and replacement of City vehicles.

Police Telecommunications Fund is used to report activities related to CAD dispatch, RMS records, maintenance, and 800 MHz equipment expense.

Compensated Absences Fund is used t o account for sick, vacatio n and compensatory time leave pa youts related t o employee retirements.
238
City of Richmond
Combining Statement of Net Position
Internal Service Funds
For the year ended June 30, 2021
Equipment Total
Insurance Services and Police Tele- Com pensated Internal Service Reserves Re placement communications Absences Funds
ASSETS
Current assets:

Cash and investments 50,812,459 $ 313,895 $ - $ 910,95 1$ 52,037,305 $ Restricted cash and investments - 1,233,426 - - 1,233,426 Receivables
:

Accounts, net 9,000 - - - 9,000
Interest 16,130 62 - - 16,192
Total current assets 50,837,589 1,547,383 - 910,95 1 53,295,923 Noncurrent assets:

Receivables:

Advances to other funds 2,580,535 - - - 2,580,535
Capital assets:

Nondepreciable - 2,826,937 - - 2,826,937
Depreciable - 24,784,013 - - 24,784,013
Less accumulated depreciation - (19,681,861) -- (19,681,861) Net capital assets - 7,929,089 - - 7,929,089
Total noncurrent assets 2,580,535 7,929,089 - - 10,509,624 Total assets 53,418,124 9,476,472 - 910,95 1 63,805,547

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 481,556 - - - 481,556 Deferred outflows of resources - OPEB 44,441 - - - 44,44 1 Deferred charge on refunding -----
Total deferred outflows of resources 525,997 - - - 525,997

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,609,733 - - - 1,609,733 Interest payable - 9,717 - - 9,717
Compensated absences - current 35,782 - - - 35,782
Claims payable - current 13,033,895 - - - 13,033,895
Long-term debt - current - 251,95 1 - - 251,95 1
Total current liabilities 14,679,410 261,668 - - 14,941,078 Noncurrent liabilities:

Compensated absences 75,445 - - - 75,445
Claims payable 31,358,444 - - - 31,358,444
Long-term debt - 1,736,079 - - 1,736,079
Net pension liability 3,678,178 - - - 3,678,178
Net OPEB liability 1,443,023 - - - 1,443,023
Total noncurrent liabilities 36,555,090 1,736,079 - - 38,291,169 Total liabilities 51,234,500 1,997,747 - - 53,232,247

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 63,305 - - - 63,305 Deferred inflows of resources - OPEB 684,987 - - - 684,987 Total deferred inflows of resources 748,292 - - - 748,292

NET POSITION (DEFICIT)
Net investment in capital assets - 7,174,485 - - 7,174,485 Unrestricted 1,961,329 304,240 - 910,95 1 3,176,520
Total net position 1,961,329$ 7,478,725 $ - $ 910,95 1$ 10,351,005 $ 239
City of Richmond
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2021
Equipment Total
Insurance Services and Police Tele- Compensated Internal Service Reserves Replacement communication s Absences Funds
OPERATING REVENUES:

Service charges - internal 17,985,992 $ 1,245,000 $ 106,026 $ 2,400,000 $ 21,737,018 $ Service charges - external - - - - - Other 272 - - - 272 Total operating revenues 17,986,264 1,245,000 106,026 2,400,000 21,737,290 OPERATING EXPENSES:

Salaries and benefits 1,317,218 - - 2,175,310 3,492,528 General and administrative 1,097,351 - - - 1,097,351 Maintenance 1,756,589 24,382 - - 1,780,971 Depreciation - 985,343 - - 985,343 Claims losses 13,476,986 - - - 13,476,986 Other 1,005 - - - 1,005 Total operating expenses 17,649,149 1,009,725 - 2,175,310 20,834,184 OPERATING INCOME (LOSS) 337,115 235,275 106,026 224,690 903,106 NONOPERATING REVENUES (EXPENSES):

Interest income 285,258 4,249 - - 289,507 Grants 1,292,953 - - - 1,292,953 Interest expense - (82,498) - - (82,498) Total nonoperating revenues (expenses) 1,578,211 (78,249) - - 1,499,962 Income (loss) before
contributions and transfers 1,915,326 157,026 106,026 224,690 2,403,068 CONTRIBUTIONS AND TRANSFERS:

Transfers in - 426,018 - - 426,018
Transfers out - - (196,550) - (196,550)
Total contributions and transfers - 426,018 (196,550) - 229,468 Change in net position 1,915,326 583,044 (90,524) 224,690 2,632,536 NET POSITION:

Beginning of year 46,003 6,895,68 1 90,524 686,26 1 7,718,469 End of year 1,961,329$ 7,478,725 $ - $ 910,95 1$ 10,351,005 $ 240
City of Richmond
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
Equipment Total
Insurance Services and Police Tele- Com pensated Internal Servic e Reserves Replacement communication s Absences Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund services 18,282,044 $ 1,245,000 $ 176,058 $ 2,400,000 $ 22,103,102 $ Payments to suppliers (1,410,930) (194,850) (3,614) - (1,609,394) Payments to employees (1,638,880) - (150,985) (2,175,310) (3,965,175) Insurance premiums and claims paid (12,325,014) --- (12,325,014) Net cash provided by (used in) operating activities 2,907,220 1,050,150 21,459 224,690 4,203,519

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) 9,703,154 - - - 9,703,154 Transfers in - 426,018 - - 426,018
Transfers out - -
(151,591) - (151,591)
Net cash provided by (used in)
noncapital financing activities 9,703,154 426,018 (151,591) - 9,977,58 1

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts 1,292,953 - - - 1,292,953
Acquisition of capital assets - (2,003,389) -- (2,003,389) Principal payments on capital debt - (242,336) -- (242,336) Interest paid - (83,682) -- (83,682)
Net cash provided by (used in)
capital and related financing activities 1,292,953 (2,329,407) -- (1,036,454) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 331,912 5,851 998 - 338,761 Net cash provided by (used in) investing activities 331,912 5,85 1 998 - 338,76 1 Net cash flows 14,235,239 (847,388) (129,134) 224,690 13,483,407 CASH AND INVESTMENTS - Beginning of year 36,577,220 2,394,709 129,134 686,26 1 39,787,324 CASH AND INVESTMENTS - End of year 50,812,459$ 1,547,32 1$ - $ 910,95 1$ 53,270,73 1$ -----

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

Operating income (loss) 337,115$ 235,275 $ 106,026 $ 224,690 $ 903,106 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 985,343 - - 985,343
Changes in assets and liabilities:

Receivables, net 295,780 - 70,032 - 365,812
Accounts
payable and accrued liabilities 1,444,015 (170,468) (3,614) - 1,269,933 Compensated absences payable (28,603) - (150,985) - (179,588) Claims payable 1,151,972 - - - 1,151,972
Net pension liability and deferred outflows/inflows 6,474 - - - 6,474 Net OPEB liability and deferred outflows/inflows (299,533) --- (299,533) Net cash provided by (used in) operating activities 2,907,220$ 1,050,150 $ 21,459 $ 224,690 $ 4,203,519 $ See accompanying Notes to Basic Financial Statements 241 This page intentionally left blank
242

TRUST FUNDS
Pension Trust Funds
General Pension Fund records the activity of the General Pension Plan, a defined benefit plan that covers 28 former City employees not covered by PERS, all of whom have retired.

Police and Firemen's Pension Fund records the activity of the Police and Firemen's Pension Plan, a defined benefit pension plan that covers 75 police and fire personnel employed prior to October 1964.

Garfield Pension Fund records the activity of the Garfield Pension Plan, a defined contribution pension plan that was set up for a retired police chief.

Private-Purpose Trust Funds
Pt. Molate Fund is used to account for assets held by the City as an agent for the U.S. Navy and a private developer for the cleanup of Point Molate.

Successor Agency to the Richmond Community Redevelopment Agency Fund accounts for the activities of the Successor Agency to the former Redevelopment Agency.
243
City of Richmond
Combining Statement of Fiduciary Net Position
Pension Trust Funds
June 30, 2021
General Police and Garfield
Pension Firemen's Pension Pension Total
ASSETS
Restricted cash and investments 1,092,667 $ 71,321 $ 62,921 $ 1,226,909$ Local Agency Investment Fund - - 186,062 186,062 Mutual fund investments - 13,042,440 - 13,042,440 Interest receivable 359 86 22 467 Total assets 1,093,026 13,113,847 249,005 14,455,878 NET POSITION:

Restricted for employees' pension and OPEB benefits 1,093,026 13,113,847 249,005 14,455,878 Total net position 1,093,026$ 13,113,847 $ 249,005 $ 14,455,878$ Pension
244
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds
For the year ended June 30, 2021
General Police and Garfield
Pension Firemen's Pension Pension Total
ADDITIONS:

Contributions to trust - employers 319,025 $ 937,004 $ - $ 1,256,029$ Net investment income:

Net increase (decrease) in fair value of investments 101 2,392,461 22 2,392,584 Interest income 5,400 207,245 1,963 214,608 Less investment management fees - (72,568) - (72,568) Total additions 324,526 3,464,142 1,985 3,790,653 DEDUCTIONS:

Pension and OPEB benefits 401,991 1,412,673 50,049 1,864,713 Total deductions 401,991 1,412,673 50,049 1,864,713 Change in net position (77,465) 2,051,469 (48,064) 1,925,940 NET POSITION:

