3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (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 City 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 accrued 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 files 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 immediately 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. (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 immediately 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. 106
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (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 the 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. (L) If the State Water Board Division determines that an event of default has occurred, the city may be required, upon demand, immediately to do each of the following: (1) Return to the State Water Board any grant or principal forgiveness amounts received pursuant to the agreement (2) Accelerate the payment of any principal owed under the agreement, all of which shall be immediately due and payable (3) Pay interest at the highest legal rate on all of the forgoing (4) Pay an additional payments. In addition, the Division may enforces its right under the agreement by any judicial proceeding, terminates the agreement, and receives reimbursement from the city.
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, 2022, the balances of these Districts’ outstanding debt were as follows:
Richmond JPFA Reassessment Revenue Refunding Bonds, Series 2016 (Country Club Vista) $4,530,000 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 pay 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 issuers. At June 30, 2022, the balance of this issuers’ outstanding debt was as follows:
Richmond Community Foundation, Richmond Housing Rehabilitation Program, Social Impact Bonds, Taxable Series 2015A $3,000,000 107
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
9. UNAVAILABLE AND UNEARNED REVENUE
At June 30, 2022, 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, 2022, the following unearned revenues were recorded in the City-wide financial statements on the Statement of Net Position:
Accounts
Loans and Grants
Receivable Receivable Total
General Fund 2,299,705 $ 4,599 $ 2,304,304 $
Community Development and Loan
Programs Special Revenue Fund 18,811,473 166,431 18,977,904 Non-Major Governmental Funds 779,013 9,784,824 10,563,837 Total 21,890,191 $ 9,955,854 $ 31,846,045 $
Developer
Prepaid Rent Fees & Other Total
General Fund 3,052,511 $ 7,066,194 $ 10,118,705 $
Non-Major Governmental Funds 2,432,668 15,647,526 18,080,194 Richmond Housing Authority Enterprise Fund - 1,814,047 1,814,047 Port of Richmond Enterprise Fund - 531,906 531,906
Municipal Sewer Enterprise Fund - 36,280 36,280
Storm Sewer Fund - 591,867 591,867
Total 5,485,179 $ 25,687,820 $ 31,172,999 $
108
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
10. FUND BALANCE AND NET POSITION
A. Fund Balance Classification
Detailed classifications of the City’s fund balances, as of June 30, 2022, are below:
Community Nonmajor
General Development and Governmental
Fund Balance Classifications Fund Loan Program Fund Funds Total Nonspendable:
Items not in spendable form:
Prepaids, supplies and other assets 767,700 $ - $ - $ 767,700 $ Loans receivable 700,000 - - 700,000
Advances to other funds 12,774,486 - - 12,774,486
Total Nonspendable Fund Balances - 14,242,186 - 14,242,186 Restricted for:
Street Improvement Projects - - 6,375,485 6,375,485
Public Safety Grant Programs (Police and Fire) - - 307,321 307,321 Lighting and Landscaping - - 1,477,848 1,477,848
Housing and Community Development - 31,426,991 1,371,153 32,798,144 Debt Service - - 12,760,459 12,760,459
Community Development Projects - - 28,757,235 28,757,235 Kids First Initiative 1,505,053 - - 1,505,053
Employment and Training - - 1,115,860 1,115,860
Other Capital Projects - - 4,599,148 4,599,148
Total Restricted Fund Balances 31,426,991 1,505,053 56,764,509 89,696,553 Committed to:
COVID-19 1,332,367 - - 1,332,367
Appropriation Authority 2,051,086 2,051,086
Total Committed Fund Balances - 3,383,453 - 3,383,453
Assigned to:
Other Contracts 6,397,688 - 45,618 6,443,306
Total Assigned Fund Balances 6,397,688 - 45,618 6,443,306 Unassigned:
General Fund 44,935,389 - - 44,935,389
Other Governmental Fund Deficit Residuals - - (1,375,327) (1,375,327) Total Unassigned Fund Balances 44,935,389 - (1,375,327) 43,560,062 Total Fund Balances (Deficits) $ 70,463,769 $ 31,426,991 $ 55,434,800 $ 157,325,560 109
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
10. 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 emergencies 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, 2022, which is a component of unassigned fund balance of the General Fund, is $44,935,389 which is approximately 21.75% of fiscal year 2022-23 budgeted General Fund expenditures (including transfers out). 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 the 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, 2022, 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 2022, the City continued to reconcile the activities of the Richmond Housing Authority.
As a result, beginning net position in the Richmond Housing Authority Enterprise Fund has been restated to correct the note receivable that moves out from 4102 to 4502 (CU), reverse duplicate entry in FY2019 for Hacienda, reverse duplicate entries and accruals posted in prior years for Nevin Plaza, and reverse accruals for prior years for Nystrom Village. In addition, there was a prepaid adjustment for Municipal Sewer Fund due to the recording of West County Wastewater District Ground Lease.
Amount
Nonmajor Governmental Funds:
Paratransit Operations Fund (18,294)
Civic Center Debt Service Fund (1,357,033)
Nonmajor Enterprise Funds:
Cable TV Fund (1,607,428)
Internal Service Funds:
Insurance Reserves Fund (1,630,683)
110
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
10. FUND BALANCE AND NET POSITION, Continued
D. Restatement of Net Position, Continued
For governmental activities, the adjustment is to correct prior year capital asset errors and clear out the old interest payable accounts that related to CDBG grant because the City had already settled all issues with HUD regarding Community Development and Loan Programs Fund. In addition, there is also an adjustment to record missing additional predevelopment construction loan previous year and remove duplicated loan, the error of which was found by confirming with Eden. For Equipment Services and Replacement Fund, the adjustment is to record three fire trucks contribution that missed in previous year.
Governmental
Activities
Business-type
Activities
Community
Development and
Loan Programs
Fund
Equipment
Services and
Replacement
Fund
Richmond
Housing Authority
Fund
Municipal Sewer
Fund
Net Position as previously
reported at June 30, 2021 $ 88,180,824 (258,744,307) $ 31,215,036 $ 7,478,725 $ 19,575,538 $ 49,878,915 $ Prior Period Adjustments:
Capital Contributions 2,459,651 - - 2,459,651 - -
Accounts Payable 49,026 - 49,026 - - -
Capital Assets 181,291 - - - - -
Prepaids 116,352 - - - 116,352
Accrued Expense - 90,782 - - 90,782 -
Loan/Note Receivable 133,814 (1,000,000) 133,814 - (1,000,000) - Net Position as restated at
June 30, 2021 $ (255,920,525) $ 87,387,958 $ 31,397,876 $ 9,938,376 $ 18,666,320 $ 49,995,267 Government-wide
Financial Statements Fund Statements
111
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
11. EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following funds incurred departmental expenditures in excess of appropriations.
12. DEFINED BENEFIT PENSION PLANS
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2022:
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 Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by CalPERS, 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. CalPERS 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.
Excess of Expenditures
Fund/Department over Appropriations
Paratransit Operations Fund
General Government 24,684 $
Community Development 12,016
Richmond Neighborhood Stabilization Corporation Fund
Housing and development 15,345
General Debt Service Fund
Interest and fiscal charges 565
Civic Center Debt Service Fund
Interest and fiscal charges 8,997
Secured Pension Override Fund
General Government 64,820
General Fund
Principal 1,837,459
Interest and fiscal charges 5,487
Deferred Net Deferred
Outflow of Pension Inflow of Pension
Resources Liability Resources Expense
California Public Employees' Retirement System:
Miscellaneous $ 14,466,499 $ 70,026,659 $ 44,199,945 $ (4,927,275) Safety 21,675,674 143,819,610 53,053,747 3,930,621
Police and Firemen's Pension Plan 667,043 (2,218,075) - (72,469) General Pension Plan 26,935 382,303 - 20,429
Garfield Pension Plan 6,111 64,202 - 4,019
Totals $ 36,842,262 $ 212,074,699 $ 97,253,692 $ (1,044,675) 112
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued I. General Information about the CalPERS Pension Plan, Continued Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 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.
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, 2022, are summarized as follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.00% 7.25%
Required employer contribution rates 13.03% 13.03%
Required UAL Contribution
Safety - Police Safety - Fire Safety - Police and Fire
Prior to Prior to On or after
Hire date January 1, 2013 January 1, 2013 January 01, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.00%* 9.00%* 12.50% Required employer contribution rates 21.83% 21.83% 21.83% Required UAL Contribution
* Effective July 1, 2015, Safety (Police and Fire) employees hired prior to January 1, 2013 pay 3% of the employer's required contribution. Therefore, the required employer contribution rate is 18.83% and required employee contribution rate is 12%.
Miscellaneous
$ 10,792,736
$ 16,150,901
113
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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 amounts are billed on a monthly basis. In fiscal year 2022, the City started to prepay the unfunded liability on an annual basis. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans were $10,792,736 and $16,150,901 respectively, as noted in the tables above.
Employees Covered – As of the June 30, 2020 actuarial valuation date and the June 30, 2021 measurement date, the following employees were covered by the benefit terms for each Plan:
As of June 30, 2022, 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 Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Contributions for the measurement period were $14,438,844 for the Miscellaneous Plan and $21,315,231 for the Safety Plan.
II. Net Pension Liability
The City’s net pension liability for each Plan is measured 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, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 Inactive employees or beneficiaries
currently receiving benefits 976 976 532 532
Inactive employees entitled to but
not yet receiving benefits 553 553 86 86
Active employees 428 428 232 232
Total 1,957 1,957 850 850
Miscellaneous Safety
114
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liabilities were determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions:
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 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 Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, 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 buildingblock 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.
Miscellaneous (1) Safety (1)
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
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. 115
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
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 expected 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.
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 applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Current Target Real Return Real Return
Asset Class (a) Allocation Years 1 - 10(b) Years 11+(c) Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period. 116
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
The changes in the Net Pension Liability as of the June 30, 2021 Measurement Date for each Plan follows:
Miscellaneous Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 Measurement Date 513,389,020 $ 378,751,581 $ 134,637,439 $ Changes in the year:
Service cost 6,902,037 - 6,902,037
Interest on the total pension liability 35,423,024 - 35,423,024 Differences between actual and
expected experience (6,412,719) - (6,412,719)
Changes in assumptions - - -
Net Plan to plan resource movement - (4,882) 4,882
Contribution - employer - 14,612,575 (14,612,575)
Contribution - employees - 2,657,439 (2,657,439)
Net investment income - 83,636,340 (83,636,340)
Administrative expenses - (378,350) 378,350
Benefit payments, including refunds of
employee contributions (30,000,846) (30,000,846) -
Net changes 5,911,496 70,522,276 (64,610,780)
Balance at June 30, 2021 Measurement Date $ 519,300,516 $ 449,273,857 $ 70,026,659 Safety Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 Measurement Date $ 693,601,610 $ 476,652,329 $ 216,949,281 Changes in the year:
Service cost 10,261,858 - 10,261,858
Interest on the total pension liability 48,387,109 - 48,387,109 Differences between actual and
expected experience (1,211,011) - (1,211,011)
Changes in assumptions - - -
Net Plan to plan resource movement - 4,881 (4,881)
Contribution - employer - 21,598,699 (21,598,699)
Contribution - employees - 4,314,111 (4,314,111)
Net investment income - 105,126,083 (105,126,083)
Administrative expenses - (476,147) 476,147
Benefit payments, including refunds of
employee contributions (41,557,485) (41,557,485) -
Net changes 15,880,471 89,010,142 (73,129,671)
Balance at June 30, 2021 Measurement Date $ 709,482,081 $ 565,662,471 $ 143,819,610 Totals - Miscellaneous and Safety Plans $ 1,228,782,597 $ 1,014,936,328 $ 213,846,269 Increase (Decrease)
Increase (Decrease)
117
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. 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 calculated 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, 2022, the City recognized pension expense of ($996,654). At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $ 131,394,862 $ 233,843,437
Current Discount Rate 7.15% 7.15%
Net Pension Liability $ 70,026,659 $ 143,819,610
1% Increase 8.15% 8.15%
Net Pension Liability $ 18,770,435 $ 69,519,153
Miscellaneous Plan Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 14,466,499 $ - $ Differences between Expected and Actual Experience - (3,246,832) Changes of Assumptions - -
Net Differences between Projected and Actual
Earnings on Pension Plan Investments - (40,953,113)
Total 14,466,499 $ (44,199,945) $
118
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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 $36,069,881 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
B. Other City Pension Plans
I. Plan Descriptions and Funding Policies
The City administers three single-employer pension 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 prior 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.
Safety Plan Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 21,603,382 $ - $ Differences between Expected and Actual Experience 72,292 (1,745,773) Changes of Assumptions - -
Net Differences between Projected and Actual
Earnings on Pension Plan Investments - (51,307,974)
Total 21,675,674 $ (53,053,747) $
Total Both Plans 36,142,173 $ (97,253,692) $
Year Ended
June 30, Miscellaneous Safety Total
2022 (13,560,892) $ (13,841,434) $ (27,402,326) $
2023 (9,403,843) (12,390,872) (21,794,715)
2024 (9,822,002) (12,418,782) (22,240,784)
2025 (11,413,208) (14,330,367) (25,743,575)
Thereafter - - -
Total $ (44,199,945) $ (52,981,455) $ (97,181,400)
Annual Amortization
119
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
I. Plan Descriptions and Funding Policies, Continued
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 incremental property tax revenue received for the year ended June 30, 2022 was $10,609,053 and the City used the funds to pay General Pension Plan contributions of $64,820.
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 continuous years of service. The City is required under its charter to contribute the remaining amounts necessary to fund the Plan using the entry agenormal 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 benefits 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.
General Pension Plan – Retirement and other benefits are paid from the assets of the Plan and from related investment earnings. 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 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 benefits 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 have been established and may be amended upon agreement between the City and Mr. Garfield. Management of the Plan is vested in the City Council. 120
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
I. Plan Descriptions and Funding Policies, Continued
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, and 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.
III. Pension Plan Assets
At June 30, 2022 the pension plans reported assets available for benefits as shown below. For actuarial purposes, the value of the Plans’ assets were determined to be fair value.
The Wellington Trust Company Fund investments, classified in Level 2 of the fair value hierarchy, are valued using the market approach, which uses prices 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 generally 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.
City of Richmond Investment Pool $ 1,146,556
Local Agency Investment Fund (Garfield Plan) 184,164
Wellington Trust Company Mutual Fund (Police and Firemen’s Plan) 10,001,639 Interest receivable 866
Assets available for benefits at June 30, 2022 $ 11,333,225 121
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets, Continued
Investment Policies
The General Pension and Police and Firemen’s Pension 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 subdivision (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 invested 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 which 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 preferred stocks shall not exceed at cost at the time of purchase twenty-five percent of the total amount invested pursuant to this section. (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.
122
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets, Continued
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 the 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, 2022, the investments in the Pension Trust Funds were not rated.
Rate of Return
For the year ended June 30, 2022, 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 -15.40%, 0.36% and -0.77%, 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, 2022 was determined based on June 30, 2022 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, 2022 and 3.50%, 1.00%, and 1.00%, respectively, as of June 2021.
Police and Firemen's
Plan
General
Pension Plan
Garfield
Pension Plan
Discount rate, net of investment expenses 3.50% 1.00% 1.00% Expected return on plan assets 3.50% 1.00% 1.00%
Inflation rate (short-term) 2.00% 2.00% 2.00%
Inflation rate (long-term) 2.25% 2.25% 2.25%
Cost-of-living increases 2% per year 5% per year 2% per year Actuarial cost method Entry age normal Entry age normal Entry age normal Salary increases N/A N/A N/A
123
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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 the 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, 2022) after the projected asset depletion. Based on these parameters, plan assets are projected to be sufficient to pay all future benefits until a de minimis 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, 2022) 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 minimis 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 plan 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 blended with forward-looking expectations available in market data.
124
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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:
Changes in Assumptions – There is no change in assumptions from the prior valuation for the plans.