Beginning of year 1,170,491 11,062,378 297,069 12,529,938 End of year 1,093,026$ 13,113,847 $ 249,005 $ 14,455,878$ Pension
245
City of Richmond
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2021
Successor
Agency to the
Richmond Community
Pt. Molate Redevelopment Agency Total
ASSETS
Cash and investments - $ 7,075,368$ 7,075,368 $ Restricted cash and investments 2,266,164 15,439,808 17,705,972 Accounts receivable - 33,665 33,665 Interest receivable 131 22,141 22,272 Grants receivable - 451,406 451,406 Loans receivable - 1,021,000 1,021,000 Prepaids and other assets - 5,716,860 5,716,860 Total assets 2,266,295 29,760,248 32,026,543

DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - 436,160 436,160 Total deferred outflows of resources - 436,160 436,160

LIABILITIES
Accounts payable and accrued liabilities 71,757 194,505 266,262 Interest payable - 697,901 697,901 Long-term debt:

Due within one year - 6,645,000 6,645,000 Due in more than one year - 53,465,925 53,465,925 Total liabilities 71,757 61,003,331 61,075,088 NET POSITION:

Held in trust for other governments 2,194,538 (30,806,923) (28,612,385) Total net position 2,194,538$ (30,806,923) $ (28,612,385) $ 246
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the year ended June 30, 2021
Successor
Agency to the
Richmond Community
Pt. Molate Redevelopment Agency Total
ADDITIONS:

Property taxes -$ 12,927,768$ 12,927,768 $ Contributions from the City - 451,406 451,406 Interest income 1,989 1,044,655 1,046,644 Gain from sale of property - 925,585 925,585 Total additions 1,989 15,349,414 15,351,403 DEDUCTIONS:

Community development - 1,970,023 1,970,023 Payments in accordance with trust agreements 211,835 - 211,835 Interest and fiscal charges - 4,128,651 4,128,651 Total deductions 211,835 6,098,674 6,310,509 Change in net position (209,846) 9,250,740 9,040,894 NET POSITION:

Beginning of year 2,404,384 (40,057,663) (37,653,279) End of year 2,194,538$ (30,806,923) $ (28,612,385) $ 247
City of Richmond
Subcombining Statement of Fiduciary Net Position
Successor Agency to the Richmond Community Redevelopment Agency June 30, 2021
Redevelopment
Property Tax Capital Bond Funded
Trust Fund Administration Projects Capital Projects
ASSETS
Cash and investments 5,166,462 $ 16,627 $ 1,891,316 $ - $ Restricted cash and investments - - 3,678,229 - Accounts receivable - - 33,665 - Interest receivable - - 22,141 - Grants receivable - - 451,406 -
Loans receivable - - 1,021,000 - Prepaids and other assets - - 5,716,860 -
Total assets 5,166,462 16,627 12,814,617 -

DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - - - - Total deferred outflows of resources - - - -

LIABILITIES
Accounts payable and accrued liabilities - 16,627 176,915 - Interest payable - - - - Long-term debt:

Due within one year - - - - Due in more than one year - - - - Total liabilities - 16,627 176,915 - NET POSITION:

Held in trust for successor agency 5,166,462 - 12,637,702 - Total net position 5,166,462$ - $ 12,637,702$ - $ 248
Bond Intrafund
Payments Eliminations Total
963$ - $ 7,075,368$ 11,761,579 - 15,439,808 - - 33,665 - - 22,141 - - 451,406
- - 1,021,000 - - 5,716,860
11,762,542 - 29,760,248 436,160 - 436,160 436,160 - 436,160 963 - 194,505 697,901 - 697,901 6,645,000 - 6,645,000 53,465,925 - 53,465,925 60,809,789 - 61,003,331 (48,611,087) - (30,806,923)
(48,611,087)$ - $ (30,806,923)$ 249
City of Richmond
Subcombining Statement of Changes in Fiduciary Net Position Successor Agency to the Richmond Community Redevelopment Agency For the year ended June 30, 2021
Redevelopment
Property Tax Capital Bond Funded
Trust Fund Administration Projects Capital Projects
ADDITIONS:

Property taxes 12,927,768 $ - $ - $ - $ Contributions from the local agency - - 451,406 - Contributions from employees - - - - Net investment income:

Net increase (decrease) in fair value of investments - - - - Interest income - - 59,996 - Less investment management fees - - - - Transfers from other funds - 309,863 85,457 - Gain from sale of property - - 925,585 - Total additions 12,927,768 309,863 1,522,444 - DEDUCTIONS:

Community development - 309,863 1,074,504 - Interest and fiscal charges - - - - Transfers to other funds 13,975,965 - 6,211,600 - Total deductions 13,975,965 309,863 7,286,104 - Change in net position (1,048,197) - (5,763,660) - NET POSITION:

Beginning of year 6,214,659 - 18,401,362 - End of year 5,166,462$ - $ 12,637,702$ - $ 250
Bond Intrafund
Payments Eliminations Total
-$ - $ 12,927,768$ - - 451,406 - - - - - - 984,659 - 1,044,655 - - - 19,792,245 (20,187,565) -
- - 925,585 20,776,904 (20,187,565) 15,349,414
585,656 - 1,970,023 4,128,651 - 4,128,651 - (20,187,565) -
4,714,307 (20,187,565) 6,098,674
16,062,597 - 9,250,740 (64,673,684) - (40,057,663) (48,611,087)$ - $ (30,806,923)$ 251
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CUSTODIAL FUNDS
Custodial Funds
Special Assessment Fund accounts for the monies collected and disbursed for land-based debt, where the City is not obligated for the debt.

General Agency Fund accounts for the assets held by the City as an agent for individuals, private organizations, and other governments.

Johnson Library Fund accounts for nonexpendable funds to be used to provide funding for special library projects.

Senior Center Fund accounts for assets held by the City in an agent capacity for programs benefiting the senior citizens residing within the City.

JPFA Reassessment Fund receives secured tax payments (from assessment rolls), and makes payments on the JPFA Revenue Reassessment Bonds; Series 2011A.
2016 A&B Reassessment District Fund receives payments of principal and in terest on prior assessment bonds, and makes payment on the JPFA Reassessment Revenue Bonds Series A and B. 253
City of Richmond
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2021
Special General Johnson
Assessment Agenc y Library
ASSETS
Cash and investments 895,415$ 2,691,854 $ 10,765 $ Restricted cash and investments 342,219 17,264 -
Interest receivable 259 847 4
Total assets 1,237,893 2,709,965 10,769

LIABILITIES
Accounts payable and accrued liabilities -3 , 6 9 1 -
Total liabilities -3 , 6 9 1 -

NET POSITION
Restricted for:

Individuals, organizations, and
other governments 1,237,893 2,706,274 10,769
Total net position 1,237,893$ 2,706,274 $ 10,769 $ 254
2016 A&B Total
Senior JPFA Reassessment Custodial
Center Reassessment District Fund s
64,927$ 1,845,567 $ 1,063,705 $ 6,572,233 $ - - 564,014 923,497
21 576 298 2,005
64,948 1,846,143 1,628,017 7,497,735
1,965 - - 5,656
1,965 - - 5,656
62,983 1,846,143 1,628,017 7,492,079
62,983$ 1,846,143 $ 1,628,017 $ 7,492,079 $ 255
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2021
Special General Johnson
Assessment Agenc y Library
ADDITIONS:

Property taxes 316,243$ - $ - $ Contributions - 1,501,073 -
Net investment income:

Interest income 3,474 12,433 46
Total additions 319,717 1,513,506 46 DEDUCTIONS:

Interest and fiscal charges 307,186 - -
Other 13,324 460,457 -
Total deductions 320,510 460,457 - Change in net position (793) 1,053,049 46
NET POSITION:

Beginning of year ---
Restatements 1,238,686 1,653,225 10,723
Beginning of year, as restated 1,238,686 1,653,225 10,723 End of year 1,237,893$ 2,706,274 $ 10,769 $ 256
2016 A&B Total
Senior JPFA Reassessment Custodial
Center Reassessment District Fund s
2,997$ - $ 885,094$ 1,204,334 $ - - - 1,501,073
301 7,912 3,140 27,306
3,298 7,912 888,234 2,732,713 - - 668,592 975,778
10,947 - 16,128 500,856
10,947 - 684,720 1,476,634 (7,649) 7,912 203,514 1,256,079
----
70,632 1,838,23 1 1,424,503 6,236,000
70,632 1,838,23 1 1,424,503 6,236,000
62,983$ 1,846,143 $ 1,628,017 $ 7,492,079 $ 257
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259
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Financial Trends

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity

1. Assessed and Estimated Actual Value of Taxable Property

2. Property Tax Rates, All Overlapping Governments

3. Principal Property Tax Payers

4. Property Tax Levies and Collections

5. Utility Users Tax Collections

6. Utility Users Tax Direct Rates

7. Top Ten Utility Users Taxpayers
Debt Capacity

1. Ratio of Outstanding Debt by Type

2. Revenue Bond Coverage - 1999, 2006, 2008, 2010A & 2010B Wastewater Revenue Bonds

3. Revenue Bond Coverage - 1996, 1999, 2004, 2007, and 2009 Port Terminal Lease Revenue Bonds, Note and Point Potrero Lease Revenue Bonds.