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:
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%
125
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
V. Changes in the Net Pension Liability of Each Plan
The net pension liability of each Plan is measured as of June 30, 2022 as follows:
Police and Firemen's Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 8,672,774 $ 13,113,847 $ (4,441,073) $ Changes in the year:
Interest on the total pension liability - 283,996 283,996 Differences between actual and expected experience - - - Changes in assumptions Changes in benefit terms - - -
Contribution - City - - -
Contribution - employer - - -
Contribution - employees - - -
Net investment income (1,939,002) - 1,939,002
Benefit payments, including member contribution refunds (1,117,194) (1,117,194) - Net changes (833,198) (3,056,196) 2,222,998
Balance at June 30, 2022 $ 7,839,576 $ 10,057,651 $ (2,218,075) Plan fiduciary net position as a percentage of the total pension liability 128.29% General Pension Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 $ 1,808,072 $ 1,093,026 $ 715,046 Changes in the year:
Interest on the total pension liability 16,222 - 16,222 Differences between actual and expected experience - - - Changes in assumptions Changes in benefit terms - - -
Contribution - City - 345,348 (345,348)
Contribution - employer - - -
Contribution - employees - - -
Net investment income - 3,617 (3,617)
Benefit payments, including refunds of employee contributions (371,727) (371,727) - Net changes (355,505) (22,762) (332,743)
Balance at June 30, 2022 $ 1,452,567 $ 1,070,264 $ 382,303 Plan fiduciary net position as a percentage of the total pension liability 73.68% Increase (Decrease)
Increase (Decrease)
126
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
V. Changes in the Net Pension Liability of Each Plan
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, 2021, 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 12B above.
Garfield Pension Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 320,914 $ 249,005 $ 71,909 $
Changes in the year:
Interest on the total pension liability 2,950 - 2,950
Differences between actual and expected experience - - - Changes in assumptions - - -
Changes in benefit terms - - -
Contributions - City - 12,408 (12,408)
Contribution - employees - - -
Net investment income - (1,751) 1,751
Administrative expenses - - -
Benefit payments, including refunds of employee contributions (51,807) (51,807) - Net changes (48,857) (41,150) (7,707)
Balance at June 30, 2022 272,057 $ 207,855 $ 64,202 $
Plan fiduciary net position as a percentage of the total pension liability 76.40% Total - Net Pension Liability 9, $ 11,335,770 564,200 $ (1,771,570) $ Increase (Decrease)
Police and General Garfield
Firemen's Plan Pension Plan Pension Plan
1% Decrease 2.50% 0.00% 0.00%
Net Pension Liability (Asset) $ (1,788,405) $ 446,704 $ 76,154 Current Discount Rate 3.50% 1.00% 1.00%
Net Pension Liability (Asset) $ (2,218,075) $ 382,303 $ 64,202 1% Increase 4.50% 2.00% 2.00%
Net Pension Liability (Asset) $ (2,607,466) $ 322,961 $ 53,153 127
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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 liability 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-dollar 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-dollar 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, 2022 are presented below:
VII. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense for each of the Plans as follows:
Actuarially
Determined Amount Percent
Contribution Contributed Contributed
Police and Firemen's Pension Plan - $ $ - n/a
General Pension Plan 345,348 345,348 100%
Garfield Pension Plan 12,408 12,408 100%
Pension
Expense
Police and Firemen's Plan (72,469) $
General Pension Plan 20,429
Garfield Pension Plan 4,019
Total $ (48,021)
128
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
VII. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued At June 30, 2022, the City reported deferred outflows 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, 2022 follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net Differences between Projected and Actual Investment Earnings 700,089 $ - $ Changes of Assumptions - -
Plan Investments - -
Total $ 700,089 $ -
Year Ended Annual
June 30, Amortization
2023 $ 78,717
2024 66,264
2025 77,085
2026 478,023
2027 -
Thereafter -
Police and Firemen's
Pension General Pension Garfield Pension
ASSETS
Pension plan cash and investments:
City of Richmond Investment Pool 53,324 $ 1,069,561 $ 23,671 $ Local Agency Investment Fund - - 184,164
Mutual Fund Investments 10,001,639 - -
Accounts receivable 142 704 20
Total Assets 10,055,105 1,070,265 207,855
NET POSITION
Restricted for employees' pension benefits 10,055,105 $ 1,070,265 $ 207,855 $ 129
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
12. 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, 2022 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 contribution 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 $24,428 and the employees’ required contributions of $116,235 were made during the fiscal year ended June 30, 2022.
Police and Firemen's
Pension General Pension Garfield Pension
ADDITIONS
Net investment income:
Net increase (decrease) in the fair value of
investments (2,097,001) $ 502 $ (2,382) $
Interest income 235,257 3,116 631
Investment management fees (77,258) - -
Contribution from the City - 345,348 12,408
Total Additions (1,939,002) 348,966 10,657
DEDUCTIONS
Pension benefits 1,119,740 371,727 51,807
Total Deductions 1,119,740 371,727 51,807
Net Increase (Decrease) (3,058,742) (22,761) (41,150)
NET POSITION RESTRICTED FOR PENSIONS
Beginning of year 13,113,847 1,093,026 249,005
End of year 10,055,105 $ 1,070,265 $ 207,855 $
130
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB amounts for the year ended June 30, 2022:
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 and their dependents that vary by employment classification. In addition, the following eligibility rules 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 administers 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 publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
Deferred Net Deferred
Outflow of OPEB Inflow of OPEB
Resources Liability Resources Expense
City OPEB Plan $ 3,329,463 $ 75,832,771 $ 36,102,539 $ (12,463,645) RPOA OPEB Plan 887,842 8,690,758 13,147,503 46,814
$ 4,217,305 $ 84,523,529 $ 49,250,042 $ (12,416,831)
131
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
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
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
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
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
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
Police Officers 10 years of service includes nonCity service as a sworn member Minimum 5 years service with
City Police Department
Percentage of premium (medical premium minus
PEMHCA minimum) or percentage of cap minus dental
and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 14 years of service, and 100% after 25 years of service.
None
Plan Provisions for Future Retirees
(1) Prior to January 1, 2017, active Employees were not required to make monthly contributions. 132
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
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 nonMedicare 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
133
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued Classification Subgroup
Retire on or after 1/17/2017
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 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
Plan Provisions for Current Retirees (Continued)
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. Percentage 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. Percentage 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
Richmond Police Officer
Association (RPOA)
Percent of: medical premium minus PEMHCA minimum or (percent of cap) minus dental and vision premiums 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 PEMHCA minimum
134
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
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 postMedicare 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.
Classification Eligibility (Age/Service Years)
Monthly Premium Paid by City Before/After Medicare
Eligibility
Employee Monthly
Contributions
Richmond Police Officer Association
(RPOA)
10 years of service
Service includes non City service
Minimum 5 years City service
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
Employer pays PEMHCA Minimum.
Effective 1/1/2017: $150
Effective 1/1/2018: $225
Effective 1/1/2019: $250
Effective 1/1/2020: $275
Effective 1/1/2021 $300
Classification Eligibility (Age/Service Years)
Richmond Police Officer Association
(RPOA)
Retired January 1, 2017 or later
Plan Provisions for Future Retirees
Monthly Premium Paid by City Before/After Medicare Eligibility 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
Employer pays PEMHCA Minimum.
Plan Provisions for Current Retirees
135
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. 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 Hospital Care Act (PEMHCA) minimum, which is $149 in 2022.
City OPEB Plan Membership – As described above, Plan membership varies based on different employee bargaining groups. As of the June 30, 2021 valuation date, membership in the City OPEB Plan consisted of the following:
RPOA Plan Membership – As of the June 30, 2021 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 PostRetirement Health Care Defined Benefit Plan, an agent multiple employer trust administered by Public Agency Retirement Services (PARS). The balance in the City’s PARS trust account as of June 30, 2022 was $31,123,969.
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 liability. The City did not make any additional transfers to the PARS Trust in fiscal year 2022.
Active employees electing coverage 442
Active employees waiving coverage 31
Retiree and beneficiaries receiving benefits 631
Total 1,104
Active employees electing coverage 125
Active employees waiving coverage 5
Retiree and beneficiaries receiving benefits 20
Total 150
136
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. 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 2022.
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 $7,446,621 as of June 30, 2022.
Actuarial Assumptions – The total OPEB liability for each plan was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City OPEB plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:
Discount Rate 6.00%
Inflation 2.50%
CPI Medical Care 3.50%
Payroll Growth 3.00%
Investment Rate of Return 6.00%
Index Rate for 20 year, tax exempt
municipal bonds
3.69%
Mortality Based on assumptions for Public Agency Miscellaneous, Police and Fire members published in the 2021 CalPERS Experience Study.
Healthcare Cost Trend Rates:
Health - Not Medicare Eligible 6.70% for FY2022, gradually decreasing over several decades to an ultimate rate of 3.90% in FY2075 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 4.70% for 2022, 4.70% for 2023, 4.80% for 2024,
4.90% for 2025, 5.00% for 2026-2038, and transitioning to ultimate rate of 3.9% in 2075 and further years
Dental To increase 3.25% annually
Vision To increase 2.00% annually
137
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. 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 6.00% for the City OPEB Plan and 5.75% 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.
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 Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:
Discount Rate 5.75%
Inflation 2.50%
CPI Medical Care 3.50%
Payroll Growth 3.00%
Investment Rate of Return 5.75%
Index Rate for 20 year, tax exempt
municipal bonds
3.69%
Mortality Based on assumptions for Public Agency Miscellaneous, Police and Fire members published in the 2021 CalPERS Experience Study.
Healthcare Cost Trend Rates:
Health - Not Medicare Eligible 6.70% for FY2022, gradually decreasing over several decades to an ultimate rate of 3.90% in FY2075 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 4.70% for 2022, 4.70% for 2023, 4.80% for 2024,
4.90% for 2025, 5.00% for 2026-2038, and transitioning to ultimate rate of 3.9% in 2075 and further years
Dental To increase 3.25% annually
Vision To increase 2.00% annually
138
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
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, 2022 the Fidelity 20-Year General Obligation AA Municipal Bond Index.
Changes of assumptions since the prior actuarial valuation for the City OPEB Plan were:
The long-term investment return assumption was changed from 5.75% to 6.00% based on updated capital market assumptions.
The discount rate was changed from 5.75% to 6.00% based on updated expectations of long-term returns on trust assets and 20-year municipal bond rates. An underlying wage growth rate was changed from 2.75% to 3.00% per year based on a revised understanding of the CalPERS assumption.
The CPI medical rate was changed from 3.75% to 3.50%
The index rate for 20 year, tax exempt municipal bonds was changed from 1.92% to 3.69% The mortality assumption was changed from 2017 CalPERS Experience to 2021 The Healthcare Cost Trend Rates were changed from 6.4% to 6.7% and the ultimate rate from 4% to 3.9%
The dental rate was changed from 3.75% to 3.25% and the vision from 2.75% to 2% City OPEB Plan
Rate of Return – For the year ended June 30, 2022, 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 -13.92%.
The money weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
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, 2022 consisted of $31,123,971 invested in mutual funds.
Acceptable Range of
Asset Class Asset Allocation
Equity 50-70%
Fixed income 30-50%
Cash 0-20%
139
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
The long-term expected rate of return on City OPEB Plan investments was determined using a buildingblock 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:
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 which best-estimates of expected future real rates of return (expected returns, net of RPOA 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.
Investment Policy – The target allocation for the RPOA OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:
Long-Term Long-Term
Expected Real Expected Nominal
Asset Class Target Allocation Rate of Return Rate of Return US equity-large cap 32.00% 4.42% 6.92%
US equity-small/mid cap 15.00% 4.81% 7.31%
International equity 7.00% 4.91% 7.41%
Emerging market equity 4.00% 5.58% 8.08%
REITs 2.00% 3.98% 6.48%
Core fixed income 33.75% 1.00% 3.50%
High yield fixed income 1.25% 2.75% 5.25%
Cash and equivalents 5.00% -0.33% 2.17%
Total 100.00% 6.09%
Reduction for assumed investment expense -0.33%
Net assumed investment return (round to 1/4%) 5.75%
Long-Term Long-Term
Expected Real Expected Nominal
Asset Class Target Allocation Rate of Return Rate of Return Equity 40.0% 4.42% 6.92%
Fixed Income 43.0% 1.00% 3.50%
TIPS 5.0% 0.15% 2.65%
Commodities 4.0% 1.73% 4.23%
REITs 8.0% 3.98% 6.48%
Total 100.0% 5.49%
Reduction for assumed investment expense -0.10%
Net assumed investment return (round to 1/4%) 5.50%
140
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. 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, 2021 $ 123,244,653 $ 32,439,804 $ 90,804,849 Changes Recognized for the Measurement Period:
Service Cost 2,088,997 - 2,088,997
Interest on the total OPEB liability 6,997,592 - 6,997,592 Differences between expected and actual experience (1) (11,982,490) - (11,982,490) Changes of assumptions (6,119,213) - (6,119,213)
Contributions from the employer - 10,042,891 (10,042,891) Contributions from the employee - 589,125 (589,125)
Net investment income - (4,613,857) 4,613,857
Administrative expenses - (61,195) 61,195
Benefit payments (2) (7,272,797) (7,272,797) -
Net changes (16,287,911) (1,315,833) (14,972,078)
Balance at June 30, 2022 (Measurement Date) $ 106,956,742 $ 31,123,971 $ 75,832,771 (2) Benefit payments equal $4,622,801 explicit subsidy payments to retirees and $2,649,996 implicit subsidy costs incurred during the measurement period ending 6/30/2022.
(1) Approximately $(12.36M) of the increase/(decrease) is due to the change in premiums and assumed claims costs and $380K is due to all other experience changes.
141
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. 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:
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the net OPEB liability of both plans, as well as what the net OPEB liabilities would be if it were calculated using the discount rate that is 1-percentage-point lower or 1-percentage point higher than the current discount rate:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2021 $ 123,244,653 $ 32,439,804 $ 90,804,849 Changes Recognized for the Measurement Period:
Service Cost 2,088,997 - 2,088,997
Interest on the total OPEB liability 6,997,592 - 6,997,592 Differences between expected and actual experience (1) (11,982,490) - (11,982,490) Changes of assumptions (6,119,213) - (6,119,213)
Contributions from the employer - 10,042,891 (10,042,891) Contributions from the employee - 589,125 (589,125)
Net investment income - (4,613,857) 4,613,857
Administrative expenses - (61,195) 61,195
Benefit payments (2) (7,272,797) (7,272,797) -
Net changes (16,287,911) (1,315,833) (14,972,078)
Balance at June 30, 2022 (Measurement Date) $ 106,956,742 $ 31,123,971 $ 75,832,771 (2) Benefit payments equal $4,622,801 explicit subsidy payments to retirees and $2,649,996 implicit subsidy costs incurred during the measurement period ending 6/30/2022.
(1) Approximately $(12.36M) of the increase/(decrease) is due to the change in premiums and assumed claims costs and $380K is due to all other experience changes.
City OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%
5.00% 6.00% 7.00%
$ 87,771,843 $ 75,832,771 $ 65,782,910
RPOA OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%
4.75% 5.75% 6.75%
$ 11,198,419 $ 8,690,758 $ 6,636,719
Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset)
142
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates, Continued
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:
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense on the City OPEB Plan and RPOA OPEB Plan of ($12,463,645) and $46,814, respectively. At June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
City OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
$ 75,832,771 66,201,191 $ 87,164,153 $
RPOA OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
$ 8,690,758 7,285,324 $ 10,475,303 $
Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset) Healthcare Cost Trend
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Differences between actual and expected
experience - $ 18,200,319 $ 8,473 $ 5,432,921 $
Changes of assumptions 821,356 17,902,220 291,415 7,714,582 Net differences between projected and
actual earnings on plan investments 2,508,107 - 587,954 - Contributions between measurement date
and reporting date N/A N/A N/A N/A
Total 3,329,463 $ 36,102,539 $ 887,842 $ 13,147,503 $
City OPEB Plan RPOA OPEB Plan
143
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
13. OTHER POSTEMPLOYMENT BENEFITS, Continued
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued 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:
14. DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until 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.
15. 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 liability 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.
City OPEB Plan
Year Annual
Ended June 30, Amortization
2023 $ (19,886,758)
2024 (9,320,963)
2025 (3,884,934)
2026 319,579
2027 -
Thereafter -
RPOA OPEB Plan
Year Annual
Ended June 30, Amortization
2023 $ (1,325,998)
2024 (1,325,996)
2025 (1,334,804)
2026 (1,206,108)
2027 (1,445,215)
Thereafter (5,621,540)
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
15. RISK MANAGEMENT, Continued
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:
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 contributions of $2,352,830 for the year ended June 30, 2022. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
Audited financial statements for the CJPRMA are available from CJPRMA, 3201 Doolan Road, Suite 285, Livermore, CA 94551.
CSAC-EIA
CSAC-EIA is a public entity risk pool of cities and counties within California. The CSAC-EIA provides workers’ compensation coverage up to the statutory limit 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, 2022. CSACEIA provides insurance through the pool up to a certain level, beyond which group purchased commercial excess insurance is obtained. CSAC-EIA 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 available from CSAC-EIA, 75 Iron Point Circle, Suite 200, Folsom, CA 95630.
Type of Coverage Self-Insurance / Deductible Coverage Limit Insurance Carrier Difference in Conditions Earthquake: 5% of total insured value of each building; minimum $100,000
All others: $25,000
$50,000,000 inclusive of deductible Various
Crime / Employee Dishonesty $2,500 per claim $15,000,000 inclusive of deductible National Union Fire Insurance Company Property $100,000 per claim; except flood zones
A&V that have a deductible of $250,000
$400,000,000 inclusive of deductible
$100,000,000 limit for flood all zones,
except zones A & V, which have a limit of
$50,000,000
Various
Boiler and Machinery $100,000 per claim $100,000,000 inclusive of deductible Various Port Liability $25,000 per claim $50,000,000 inclusive of deductible Various Excess Workers' Compensation $750,000 per claim Statutory limit Various Student Volunteer N/A $50,000 limit Ace American
Pollution Liability - Policy 1 $250,000 per claim $20,000,000 inclusive of deductible ACE - Illinois Union Pollution Liability - Policy 2 $250,000 per claim $3,000,000 limit Ironshore Specialty Insurance Cyber Liability $100,000 per claim $2,000,000 limit Lloyds of London Type of Coverage (Deductible) Coverage Limits
Property ($500,000) 5,000,000 $
Liability ($500,000) 40,000,000
Employment Practices ($500,000) 5,000,000
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
15. RISK MANAGEMENT, Continued
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.
The Authority pays annual premiums to Housing Authority 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, 2022, the estimated claims payable of $51,092,602 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 $54,849,000 at June 30, 2022. Changes in the claims liabilities for the years ended June 30, 2022 and 2021 were as follows:
For the years ended June 30, 2022, 2021 and 2020 the amount of settlements did not exceed insurance coverage.
Property Annual Premium Deductible
Nevin Plaza (#1) $ 27,187 $ 25,000
Nystrom Village 16,351 25,000
Administration Office 1,681 25,000
2022 2021
Claims liabilities, beginning of year $ 44,392,339 $ 43,240,367 Current year claims 11,420,000 12,779,000
Change in prior year claims 7,978,722 (395,339)
Claim payments (7,625,469) (7,102,138)
Legal, administrative and other expenses (5,072,990) (4,129,551) Claims liabilities, end of year $ 51,092,602 $ 44,392,339 Claims liabilities, due in one year $ 14,606,071 $ 13,033,895 146
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City’s non-major enterprise funds include the following:
Richmond Marina Fund – Marina operations and maintenance, including berth rentals and use of marina facilities.
Storm Sewer Fund – Storm sewer management and urban runoff control. 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.
Fiscal 2022 condensed financial information for the Richmond Marina Enterprise Fund is as follows:
Condensed Statement of Net Position
Assets:
Current assets 4,711,856 $
Lease receivables 5,396,449
Capital assets 1,433,427
Total assets 11,541,732
Liabilities:
Current liabilities 303,893
Long-term liabilities 2,128,971
Total liabilities 2,432,864
Deferred inflows of resources:
Deferred inflows of resources - leases 5,371,636
Net position:
Net investment in capital assets (801,775)
Restricted for debt service 86,625
Unrestricted 4,452,382
Total net position 3,737,232 $
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Operating revenues:
Rental 162,777 $
Lease income 361,875
Operating expenses:
General and administrative (59,643)
Depreciation (85,456)
Operating income 379,553
Nonoperating revenues (expenses):
Interest income 116,926
Interest expense (100,965)
Income (Loss) Before Contributions and Transfers 395,514 Transfers out (86,778)
Change in net position 308,736
Beginning net position 3,428,496
Ending net position $ 3,737,232
Condensed Statement of Cash Flows
Net cash provided (used) by:
Operating activities $ 508,993
Noncapital and related financing activities (86,778)
Capital and related financing activities (206,814)
Investing activities 115,428
Net increase 330,829
Beginning cash and investments 4,290,654
Ending cash and investments $ 4,621,483
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City’s future commitments under construction and other projects totaled approximately $106.1 million at June 30, 2022 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 associated 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 property 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 equally 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.
C. Grant Programs
The City participates in several federal and State grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, 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 Revitalization Grant. It is possible that at some future date, it may be determined that the Authority 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.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES, Continued
D. Housing Authority – Easter Hill Project, Continued
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 revitalization 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, 2022 is $10,221,743.
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 households 60% or below the area median income for Contra Costa County.
Thus far, all new construction rental units at the former 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 Apartments 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.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES, Continued
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 responsible 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, 2022, 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 effective 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 activities for the project are reported in the Pt. Molate Private-Purpose Trust Fund.
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 believed 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 ranging 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 fiscal year 2009. Payments totaling $102 million were received under the settlement agreements in fiscal years 2011 through 2022.
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 2022, the City received $7 million that is restricted for use on pre-approved projects, and the City has received $56 million to date. 150
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES, Continued
H. Housing Authority Rental Assistance Demonstration
RHA Rental Assistance Demonstration (“RAD”) Program 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 will 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.
On November 18, 2015, California Tax Credit Allocation 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 Corporation 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%.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES, Continued
I. 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 hydrocarbons dissolved in groundwater. Active remediation was conducted from September 2008 through June 2020 by the former Redevelopment Agency and 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. 152
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
17. COMMITMENTS AND CONTINGENCIES, Continued
I. Marina Bay – Pollution Remediation, Continued
A Covenant to Restrict Use of Property for Area FM, also one of the Nine Deed Restricted Properties, was recorded on March 21, 2005. As described in the deed restriction, the remedial alternative for Area FM includes installing and maintaining a temporary 1-foot-thick soil cap over the property as an interim measure; the final cap will consist of hardscape including commercial buildings, roadways, and parking areas. The deed restriction also requires the preparation of an O&M Plan. According to a DTSCapproved Remedial Design and Implementation Plan (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. Site redevelopment has yet to occur, the interim temporary cap has not been implemented, and the O&M Plan has yet to be prepared for Area FM. DTSC is requiring the City to construct the temporary cap on Area FM. The City is preparing to construct a temporary asphalt cap to minimize surface water runoff and reduce routine maintenance and prepared a Work Plan Amendment for Construction of Temporary Asphalt Cap. Upon approval by DTSC, the City will install the temporary cap. The cost to prepare the planning documents, conduct observation, documentation, and reporting of the cap installation, as well as preparation of an O&M Plan is $96,200. The estimate cost to construct the temporary cap can’t be made.
J. Other Commitments and Contingencies
The Authority and its component units RHA Housing 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 17.I.
K. 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 portion 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, 2022 were as listed below:
Amount
General Fund 295,229 $
Community Development and Loan Programs
Special Revenue Fund 46,314
Non-Major Governmental Funds 9,382,784
$ 9,724,327
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. 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 specifically 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 the 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 November 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 Agency 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 Housing 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.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued A. Redevelopment Dissolution, Continued
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and 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 are subject to review and approval of the Oversight Board, which is comprised of seven members, including 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, 2022 are discussed in Note 2 above.
Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2022.
B. Loans Receivable
The Successor Agency assumed non-housing loans receivable 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.
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 loan was paid-off as of June 30, 2022.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued C. Capital Assets
The Successor Agency assumed the non-housing capital 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 assets 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.
D. Long-term Obligations
The following is a summary of long-term debt transactions during the year ended June 30, 2022:
Bonds Payable
Bonds payable at June 30, 2022 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 loans 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 portion of the bonds in the amount of $9,180,000, as discussed below.
Balance Balance Due Within Due in More
July 1, 2021 Additions (A) Retirements June 30, 2022 One Year than One Year Bonds Payable $ 167,723 45,420,925 $ $ (5,195,000) $ 40,393,648 $ 35,428,648 4,965,000 $ Loans payable from direct borrowing 14,690,000 (1,450,000) - 13,240,000 1,625,000 11,615,000 Total $ 167,723 60,110,925 $ $ (6,645,000) $ 53,633,648 $ 47,043,648 6,590,000 $ (A) Includes bond accretion for capital appreciation bonds totaling $767,307.
Net
Harbour Tax Allocation Refunding Bonds - 1998 Series A 2,242,449 $ Subordinate Tax Allocation Bonds - 2007 Series B 10,468,319 Successor Agency of RCRA Refunding Bonds - 2014 Series A & B 8,873,585 Successor Agency of RCRA Refunding Bonds - 2021 Series A & B 16,680,000 Successor Agency 2021A Bond Premium 2,129,295
Total 40,393,648 $
156
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. 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
At June 30, 2022, the Bonds consisted of the following:
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 issued 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 Subordinate Tax Allocation Bonds. In fiscal year 2010 the Agency experienced a significant decline in tax increment 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 2007B Bonds are secured by a pledge of subordinated housing and non-housing tax revenues.
Unamortized
Accretion / Premium
Value Amortization (Discount) Net
Capital appreciation bonds 2,300,000 $ 112,212 $ (169,763) $ 2,242,449 $ For the Years
Ending June 30, Principal
2023 1,150,000 $
2024 1,150,000
Total 2,300,000 $
157
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. 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, 2022, the 2007B Bonds consisted of the following:
The annual debt service requirements on the 2007B Bonds are as follows:
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 the 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 Allocation 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, 2022 were as follows:
Unamortized
Accretion / Premium
Value Amortization (Discount) Net
Capital appreciation bonds 15,445,000 $ 655,094 $ (5,631,775) $ $ 10,468,319 For the Years
Ending June 30, Principal
2023 1,085,000 $
2024 1,145,000
2025 1,175,000
2026 1,230,000
2027 1,285,000
2028-2032 5,350,000
2033-2037 4,175,000
Total 15,445,000 $
Harbour Tax Allocation Refunding Bonds - 1998 Series A $ 2,330,000 Total $ 2,330,000
158
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued D. Long-term Obligations, Continued
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, Continued At June 30, 2022, 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 $2,665,000, 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 (TaxExempt) in the outstanding principal amount of $720,000, and refund the $21,625,000 outstanding principal amount of Richmond Community Redevelopment 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 in registered form in denominations of $5,000 or any 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.
Bonds outstanding $ 8,570,000
Unamortized premium 303,585
Net $ 8,873,585
For the Years
Ending June 30, Principal Interest Total
2023 2,000,000 $ 373,500 $ 2,373,500 $
2024 2,095,000 271,125 2,366,125
2025 2,185,000 164,125 2,349,125
2026 2,290,000 54,750 2,344,750
Total 8,570,000 $ 863,500 $ 9,433,500 $
159
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. 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 $2,665,000, respectively, Continued At June 30, 2022, 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 interest on the Bonds; the Agency is responsible for making payments to the Authority in the amounts shown below.
The outstanding balances of loans payable to the Authority at June 30, 2022 came from the Bond issues listed below:
Unamortized
Accretion / Premium
Value Amortization (Discount) Net
Successor Agency Bond 2021A & B 16,680,000 $ - $ 2,129,295 $ 18,809,295 $ For the Years
Ending June 30, Principal Interest Total
2023 730,000 $ 579,360 $ 1,309,360 $
2024 1,800,000 556,980 2,356,980
2025 1,185,000 525,500 1,710,500
2026 2,155,000 458,700 2,613,700
2027 2,045,000 374,700 2,419,700
2028-2032 7,275,000 485,500 7,760,500
2033-2037 1,490,000 83,800 1,573,800
Total 16,680,000 $ 3,064,540 $ 19,744,540 $
JPFA Tax Allocation Revenue Bonds - 2003 Series B $ 5,130,000 JPFA Tax Allocation Revenue Bonds - 2004 Series A & B 8,110,000 Total $ 13,240,000
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3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. 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 Revenue 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 City 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, 2022 are as follows:
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. The 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.
For the Years
Ending June 30, Principal Interest Total
2023 885,000 $ 295,313 $ 1,180,313 $
2024 940,000 237,825 1,177,825
2025 1,600,000 157,815 1,757,815
2026 1,705,000 53,708 1,758,708
Total 5,130,000 $ 744,661 $ 5,874,661 $
161
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued D. Long-term Obligations, Continued
Loan from the Authority dated October 1, 2004, Continued The annual debt service requirements for these loans as of June 30, 2022 are as follows:
Pledge of Redevelopment Tax Increment Revenues
The Bond issues and loans payable to the Authority 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 $54,618,772 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 receives the funds necessary to fulfill its approved obligations. Total property taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2022 calculated by the County Auditor–Controller were $43,112,344.
The total received by the Successor Agency for fiscal year 2022 debt service and other enforceable obligations was $10,741,388, which the Successor Agency used along with cash on-hand to pay debt service of $10,464,587.
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 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 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 $1,775,000 at June 30, 2022.
For the Years
Ending June 30, Principal Interest Total
2023 740,000 $ 421,056 $ 1,161,056 $
2024 690,000 382,160 1,072,160
2025 710,000 344,080 1,054,080
2026 750,000 304,368 1,054,368
2027 5,220,000 141,984 5,361,984
Total 8,110,000 $ 1,593,648 $ 9,703,648 $
162
3-21-23, CC Mtg.
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued D. Long-term Obligations, Continued
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, 2022, the balances of these issuers’ outstanding debts were as follows:
Baycliff Apartment Project, 2004 Revenue Bonds $ -
Crescent Park Apartment Project, 2007 Series A & Series A-T Revenue Bonds 20,443,016 E. Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation 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 Oversight 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 future 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.
19. SUBSEQUENT EVENTS
A. Series 2022 Taxable Pension Refunding Bonds
On August 25, 2022, the City issued Series 2022 Taxable Pension Refunding Bonds in the amount of $154,140,000. The proceeds from the Bonds were used to refund all of the City’s outstanding Taxable Pension Funding Bonds, Series 2005 B-1 Bonds and Taxable Pension Funding Bonds, Series 2005 B-2, to pay interest rate swap termination fees and pay the costs of issuance related to the Series 2022 Bonds.
The Bonds bear interest rates of 4.234% to 5.508%. Principal payments are due annually on January 15, 2026 through 2037 and semi-annual interest payments are due January 15 and July 15 commencing on July 15, 2023.
20. NEW ACCOUNTING STANDARDS
Accounting Standards Adopted
GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements certain lease 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.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
20. NEW ACCOUNTING STANDARDS, Continued
Accounting Standards Adopted, Continued
GASB Statement 89, Accounting for Interest Cost Incurred before the End of a Construction Period – The objective of this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year. GASB Statement No. 92, Omnibus 2020 - The objectives of this Statement are 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.
GASB Statement No. 93, Replacement of Interbank Offered Rates – Statement No. 93 requires a government to terminate hedge accounting when it renegotiates or amends a critical term of a hedging derivative instrument, such as the reference rate of a hedging derivative 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 lease liability or lease receivable.
The provisions of Statement No. 93 has multiple effective dates. The city has implemented GASB99 to allow the continued use of LIBOR as an appropriate benchmark through the extended period of June 30, 2023.
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 – The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
20. NEW ACCOUNTING STANDARDS, Continued
Accounting Standards Adopted, Continued
GASB Statement No. 99, Omnibus 2022 – The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this Statement applies to the City for the current fiscal year.
New Accounting Standards
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:
GASB Statement 91, Conduit Debt Obligations – The objective of this statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for the City’s year ending June 30, 2023.
GASB Statement 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. The requirements of this Statement are effective for the City’s year ending June 30, 2023. GASB Statement No. 96, Subscription-Based Information Technology Arrangements – The objective of this statement is to provide guidance on the accounting and financial reporting for subscriptionbased information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for the City’s year ending June 30, 2023.
GASB Statement No. 100, Accounting Changes and Error Corrections-an Amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for the City’s year ending June 30, 2024.
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City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
20. NEW ACCOUNTING STANDARDS, Continued
New Accounting Standards, Continued
GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for the City’s year ending June 30, 2025.
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REQUIRED
SUPPLEMENTARY INFORMATION
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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 cannot 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 yearend.