4. General Bonded Debt - Pension Obligation Bonds

5. Bonded Debt Pledged Revenue Coverage - Tax Allocation Bonds all Refunding Bonds

6. Computation of Direct and Overlapping Debt

7. Computation of Legal Bonded Debt Margin
Demographic and Economic Information

1. Demographic and Economic Statistics

2. Principal Employers
These schedules contain trend information to help the read er understand how the City’s financial performance and wellbeing have changed over time:

CITY OF RICHMOND
JUNE 30, 2021

STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial sta tements, 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.

These schedules contain information to help the reader asse ss the City’s most significant local revenue source, the property tax:

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:

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:
261
Operating Information

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
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:

Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.

CITY OF RICHMOND
JUNE 30, 2021
262
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263

CITY OF RICHMOND
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30
2012 (a) 2013 (b) (c) 2014 2015 (d) 2016
Governmental activities
Net investment in capital assets $242,2 81,323 $214,572,546 $227,828,243 $218,144,811 $228,292,389 Restricted 57,989,820 55,396,056 50,461,923 54,578,939 70,322,707 Unrestricted (118,620,471) (119,231,699) ( 148,161,106) (479,961,080) (508,981,299) Total governmental activities net position $181,650, 672 $150,736,903 $130,129,060 ($207,237,330) ($210,366,203) Business-type activities
Net investment in capital assets $76,73 1,871 $76,966,448 $72,911,000 $74,922,303 $63,405,228 Restricted 8,169,878 9,196,255 9,793,767 9,408,237 9,008,038 Unrestricted (24,759,367) (6,365,74 2) (3,096,845) (18,432,590) (23,382,659) Total business-type activities net position $ 60,142,382 $79,796,961 $79,6 07,922 $65,897,950 $49,030,607 Primary government
Net investment in capital assets $319,0 13,194 $291,538,994 $300,739,243 $293,067,114 $291,697,617 Restricted 66,159,698 64,592,311 60,255,690 63,987,176 79,330,745 Unrestricted (143,379,838) (125,597,441) ( 151,257,951) (498,393,670) (532,363,958) Total primary government net position $241,793 ,054 $230,533,864 $209,736,982 ( $141,339,380) ($161,335,596) (a) Balance was restated in fiscal year 2013. Years prior to 2012 have not been restated. (b) The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position". (c) Balance was restated in fiscal year 2014. Years prior to 2013 have not been restated. (d) The City implemented the provisions of GASB Statement No. 68 in fiscal year 2015. Years prior to 2015 have not been restated. (e) The City implemented the provisions of GASB Statement No. 75 in fiscal year 2018. Years prior to 2018 have not been restated. ($800,000)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
2012 (a) 2013 (b)
(c)
2014 2015 (d) 2016 2017 2018(e) 2019 2020 2021
Net Investment in Capital Assets Restricted Unrestricted 264
Fiscal Year Ended June 30
2017 2018(e) 2019 2020 2021
$233,619,046 $221,336,363 $211,717,676 $205,374,054 $206,419,763 76,810,440 87,380,363 93,157,922 93,703,974 103,401,613 (504,602,583) (625,067,289) (644,34 1,826) (597,270,745) (568,565,683) ($194,173,097) ($316,350,563) ($339,4 66,228) ($298,192,717) ($258,744,307) $71,000,240 $68,213,687 $52,1 61,380 $64,270,898 $75,738,268 9,441,288 9,514,522 9,440,965 1,517,087 13,859,999
(24,096,174) (27,908,968) (8,644,683) (1,045,003) (1,417,443) $56,345,354 $49,819,241 $52,9 57,662 $64,742,982 $88,180,824 $304,619,286 $289,550,050 $263,879,056 $269,644,952 $282,158,031 86,251,728 96,894,885 102,598,887 95,221,061 117,261,612 (528,698,757) (652,976,257) (652,98 6,509) (598,315,748) (569,983,126) ($137,827,743) ($266,531,322) ($286,5 08,566) ($233,449,735) ($170,563,483) 265

CITY OF RICHMOND
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30
2012 2013 (b) 2014 2015 (c) 2016
Expenses
Governmental Activities:

General Government $32,549,754 $35,272,517 $36,119,297 $28,879,074 $32,197,941 Public Safety 100,403,365 97,136,602 102,664,551 102,732,652 107,380,286 Public Works 42,747,958 46,011,618 46,403,830 43,363,799 44,410,102 Community Development 5,845,968 4,909,158 4,618,101 4,771,875 5,003,045 Cultural and Recreational 14,583,687 12,129,962 10,808,931 10,492,020 11,021,226 Housin
g and Redevelopment 19,768,765 2,816,094 1,984,908 2,751,290 2,051,898 Interest and Fiscal Charges 19,633,486 1 5,411,831 19,439,248 17,219,905 18,902,831 Total Governmental Activities Expenses 235,532,983 213,687,782 222,038,866 210,210,615 220,967,329 Business-Type Activities:

Richmond Housing Authority 30,989,229 28,992,229 29,771,151 28,049,474 26,385,133 Port of Richmond 7,868,918 9,337,252 9,530,693 9,923,282 11,132,997 Richmond Marina 1,681,461 266,918 253,190 235,054 237,129 Municipal Sewer 14,655,752 16,964,17 5 16,298,623 15,965,608 16,446,626 Storm Sewer 2,744,775 2,815,541 3,210,678 3,282,406 2,465,929 Cable TV 1,037,142 990,802 890,846 948,426 2,114,436
Total Business-Type Activities Expenses 58,977, 277 59,366,917 59,955,181 58,404,250 58,782,250 Total Primary Government Expense
s $294,510,260 $273,054,699 $281,994,04 7 $268,614,865 $279,749,579 Program Revenues
Governmental Activities:

Charges for Services:

General Government $8,496,532 $11,596,612 $16,917,113 $11,107,654 $12,468,525 Public Safety 5,075,588 5,400,290 6,217,749 10,466,292 7,271,472 Public Works 2,596,312 3,090,211 4,160,804 3,609,577 3,936,242 Community Development 361,706 234,836 405,404 1,385,689 1,069,767 Cultural and Recreational 1,118,777 516,499 584,475 475,091 1,128,267 Housing and Redevelopment 42,040
Operating Grants and Contributions 11,259,829 9,703,416 8,434,018 9,231,039 20,994,534 Capital Grants and Contributions 17,238,057 11,360,153 34,530,908 21,097,186 17,534,992 Total Government Activities Program Revenues 46 ,146,801 41,902,017 71,250,471 57,372,528 64,445,839 Business-Type Activities:

Charges for Services:

Richmond Housing Authority 2,354,197 2,619,669 2,638,834 1,917,602 1,851,337 Port of Richmond 7,745,580 9,043,026 10,201,751 9,480,367 10,581,419 Richmond Marina 259,777 466,921 456,956 488,201 517,108 Municipal Sewer 17,565,632 17,733,454 18,569,191 19,033,406 19,757,863 Storm Sewer 1,800,536 1,842,001 1,869,064 1,845,648 1,966,537 Cable TV 1,022,100 1,320,552 1,228,864 1,376,194 1,320,486 Operating Grants and Contributions 22,742,102 22,323,336 21,953,401 22,112,391 21,951,328 Capital Grants and Contributions 3,775,002 10,087,538 1,673,398 2,189,724 2,155,686 Total Business-Type Activities Program Revenue 57,26 4,926 65,436,497 58,591,459 58,443,533 60,101,764 Total Primary Government Program Revenue
s $103,411,727 $107,338,514 $129,841,930 $115,816,061 $124,547,60 3 Net (Expense)/Revenue
Governmental Activities ($189,386,182) ($171,785, 765) ($150,788,395) ($152,838,087) ($156,521,490) Business-Type Activities (1,712,351) 6,069,580 (1,363,722) 39,283 1,319,514 Total Primary Government Net Expense ($191,098,533) ($165,716,185) ($152,152,117) ($152,798,804) ($155,201,976) General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property Taxes:

Current Collections $52,219,777 $47,207,734 $42,226,820 $45,129,392 $51,302,638 Sales Taxes 27,788,339 29,865,548 29,627,711 33,155,376 40,877,125 Utility User Taxes 45,984,315 48,398,349 48,033,706 48,299,958 43,365,249 Documentary Transfer Taxes 2,765,842 2,957,834 3,461,473 4,818,936 6,187,096 Other Taxes 3,784,986 3,289,518 3,592,218 5,099,511 5,734,802 Unrestricted Intergovernmental 4,752,245 44,814 1,806,532 43,312 Use of Money and Property (22,064,295) 11,331,823 (1,164,987) (4,752,198) 1,198,266 Gain From Sale of Capital Assets 174,874 268,92 7 262,667 Miscellaneous 7,917,715 3,461,402 3,229,898 2,151,042 4,258,061 Pension Stabilization Revenue 2,544,1 75 2,549,922 998,839 954,202 915,860 Developer Revenue Sharing 55,958
Transfers 1,030,428 (590,394) 178,487 600,000
Special/Extraordinary Items:

Swap Termination (16,321,171)
Transfer of Loans to Housing Successor
Assets Transferred To/Liabilities Assumed By 14,968,712 Housing Successor/Successor Agency 84,426,106 (a) (5,328,244) Total Government Activities 211,205,591 143, 188,306 130,180,552 137,110,165 153,392,617 Business-Type Activities:

Taxes:

Property Taxes
Use of Money and Property (5,331,300) 4,054,073 (185,246) (563,129) (3,076,857) Settlement
Other
Special Item (14,510,000)
Transfers (1,030,428) 590,394 (178,487) (600,000)
Extraordinary Items 9,023,704 1,359,929
Total Business-Type Activities (6,361,728) 13 ,668,171 1,174,683 (741 ,616) (18,186,857) Total Primary Governmen
t $204,843,863 $156,856,477 $131,355,235 $136,368,549 $135,205,760 Change in Net Position
Governmental Activities $21,819,409 ($28,597,4 59) ($20,607,843) ($15,7 27,922) ($3,128,873) Business-Type Activities (8,074,079) 19,737,751 (189,039) (702,333) (16,867,343) Total Primary Government $13,745,330 ($8,859,708) ($20,796,882) ($16,430,255) ($19,996,216) (a) The Redevelopment Agency was dissolved effective January 31 , 2012 and its net position transferred to a Successor Agency. (b) The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position". (c) The City implemented the provisions of GASB Statement No. 68 in fiscal year 2015. Years prior to 2015 have not been restate d. (d) The City implemented the provisions of GASB Statement No. 75 in fiscal year 2018. Years prior to 2018 have not been restate d. 266
Fiscal Year Ended June 30
2017 2018 (d) 2019 2020 202 1
$34,851,005 $45,715,329 $45,626,305 $43,495,871 $47,854,126 104,919,259 114,932,219 116,621,006 108,947,688 93,441,711 41,558,084 48,617,290 49,893,124 45,051,479 33,979,639
3,290,142 4,589,328 5,791,630 4,115,214 4,433,192
10,996,526 14,280,985 15,074,312 10,409,881 9,006,470
7,449,42
3 3,442,239 2,676,89 7 2,807,611 3,108,240
16,387,887 16,127,479 15,380,005 14,896,558 12,825,356
219,452,326 247,704,869 251,063,279 229,724,302 204,648,734 26,241,916 30,978,813 36,766,319 5,834,686 3,607,603
10,102,104 10,257,553 8,811,486 7,744,773 6,263,232
230,621 327,442 273,929 21,767,690 20,466,640
17,720,735 21,696,370 19,259,997 241,445 227,391
2,320,723 1,661,808 1,643,453 1,965,353 1,796,422
1,028,185 1,697,155 973,747 671,790 788,957
57,644,284 66,619,141 67,728,931 38,225,737 33,150,245
$277,096,610 $314,324,010 $318,792,210 $267,950,039 $237,798,979 $15,543,381 $16,838,782 $15,310,347 $13,211,033 $13,777,010 8,932,212 8,147,458 7,124,227 6,631,900 3,674,412
4,796,586 6,529,172 5,118,216 7,792,157 7,198,221
615,388 1,748,222 1,603,581 827,055 665,999
1,252,192 1,545,399 2,200,702 1,111,472 814,073
1,878,958 2,189,703
16,083,370 20,556,989 20,514,833 25,354,387 29,316,141
14,008,833 10,471,376 5,778,572 4,987,273 4,386,950
61,231,962 67,716,356 59,840,181 59,915,277 59,832,806
3,067,020 1,740,399 3,329,072 841,319 861,943
10,182,777 10,580,246 10,629,229 10,454,061 10,704,024
540,567 537,438 602,591 27,934,684 27,759,474
20,767,925 22,447,439 24,476,967 564,988 574,453
1,992,758 2,068,110 1,942,171 2,087,561 2,103,928
1,339,104 1,281,952 1,240,754 1,203,837 1,145,936
22,636,922 26,098,804 28,666,300 4,027,791 3,771,674
969,910 1,155,536 2,170,137 322,164 13,167
61,496,983 65,909,924 73,057,221 47,436,405 46,934,599
$122,728,94
5 $133,626,280 $132,897,402 $107,351,682 $106,767,40 5
($158,220,364) ($179,988,513) ($191,22 3,098) ($169,809,025) ($144,815,928) 3,852,699 (709,217) 5,328,290 9,210,668 13,784,354
($154,367,665) ($180,697,730) ($185,894,808) ($160,598,357) ($131,031,574) $56,588,547 59,441,796 60,592,022 63,004,942 65,075,408 41,620,189 44,474,973 47,659,481 44,537,156 48,998,406
44,966,489 46,079,755 45,905,937 45,552,523 45,240,705
7,452,985 6,486,347 8,011,672 8,707,564 19,857,680
5,329,465 6,144,968 6,227,213 7,127,375 7,424,135
49,448 58,842 4,705,047 5,367,784 6,593,602
12,230,256 7,000,785 (6,825,744) 2,946,978 1,461,004
64,651 39,22 6 71,779 82,03 6 71,458
5,138,724 4,195,794 1,980,97 3 1,992,600 1,357,022
885,938
86,778 86,778 (220,947) 86,778 (11,279,988)
1,208,259
174,413,470 175,217,523 168,107,433 179,405,736 184,799,432 3,548,826 3,431,293 (1,015,459) 770,319 145,810
(86,778) (86,778) 220,947 (86,778) 11,279,988
3,462,048 3,344,515 (794,512) 683,541 11,425,798
$177,875,518 $178,562,038 $167,312,921 $180,089,27 7 $196,225,230 $16,193,106 ($4,770,990) ($23,115,665) $9,596,711 $39,983,504 7,314,747 2,635,298 4,533,778 9,894,209 25,210,152
$23,507,853 ($2,135,692) ($18,581,887) $19,490,920 $65,193,65 6 267

CITY OF RICHMOND
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30
2012 2013 (b) 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable $25,944,325 $26,366,829 $19,505,987 $18,708,682 $18,404, 669 $15,697,680 $17,967,653 $17,170,714 $16,705,993 $14,399,738 Committed 1,500,000 9,800,000
Assigned 377,181 219,646 56,786 23,934 4,460 10,013 72,506 63,180 113,349 2,436,475 Unassigned 11,036,847 10,238,862 7,979,055 9,949,120 10,988,266 19,709,197 17,590,764 19,534,660 20,326,889 22,477,829 Total General Fund $37,358,353 $36,825,337 $27,541,828 $28,681 ,736 $29,397,395 $35,416,890 $35,630,923 $36,768,554 $38,646,231 $49,114,04 2( a ) All Other Governmental Funds
Nonspendable $174,067 $484 $550
Restricted 42,888,150 $42,117,459 $39,066,351 41,017,602 53,7 52,247 $56,052,014 $64,125,353 $72,865,392 $75,880,927 $80,161,994 Committed
Assigned 5,147,506 1,734,260 428,766 430,083 431,867 782,617 43,906 44,602 45,264 2,521,099 Unassigned (11,929,833) (14,357,112) (15,499,990) (9,755,130) (13, 824,433) (12,190,388) (8,939,781) (5,403,755) (2,000,302) (1,677,775) Total all other governmental funds $36,279,890 $29,494,607 $23,995,127 $31,693,039 $40,360,231 $44,644, 243 $55,229,478 $67,506,239 $73,9 25,889 $81,005,318 (a) (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
(b) Balance was restated in fiscal year 2014. Years prior to 2013 have not been restated. ($20)
$0
$20
$40
$60
$80
$100
$120
$140
2012 2013 (b) 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned 268
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269

CITY OF RICHMOND
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2012 2013 2014 2015 2016
Revenues
Property taxes $51,964,005 $48,51 8,328 $43,559,305 $46 ,498,061 $52,714,540 Sales taxes 27,788,339 29,865,5 48 29,627,711 33,131,486 40,877,125 Utility user fees 50,984,315 48,398,349 48,033,706 48,299,958 43,365,249 Other taxes 6,550,828 6, 247,352 7,053,691 9,918 ,447 11,628,519 Licenses, permits and fees 9,393,833 11,830,426 7,713,6 34 12,409,625 12,235,483 Developer revenue sharing 55,958
Fines, forfeitures and penalties 536,510 617,509 821,411 1,353,518 901,838 Use of money and property 932,393 557,936 153,958 225,529 212,787 Intergovernmental 36,121,56 1 19,995,922 17,078,035 19,228,997 14,440,543 Private grants 12,971,138
Charges for services 9,204,016 9,350,051 20,022,968 13,607,840 13,462,270 Pension stabilization revenue 2,544,175 2,549,922 9 98,839 954,202 915,860 Rent 793,144 681,141 7 08,626 809,113 768,753
Other 7,142,854 2,703,133 2,845,117 1,977,688 4,300,150 Total Revenues 204,011,931 181,315,617 178,617,001 188,414,464 208,794,255 Expenditures
Current:

General government 30,303,6 14 33,251,610 32,005,878 29,786,089 31,819,369 Public safety 87,286,248 87 ,573,539 91,676,955 90,219,981 94,774,545 Public works 25,555,928 26 ,065,996 26,363,885 25,806,437 25,690,663 Community development 5,64 3,542 4,709,478 4,357,885 4,586,333 4,843,687 Cultural and recreational 12,183,399 11,175,362 10,223, 708 10,021,481 10,551,337 Housing and redevelopment 6,267,418 3,089,640 2,2 66,265 2,625,533 3,038,135 SERAF
Capital outlay 28,721,772 15,704,486 14,365,888 8 ,178,649 8,566,563 Debt service:

Principal repayment 14,3 12,544 8,691,629 6,775,769 7,842,830 9,148,909 Interest and fiscal charges 11,393,091 7,504,922 10,98 9,996 13,407,604 12,503,442 Swap termination payment 28,554,000
Total Expenditures 221,667,556 197,766,662 199,026,229 1 92,474,937 229,490,650 Excess (deficiency) of revenues over
(under) expenditures (17,655,625) ( 16,451,045) (20,409,228) (4, 060,473) (20,696,395) Other Financing Sources (Uses)
Transfers in 38,456,022 21,145 ,031 20,145,264 12, 879,975 12,124,166 Transfers out (33,437,663) (19 ,666,470) (20,859,344) ( 13,815,569) (12,091,206) Sale of property 1 88,489 53,618 174,874 268,927 262,667 Payment to refund bond escrow agent
Issuance of long-term debt 3,214,243 2,621,558 6,165 ,445 11,175,436 28,390,000 Bond issuance premium 109,701 106,740 82,880 1,393,619
Total other financing sources (uses) 8,530,792 4,260,477 5,626,239 10,591,649 30,079,246 Special and Extraordinary Items
Assets transferred to/liabilities assumed by
Housing Successor/Successor Agency (33,902,636) (a)
Transfer of loans to housing successor
Interfund advance restructuring 745,119
Total Special and Extraordinary Items (33,902,636) 745,119 Net Change in fund balances ( $43,027,469) ($11,445,449) ($ 14,782,989) $6,531,176 $9,382,851 Debt service as a percentage of
noncapital expenditures 12.3% 8.7% 9.4% 11.4% 9.8%
NOTE:
(a) The Redevelopment Agency was dissolved effective January 31, 2012 and its net assets transferred to a Successor Agency. 270
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021
$58,042,766 $60,963,189 $ 66,816,032 $68,285,321 $70,294,487 41,620,189 44,474,973 47,659 ,481 44,537,156 48,998,406 44,966,489 46,079,755 45,905 ,937 45,552,523 45,240,705 12,566,579 12,413,127 14,020 ,347 15,619,151 27,066,292 16,577,695 21,552,883 18,865 ,730 15,385,538 18,316,552 1,065,421 1,001,927 964,2 55 815,910 455,470
422,324 746,525 1,3 02,922 1,302,020 472,216
19,913,858 20,137,593 17,691 ,976 24,284,779 23,912,334 5,000,000 9,000,000 9,000,000
15,947,909 17,045,201 16,625 ,733 16,807,806 15,371,589 885,938
839,821 852,940 9 88,741 892,579 699,301
5,472,719 4,418,779 2,999,9 47 1,998,535 1,491,314
223,321,708 238,686,892 2 42,841,101 235,481,318 252,318,666 36,973,645 44,009,256 42,470 ,628 47,122,400 47,429,988 95,479,682 96,546,035 9 9,824,574 100,037,206 97,682,457 30,327,553 35,016,495 37,133 ,097 34,207,196 32,067,844 6,374,607 8,057,638 5,126,8 48 5,189,613 5,606,322
10,786,216 11,347,436 1 2,713,460 11,482,027 9,717,875
7,672,540 1,942,637 3,436,9 88 3,544,492 3,225,876
3,667,134 10,000,595 5 ,774,234 4,871,461 6,135,189
9,966,416 11,032,933 12,518,8 07 12,552,283 14,423,082
11,471,169 10,785,342 1 0,026,887 10,431,652 7,044,795
212,718,962 228,738,367 2 29,025,523 229,438,330 223,333,428 10,602,746 9,948,525 13,815 ,578 6,042,988 28,985,238
18,770,780 14,472,164 19,215 ,848 18,336,677 15,524,305 (19,251,041) (14,868,906) (19,688,81 3) (18,221,126) (27,033,761) 181,022 39,226 71,779 82,036 71,458
(77,315,000)
79,171,752
(299,239) (357,516) (401,1 86) 2,054,339 (11,437,998)
1,208,259
1,208,259
$10,303,507 $10,799,268 $ 13,414,392 $8,097,327 $17,547,240

10.3% 10.0% 10.2% 10.3% 9.9%
271

CITY OF RICHMOND

ASSESSED AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(In Thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
ASSESSED VALUE (1)
Land $3,329,164 $3,216,147 $3,218,339 $3,781,609 $4,186,239 $4,520,312 $4,946,654 $5,423,245 $5,888,775 $6,277,934 Improvements 7,413,276 9,268,934 7,181,567 8,187,280 8,683,770 9,216,704 9,400,903 10,129,347 10,214,867 10,541,291 Total Real Property 10,742,440 12,485,081 10 ,399,906 11,968,889 12,870,009 13,737,016 14,347,557 15,552,592 16,103,642 16,819,225 Personal Property 681,204 795,573 53,195 460,661 669 ,634 585,832 $589,457 $584,968 $617,157 $652,386 TOTAL $11,423,644 $13,280,654 $10,453,101 $12,429,55 0 $13,539,643 $14,322,848 $14,937,014 $16,137,560 $16,720,799 $17,471,611 EXEMPTIONS(2)
Homeowners(a) $107,571 $104 ,144 $100,680 $98,456 $96,539 $95,052 $94,266 $93,219 $91,907 $91,372 Other(b) 495,344 519,976 527,179 587,350 641,475 688,713 760,841 809 ,325 932,222 1,008,837 TOTAL $602,915 $624,120 $627,859 $685,806 $738,014 $783,765 $855,107 $902,544 $1,024,129 $1,100,209

ASSESSED VALUE
(Net of Exemptions) $10,820,729 $12,656,534 $9,825,242 $11,743,744 $12,801,629 $13,539,083 $14,081,907 $15,235,016 $15,696,670 $16,371,402 Redevelopment Tax
Increments(3) 1,578,082 1,558,233 1,595,033 1,799,831 2 ,055,811 2 ,248,742 2,567,061 2 ,892,823 3,175,294 3,175,294

NET ASSESSED
VALUE $9,242,647 $11,098,301 $8,230,20 9 $9,943,913 $10,745,818 $11,290,341 $11,514,84 6 $12,342,193 $12,521,376 $13,196,108

NET INCREASE
(DECREASE) $601,337 $1,855,654 ($2,868,092) $1,713,704 $801,905 $544,523 $224,505 $827,347 $179,183 $674,732 % OF INCREASE
(DECREASE) 6.96% 20.08% -25.84% 20.82% 8.06% 5.07% 1.99% 7.19% 1.45% 5.39% Total Direct Tax Rate(4) 0.00000% 0.38653% 0.41948% 0.41930% 0.43781% 0.43675% 0.43591% 0.43540% 0.43473% 0.43394% (1) Assessed value (full cash value) of taxable property represents all property within the City. For the fiscal year 1981-82 and thereafter, the assessed value is 100% of the full cash value in accordance with State legislation. The maximum tax rate is 1% of the full cash value or $1/$100 of the assessed value, excluding the tax rate for debt service.
(2) Exemptions are summarized as follows:
(a) Homeowners' exemption arises from Article XIII(25) which reimburses local governments for revenues lost through the homeowners' exemption in Article XIII(3)(k).
(b) Other exemptions are revenues lost to the City because of provisions of California Constitution, Article XIII(3). (3) Tax increments are allocations made to the Redevelopment Agency under authority of California Constitution, Article XVI. (4) 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.

The City of Richmond encompasses more than 92 tax rate areas.

See Property Tax Rates statistics for additional information.

Source: County of Contra Costa, Office of the Auditor-Controller HdL reports
272
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273

CITY OF RICHMOND

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Basic City of East Bay West Contra Total
County Richmond Regional East Bay Contra Costa Direct & Fiscal Wide 1981 Pension Parks Acalanes MUD Dist. 1 Orinda Costa Community Overlapping Year Levy (1) Liability (2) BART District Union Bond Elementary Unified College Tax Rates (3) 2012 1.00000 0.14000 0.00410 0.00710 0.03330 0.00670 0.02740 0.23220 0.01440 1.46520 2013 1.00000 0.14000 0.00430 0.00510 0.03330 0.00680 0.02730 0.21570 0.00870 1.44120 2014 1.00000 0.14000 0.00750 0.00780 0.03610 0.00660 0.02550 0.28180 0.01330 1.51860 2015 1.00000 0.14000 0.00450 0.00850 0.03500 0.00470 0.02320 0.28030 0.02520 1.52140 2016 1.00000 0.14000 0.00260 0.00670 0.00000 0.00340 0.00000 0.27810 0.02200 1.45280 2017 1.00000 0.14000 0.00800 0.00320 0.00000 0.00280 0.00000 0.26040 0.01200 1.42640 2018 1.00000 0.14000 0.00840 0.00210 0.00000 0.00110 0.00000 0.23970 0.01140 1.40270 2019 1.00000 0.14000 0.00700 0.00210 0.00000 0.00000 0.00000 0.23900 0.01100 1.39910 2020 1.00000 0.14000 0.01200 0.00940 0.00000 0.00000 0.00000 0.23790 0.01880 1.41810 2021 1.00000 0.14000 0.01390 0.00140 0.00000 0.00000 0.00000 0.24320 0.01610 1.41460 NOTES:
(1) In 1978, California voters passed Propositi on 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Voter approved debt.
(3) Overlapping rates are those of local and county governments th at apply to property owners within the City. Not all overlapping rates apply to all city property owners. (4) City's Share of 1% Levy is ba sed on the City's share of the general fund tax rate area with the largest next taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.
(5) RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California state statute.

RDA direct and overlapping rates are applied only to the incremental property values. (6) Total Direct Rate is the weighted average of all individua l direct rates applied by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes the rates reported, residual revenue is assumed to be distribute d
to the City in the same proportions as general fund revenue.