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 Fund 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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 45,233,561 47,460,890 $ 47,362,317 $ 2,128,756 $ Sales taxes 50,060,211 51,993,736 53,453,323 1,459,587
Utility user taxes 46,522,663 45,452,324 48,373,588 1,850,925 Other taxes 18,269,102 20,953,343 26,573,077 5,619,734
Licenses, permits and fees 9,569,100 8,144,350 8,731,752 587,402 Fines, forfeitures and penalties 550,000 468,897 405,439 (63,458) Use of money and property 236,079 236,079 254,822 18,743 Intergovernmental 431,447 403,569 618,716 187,269
Charges for services 5,634,444 5,621,157 6,153,304 518,860 Rent 733,206 747,268 723,596 (23,672)
Other 158,977 1,510,327 898,401 (611,926)
Total revenues 178,514,615 181,876,115 193,548,335 11,672,220 EXPENDITURES:
Current:
General government 35,672,860 34,814,698 33,961,939 852,759 Public safety 104,751,036 107,664,838 94,871,787 12,793,051 Public works 27,837,348 29,138,845 25,445,699 3,693,146 Cultural and recreational 11,014,614 11,238,867 10,268,987 969,880 Capital outlay 1,335,000 1,077,000 470,678 606,322
Debt service:
Principal 945,068 945,068 2,782,527 (1,837,459)
Interest and fiscal charges 120,292 120,292 125,779 (5,487) Total expenditures 181,676,218 184,999,608 167,927,396 17,072,212
REVENUES OVER (UNDER)
EXPENDITURES (3,161,603) (3,123,493) 25,620,939 28,744,432 OTHER FINANCING SOURCES (USES):
Proceeds from sale of property 100,000 100,000 6,788 (93,212) Transfers in 11,656,182 12,004,224 9,859,938 (2,144,286) Transfers out (7,884,939) (12,801,419) (14,137,938) (1,336,519) Total other financing sources (uses) (697,195) 3,871,243 (4,271,212) (3,574,017) Net change in fund balances $ (3,820,688) 709,640 $ 21,349,727 25,170,415 $ FUND BALANCES (DEFICITS):
Beginning of year 49,114,042
End of year $ 70,463,769
Budgeted Amounts
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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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees $ 668,221 668,221 $ 26,302 $ (641,919) $ Use of money and property 200,042 200,042 160,477 (39,565) Intergovernmental 966,432 966,432 - (966,432)
Other 991,904 991,904 1,014,187 22,283
Total revenues 2,826,599 2,826,599 1,200,966 (1,625,633) EXPENDITURES:
Current:
Community development 3,221,421 3,499,301 507,865 2,991,436 Housing and redevelopment 1,492,165 1,545,048 735,675 809,373 Capital outlay 1,150,000 1,150,000 - 1,150,000
Total expenditures 5,863,586 6,194,349 1,243,540 4,950,809
REVENUES OVER (UNDER)
EXPENDITURES (3,036,987) (3,367,750) (42,574) 3,325,176 OTHER FINANCING SOURCES (USES):
Proceeds from sale of property 106,036 106,036 81,689 (24,347) Transfers in 562,101 562,101 - (562,101)
Transfers out (562,101) (1,042,101) (10,000) 1,032,101
Total other financing sources (uses) (373,964) 106,036 71,689 445,653 Net change in fund balances $ (2,930,951) $ (3,741,714) 29,115 $ 3,770,829 FUND BALANCES (DEFICITS):
Beginning of year, as restated 31,397,876
End of year $ 31,426,991
Budgeted Amounts
171
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total Pension Liability
Service cost $ 6,902,037 $ 7,529,439 $ 7,652,864 $ 7,637,812 Interest 35,423,024 34,974,846 34,315,542 33,323,855
Differences between actual
and expected experience (6,412,719) (4,393,691) (331,531) (4,642,948) Changes in assumptions - - - (3,224,832)
Benefit payments, including refunds
of employee contributions (30,000,846) (29,018,486) (27,565,398) (25,970,450) Net change in the total pension liability 5,911,496 9,092,108 14,071,477 7,123,437 Total pension liability - beginning 513,389,020 504,296,912 490,225,435 483,101,998 Total pension liability - ending (a) $ 519,300,516 $ 513,389,020 $ 504,296,912 $ 490,225,435 Plan Fiduciary Net Position
Contributions - employer $ 14,612,575 $ 13,778,755 $ 12,156,723 $ 10,489,795 Contributions - employee 2,657,439 2,749,990 2,843,043 2,894,841 Net investment income 83,636,340 18,237,576 23,350,283 28,880,923 Plan to plan resource movement (4,882) - - (842)
Administrative expense (378,350) (526,586) (259,047) (542,721) Benefit payments, including refunds
of employee contributions (30,000,846) (29,018,486) (27,565,398) (25,970,450) Other miscellaneous income (expense) - - 842 (1,030,636) Net change in plan fiduciary net position 70,522,276 5,221,249 10,526,446 14,720,910 Plan fiduciary net position - beginning 378,751,581 373,530,332 363,003,886 348,282,976 Plan fiduciary net position - ending (b) $ 449,273,857 $ 378,751,581 $ 373,530,332 $ 363,003,886 Net pension liability - ending (a) - (b) $ 70,026,659 $ 134,637,439 $ 130,766,580 $ 127,221,549 Plan fiduciary net position as a percentage
percentage of the total pension liability 86.52% 73.77% 74.07% 74.05% Covered payroll $ 32,686,024 $ 35,129,597 $ 36,295,759 $ 35,725,311 Net pension liability as a percentage of
covered payroll 214.24% 383.26% 360.28% 356.11%
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 June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 172
3-21-23, CC Mtg.
6/30/2018 6/30/2017 6/30/2016 6/30/2015
6/30/2017 6/30/2016 6/30/2015 6/30/2014
$ 8,053,459 $ 7,200,571 $ 7,446,410 $ 7,816,868
32,804,753 32,305,003 31,414,256 30,597,498
(4,464,966) (3,484,064) (5,280,549) -
25,548,824 - (7,116,200) -
(25,074,448) (23,917,069) (23,302,793) (23,007,539)
36,867,622 12,104,441 3,161,124 15,406,827
446,234,376 434,129,935 430,968,811 415,561,984
$ 483,101,998 $ 446,234,376 $ 434,129,935 $ 430,968,811 $ 8,860,295 $ 8,093,834 $ 7,189,716 $ 6,661,038
2,996,354 3,087,656 3,141,565 3,195,699
35,805,938 1,630,388 7,502,958 51,867,728
(50,018) (4,762) (6,885) -
(481,651) (205,714) (379,925) -
(25,074,448) (23,917,069) (23,302,793) (23,007,539)
- - - -
22,056,470 (11,315,667) (5,855,364) 38,716,926
326,226,506 337,542,173 343,397,537 304,680,611
$ 348,282,976 $ 326,226,506 $ 337,542,173 $ 343,397,537 $ 134,819,022 $ 120,007,870 $ 96,587,762 $ 87,571,274
72.09% 73.11% 77.75% 79.68%
$ 35,964,798 $ 36,638,889 $ 36,151,102 $ 37,210,225
374.86% 327.54% 267.18% 235.34%
Changes in Assumptions: None in 2019,2020 or 2021. 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 reduced 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 percent discount rate. 173
3-21-23, CC Mtg.
City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Actuarially determined contribution $ 14,466,499 $ 14,438,844 $ 13,783,427 $ 12,150,650 Contributions in relation to actuarially
determined contributions (14,466,499) (14,438,844) (13,783,427) (12,150,650) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 31,565,766 $ 32,686,024 $ 35,129,597 $ 36,295,759 Contributions as a percentage of covered payroll 45.83% 44.17% 39.24% 33.48% Notes to the schedule:
Valuation date: 6/30/2020 6/30/2019 6/30/2017 6/30/2016 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.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and
7.00% for 2021 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. Preretirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
For details, see June 30, 2018 CalPERS Funding Valuation Report
Entry age normal
2.500%
2.750%
Varies by Entry Age and Service.
For details, see June 30, 2018 CalPERS Funding Valuation Report
174
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6/30/2018 6/30/2017 6/30/2016 6/30/2015
$ 8,867,763 10,436,250 $ 8,084,584 $ 7,178,549 $
(8,867,763) (10,436,250) (8,084,584) (7,178,549)
$ - $ - $ - $ -
$ 35,725,311 $ 35,964,798 $ 36,638,889 $ 36,151,102
29.21% 24.66% 22.07% 19.86%
6/30/2015 6/30/2014 6/30/2013 6/30/2012
175
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total Pension Liability
Service cost $ 10,261,858 $ 10,958,278 $ 11,313,128 $ 11,391,456 Interest 48,387,109 47,218,257 46,009,128 44,562,419
Differences between actual
and expected experience (2,189,929) (1,211,011) 433,759 413,272 Changes in assumptions - - - (2,676,340)
Benefit payments, including refunds
of employee contributions (41,557,485) (38,982,005) (37,105,985) (35,123,568) Net change in the total pension liability 15,880,471 17,004,601 20,650,030 18,567,239 Total pension liability - beginning 676,597,009 693,601,610 655,946,979 637,379,740 Total pension liability - ending (a) $ 693,601,610 709,482,081 $ 676,597,009 $ 655,946,979 $ Plan Fiduciary Net Position
Contributions - employer $ 21,598,699 $ 19,362,087 $ 16,658,515 $ 14,016,085 Contributions - employee 4,232,707 4,314,111 4,238,132 4,226,345 Net investment income 22,875,702 105,126,083 29,333,974 36,380,672 Plan to plan resource movement 4,881 - - (1,062)
Administrative expense (662,340) (476,147) (326,144) (684,883) Benefit payments, including refunds
of employee contributions (41,557,485) (38,982,005) (37,105,985) (35,123,568) Other miscellaneous income (expense) - - 1,062 (1,300,605) Net change in plan fiduciary net position 89,010,142 6,826,151 12,799,554 17,512,984 Plan fiduciary net position - beginning 469,826,178 476,652,329 457,026,624 439,513,640 Plan fiduciary net position - ending (b) $ 476,652,329 565,662,471 $ 469,826,178 $ 457,026,624 $ Net pension liability - ending (a) - (b) $ 216,949,281 143,819,610 $ 206,770,831 $ 198,920,355 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 79.73% 68.72% 69.44% 69.67% Covered payroll $ 33,272,769 $ 34,316,884 $ 35,870,534 $ 34,439,607 Net pension liability as a percentage of
covered payroll 432.24% 632.19% 576.44% 577.59%
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 June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 176
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6/30/2018 6/30/2017 6/30/2016 6/30/2015
6/30/2017 6/30/2016 6/30/2015 6/30/2014
$ 10,297,536 11,650,927 $ 10,142,245 $ 10,167,167 $
43,264,626 41,950,593 40,142,006 38,254,517
797,969 2,950,295 3,799,388 -
35,109,898 - (9,563,090) -
(33,620,000) (30,593,589) (28,747,508) (27,199,743)
57,203,420 24,604,835 15,773,041 21,221,941
580,176,320 555,571,485 539,798,444 518,576,503
$ 637,379,740 $ 580,176,320 $ 555,571,485 $ 539,798,444 $ 12,699,049 $ 11,488,714 $ 10,652,641 $ 9,352,438
4,471,008 4,607,993 3,797,568 3,348,408
45,166,243 2,062,417 9,408,186 64,842,562
50,018 4,762 3,476 -
(607,337) (258,432) (477,249) -
(33,620,000) (30,593,589) (28,747,508) (27,199,743)
- - - -
28,158,981 (12,688,135) (5,362,886) 50,343,665
411,354,659 424,042,794 429,405,680 379,062,015
$ 439,513,640 $ 411,354,659 $ 424,042,794 $ 429,405,680 $ 197,866,100 $ 168,821,661 $ 131,528,691 $ 110,392,764
68.96% 70.90% 76.33% 79.55%
$ 37,273,957 $ 37,352,212 $ 36,161,966 $ 35,479,947
530.84% 451.97% 363.72% 311.14%
Changes in Assumptions: None in 2019, 2020 or 2021. 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 reduced 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 percent discount rate. 177
3-21-23, CC Mtg.
City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Actuarially determined contribution $ 21,603,382 $ 21,315,231 $ 19,355,578 $ 16,363,802 Contributions in relation to actuarially
determined contributions (21,603,382) (21,315,231) (19,355,578) (16,363,802) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 30,325,691 $ 33,272,769 $ 34,316,884 $ 35,870,534 Contributions as a percentage of covered payroll 71.24% 64.06% 56.40% 45.62% Notes to the schedule:
Valuation date: 6/30/2020 6/30/2019 6/30/2017 6/30/2016 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 w 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, 7.25% for 2020, and
7.00% for 2021 net of pension plan investment and
administrative expenses, including inflation.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Preretirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
For details, see June 30, 2018 CalPERS Funding Valuation Report
Entry age normal
For details, see June 30, 2018 CalPERS Funding Valuation Report
2.50%
2.750%
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.
178
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6/30/2018 6/30/2017 6/30/2016 6/30/2015
$ 12,696,582 14,013,858 $ 11,492,798 $ 10,650,057 $
(12,696,582) (14,013,858) (11,492,798) (10,650,057)
$ - $ - $ - $ -
$ 34,439,607 $ 37,273,957 $ 37,352,212 $ 36,151,966
40.69% 34.06% 30.77% 29.46%
6/30/2015 6/30/2014 6/30/2013 6/30/2012
were derived from the June 30, 2018 funding valuation report. 179
3-21-23, CC Mtg.
City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
General Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Service cost $ - $ - $ - $ -
Interest $ 16,222 $ 35,526 $ 57,712 $ 70,585
Differences between actual
and expected experience - 106,639 - 150,123
Changes in assumptions - 72,660 66,443 102,792
Changes in benefits - - - -
Benefit payments, including refunds
of employee contributions (371,727) (401,991) (424,760) (494,605) Net change in the total pension liability (355,505) (187,166) (300,605) (171,105) Total pension liability - beginning 1,808,072 1,995,238 2,295,843 2,466,948 Total pension liabilty - ending (a) $ 1,452,567 $ 1,808,072 $ 1,995,238 $ 2,295,843 Plan Fiduciary Net Position
Contributions - employer $ 345,348 $ 319,025 $ 503,714 $ 812,561 Contributions - donations and other income - - - -
Contributions - member - - - -
Net investment income 3,617 5,501 23,724 8,124
Other additions - - - -
Benefit payments, including member
contribution refunds (371,727) (401,991) (424,760) (494,605) Administrative expenses - - - -
Other deductibles - - - -
Net change in the total pension liability (22,762) (77,465) 102,678 326,080 Plan fidcuiary net position - beginning 1,093,026 1,170,491 1,067,813 741,733 Plan fidcuiary net position - ending (b) $ 1,070,264 $ 1,093,026 $ 1,170,491 $ 1,067,813 Net pension liability - ending (a) - (b) $ 382,303 $ 715,046 $ 824,747 $ 1,228,030 Plan fiduciary net position as a percentage
percentage of the total pension liability 73.7% 60.5% 58.7% 46.5% 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.
180
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6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
$ - $ - $ - $ - $ -
$ 80,100 $ 92,742 $ 107,632 $ 128,954 $ 147,247
- 40,459 - 345,786 -
(20,669) - - 322,312 -
- - - - -
(524,939) (584,272) (623,662) (672,546) (592,105)
(465,508) (451,071) (516,030) 124,506 (444,858)
2,932,456 3,383,527 3,899,557 3,775,051 4,219,909
$ 2,466,948 $ 2,932,456 $ 3,383,527 $ 3,899,557 $ 3,775,051 $ 814,594 $ 73,592 $ 602,970 $ 602,970 $ 602,970
- - - - -
- - - - -
2,207 3,351 2,255 2,017 (837)
- - - - -
(524,939) (584,272) (623,662) (672,546) (592,105)
- - - - -
- - - - -
291,862 (507,329) (18,437) (67,559) 10,028
449,871 957,200 975,637 1,043,196 1,033,168
$ 741,733 $ 449,871 $ 957,200 $ 975,637 $ 1,043,196
$ 1,725,215 $ 2,482,585 $ 2,426,327 $ 2,923,920 $ 2,731,855
30.1% 15.3% 28.3% 25.0% 27.6%
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
181
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
Police and Firemen's Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Interest $ 283,996 $ 561,163 $ 606,022 $ 952,312
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 (1,117,194) (1,412,673) (1,793,082) (2,170,136) Net change in the total pension liability (833,198) (4,503,852) (1,187,060) (3,283,335) Total pension liability - beginning 8,672,774 13,176,626 14,363,686 17,647,021 Total pension liabilty - ending (a) $ 7,839,576 $ 8,672,774 $ 13,176,626 $ 14,363,686 Plan Fiduciary Net Position
Contributions - employer $ 937,004 - $ $ 937,004 $ 1,270,466 Net investment income (1,939,002) 2,527,138 584,954 645,593 Benefit payments, including member
contribution refunds (1,117,194) (1,412,673) (1,793,082) (2,170,136) Other deductibles - - - -
Net change in the total pension liability (3,056,196) 2,051,469 (271,124) (254,077) Plan fidcuiary net position - beginning 13,113,847 11,062,378 11,333,502 11,587,579 Plan fidcuiary net position - ending (b) $ 10,057,651 $ 13,113,847 $ 11,062,378 $ 11,333,502 Net pension liability - ending (a) - (b) $ (2,218,075) $ (4,441,073) $ 2,114,248 $ 3,030,184 Plan fiduciary net position as a percentage
percentage of the total pension liability 128.3% 151.2% 84.0% 78.9% 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.
182
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6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
$ 1,031,753 $ 1,111,386 $ 1,214,089 $ 1,464,746 $ 1,579,762 261,891 - (323,462) - -
- - 1,380,854 - -
(2,656,508) (2,859,902) (3,140,552) (3,074,421) (3,436,887) (1,624,755) (1,486,625) (1,926,463) (552,283) (1,857,125) 19,271,776 20,758,401 22,684,864 23,237,147 25,094,272
$ 17,647,021 $ 19,271,776 $ 20,758,401 $ 22,684,864 $ 23,237,147 $ 1,270,466 $ 1,270,466 $ 1,222,197 $ 740,235 $ 740,235 589,027 1,340,997 (165,490) 369,240 2,968,492
(2,656,508) (2,859,902) (3,140,552) (3,074,421) (3,436,887) - - - (3,424,568) -
(797,015) (248,439) (2,083,845) (1,964,946) (3,152,728) 12,384,594 12,633,033 14,716,878 16,681,824 19,834,552
$ 11,587,579 $ 12,384,594 $ 12,633,033 $ 14,716,878 $ 16,681,824 $ 6,059,442 $ 6,887,182 $ 8,125,368 $ 7,967,986 $ 6,555,323
65.7% 64.3% 60.9% 64.9% 71.8%
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
183
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
Garfield Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Interest 2,950 $ 4,877 $ 7,756 $ 17,334 $
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 (51,807) (50,048) (49,067) (77,703) Net change in the total pension liability (48,857) 17,221 (31,086) (281,874) Total pension liability - beginning 320,914 303,693 334,779 616,653 Total pension liabilty - ending (a) $ 272,057 $ 320,914 $ 303,693 $ 334,779 Plan Fiduciary Net Position
Contributions - employer $ 12,408 $ - $ 102,140 - $
Net investment income (1,751) 1,984 6,914 7,024
Benefit payments, including member
contribution refunds (51,807) (50,048) (49,067) (77,703) Net change in the total pension liability (41,150) (48,064) (42,153) 31,461 Plan fidcuiary net position - beginning 249,005 297,069 339,222 307,761 Plan fidcuiary net position - ending (b) $ 207,855 $ 249,005 $ 297,069 $ 339,222 Net pension liability - ending (a) - (b) $ 64,202 $ 71,909 $ 6,624 $ (4,443) Plan fiduciary net position as a percentage
percentage of the total pension liability 76.4% 77.6% 97.8% 101.3% 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.
184
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6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
$ 19,334 $ 19,517 $ 21,615 $ 28,597 $ 30,759
- 67,810 - (45,458) -
- - - 64,544 -
(94,323) (92,474) (90,660) (88,883) (87,140)
(74,989) (5,147) (69,045) (41,200) (56,381)
691,642 696,789 765,834 807,034 863,415
$ 616,653 $ 691,642 $ 696,789 $ 765,834 $ 807,034
$ 102,140 $ 102,140 $ 102,140 $ 102,140 $ 102,140
2,627 1,517 933 577 227
(94,323) (92,474) (90,660) (88,883) (87,141)
10,444 11,183 12,413 13,834 15,226
297,317 286,134 273,721 259,887 244,661
$ 307,761 $ 297,317 $ 286,134 $ 273,721 $ 259,887
$ 308,892 $ 394,325 $ 410,655 $ 492,113 $ 547,147
49.9% 43.0% 41.1% 35.7% 32.2%
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
185
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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
June 30, 2022 345,348 345,348 - 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
June 30, 2022 - - - 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
June 30, 2022 12,408 12,408 - n/a n/a
186
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Pension Plan 0.36% 0.44% 1.54% 0.64% 1.00% 0.50% 0.30% 0.30% 0.10% Police and Firemen's
Pension Plan -15.40% 22.61% 5.11% 5.51% 4.90% 11.80% -1.20% 2.40% 3.90% Garfield Pension Plan -0.77% 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.
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.
Effects of Assumptions Changes and Experience Gains
and Losses:
5 years 1 year (A)
Market value of
assets
Market value of
assets
Market value of
assets
2.00% 2.00% 2.00%
n/a n/a n/a
Garfield
Pension Plan
General
Pension Plan
Police and
Firemen's Plan
(based on CalPERS 1997 - 2015 experience)
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
187
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB Liability
Service cost $ 2,088,997 $ 2,072,961 $ 4,292,499 $ 3,452,679 Interest 6,997,592 6,846,932 7,222,766 7,625,498
Changes in benefit terms - - - (19,910,800)
Differences between actual
and expected experience (11,982,490) (140,135) (28,723,614) - Changes in assumptions (6,119,213) 1,173,106 (42,412,472) (1,409,953) Benefit payments (7,272,797) (7,011,178) (7,753,129) (7,247,073) Net change in the total OPEB liability (16,287,911) 2,941,686 (67,373,950) (17,489,649) Total OPEB liability - beginning 123,244,653 120,302,967 187,676,917 205,166,566 Total OPEB liabilty - ending (a) $ 106,956,742 $ 123,244,653 $ 120,302,967 $ 187,676,917 Plan Fiduciary Net Position
Contributions - employer $ 10,042,891 $ 9,515,699 $ 12,720,085 $ 6,714,785 Contributions - employee 589,125 623,088 642,475 532,288 Net investment income (4,613,857) 6,562,745 709,908 1,170,454 Administrative expense (61,195) (111,868) (89,764) (81,950) Benefit payments (7,272,797) (7,011,178) (7,753,129) (7,247,073) Plan to Plan transfer (1) - - - (1,879,640)
Net change in the total OPEB liability (1,315,833) 9,578,486 6,229,575 (791,136) Plan fidcuiary net position - beginning 32,439,804 22,861,318 16,631,743 17,422,879 Plan fidcuiary net position - ending (b) $ 31,123,971 $ 32,439,804 $ 22,861,318 $ 16,631,743 Net OPEB liability - ending (a) - (b) $ 75,832,771 $ 90,804,849 $ 97,441,649 $ 171,045,174 Plan fiduciary net position as a percentage
percentage of the total OPEB liability 29.10% 26.32% 19.00% 8.86% Covered employee payroll $ 45,133,662 $ 46,698,024 $ 50,016,647 $ 49,511,523 Net OPEB liability as a percentage of
covered employee payroll 168.02% 194.45% 194.82% 345.47% (1) Transferred to the RPOA Plan established in fiscal year 2019. * Fiscal year 2017 was the 1st year of implementation.
188
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6/30/2018 6/30/2017
$ 7,558,987 6,730,397 $
7,064,307 7,927,217
- -
(2,816,969) -
8,715,168 (15,340,529)
(6,861,529) (6,497,645)
13,694,284 (7,214,880)
191,472,282 198,687,162
$ 205,166,566 $ 191,472,282
$ 13,599,120 $ 13,218,475
765,475 278,850
632,089 227,394
(49,169) (11,250)
(6,861,529) (6,497,645)
- -
8,085,986 7,215,824
9,336,893 2,121,069
$ 17,422,879 $ 9,336,893
$ 187,743,687 $ 182,135,389
8.49% 4.88%
$ 65,359,713 $ 66,774,795
287.25% 272.76%
189
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Contractually required contributions (CRC)
(1)/Actuarially determined employer
contribution (ADEC)
$ 12,641,000 9,525,000 $ 7,753,129 $ 7,247,073 $
Contributions in relation to the CRC/ADEC (10,042,891) (9,515,697) (7,753,129) (7,247,073) Contribution deficiency (excess) (517,891) $ 3,125,303 $ - $ $ - Notes:
Schedule of Investment Returns - Last 10 Years*
Fiscal Year Ended: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Annual money weighted rate of return,
net of investmentment expense -13.92% 26.66% 3.48% 6.74% * Fiscal year 2017 was the 1st year of implementation.
(1) Before FY2021, the City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units provide for various benefit levels as discussed in the Notes to the Financial Statements.
Contributions reported include the implicit subsidy.
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6/30/2018 6/30/2017
$ 6,497,645 6,861,529 $
(6,861,529) (6,497,645)
$ - $ -
6/30/2018 6/30/2017
6.30% 10.75%
191
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB Liability
Service cost $ 1,027,120 $ 1,871,012 $ 2,053,367 $ 1,939,517 Interest 1,107,706 800,939 850,944 764,597
Changes in benefit terms - - - 21,995,467
Differences between actual
and expected experience (4,595,658) 10,367 (1,784,304) - Changes in assumptions (323,325) (9,082,375) 401,383 -
Benefit payments (382,892) (277,277) (156,536) (82,673) Net change in the total OPEB liability (3,167,049) (6,677,334) 1,364,854 24,616,908 Total OPEB liability - beginning 19,304,428 25,981,762 24,616,908 - Total OPEB liabilty - ending (a) $ 16,137,379 $ 19,304,428 $ 25,981,762 $ 24,616,908 Plan Fiduciary Net Position
Contributions - employer $ 1,955,147 $ 1,028,868 $ 1,851,964 $ - Contributions - employee 403,650 453,163 425,213 82,673 Net investment income (833,976) 935,134 170,322 -
Plan to Plan transfer (1) - - - 1,879,640
Benefit payments (382,892) (277,277) (156,536) (82,673) Administrative expense (3,187) (2,612) - -
Net change in the total OPEB liability 1,138,742 2,137,276 2,290,963 1,879,640 Plan fidcuiary net position - beginning 6,307,879 4,170,603 1,879,640 - Plan fidcuiary net position - ending (b) $ 7,446,621 $ 6,307,879 $ 4,170,603 $ 1,879,640 Net OPEB liability - ending (a) - (b) $ 8,690,758 $ 12,996,549 $ 21,811,159 $ 22,737,268 Plan fiduciary net position as a percentage
percentage of the total OPEB liability 46.15% 32.68% 16.05% 7.64% Covered employee payroll $ 13,527,611 $ 16,100,126 $ 16,699,113 $ 17,404,407 Net OPEB liability as a percentage of
covered employee payroll 64.24% 80.72% 130.61% 130.64%
(1) Transferred from the OPEB Plan.
* Fiscal year 2019 was the 1st year of implementation.
192
3-21-23, CC Mtg.
City of Richmond
Required Supplementary Information
For the year ended June 30, 2022
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: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Contractually required(CRC)/Actuarially
determined employer contributions (ADEC) (1) $ 1,878,000 1,627,000 $ 1,851,964 $ 82,673 $ Contributions in relation to the CRC/ADEC (1,955,147) (1,028,868) (1,851,964) (82,673) Contribution deficiency (excess) $ (328,147) $ - 849,132 $ $ - Notes:
* Fiscal year 2019 was the 1st year of implementation.
(1) Before FY2021 the City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units provide for various benefit levels as discussed in the Notes to the Financial Statements. Contributions reported include the implicit subsidy. 193
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SUPPLEMENTARY
INFORMATION
195
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196
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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 soil 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.
American Rescue Plan Act Fund accounts for funding received from federal government in conjunction with the American Rescue Plan Act to provide resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery. 197
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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 find 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. 198
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199
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City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Paratransit Employment
State Gas Tax General Purpose Operations and Training
Fund Fund Fund Fund
ASSETS
Cash and investments 4,224,898 $ 3,597,565 $ 3,502 $ $ 801,872 Restricted cash and investments - - - 11,573
Receivables:
Accounts, net 425,594 3 60 46,076
Interest 2,545 1,353 67 -
Grants - 2,764,957 35,903 1,934,604
Loans - - - -
Total assets 4,653,037 6,363,878 39,532 2,794,125
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 705,486 432,606 21,923 250,069 Refundable deposits - - - -
Due to other funds - - - -
Unearned revenue - 1,977,605 - 206,005
Total liabilities 705,486 2,410,211 21,923 456,074
Deferred inflows of resources:
Unavailable revenue - 2,013,166 35,903 1,222,191
Total deferred inflows of resouces - 2,013,166 35,903 1,222,191 Fund Balances:
Restricted 3,947,551 1,940,501 - 1,115,860
Assigned - - - -
Unassigned - - (18,294) -
Total fund balances 3,947,551 1,940,501 (18,294) 1,115,860 Total liabilities, deferred inflows
of resources, and fund balances $ 4,653,037 $ 6,363,878 $ 39,532 $ 2,794,125 Special Revenue Funds
200
3-21-23, CC Mtg.
Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
$ 307,075 $ 1,519,163 $ 9,994,327 $ - $ - $ 1,324,958
- - - - 124,772 -
- 1,496 - - - 2,939 246 922 6,376 - - 991
- - - - - -
- - - - 779,013 -
307,321 1,521,581 10,000,703 - 903,785 1,328,888
- 42,237 137,545 - 7,581 27,806
- - - - - -
- - - - 41,505 -
- - - - - 5,615
- 42,237 137,545 - 49,086 33,421
- 1,496 - - 779,013 -
- 1,496 - - 779,013 -
307,321 1,477,848 9,863,158 - 75,686 1,295,467
- - - - - -
- - - - - -
307,321 1,477,848 9,863,158 - 75,686 1,295,467
$ 307,321 $ 1,521,581 $ 10,000,703 $ - $ 903,785 $ 1,328,888 Special Revenue Funds
201
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City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Environmental
and Community American 2005 Pension
Cost Recovery Investment Rescue Plan Obligation Bonds
Fund Agreement Fund Act Fund Fund
ASSETS
Cash and investments 2,970,964 $ 20,069,562 $ 13,593,732 $ - $ Restricted cash and investments - - - 12,779,202
Receivables:
Accounts, net 619,032 - - -
Interest 4,973 10,090 8,643 -
Grants 6,980,951 - - -
Loans - - - -
Total assets 10,575,920 20,079,652 13,602,375 12,779,202
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 1,389,947 4,222,376 172,378 18,950 Refundable deposits 669,256 - - -
Due to other funds - - - -
Unearned revenue 70,093 - 13,388,208 -
Total liabilities 2,129,296 4,222,376 13,560,586 18,950 Deferred inflows of resources:
Unavailable revenue 5,451,612 - - -
Total deferred inflows of resouces 5,451,612 - - -
Fund Balances:
Restricted 2,995,012 15,857,276 41,789 12,760,252
Assigned - - - -
Unassigned - - - -
Total fund balances 2,995,012 15,857,276 41,789 12,760,252 Total liabilities, deferred inflows
of resources, and fund balances $ 10,575,920 $ 20,079,652 $ 13,602,375 $ 12,779,202 Special Revenue Funds
202
3-21-23, CC Mtg.