Source: County of Contra Costa, Office of the Auditor-Controller $0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Series7 Series3 Series1 Series4 Series5 Series9 Series6 Series2 Series8 274
City's
Share of General Total
1% Levy Per Obligation Debt Redevelopment Direct
Prop 13 (4) Rate Rate (5 ) Rate (6)

0.28784 0.14000 1.14710 0.40618

0.28784 0.14000 0.00000 0.38653

0.28784 0.14000 0.00000 0.41948

0.28784 0.14000 0.00000 0.41930

0.28784 0.14000 0.00000 0.43781

0.28784 0.14000 0.00000 0.43675

0.28784 0.14000 0.00000 0.43591

0.28784 0.14000 0.00000 0.43540

0.28784 0.14000 0.00000 0.43473

0.28784 0.14000 0.00000 0.43394
275

CITY OF RICHMOND
Principal Property Tax Payers
Current Year and Nine Years Ago
(In Thousands)
2020-2021 2011-2012
PercentageP e r c e n t a ge
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer T ype of Business Value Ran k Value Value Ran k Value Chevron USA Inc. Industrial $3,489,775 1 21.32% $3,143,118 1 29.05% Guardian KW Hilltop LLC Residen tial 209,287 2 1.28% 101,776 2 0.94% Kaiser Foundation Hospitals Industrial 91,884 3 0.56 % 70,302 3 LIPT Giant Road Inc. Industrial 89,226 4 0.55%
Richmond Essex, LP Residential 81,861 5 0.50 % 47,694 7 0.44 % Centerpoint Properties Trust Industrial 56,312 6 0.34%
Pacific Atlantic Terminals LLC Industrial 54,639 7 0.33% 43,478 10 0.40% Phillips 66 Company I ndustrial 51,218 8 0.31%
2930 Technology Court LLC Institutional 50,870 9 0.31%
KM Phoenix Holdings LLC Industrial 50,412 10 0.31%
Richmond Associates LLC Commercial 65,002 40 . 6 0 %
Berlex Laboratories, Inc. Industrial 60,228 5 0.56%
BP West Coast Products Industrial 58,405 6 0.54%
Cherokee Simeon Venture I LLC Commercial 46,605 8 0.43% Auto Warehousing Company Unsecured 44,748 9 0.41%
Subtotal $4,225,484 25.81 % $3,681,357 34.02%
Total Net Assessed Valuation:

Fiscal Year 2020-2021 $16,371,402
Fiscal Year 2011-2012 $10,820,729
Source: Contra Costa County Assessor Fiscal Year Combined Tax Rolls and the SBE Non Unitary Tax Roll 276

CITY OF RICHMOND

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(In Thousands)
##
##
##
Percent of
Voter Total Total Ta x
Fiscal 1% Tax Approve Debt Ta x Collections
Year Roll (1) Tax Rolls (2) Collections (3) to Tax Levy 2012 27,669 14,37 7 42,046 100 %
2013 31,638 14,718 46,356 100 %
2014 27,289 13,26 7 40,556 100 %
2015 29,392 14,225 43,61 7 100%
2016 31,490 18,07 1 49,561 100%
2017 33,152 19,618 52,770 100 %
2018 33,780 20,48 1 54,261 100%
2019 36,116 22,078 58,194 100 %
2020 36,435 22,513 58,948 100 %
2021 37,506 23,47 7 60,983 100 %
Source: City of Richmond Records
NOTES: (1) The maximum tax rate is 1% of the assessed value or $1/$100 of the assessed value, excluding the tax rate for debt.
(2) Voter approved tax roll for debt is in addition to the 1% rate shown in note (1). (3) During fiscal year 1995, the County began providing the City 100% of its tax levy under an agreement which allows the County to keep all interest and delinquency charges collected. $0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1% Tax Roll (1) Tax Collections (3)
277
Fiscal Year Ended June 30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Cable TV Users $810,755 $809,972 $983,465 $1,016,552 $9 88,547 $924,912 $1,036,854 $1,025,549 $951,147 $961,286 Gas & Electric 9,660,557 8,943,183 8,787,715 9,003,928 9,966, 642 11,433,006 11,250,415 11,404,175 11,416,601 13,118,252 Telephone 5,473,445 5,688,505 5,183,418 4,807,499 4, 093,128 3,668,092 3,300,001 2,910,450 2,621,565 2,302,969 Operations 20,039,558 19,956,689 20,079,108 20,471,979 21,004, 080 21,209,540 22,884,443 23,230,610 23,351,283 24,657,999 UUT Settlement 10,000,000 13,000,000 13,000,000 13,000,000 7 ,000,000 7,000,000 7,000,000 7,000,000 7,000,000 4,000,000 Prepaid Wireless 312,852 730,939 608,042 335,153 211,927 200,199 Combined (A)
$45,984,315 $48,398,349 $48,033, 706 $48,299,958 $43,365,249 $44,966,489 $46, 079,755 $45,905,937 $45,552,523 $45,240,705 NOTES:
(A) Components of collections by type are not available, therefore amount represents total UUT collections for the fiscal year, and these amounts have been excluded from the graph.

SOURCE: City of Richmond, Finance Department (Revenue)

CITY OF RICHMOND

UTILITY USERS TAX COLLECTIONS

LAST TEN FISCAL YEARS
$0
$5
$10
$15
$20
$25
$30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Cable TV Users Gas & Electric Telephone Operations UUT Settlement Prepaid Wireless 278

CITY OF RICHMOND

UTILITY USERS TAX DIRECT RATES

ON CHARGES FOR SERVICES

LAST TEN FISCAL YEARS (A)
2012 2013 2014 2015 2016 2017 201 8 2019 202 0 2021
Cable TV Users 5 % 5% 5% 5% 5% 5% 5% 5% 5% 5%
Gas & Electric 10 % 10% 10% 10% 10% 10% 10% 10% 10% 10% Telephone 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% O p e r a t i o n s ( B )( B )( B )( B )( B )( B )( B )( B )( B )( B ) UUT Settlement (C) (C) (C) (C) (C) (C) (C) (C) (C) (C)
NOTES:
(A)
(B)
SOURCE: City of Richmond, Finance Department (Revenue) Based on the Cap Provision in the City of Richmond Municipal Code Section

13.52.100 - Maximum Tax Payable of the Richmond Municipal Code.

Annual amount is per agreement signed by a Major Taxpayer and the City in 2010.
279

CITY OF RICHMOND

TOP TEN UTILITY USERS TAXPAYERS
(ALPHABETICAL ORDER)
Current Year
Taxpayer Type of Business (A)
CHEVRON Industrial
COMCAST Cable
CONSTELLATION NEW ENERGY Utility
GTE MOBILNET OF CALIFORNIA LTD Telecommunications
MARIN CLEAN ENERGY Utility
NEW CINGULAR WIRELESS Telecommunications
PACIFIC BELL Telecommunications
PG&E Utility
SHELL ENERGY Utility
SPRINT SPECTRUM Telecommunications
NOTES:
(A) Re venue base information by taxpayer is confidential.

SOURCE: City o
f Richmond, Finance Department (Revenue)
280

CITY OF RICHMOND
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Tax Pension Loans
Fiscal Allocation Obligation Revenue and Notes Capital
Year Bonds Bonds Bonds Payable Leases Total
2012 (B) 155,060,554 $ 87,526,545 $ 635,646 $ (B) 8,523,072 $ 251,745,817 $ 2013 (B) 156,483,676 87,121,545 1,231,880 8,269,494 253,106,595 2014 (B) 157,555,624 87,121,545 2,631,887 11,186,685 258,495,741 2015 (B) 156,491,679 87,121,545 12,970,813 9,295,123 265,879,160 2016 (B) 155,070,539 115,218,619 2,143,560 7,944,891 280,377,609 2017 (B) 153,058,033 113,275,266 1,993,820 6,872,843 275,199,962 2018 (B) 150,485,289 111,241,920 1,844,775 8,650,840 272,222,824 2019 (B) 147,275,826 109,098,574 1,287,277 7,640,339 265,302,016 2020 (B) 144,339,640 107,666,888 1,156,441 6,661,805 259,824,774 2021 (B) 140,816,305 103,543,450 1,023,224 5,642,605 251,025,583 Business-Type Activities
Wastewater Port Lease Loans Total Percentage
Fiscal Revenue Revenue and Notes Primary of Personal Per Year Bonds Bonds Payable Total Government Income (A) Capita (A) 2012 84,246,892$ 48,252,294$ 3,516,009$ 136,015,195$ 387,761,012$ 15.37% 3,671 2013 90,096,593 (C) 47,834,187 3,007,372 140,938,152 394,044,747 15.51% 3,757 2014 89,012,056 44,944,399 2,935,889 136,892,344 395,388,085 15.11% 3,746 2015 86,867,520 41,984,610 2,861,189 131,713,319 397,592,479 14.62% 3,746 2016 84,637,983 39,354,875 2,783,127 126,775,985 407,153,594 15.04% 3,827 2017 82,313,447 36,588,791 3,401,553 122,303,791 397,503,753 14.49% 3,601 2018 111,698,772 33,587,707 3,316,308 148,602,787 420,825,611 15.04% 3,765 2019 144,811,738 30,331,623 3,227,227 178,370,588 443,672,604 15.19% 3,969 2020 141,391,552 17,940,892 3,134,137 162,466,581 422,291,355 13.95% 3,834 2021 137,886,366 13,604,419 3,338,388 154,829,173 405,854,756 12.53% 3,649 Notes: Debt amounts exclude any premiums, discounts, or other amortization amounts. (A) See Demographic Statistics for pe rsonal income and population data. (B) Due to the dissolution of the Redeve lopment Agency, the Tax Allocation Bonds and the Loans and Notes Payable that were related to the Redevelopment Agency were transferred to the Successor Agency as of February 1, 2012 and are no longer governmental commitments.
(C) With the implementation of GASB Statement No. 65, the deferred amount on refunding previously reported as a component of the long-term debt balance is not reported as a deferred inflows of resources.