Total
General Civic Center General Capital Harbor Nonmajor
Debt Service Debt Service Improvement Measure C/J Navigation Governmental Fund Fund Fund Fund Fund Funds
$ 113 $ 1,075,213 $ 2,646,914 $ 878,887 $ 45,589 $ 63,054,334 - 52 89,516 - - 13,005,115
- - 93,500 - - 1,188,700
94 370 - 349 29 37,048
- - - 2,965,609 - 14,682,024
- - - - - 779,013
207 1,075,635 2,829,930 3,844,845 45,618 92,746,234
- - 171,283 356,455 - 7,956,642
- - - - - 669,256
- - - - - 41,505
- 2,432,668 - - - 18,080,194
- 2,432,668 171,283 356,455 - 26,747,597
- - - 1,060,456 - 10,563,837
- - - 1,060,456 - 10,563,837 207 - 2,658,647 2,427,934 - 56,764,509 - - - - 45,618 45,618
- (1,357,033) - - (1,375,327)
207 (1,357,033) 2,658,647 2,427,934 45,618 55,434,800
$ 207 $ 1,075,635 $ 2,829,930 $ 3,844,845 $ 45,618 $ 92,746,234 Debt Service Funds Capital Projects Funds
203
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City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
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 - 2,054 - -
Use of money and property 13,215 6,491 671 -
Intergovernmental 4,783,957 3,569,100 345,658 1,613,446 Charges for services - 610,784 8,299 -
Other - 5,666 92,003 942
Total revenues 4,797,172 4,219,095 446,631 1,614,388
EXPENDITURES:
Current:
General government - 835,671 814,328 -
Public safety - 1,713,198 - -
Public works 3,010,542 15,780 - -
Community development - - 12,616 5,160,389
Cultural and recreational - 182,147 - -
Housing and redevelopment - - - -
Capital outlay 1,080,666 16,000 - 3,109
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 4,091,208 2,762,796 826,944 5,163,498
REVENUES OVER (UNDER)
EXPENDITURES 705,964 1,456,299 (380,313) (3,549,110)
OTHER FINANCING SOURCES (USES):
Transfers in - 224,865 - 2,189,330
Transfers out - (24,630) - -
Total other financing sources (uses) - 200,235 - 2,189,330 Net change in fund balances 705,964 1,656,534 (380,313) (1,359,780) FUND BALANCES (DEFICITS):
Beginning of year 3,241,587 283,967 362,019 2,475,640
End of year $ 3,947,551 $ 1,940,501 $ (18,294) $ 1,115,860 Special Revenue Funds
204
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Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
$ - $ 1,731,159 $ - $ 10,609,053 $ - $ -
- - 926,649 - - 2,332,429
- - - - - -
1,252 4,401 35,705 - 2 6,803
- - - - - -
- - - - - -
2,918 - - - - 14,641
4,170 1,735,560 962,354 10,609,053 2 2,353,873
- - - 64,820 - -
3,967 - 105,073 - - -
- 2,280,250 487,778 - - -
- - - - - -
- - 6,627 - - -
- - - - 57,336 2,207,882
- - 351,940 - - -
- - - - - -
- - - - - -
3,967 2,280,250 951,418 64,820 57,336 2,207,882
203 (544,690) 10,936 10,544,233 (57,334) 145,991
- 664,930 - - 10,000 -
- - - (10,689,231) - -
- 664,930 - (10,689,231) 10,000 -
203 120,240 10,936 (144,998) (47,334) 145,991 307,118 1,357,608 9,852,222 144,998 123,020 1,149,476 $ 307,321 $ 1,477,848 $ 9,863,158 $ - $ 75,686 $ 1,295,467 Special Revenue Funds
205
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City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Environmental
and Community American 2005 Pension
Cost Recovery Investment Rescue Plan Obligation Bonds
Fund Agreement Fund Act Fund Fund
REVENUES:
Property taxes $ - $ - $ - $ 12,659,853
Licenses, permits and fees 8,668,203 - - -
Fines, forfeitures and penalties - - - -
Use of money and property 26,251 54,117 41,790 11,136
Intergovernmental 6,608,306 7,000,000 482,154 -
Charges for services 1,214,398 - - -
Other 6,438 417 - -
Total revenues 16,523,596 7,054,534 523,944 12,670,989
EXPENDITURES:
Current:
General government 8,720,804 4,442,789 3,671 -
Public safety - 58,465 - -
Public works 891,597 264,412 - -
Community development - - - -
Cultural and recreational - 39,390 86,115 -
Housing and redevelopment - - 357,094 -
Capital outlay 8,286,737 1,798,779 35,275 -
Debt service:
Principal - - - 10,302,000
Interest and fiscal charges - - - 1,458,010
Total expenditures 17,899,138 6,603,835 482,155 11,760,010
REVENUES OVER (UNDER)
EXPENDITURES (1,375,542) 450,699 41,789 910,979
OTHER FINANCING SOURCES (USES):
Transfers in 4,150,293 - - 8,089
Transfers out - - - -
Total other financing sources (uses) 4,150,293 - - 8,089 Net change in fund balances 2,774,751 450,699 41,789 919,068 FUND BALANCES (DEFICITS):
Beginning of year 220,261 15,406,577 - 11,841,184
End of year $ 2,995,012 $ 15,857,276 $ 41,789 $ 12,760,252 Special Revenue Funds
206
3-21-23, CC Mtg.
Total
General Civic Center General Capital Harbor Nonmajor
Debt Service Debt Service Improvement Measure C/J Navigation Governmental Fund Fund Fund Fund Fund Funds
$ - $ - $ - $ - $ - $ 25,000,065
- - - - - 11,952,281
- - - - - 2,054 576 2,174 162 2,064 159 206,969
- - - 2,993,244 - 27,395,865
- 5,564,718 - - - 7,398,199
- - 121,500 - - 244,525
576 5,566,892 121,662 2,995,308 159 72,199,958
- - - - - 14,882,083
- - - - - 1,880,703
- - 106,089 1,420,494 - 8,476,942
- - - - - 5,173,005
- - - - - 314,279
- - - - - 2,622,312
- - 636,757 723,104 - 12,932,367 710,000 3,440,000 - - - 14,452,000 239,961 4,294,097 - - - 5,992,068 949,961 7,734,097 742,846 2,143,598 - 66,725,759
(949,385) (2,167,205) (621,184) 851,710 159 5,474,199 940,700 2,406,458 289,515 - - 10,884,180 - - - - - (10,713,861)
940,700 2,406,458 289,515 - - 170,319
(8,685) 239,253 (331,669) 851,710 159 5,644,518 8,892 (1,596,286) 2,990,316 1,576,224 45,459 49,790,282 $ 207 $ (1,357,033) $ 2,658,647 $ 2,427,934 $ 45,618 $ 55,434,800 Debt Service Funds Capital Projects Funds
207
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 13,215 $ 13,215
Intergovernmental 4,978,671 4,978,671 4,783,957 (194,714) Total revenues 4,978,671 4,978,671 4,797,172 (181,499)
EXPENDITURES:
Current:
Public works 2,651,894 3,361,018 3,010,542 350,476
Capital outlay 2,326,797 2,222,568 1,080,666 1,141,902
Total expenditures 4,978,691 5,583,586 4,091,208 1,492,378 Net change in fund balances $ (20) $ (604,915) 705,964 $ 1,310,879 FUND BALANCES (DEFICITS):
Beginning of year 3,241,587
End of year $ 3,947,551
Budgeted Amounts
208
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees $ 149,207 $ 149,207 $ 25,000 $ (124,207) Fines, forfeitures and penalties - - 2,054 2,054
Use of money and property - - 6,491 6,491
Intergovernmental 1,688,649 11,014,906 3,569,100 (7,445,806) Charges for services - 79,368 610,784 531,416
Other - 7,500 5,666 (1,834)
Total revenues 1,837,856 11,250,981 4,219,095 (7,031,886) EXPENDITURES:
Current:
General government 501,869 8,230,619 835,671 7,394,948
Public safety 1,364,264 3,361,344 1,713,198 1,648,146
Public works 1,037 257,925 15,780 242,145
Cultural and recreational 259,301 417,125 182,147 234,978 Capital outlay 284,000 504,000 16,000 488,000
Total expenditures 2,410,471 12,771,013 2,762,796 10,008,217
REVENUES OVER (UNDER)
EXPENDITURES (572,615) (1,520,032) 1,456,299 2,976,331
OTHER FINANCING SOURCES (USES):
Transfers in - - 224,865 224,865
Transfers out - - (24,630) (24,630)
Total other financing sources (uses) - - 200,235 200,235 Net change in fund balances $ (572,615) $ (1,520,032) 1,656,534 $ 3,176,566 FUND BALANCES (DEFICITS):
Beginning of year 283,967
End of year $ 1,940,501
Budgeted Amounts
209
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Paratransit Operations Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 671 $ 671
Intergovernmental 840,000 840,000 345,658 (494,342)
Charges for services - - 8,299 8,299
Other - - 92,003 92,003
Total revenues 840,000 840,000 446,631 (393,369)
EXPENDITURES:
Current:
General government 776,844 789,644 814,328 (24,684)
Community development 13,400 600 12,616 (12,016)
Total expenditures 790,244 790,244 826,944 (36,700)
Net change in fund balances $ 49,756 $ 49,756 (380,313) $ (430,069) FUND BALANCES (DEFICITS):
Beginning of year 362,019
End of year $ (18,294)
Budgeted Amounts
210
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 6,847,112 6,250,873 $ 1,613,446 $ $ (5,233,666) Charges for services 193,536 193,536 - (193,536)
Other 151,738 151,738 942 (150,796)
Total revenues 6,596,147 7,192,386 1,614,388 (5,577,998) EXPENDITURES:
Current:
Community development 8,154,537 10,715,013 5,160,389 5,554,624 Capital outlay 100,000 108,000 3,109 104,891
Total expenditures 8,254,537 10,823,013 5,163,498 5,659,515
REVENUES OVER (UNDER)
EXPENDITURES (1,658,390) (3,630,627) (3,549,110) 81,517 OTHER FINANCING SOURCES (USES):
Transfers in 1,445,705 3,425,705 2,189,330 (1,236,375)
Total other financing sources (uses) 1,445,705 3,425,705 2,189,330 (1,236,375) Net change in fund balances $ (212,685) $ (204,922) (1,359,780) $ (1,154,858) FUND BALANCES (DEFICITS):
Beginning of year 2,475,640
End of year $ 1,115,860
Budgeted Amounts
211
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 1,252 $ 1,252
Intergovernmental 360,335 360,335 - (360,335)
Other - - 2,918 2,918
Total revenues 360,335 360,335 4,170 (356,165)
EXPENDITURES:
Current:
Public safety 579,835 579,835 3,967 575,868
Total expenditures 579,835 579,835 3,967 575,868
Net change in fund balances $ (219,500) $ (219,500) 203 $ 219,703 FUND BALANCES (DEFICITS):
Beginning of year 307,118
End of year $ 307,321
Budgeted Amounts
212
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 1,728,833 1,728,833 $ 1,731,159 $ 2,326 $ Use of money and property - - 4,401 4,401
Total revenues 1,728,833 1,728,833 1,735,560 6,727
EXPENDITURES:
Current:
Public works 2,509,414 2,603,414 2,280,250 323,164
Total expenditures 2,509,414 2,603,414 2,280,250 323,164
REVENUES OVER (UNDER)
EXPENDITURES (780,581) (874,581) (544,690) 329,891
OTHER FINANCING SOURCES (USES):
Transfers in 664,930 664,930 664,930 -
Total other financing sources (uses) 664,930 664,930 664,930 - Net change in fund balances $ (115,651) $ (209,651) 120,240 $ 329,891 FUND BALANCES (DEFICITS):
Beginning of year 1,357,608
End of year $ 1,477,848
Budgeted Amounts
213
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees $ - $ 783,321 $ 926,649 $ 143,328 Use of money and property - - 35,705 35,705
Total revenues - 783,321 962,354 179,033
EXPENDITURES:
Current:
Public safety 167,762 173,400 105,073 68,327
Public works 515,000 730,358 487,778 242,580
Cultural and recreational 523,334 524,698 6,627 518,071 Capital outlay 1,376,311 2,516,393 351,940 2,164,453
Total expenditures 2,582,407 3,944,849 951,418 2,993,431 Net change in fund balances $ (2,582,407) $ (3,161,528) 10,936 $ 3,172,464 FUND BALANCES (DEFICITS):
Beginning of year 9,852,222
End of year $ 9,863,158
Budgeted Amounts
214
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 11,420,605 11,420,605 $ 10,609,053 $ $ (811,552) Total revenues 11,420,605 11,420,605 10,609,053 (811,552) EXPENDITURES:
Current:
General government - - 64,820 (64,820)
Public safety 937,004 937,004 - 937,004
Total expenditures 937,004 937,004 64,820 872,184
REVENUES OVER (UNDER)
EXPENDITURES 10,483,601 10,483,601 10,544,233 60,632
OTHER FINANCING SOURCES (USES):
Transfers out (10,858,742) (10,337,600) (10,689,231) (351,631) Total other financing sources (uses) (10,858,742) (10,337,600) (10,689,231) (351,631) Net change in fund balances $ (375,141) $ 146,001 (144,998) $ (290,999) FUND BALANCES (DEFICITS):
Beginning of year 144,998
End of year $ -
Budgeted Amounts
215
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 144 $ 144 $ 2 $ (142)
Other 15,000 15,000 - (15,000)
Total revenues 15,144 15,144 2 (15,142)
EXPENDITURES:
Current:
Housing and redevelopment 41,991 41,991 57,336 (15,345) Total expenditures 41,991 41,991 57,336 (15,345)
REVENUES OVER (UNDER)
EXPENDITURES (26,847) (26,847) (57,334) (30,487)
OTHER FINANCING SOURCES (USES):
Transfers in - - 10,000 10,000
Total other financing sources (uses) - - 10,000 10,000
Net change in fund balances $ (26,847) $ (26,847) (47,334) $ (20,487) FUND BALANCES (DEFICITS):
Beginning of year 123,020
End of year $ 75,686
Budgeted Amounts
216
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Rent Control Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees $ 2,893,854 2,893,854 $ 2,332,429 $ $ (561,425) Use of money and property 14,460 14,460 6,803 (7,657)
Other 30,000 30,000 14,641 (15,359)
Total revenues 2,938,314 2,938,314 2,353,873 (584,441)
EXPENDITURES:
Current:
Housing and redevelopment 2,613,278 2,616,278 2,207,882 408,396 Total expenditures 2,613,278 2,616,278 2,207,882 408,396 Net change in fund balances $ 325,036 $ 322,036 145,991 $ (176,045) FUND BALANCES (DEFICITS):
Beginning of year 1,149,476
End of year $ 1,295,467
Budgeted Amounts
217
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cost Recovery Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees $ 7,093,462 7,065,663 $ 8,668,203 $ 1,574,741 $ Use of money and property - - 26,251 26,251
Intergovernmental 15,333,845 17,208,845 6,608,306 (10,600,539) Charges for services 3,786,000 3,786,000 1,214,398 (2,571,602) Other - - 6,438 6,438
Total revenues 26,185,508 28,088,307 16,523,596 (11,564,711) EXPENDITURES:
Current:
General government 10,788,567 13,939,498 8,720,804 5,218,694 Public works 878,609 1,345,292 891,597 453,695
Capital outlay 14,673,845 25,751,314 8,286,737 17,464,577 Total expenditures 26,341,021 41,036,104 17,899,138 23,136,966
REVENUES OVER (UNDER)
EXPENDITURES (155,513) (12,947,797) (1,375,542) 11,572,255 OTHER FINANCING SOURCES (USES):
Transfers in - 1,800,000 4,150,293 2,350,293
Total other financing sources (uses) - 1,800,000 4,150,293 2,350,293 Net change in fund balances $ (155,513) $ (11,147,797) 2,774,751 $ 13,922,548 FUND BALANCES (DEFICITS):
Beginning of year 220,261
End of year $ 2,995,012
Budgeted Amounts
218
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 54,117 $ 54,117
Intergovernmental 58,000 58,000 7,000,000 6,942,000
Other - - 417 417
Total revenues 58,000 58,000 7,054,534 6,996,534
EXPENDITURES:
Current:
General government 7,886,030 7,186,030 4,442,789 2,743,241 Public safety 148,000 148,000 58,465 89,535
Public works 271,800 384,089 264,412 119,677
Community development - - - -
Cultural and recreational 534,430 534,430 39,390 495,040 Capital outlay 1,512,678 2,968,658 1,798,779 1,169,879
Total expenditures 10,352,938 11,221,207 6,603,835 4,617,372 Net change in fund balances $ (10,294,938) $ (11,163,207) 450,699 $ 11,613,906 FUND BALANCES (DEFICITS):
Beginning of year 15,406,577
End of year $ 15,857,276
Budgeted Amounts
219
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual American Rescue Plan Act Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 41,790 $ 41,790
Intergovernmental - - 482,154 482,154
Total revenues - - 523,944 523,944
EXPENDITURES:
Current:
General government - 300,000 3,671 296,329
Cultural and recreational - 250,000 86,115 163,885
Housing and redevelopment - 1,000,000 357,094 642,906
Capital outlay - 3,000,000 35,275 2,964,725
Total expenditures - 4,550,000 482,155 4,067,845
Net change in fund balances $ - $ (4,550,000) 41,789 $ 4,591,789 FUND BALANCES (DEFICITS):
Beginning of year -
End of year $ 41,789
Budgeted Amounts
220
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 12,659,853 12,659,853 $ 12,659,853 $ - $ Use of money and property - - 11,136 11,136
Total revenues 12,659,853 12,659,853 12,670,989 11,136
EXPENDITURES:
Debt service:
Principal 10,302,000 10,302,000 10,302,000 -
Interest and fiscal charges 3,560,146 3,560,146 1,458,010 2,102,136 Total expenditures 13,862,146 13,862,146 11,760,010 2,102,136
REVENUES OVER (UNDER)
EXPENDITURES (1,202,293) (1,202,293) 910,979 2,113,272
OTHER FINANCING SOURCES (USES):
Transfers in - - 8,089 8,089
Total other financing sources (uses) - - 8,089 8,089
Net change in fund balances $ (1,202,293) $ (1,202,293) 919,068 $ 2,121,361 FUND BALANCES (DEFICITS):
Beginning of year 11,841,184
End of year $ 12,760,252
Budgeted Amounts
221
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 576 $ 576
Total revenues - - 576 576
EXPENDITURES:
Debt service:
Principal 710,000 710,000 710,000 -
Interest and fiscal charges 239,396 239,396 239,961 (565) Total expenditures 949,396 949,396 949,961 (565)
REVENUES OVER (UNDER)
EXPENDITURES (949,396) (949,396) (949,385) 11
OTHER FINANCING SOURCES (USES):
Transfers in 1,092,338 1,092,338 940,700 (151,638)
Total other financing sources (uses) 1,092,338 1,092,338 940,700 (151,638) Net change in fund balances $ 142,942 $ 142,942 (8,685) $ (151,627) FUND BALANCES (DEFICITS):
Beginning of year 8,892
End of year $ 207
Budgeted Amounts
222
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 2,174 2,174
Charges for services 5,445,541 5,445,541 5,564,718 119,177 Total revenues 5,445,541 5,445,541 5,566,892 121,351
EXPENDITURES:
Debt service:
Principal 3,440,000 3,440,000 3,440,000 -
Interest and fiscal charges 4,285,100 4,285,100 4,294,097 (8,997) Total expenditures 7,725,100 7,725,100 7,734,097 (8,997)
REVENUES OVER (UNDER)
EXPENDITURES (2,279,559) (2,279,559) (2,167,205) 112,354 OTHER FINANCING SOURCES (USES):
Transfers in 2,406,458 2,406,458 2,406,458 -
Total other financing sources (uses) 2,406,458 2,406,458 2,406,458 - Net change in fund balances $ 126,899 $ 126,899 239,253 $ 112,354 FUND BALANCES (DEFICITS):
Beginning of year (1,596,286)
End of year $ (1,357,033)
Budgeted Amounts
223
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 162 $ 162
Other - - 121,500 121,500
Total revenues - - 121,662 121,662
EXPENDITURES:
Current:
Public works - 160,610 106,089 54,521
Capital outlay 6,053,380 3,534,569 636,757 2,897,812
Total expenditures 6,053,380 3,695,179 742,846 2,952,333
REVENUES OVER (UNDER)
EXPENDITURES (6,053,380) (3,695,179) (621,184) 3,073,995 OTHER FINANCING SOURCES (USES):
Transfers in - 1,520,000 289,515 (1,230,485)
Total other financing sources (uses) - 1,520,000 289,515 (1,230,485) Net change in fund balances $ (6,053,380) $ (2,175,179) (331,669) $ 1,843,510 FUND BALANCES (DEFICITS):
Beginning of year 2,990,316
End of year $ 2,658,647
Budgeted Amounts
224
3-21-23, CC Mtg.
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, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 2,064 $ 2,064
Intergovernmental 4,446,194 4,446,194 2,993,244 (1,452,950) Total revenues 4,446,194 4,446,194 2,995,308 (1,450,886) EXPENDITURES:
Current:
Public works 1,324,957 2,156,704 1,420,494 736,210
Capital outlay 3,096,513 3,754,351 723,104 3,031,247
Total expenditures 4,421,470 5,911,055 2,143,598 3,767,457
REVENUES OVER (UNDER)
EXPENDITURES 24,724 (1,464,861) 851,710 2,316,571
Net change in fund balances $ 24,724 $ (1,464,861) 851,710 $ 2,316,571 FUND BALANCES (DEFICITS):
Beginning of year 1,576,224
End of year $ 2,427,934
Budgeted Amounts
225
3-21-23, CC Mtg.
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Harbor Navigation Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 159 $ 159
Total revenues - - 159 159
Net change in fund balances $ - $ - 159 $ 159
FUND BALANCES (DEFICITS):
Beginning of year 45,459
End of year $ 45,618
Budgeted Amounts
226
3-21-23, CC Mtg.
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. 227
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Net Position
Nonmajor Enterprise Funds
For the year ended June 30, 2022
Total
Richmond Storm Sewer Cable TV Nonmajor
Marina Fund Fund Fund Enterprise Funds
ASSETS
Current assets:
Cash and investments 4,534,858 $ $ 1,730,786 $ 737,865 $ 7,003,509 Restricted cash and investments 86,625 - - 86,625
Receivables:
Accounts, net 87,577 4,432 258,351 350,360
Interest 2,796 955 471 4,222
Total current assets 4,711,856 1,736,173 996,687 7,444,716 Noncurrent assets:
Receivables:
Lease receivables 5,396,449 - - 5,396,449
Capital assets:
Nondepreciable 330,794 3,566,834 - 3,897,628
Depreciable 4,338,356 30,889,661 140,882 35,368,899
Less accumulated depreciation (3,235,723) (29,892,160) (122,805) (33,250,688) Net capital assets 1,433,427 4,564,335 18,077 6,015,839 Total noncurrent assets 6,829,876 4,564,335 18,077 11,412,288 Total assets 11,541,732 6,300,508 1,014,764 18,857,004
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension - 12,788 204,702 217,490 Deferred outflows of resources - OPEB - 4,918 35,121 40,039 Total deferred outflows of resources - 17,706 239,823 257,529
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 16,994 525,581 13,258 555,833 Interest payable 92,202 - - 92,202
Refundable deposits 88,466 1,200 - 89,666
Compensated absences - current - - 40,598 40,598
Long-term debt - current 106,231 - - 106,231
Total current liabilities 303,893 526,781 53,856 884,530 Noncurrent liabilities:
Unearned revenue - 591,867 - 591,867
Compensated absences - - 11,091 11,091
Long-term debt 2,128,971 - - 2,128,971
Net pension liability - 61,899 990,883 1,052,782
Net OPEB liability - 111,989 799,924 911,913
Total noncurrent liabilities 2,128,971 765,755 1,801,898 4,696,624 Total liabilities 2,432,864 1,292,536 1,855,754 5,581,154
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension - 39,070 625,433 664,503 Deferred inflows of resources - OPEB - 53,316 380,828 434,144 Deferred inflows of resources - leases 5,371,636 - - 5,371,636 Total deferred inflows of resources 5,371,636 92,386 1,006,261 6,470,283
NET POSITION (DEFICIT)
Net investment in capital assets (801,775) 4,564,335 18,077 3,780,637 Restricted for debt service 86,625 - - 86,625
Unrestricted 4,452,382 368,957 (1,625,505) 3,195,834
Total net position $ 3,737,232 $ 4,933,292 $ (1,607,428) $ 7,063,096 228
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds
For the year ended June 30, 2022
Total
Richmond Storm Sewer Cable TV Nonmajor
Marina Fund Fund Fund Enterprise Funds
OPERATING REVENUES:
Rental $ 162,777 $ - $ - $ 162,777
Service charges - 2,056,362 1,103,873 3,160,235
Lease income 361,875 5,453 - 367,328
Total operating revenues 524,652 2,061,815 1,103,873 3,690,340 OPERATING EXPENSES:
Salaries and benefits - (235,910) 395,746 159,836
General and administrative 59,643 1,399,958 264,038 1,723,639 Maintenance - - 3,048 3,048
Depreciation 85,456 45,037 1,824 132,317
Total operating expenses 145,099 1,209,085 664,656 2,018,840 OPERATING INCOME (LOSS) 379,553 852,730 439,217 1,671,500 NONOPERATING REVENUES (EXPENSES):
Interest income 116,926 3,454 2,538 122,918
Interest expense (100,965) (73,491) - (174,456)
Total nonoperating revenues (expenses) 15,961 (70,037) 2,538 (51,538) Income (loss) before
contributions and transfers 395,514 782,693 441,755 1,619,962 CONTRIBUTIONS AND TRANSFERS:
Transfers in - 2,654,027 - 2,654,027
Transfers out (86,778) - - (86,778)
Total contributions and transfers (86,778) 2,654,027 - 2,567,249 Change in net position 308,736 3,436,720 441,755 4,187,211 NET POSITION:
Beginning of year 3,428,496 1,496,572 (2,049,183) 2,875,885 End of year $ 3,737,232 $ 4,933,292 $ (1,607,428) $ 7,063,096 229
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the year ended June 30, 2022
Total
Richmond Storm Sewer Cable TV Nonmajor
Marina Fund Fund Fund Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 551,149 $ 2,062,962 $ 1,135,845 $ 3,749,956 Payments to suppliers (42,156) (1,197,987) (264,155) (1,504,298) Payments to employees - (46,923) (786,116) (833,039)
Net cash provided by (used in) operating activities 508,993 818,052 85,574 1,412,619
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Interfund receipts (payments) - (2,580,535) - (2,580,535) Transfers in - 2,654,027 - 2,654,027
Transfers out (86,778) - - (86,778)
Net cash provided by (used in)
noncapital financing activities (86,778) 73,492 - (13,286)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (42,934) (19,901) (62,835) Principal payments on capital debt (101,656) - - (101,656) Interest paid (105,158) (73,491) - (178,649)
Net cash provided by (used in)
capital and related financing activities (206,814) (116,425) (19,901) (343,140) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest 115,428 2,499 2,256 120,183
Net cash provided by (used in) investing activities 115,428 2,499 2,256 120,183 Net cash flows 330,829 777,618 67,929 1,176,376
CASH AND INVESTMENTS - Beginning of year 953,168 4,290,654 669,936 5,913,758 CASH AND INVESTMENTS - End of year $ 1,730,786 4,621,483 $ 737,865 $ 7,090,134 $ - - -
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ 852,730 379,553 $ 439,217 $ 1,671,500 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation expense 85,456 45,037 1,824 132,317
Changes in assets and liabilities:
Receivables, net 51,310 1,147 31,972 84,429
Accounts payable and accrued liabilities 16,994 201,971 2,931 221,896 Refundable deposits 493 - - 493
Compensated absences payable - - 4,114 4,114
Net pension liability and deferred outflows/inflows - (227,241) (371,283) (598,524) Net OPEB liability and deferred outflows/inflows - (55,592) (23,201) (78,793) lease receivable and deferred outflows/inflows (24,813) (24,813) Net cash provided by (used in) operating activities $ 818,052 508,993 $ 85,574 $ $ 1,412,619 230
3-21-23, CC Mtg.
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 separately in the fund financial statements, including the funds below.
Insurance Reserves Fund is used to report activities related to employees' claims due to industrial injuries 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.
Compensated Absences Fund is used to account for sick, vacation and compensatory time leave payouts related to employee retirements.
231
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Net Position
Internal Service Funds
For the year ended June 30, 2022
Equipment Total
Insurance Services and Compensated Internal Service
Reserves Replacement Absences Funds
ASSETS
Current assets:
Cash and investments $ 49,671,087 $ 3,807,444 $ 1,079,336 $ 54,557,867 Receivables:
Accounts, net - 3,312 - 3,312
Interest 29,982 2,093 - 32,075
Grants 3,290,326 - - 3,290,326
Total current assets 52,991,395 3,812,849 1,079,336 57,883,580 Noncurrent assets:
Capital assets:
Depreciable - 31,213,838 - 31,213,838
Less accumulated depreciation - (20,988,195) - (20,988,195) Net capital assets - 10,225,643 - 10,225,643
Total noncurrent assets - 10,225,643 - 10,225,643
Total assets 52,991,395 14,038,492 1,079,336 68,109,223
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 232,347 - - 232,347 Deferred outflows of resources - OPEB 26,903 - - 26,903 Total deferred outflows of resources 259,250 - - 259,250
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 983,366 2,342 - 985,708 Interest payable - 8,485 - 8,485
Compensated absences - current 66,303 - - 66,303
Claims payable - current 14,606,071 - - 14,606,071
Long-term debt - current - 261,947 - 261,947
Total current liabilities 15,655,740 272,774 - 15,928,514 Noncurrent liabilities:
Claims payable 36,486,531 - - 36,486,531
Long-term debt - 1,474,133 - 1,474,133
Net pension liability - 1,124,702 - 1,124,702
Net OPEB liability 612,742 - - 612,742
Total noncurrent liabilities 38,223,975 1,474,133 - 39,698,108 Total liabilities 53,879,715 1,746,907 - 55,626,622
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 709,898 - - 709,898 Deferred inflows of resources - OPEB 291,715 - - 291,715 Total deferred inflows of resources 1,001,613 - - 1,001,613
NET POSITION (DEFICIT)
Net investment in capital assets - 8,489,563 - 8,489,563 Unrestricted (1,630,683) 3,802,022 1,079,336 3,250,675
Total net position $ (1,630,683) $ 12,291,585 $ 1,079,336 $ 11,740,238 232
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2022
Equipment Total
Insurance Services and Compensated Internal Service
Reserves Replacement Absences Funds
OPERATING REVENUES:
Service charges - internal $ 17,113,205 $ 2,416,000 $ 2,600,000 $ 22,129,205 Other - 101,003 - 101,003
Total operating revenues 17,113,205 2,517,003 2,600,000 22,230,208 OPERATING EXPENSES:
Salaries and benefits (1,878,475) - 2,431,615 553,140
General and administrative 1,151,902 - - 1,151,902
Maintenance 7,744,626 (201,092) - 7,543,534
Depreciation - 2,254,908 - 2,254,908
Claims losses 21,145,703 - - 21,145,703
Total operating expenses 28,163,756 2,053,816 2,431,615 32,649,187 OPERATING INCOME (LOSS) (11,050,551) 463,187 168,385 (10,418,979) NONOPERATING REVENUES (EXPENSES):
Gain (loss) from retirement of capital assets - (3,361) - (3,361) Interest income 241,212 6,788 - 248,000
Grants 7,217,327 - - 7,217,327
Interest expense - (72,836) - (72,836)
Total nonoperating revenues (expenses) 7,458,539 (69,409) - 7,389,130 Income (loss) before
contributions and transfers (3,592,012) 393,778 168,385 (3,029,849) CONTRIBUTIONS AND TRANSFERS:
Capital contributions - 1,358,413 - 1,358,413
Transfers in - 601,018 - 601,018
Total contributions and transfers - 1,959,431 - 1,959,431 Change in net position (3,592,012) 2,353,209 168,385 (1,070,418) NET POSITION:
Beginning of year, as restated 9,938,376 1,961,329 910,951 12,810,656 End of year $ (1,630,683) $ 12,291,585 $ 1,079,336 $ 11,740,238 233
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022
Equipment Total
Insurance Services and Compensated Internal Service
Reserves Replacement Absences Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services $ 17,122,205 $ 2,513,691 $ 2,600,000 $ 22,235,896 Payments to suppliers (9,522,895) 203,434 - (9,319,461) Payments to employees (1,030,138) - (2,431,615) (3,461,753) Insurance premiums and claims paid (14,445,440) - - (14,445,440) Net cash provided by (used in) operating activities (7,876,268) 2,717,125 168,385 (4,990,758)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Interfund receipts (payments) - 2,580,535 - 2,580,535
Transfers in - 601,018 - 601,018
Net cash provided by (used in)
noncapital financing activities 601,018 2,580,535 - 3,181,553
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Grant receipts 3,927,001 - - 3,927,001
Acquisition of capital assets - (736,759) - (736,759)
Principal payments on capital debt - (251,950) - (251,950) Interest paid - (74,068) - (74,068)
Net cash provided by (used in)
capital and related financing activities 3,927,001 (1,062,777) - 2,864,224 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest 227,360 4,757 - 232,117
Net cash provided by (used in) investing activities 227,360 4,757 - 232,117 Net cash flows (1,141,372) 2,260,123 168,385 1,287,136
CASH AND INVESTMENTS - Beginning of year 1,547,321 50,812,459 910,951 53,270,731 CASH AND INVESTMENTS - End of year $ 3,807,444 49,671,087 $ 1,079,336 $ 54,557,867 $ - - - -
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ (11,050,551) $ 463,187 $ 168,385 $ (10,418,979) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation expense - 2,254,908 - 2,254,908
Changes in assets and liabilities:
Receivables, net 9,000 (3,312) - 5,688
Prepaids and other assets - - - -
Accounts payable and accrued liabilities (626,367) 2,342 - (624,025) Compensated absences payable (44,924) - - (44,924)
Claims payable - 6,700,263 - 6,700,263
Net pension liability and deferred outflows/inflows (1,657,674) - - (1,657,674) Net OPEB liability and deferred outflows/inflows (1,206,015) - - (1,206,015) Net cash provided by (used in) operating activities $ (7,876,268) $ 2,717,125 $ 168,385 $ (4,990,758) 234
3-21-23, CC Mtg.