Sources: City of Richmond
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Series1 Series2
281

CITY OF RICHMOND

REVENUE BOND COVERAGE
1999, 2006, 2008, 2010A, 2010B, 2017A, 2019A and 2019B WASTEWATER REVENUE BONDS

LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage 2012 17,697,208$ 8,956,411 $ 8,740,797 $ 975,000 $ 4,399,406 $ 5,374,406 $ 1.63 2013 17,840,042 9,447,236 8,392,806 1,005,000 4,613,635 5,618,635 1.49 2014 18,569,191 9,734,277 8,834,914 1,055,000 4,560,528 5,615,528 1.57 2015 19,098,835 9,524,878 9,573,957 2,115,000 4,536,302 6,651,302 1.44 2016 19,843,677 9,954,037 9,889,640 2,200,000 4,393,375 6,593,375 1.50 2017 20,880,739 10,831,250 10,049,489 2,295,000 4,344,233 6,639,233 1.51 2018 23,752,946 11,885,819 11,867,127 2,400,000 5,599,008 7,999,008 1.48 2019 29,993,700 10,647,739 19,345,961 35,240,000 5,286,578 40,526,578 0.48 2020 28,589,996 13,183,065 15,406,931 3,420,186 3,386,178 6,806,364 2.26 (3) 2021 27,879,891 12,214,607 15,665,284 2,515,000 5,633,851 8,148,851 1.92 Notes: (1) Includes all Municipal Sewer Operating Revenues and Non-operating Interest Revenue excluding Derivative Investment Interest.
(2) Includes all Municipal Sewer Operating Expenses less Depreciation and Pension and OPEB Expense related to GASB Statements 68 and 75.
(3) Includes the current refunding of the 2008A Wastewater Revenue Refunding Bonds Source: City of Richmond Annual Financial Statements

0.00 0.25

0.50 0.75

1.00 1.25

1.50 1.75

2.00 2.25

2.50 2.75

3.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coverage
282

CITY OF RICHMOND

REVENUE BOND COVERAGE
1996, 1999, 2004, 2007 AND 2009 PORT TERMINAL LEASE REVENUE BONDS, NOTE

AND POINT POTRERO LEASE REVENUE BONDS

LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage 2012 7,822,496$ 2,931,799 $ 4,890,697 $ 505,000 $ 3,381,546 $ 3,886,546 $ 1.26 2013 9,138,193 2,964,060 6,174,133 525,000 3,348,154 3,873,154 1.59 2014 10,280,894 3,189,866 7,091,028 2,955,000 3,255,221 6,210,221 1.14 2015 9,481,315 3,380,916 6,100,399 3,025,000 3,077,165 6,102,165 1.00 2016 10,081,074 4,533,796 5,547,278 2,723,455 2,869,343 5,592,798 0.99 2017 10,194,121 3,522,216 6,671,905 2,830,000 2,641,797 5,471,797 1.22 2018 10,633,233 4,450,592 6,182,641 3,065,000 2,393,977 5,458,977 1.13 2019 10,783,561 3,289,965 7,493,596 3,320,000 2,126,229 5,446,229 1.38 2020 10,511,283 2,972,218 7,539,065 12,390,731 2,141,506 14,532,237 0.52 2021 10,707,743 2,495,128 8,212,615 3,945,000 748,210 4,693,210 1.75 Notes: (1) Includes all Port of Richmond Operating Revenues and Non-operating Interest Revenue excluding Derivative Investment Interest.
(2) Includes all Port of Richmond Operating Expenses, less Depreciation and Pension and OPEB Expense related to GASB Statements 68 and 75.

Source: City of Richmond Annual Financial Statements

0.00 0.10

0.20 0.30

0.40 0.50

0.60 0.70

0.80 0.90

1.00 1.10

1.20 1.30

1.40 1.50

1.60 1.70

1.80 1.90

2.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coverage
283

CITY OF RICHMOND

GENERAL BONDED DEBT
PENSION OBLIGATION BONDS (1)

LAST TEN FISCAL YEARS
Ratio of General Net General
Restricted Net Bonded Debt to Net Bonde d
Fiscal Bonds Cash and Bond s Net Assessed Assessed Value Debt per Year Outstanding Investments (2) Outstanding Value of Property of Property Capit a 2012 155,060,554$ 8,617,952 $ 146,442,602 $ 9,242,647,000 $ 1.58% 1,386 $ 2013 156,483,676 7,054,942 149,428,734 11,098,301,000 1.35% 1,425 2014 157,555,624 8,089,647 149,465,977 8,230,209,000 1.82% 1,416 2015 156,491,679 8,148,121 148,343,558 9,943,913,000 1.49% 1,398 2016 155,070,539 8,936,523 146,134,016 10,745,818,000 1.36% 1,374 2017 153,058,033 9,777,863 143,280,170 11,290,341,000 1.27% 1,298 2018 150,485,289 9,844,431 140,640,858 11,514,846,000 1.22% 1,258 2019 147,275,826 10,041,550 137,234,276 12,342,193,000 1.11% 1,228 2020 144,339,640 11,315,256 133,024,384 12,521,376,000 1.06% 1,208 2021 140,816,305 11,845,153 128,971,152 13,196,108,000 0.98% 1,160 Note: (1) Includes the 1999 Bonds issued in fiscal year 2000, and the 2005 Bonds issued in fiscal year 2006. (2) Restricted cash is being held with the City's fiscal agent, Union Bank, and is restricted for the payment of the bonds.

Source: City of Richmond Annual Financial Statements
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Series1
284

CITY OF RICHMOND

BONDED DEBT PLEDGED REVENUE COVERAGE
TAX ALLOCATION BONDS AND REFUNDING BONDS (1)

LAST TEN FISCAL YEARS
Debt Service Requirements
Fiscal Tax
Year Revenue Principal Interest Total Covera ge
2012 15,619,530$ (3) (4) 6,285,000 $ 5,972,529 $ 12,257,529 $ 1.27 2013 16,320,481 (4) 6,565,000 5,754,825 12,319,825 1.32 2014 16,776,169 (4) 5,030,000 5,461,989 10,491,989 1.60 2015 17,206,306 (4) 2,930,000 4,500,409 7,430,409 2.32 2016 19,953,198 (4) 6,180,000 4,445,674 10,625,674 1.88 2017 14,156,746 (4) 6,395,000 4,653,678 11,048,678 1.28 2018 12,255,069 (4) 7,575,000 4,746,564 12,321,564 0.99 2019 10,714,239 (4) 7,895,000 4,662,021 12,557,021 0.85 2020 10,720,489 (4) 8,820,000 4,244,580 13,064,580 0.82 2021 12,927,768 (4) 12,949,294 4,128,651 17,077,945 0.76 Note: (1) Includes the 1991, 1998, 2000, 2003, 2004, 2007, 2010 and 2014 Bonds. (2) Includes current refunding of the 2007 Bonds of $64,275,000. (3) The Redevelopment Agency was dissolved effective January 31, 2012, and its liabilities were assumed by a Successor Agency. Amounts reported here include tax revenue and debt service of both the former Redevelopment Agency and the Successor Agency. (4) Beginning in fiscal year 2012, tax increment reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations.

Source: City of Richmond Annual Financial Statements
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Tax Increment Revenue Debt Service Payment
285

CITY OF RICHMOND

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021
2020-2021 Assessed Valuation: $16,462,773,688
Total Debt City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: June 30, 2021 % Applicable (1) June 30, 2021 Bay Area Rapid Transit District $1,871,890,000 1.922% $35,977,726 Contra Costa Community College District 596,325,000 7.300% $43,531,725 West Contra Costa Unified School District 1,214,983,000 46.630% $566,546,573 West Contra Costa Healthcare District Parcel Tax Obligations 51,237,000 43.802% $22,442,831 East Bay Regional Park District 133,170,000 3.075% $4,094,978 City of Richmond Community Facilities District No. 1998-1 1,980,000 100% $1,980,000 City of Richmond 1915 Act Bonds 5,940,000 100% $5,940,000 California Statewide Community Development Authority 1915 Act Bonds 1,480,173 100% $1,480,173 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT 681,994,006 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations $254,570,000 7.275% 18,519,968 Contra Costa County Pension Obligation Bonds 44,925,000 7.275% 3,268,294 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 5.806% 676,689 West Contra Costa Unified School District Certificates of Participation 7,105,000 46.630% 3,313,062 Cit
y of Richmond General Fund Obligations 101,295,000 100 % 101,295,000 City of Richmond Pension Obligations Bonds 62,482,525 100 % 62,482,525 TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 189,555,538 Less: Contra Costa County general fund obligations supported by revenue funds 2,981,493 City of Richmond obligations supported by port revenues 12,430,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 174,144,045 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) $48,638,477 100% 48,638,477 TOTAL GROSS DIRECT DEBT $163,777,525
TOTAL NET DIRECT DEBT $151,347,525
TOTAL GROSS OVERLAPPING DEBT $756,410,496
TOTAL NET OVERLAPPING DEBT $753,429,003
GROSS COMBINED TOTAL DEBT $920,188,021 (2)
NET COMBINED TOTAL DEBT $904,776,528
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 4.14%
Ratios to Adjusted Assessed Valuation:

Gross Total Direct Debt ($163,777,525) 0.99%
Net Total Direct Debt ($151,347,525) 0.92%
Gross Combined Total Debt 5.59%
Net Combined Total Debt 5.50%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,477,991,163):

Total Overlapping Tax Increment Debt 1.40%
____________________________
Source: HdL Coren & Cone, Contra Costa County Assessor and Auditor, City of Richmond Finance Department 286

CITY OF RICHMOND

COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2021
ASSESSED VALUATION:

Secured property assessed value, net of
exempt real property $16,371,402,000
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $613,927,575 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt $0
Less Tax Allocation Bonds and Sales Tax Revenue
Bonds, Certificate of Participation not subject to limit 0 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $613,927,575
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
2012 405,777,338 0 405,777,338 0.00%
2013 474,620,025 0 474,620,025 0.00%
2014 368,446,575 0 368,446,575 0.00%
2015 440,390,400 0 440,390,400 0.00%
2016 480,061,088 0 480,061,088 0.00%
2017 507,715,613 0 507,715,613 0.00%
2018 528,071,513 0 528,071,513 0.00%
2019 571,313,100 0 571,313,100 0.00%
2020 588,625,125 0 588,625,125 0.00%
202
1 613,927,575 0 613,927,575 0.00 %
NOTE:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
287

CITY OF RICHMOND

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Total Per Capita Contra Costa City
Calendar City Personal Personal Unemployment County Population Year Population Income Income Rate (%) Population % of County 2011 104,887 2,540,888,000 24,225 16.7% 1,065,117 9.85% 2012 105,562 2,615,932,000 24,781 11.6% 1,079,597 9.78% 2013 106,138 2,718,619,000 25,614 10.1% 1,094,205 9.70% 2014 106,388 2,707,894,000 24,453 7.1% 1,089,291 9.77%
2015 110,378 2,743,560,000 24,856 5.8% 1,126,745 9.80%
2016 111,785 2,797,360,000 25,024 5.1% 1,135,127 9.85%
2017 111,785 2,920,370,000 26,317 4.6% 1,147,439 9.74%
2018 110,146 3,027,471,000 27,413 3.6% 1,150,215 9.58%
2019 111,217 3,240,034,000 29,132 3.5% 1,153,526 9.64%
2020 110,130 3,416,146,000 31,019 11.2% 1,165,927 9.45% Source: HdL, Coren & Cone

0.00%

2.50%

5.00%

7.50%

10.00%

12.50%

15.00%

17.50%

20.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Series1

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Series1
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Series1
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Per Capita Personal Income
288

CITY OF RICHMOND
Principal Employers
Current Year and Nine Years Ago
2020-2021 2011-2012
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Chevron Refinery 3,264 1 3.3% 1,950 1 1.9%
West Contra Costa Unified School District 1,658 2 1.7% 1,580 2 1.5% Kaiser Foundation Hospitals 1,596 3 1.6% 677 7 0.6%
United Parcel Service 1,332 4 1.4%
Social Security Administration 1,259 5 1.3% 1,259 3 1.2% Amazon.com Services 1,055 6 1.1%
The Permanente Medical Group 1,051 7 1.1%
U.S. Postal Service 1,047 8 1.1% 1,047 4 1.0%
Contra Costa County 844 9 0.9% 844 5 0.8%
City of Richmond 860 10 0.9% 771 6 0.7%
Bio-RAD Laboratories 473 8 0.5%
Michael Stead Auto Depot & Sales 472 9 0.5%
Walmart 400 10 0.4%
Dicon Fiberoptic 400 10 0.4%
Subtotal 13,966 14.2% 9,873 9.4%
Total City Day Populatio
n 98,229 104,88 7
Source: City of Richmond Community Development Department 289

CITY OF RICHMOND
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Adopted for Fiscal Year Ended June 30
2012 2013 2014 2015 201 6 2017 201 8 2019 2020 202 1
Function
General government 101.7 102.9 104 .4 105.2 99.8 105.4 116.5 114.7 118.7 113.1 Public safety 386.0 388.0 398.0 390.0 375.5 349.0 341.0 340.0 342.0 309.0 Public works 116.0 113.0 116.0 109.0 112.0 144.0 143.0 148.0 145.0 171.5 Community development 71.0 66.0 64.0 56.0 59.5 41.0 40.0 41.0 42.0 7.0 Cultural and recreational 73.8 73.2 76.8 66.0 59.0 57.0 59.1 61.7 61.7 58.1 Housing and redevelopment 19.6 13.0 12.0 10.0 5.9 3.8 3.8 3.8 3.8 2.8 Richmond Housing Authority
and RHA Properties 32.0 25.0 29.0 25.0 23.0 19.0 19.0 20.0 5.3 4.0 Port of Richmond 6.0 6.0 6.0 6.0 4.0 4.0 4.0 4.0 4.0 4.0 Richmond Marina (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Municipal Sewer (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Storm Sewer (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
Cable TV (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)
Convention Center (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) Total 806.1 787.1 806.2 767.2 738.7 723.2 726.4 733.2 722.5 669.5 Source: City of Richmond Budget
Notes:
(1) These services are provided by outside contractors. (2) Convention Center closed during renovation and staff moved under cultural and recreational. (3) Staff that perform these functions are included under General Government and Cultural and Recreational. (100)
0 100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government Public safety Public works Community development Cultural and recreational Housing and redevelopment Richmond Housing Authority Port of Richmond Richmond Marina Municipal Sewer Storm Sewer Cable TV Convention Center
290
2012 2013 2014 2015 201 6 2017 201 8 2019 2020 2021
Function/Program
Public safety:

Fire:

Fire calls for service 12,770 12,868 12,988 13,670 14,497 14,372 14,375 13,900 14,318 18,150 Primary fire inspections conducted 1,0 71 2,716 3,000 1,569 1,134 1,160 5,378 3,929 2,919 3,320 Number of firefighters 85 93 85 94 91 90 91 90 89 89
Number of firefighters and civilians
per thousand population 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 Police:

Number of police officers
per thousand population 1.8 1.8 1.7 1.8 1.7 1.6 1.6 1.6 1.6 1.3 Number of sworn officers 191 195 186 196 185 182 178 178 178 157 Water
Daily average consumption
in gallons per family 250 250 250 250 250 250 250 250 160 194 Source
: City of Richmond

CITY OF RICHMOND
Operating Indicators by Function/Program
Last Ten Fiscal Years
291
2012 2013 2014 2015 2016 2017 2018 20 19 2020 2021
Function/Program
Public safety:

F i r e s t a t i o n s 7777777 7 7 7
P o l i c e s t a t i o n s 44444444 4 4
L i b r a r y ( # ) o f L o c a t i o n s 33333333 3 3 Public works
Miles of streets 280 280 280 280 280 280 280 280 290 280 Street lights 7,000 7,000 6,543 8,343 8,543 9,000 9,000 9,000 7,801 9,000 Urban Forest (trees) (a) 41,562 26,000 21,609 22,009 35,620 35,782 36,231 36,499 36,766 36,700 Culture and recreation:

Community services:

C i t y p a r k s 5 55 55 55 55 55 55 5 5 5 5 5 5 5
City parks acreage 336.6 336.6 336.6 336.6 336.6 336.6 336.6 336.6 336.6 336.6 Open Space & Public Landscapes acreage 510. 0 510.0 510.0 510.0 510.0 510.0 510.0 510.0 510.0 510.0 Lawn bowling 1 1 1 1 1 1 1 1 1 1
Recreation centers 8 8 8 8 8 8 8 8 8 8
Auditorium/Theater 1 1 1 1 1 1 1 1 1 1
Gymnasiums 3 3 3 3 3 3 3 3 3 3
S e n i o r c e n t e r s 2222222 2 2 2
Headstart centers/day cares 6 6 6 6 6 6 6 6 6 6
P u t t i n g g r e e n 11111111 1 1
Basketball courts 28 28 28 28 28 28 28 28 28 28
Swimming pools 2 2 2 2 2 2 2 2 2 2
Tennis courts 20 20 20 20 20 20 20 20 20 20
Baseball/softball diamonds 26 26 26 26 26 26 26 26 26 26 Soccer/football fields 17 17 17 17 17 17 17 17 17 17
Cricket fields 2 2 2 2 2 2 2 2 2 2
Water
Fire hydrants 3,153 3,153 3,153 3,153 3,153 3,153 3,153 3,153 3,153 3,153 Wastewater
Miles of sanitary sewers 183 183 183 183 183 183 183 230 189 194 Miles of storm sewers 310 310 310 310 310 310 310 310 198 310 Land Area (square miles) 33.7 33.7 33.7 33.7 33.7 33.7 33.7 33.7 33.7 33.7 Miles of waterfront 32 32 32 32 32 32 32 32 32 32
Source
: City of Richmond
(a) Trees managed by the City for 2013 to present.

Data Prior to 2013 includes trees managed by other entities, such as East Bay Regional Park District, National Parks and Privately owned.

CITY OF RICHMOND
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
292

Richmond City CouncilFebruary 15, 2022

Richmond City Council
February 15, 2022