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.
235
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Fiduciary Net Position
Pension Trust Funds
June 30, 2022
General Police and Garfield
Pension Firemen's Pension Pension Total
ASSETS
Restricted cash and investments $ 1,069,561 $ 53,324 $ 23,671 $ 1,146,556 Local Agency Investment Fund - - 184,164 184,164
Mutual fund investments - 10,001,639 - 10,001,639
Interest receivable 704 142 20 866
Total assets 1,070,265 10,055,105 207,855 11,333,225
NET POSITION:
Restricted for employees' pension and OPEB benefits 1,070,265 10,055,105 207,855 11,333,225 Total net position $ 1,070,265 $ 10,055,105 $ 207,855 $ 11,333,225 Pension
236
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds
For the year ended June 30, 2022
General Police and Garfield
Pension Firemen's Pension Pension Total
ADDITIONS:
Contributions to trust - employers $ 345,348 $ - $ 12,408 $ 357,756 Net investment income:
Net increase (decrease) in fair value of investments 502 (2,097,001) (2,382) (2,098,881) Interest income 3,116 235,257 631 239,004
Less investment management fees - (77,258) - (77,258)
Total additions 348,966 (1,939,002) 10,657 (1,579,379)
DEDUCTIONS:
Pension benefits 371,727 1,119,740 51,807 1,543,274
Total deductions 371,727 1,119,740 51,807 1,543,274
Change in net position (22,761) (3,058,742) (41,150) (3,122,653) NET POSITION:
Beginning of year 1,093,026 13,113,847 249,005 14,455,878 End of year $ 1,070,265 $ 10,055,105 $ 207,855 $ 11,333,225 Pension
237
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2022
Successor
Agency to the
Richmond Community
Pt. Molate Redevelopment Agency Total
ASSETS
Cash and investments - $ $ 6,909,914 $ 6,909,914
Restricted cash and investments 1,458,779 16,667,383 18,126,162 Accounts receivable - 523 523
Interest receivable 6 - 6
Prepaids and other assets - 5,485,179 5,485,179
Total assets 1,458,785 29,062,999 30,521,784
DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - 391,179 391,179 Total deferred outflows of resources - 391,179 391,179
LIABILITIES
Accounts payable and accrued liabilities 167,655 66,551 234,206 Interest payable - 593,945 593,945
Long-term debt:
Due within one year - 6,590,000 6,590,000
Due in more than one year - 47,043,648 47,043,648
Total liabilities 167,655 54,294,144 54,461,799
NET POSITION:
Held in trust for other governments 1,291,130 (24,839,966) (23,548,836) Total net position $ 1,291,130 $ (24,839,966) $ (23,548,836) 238
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the year ended June 30, 2022
Successor
Agency to the
Richmond Community
Pt. Molate Redevelopment Agency Total
ADDITIONS:
Property taxes $ - $ 8,306,100 $ 8,306,100
Interest income 231 218,764 218,995
Gain from sale of property - 954,500 954,500
Total additions 231 9,479,364 9,479,595
DEDUCTIONS:
Community development - 1,459,882 1,459,882
Payments in accordance with trust agreements 903,639 - 903,639 Interest and fiscal charges - 2,052,525 2,052,525
Total deductions 903,639 3,512,407 4,416,046
Change in net position (903,408) 5,966,957 5,063,549
NET POSITION:
Beginning of year 2,194,538 (30,806,923) (28,612,385)
End of year $ 1,291,130 $ (24,839,966) $ (23,548,836)
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3-21-23, CC Mtg.
City of Richmond
Subcombining Statement of Fiduciary Net Position
Successor Agency to the Richmond Community Redevelopment Agency June 30, 2022
Redevelopment
Property Tax Capital Bond Funded
Trust Fund Administration Projects Capital Projects
ASSETS
Cash and investments $ 467 2,558,733 $ $ 4,350,714 $ -
Restricted cash and investments - - 3,485,447 -
Accounts receivable - - 523 -
Prepaids and other assets - - 5,485,179 -
Total assets 2,558,733 467 13,321,863 -
DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - - - - Total deferred outflows of resources - - - -
LIABILITIES
Accounts payable and accrued liabilities - 467 66,084 - Interest payable - - - -
Long-term debt:
Due within one year - - - -
Due in more than one year - - - -
Total liabilities - 467 66,084 -
NET POSITION:
Held in trust for successor agency 2,558,733 - 13,255,779 - Total net position $ 2,558,733 $ 13,255,779 - $ $ -
240
3-21-23, CC Mtg.
Bond Intrafund
Payments Eliminations Total
$ - $ 6,909,914 - $
13,181,936 - 16,667,383
- - 523
- - 5,485,179
13,181,936 - 29,062,999
391,179 - 391,179
391,179 - 391,179
- - 66,551
593,945 - 593,945
6,590,000 - 6,590,000
47,043,648 - 47,043,648
54,227,593 - 54,294,144
(40,654,478) - (24,839,966)
$ (40,654,478) $ (24,839,966) - $
241
3-21-23, CC Mtg.
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, 2022
Redevelopment
Property Tax Capital Bond Funded
Trust Fund Administration Projects Capital Projects
ADDITIONS:
Property taxes $ 8,306,100 $ - $ - $ -
Net investment income:
Interest income - - 118,263 -
Less investment management fees - - - -
Transfers from other funds - 409,709 48,613 -
Gain from sale of property - - 954,500 -
Total additions 8,306,100 409,709 1,121,376 -
DEDUCTIONS:
Community development - 409,709 473,232 -
Interest and fiscal charges - - - -
Transfers to other funds 10,913,829 - 30,067 -
Total deductions 10,913,829 409,709 503,299 -
Change in net position (2,607,729) - 618,077 -
NET POSITION:
Beginning of year 5,166,462 - 12,637,702 -
End of year $ 2,558,733 $ 13,255,779 - $ $ -
242
3-21-23, CC Mtg.
Bond Intrafund
Payments Eliminations Total
$ - $ 8,306,100 - $
100,501 - 218,764
- - -
10,500,574 (10,958,896) -
- - 954,500
10,601,075 (10,958,896) 9,479,364
576,941 - 1,459,882
2,052,525 - 2,052,525
15,000 (10,958,896) -
2,644,466 (10,958,896) 3,512,407
7,956,609 - 5,966,957
(48,611,087) - (30,806,923)
$ (40,654,478) $ (24,839,966) - $
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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 interest on prior assessment bonds, and makes payment on the JPFA Reassessment Revenue Bonds Series A and B. 245
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2022
Special General Johnson
Assessment Agency Library
ASSETS
Cash and investments $ 895,475 $ 2,861,960 $ 10,799
Restricted cash and investments 342,267 18,161 -
Interest receivable 529 1,779 7
Total assets 1,238,271 2,881,900 10,806
LIABILITIES
Accounts payable and accrued liabilities - - -
Total liabilities - - -
NET POSITION
Restricted for:
Individuals, organizations, and
other governments 1,238,271 2,881,900 10,806
Total net position $ 1,238,271 $ 2,881,900 $ 10,806
246
3-21-23, CC Mtg.
2016 A&B Total
Senior JPFA Reassessment Custodial
Center Reassessment District Funds
$ 64,292 $ 1,851,403 $ 740,712 $ 6,424,641
- - 187,154 547,582 39 1,158 392 3,904
64,331 1,852,561 928,258 6,976,127 4,801 - - 4,801 4,801 - - 4,801 59,530 1,852,561 928,258 6,971,326 $ 59,530 $ 1,852,561 $ 928,258 $ 6,971,326
247
3-21-23, CC Mtg.
City of Richmond
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
Special General Johnson
Assessment Agency Library
ADDITIONS:
Property taxes $ 318,947 $ - $ -
Contributions - 265,011 -
Net investment income:
Interest income 2,879 9,343 37
Total additions 321,826 274,354 37
DEDUCTIONS:
Interest and fiscal charges 321,448 - -
Other - 98,728 -
Total deductions 321,448 98,728 -
Change in net position 378 175,626 37
NET POSITION:
Beginning of year 1,237,893 2,706,274 10,769
End of year $ 1,238,271 $ 2,881,900 $ 10,806
248
3-21-23, CC Mtg.
2016 A&B Total
Senior JPFA Reassessment Custodial
Center Reassessment District Funds
$ - $ - $ 889,454 $ 1,208,401
14,686 - - 279,697
218 6,418 2,259 21,154
14,904 6,418 891,713 1,509,252
- - 1,591,472 1,912,920
18,357 - - 117,085
18,357 - 1,591,472 2,030,005
(3,453) 6,418 (699,759) (520,753)
62,983 1,846,143 1,628,017 7,492,079
$ 59,530 $ 1,852,561 $ 928,258 $ 6,971,326
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STATISTICAL
SECTION (UNAUDITED)
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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 information to help the reader assess 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:
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:
CITY OF RICHMOND
JUNE 30, 2022
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 statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
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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, 2022
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CITY OF RICHMOND
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30
2013 (b) (c) 2014 2015 (d) 2016 2017
Governmental activities
Net investment in capital assets $214,572,546 $227,828,243 $218,144,811 $228,292,389 $233,619,046 Restricted 55,396,056 50,461,923 54,578,939 70,322,707 76,810,440 Unrestricted (119,231,699) (148,161,106) (479,961,080) (508,981,299) (504,602,583) Total governmental activities net position $150,736,903 $130,129,060 ($207,237,330) ($210,366,203) ($194,173,097) Business-type activities
Net investment in capital assets $76,966,448 $72,911,000 $74,922,303 $63,405,228 $71,000,240 Restricted 9,196,255 9,793,767 9,408,237 9,008,038 9,441,288 Unrestricted (6,365,742) (3,096,845) (18,432,590) (23,382,659) (24,096,174) Total business-type activities net position $79,796,961 $79,607,922 $65,897,950 $49,030,607 $56,345,354 Primary government
Net investment in capital assets $291,538,994 $300,739,243 $293,067,114 $291,697,617 $304,619,286 Restricted 64,592,311 60,255,690 63,987,176 79,330,745 86,251,728 Unrestricted (125,597,441) (151,257,951) (498,393,670) (532,363,958) (528,698,757) Total primary government net position $230,533,864 $209,736,982 ($141,339,380) ($161,335,596) ($137,827,743) (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
$600,000
2013 (b)
(c)
2014 2015 (d) 2016 2017
Thousands
Net Investment in Capital Assets Restricted Unrestricted 256
3-21-23, CC Mtg.
Fiscal Year Ended June 30
2018(e) 2019 2020 2021 2022
$221,336,363 $211,717,676 $205,374,054 $206,419,763 $213,930,154 87,380,363 93,157,922 93,703,974 103,401,613 117,136,516 (625,067,289) (644,341,826) (597,270,745) (568,565,683) (491,415,035) ($316,350,563) ($339,466,228) ($298,192,717) ($258,744,307) ($160,348,365) $68,213,687 $52,161,380 $64,270,898 $75,738,268 $75,469,292 9,514,522 9,440,965 1,517,087 13,859,999 607,958
(27,908,968) (8,644,683) (1,045,003) (1,417,443) 37,774,604 $49,819,241 $52,957,662 $64,742,982 $88,180,824 $113,851,854 $289,550,050 $263,879,056 $269,644,952 $282,158,031 $289,399,446 96,894,885 102,598,887 95,221,061 117,261,612 117,744,474 (652,976,257) (652,986,509) (598,315,748) (569,983,126) (453,640,431) ($266,531,322) ($286,508,566) ($233,449,735) ($170,563,483) ($46,496,511) 257
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CITY OF RICHMOND
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 (b) 2014 2015 (c) 2016 2017
Expenses
Governmental Activities:
General Government $35,272,517 $36,119,297 $28,879,074 $32,197,941 $34,851,005 Public Safety 97,136,602 102,664,551 102,732,652 107,380,286 104,919,259 Public Works 46,011,618 46,403,830 43,363,799 44,410,102 41,558,084 Community Development 4,909,158 4,618,101 4,771,875 5,003,045 3,290,142 Cultural and Recreational 12,129,962 10,808,931 10,492,020 11,021,226 10,996,526 Housing and Redevelopment 2,816,094 1,984,908 2,751,290 2,051,898 7,449,423 Interest and Fiscal Charges 15,411,831 19,439,248 17,219,905 18,902,831 16,387,887 Total Governmental Activities Expenses 213,687,782 222,038,866 210,210,615 220,967,329 219,452,326 Business-Type Activities:
Richmond Housing Authority 28,992,229 29,771,151 28,049,474 26,385,133 26,241,916 Port of Richmond 9,337,252 9,530,693 9,923,282 11,132,997 10,102,104 Richmond Marina 266,918 253,190 235,054 237,129 230,621 Municipal Sewer 16,964,175 16,298,623 15,965,608 16,446,626 17,720,735 Storm Sewer 2,815,541 3,210,678 3,282,406 2,465,929 2,320,723 Cable TV 990,802 890,846 948,426 2,114,436 1,028,185
Total Business-Type Activities Expenses 59,366,917 59,955,181 58,404,250 58,782,250 57,644,284 Total Primary Government Expenses $273,054,699 $281,994,047 $268,614,865 $279,749,579 $277,096,610 Program Revenues
Governmental Activities:
Charges for Services:
General Government $11,596,612 $16,917,113 $11,107,654 $12,468,525 $15,543,381 Public Safety 5,400,290 6,217,749 10,466,292 7,271,472 8,932,212 Public Works 3,090,211 4,160,804 3,609,577 3,936,242 4,796,586 Community Development 234,836 405,404 1,385,689 1,069,767 615,388 Cultural and Recreational 516,499 584,475 475,091 1,128,267 1,252,192 Housing and Redevelopment 42,040
Operating Grants and Contributions 9,703,416 8,434,018 9,231,039 20,994,534 16,083,370 Capital Grants and Contributions 11,360,153 34,530,908 21,097,186 17,534,992 14,008,833 Total Government Activities Program Revenues 41,902,017 71,250,471 57,372,528 64,445,839 61,231,962 Business-Type Activities:
Charges for Services:
Richmond Housing Authority 2,619,669 2,638,834 1,917,602 1,851,337 3,067,020 Port of Richmond 9,043,026 10,201,751 9,480,367 10,581,419 10,182,777 Municipal Sewer 17,733,454 18,569,191 19,033,406 19,757,863 20,767,925 Richmond Marina 466,921 456,956 488,201 517,108 540,567 Storm Sewer 1,842,001 1,869,064 1,845,648 1,966,537 1,992,758 Cable TV 1,320,552 1,228,864 1,376,194 1,320,486 1,339,104 Operating Grants and Contributions 22,323,336 21,953,401 22,112,391 21,951,328 22,636,922 Capital Grants and Contributions 10,087,538 1,673,398 2,189,724 2,155,686 969,910 Total Business-Type Activities Program Revenue 65,436,497 58,591,459 58,443,533 60,101,764 61,496,983 Total Primary Government Program Revenues $107,338,514 $129,841,930 $115,816,061 $124,547,603 $122,728,945 Net (Expense)/Revenue
Governmental Activities ($171,785,765) ($150,788,395) ($152,838,087) ($156,521,490) ($158,220,364) Business-Type Activities 6,069,580 (1,363,722) 39,283 1,319,514 3,852,699 Total Primary Government Net Expense ($165,716,185) ($152,152,117) ($152,798,804) ($155,201,976) ($154,367,665) General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes:
Current Collections $47,207,734 $42,226,820 $45,129,392 $51,302,638 $56,588,547 Sales Taxes 29,865,548 29,627,711 33,155,376 40,877,125 41,620,189 Utility User Taxes 48,398,349 48,033,706 48,299,958 43,365,249 44,966,489 Documentary Transfer Taxes 2,957,834 3,461,473 4,818,936 6,187,096 7,452,985 Other Taxes 3,289,518 3,592,218 5,099,511 5,734,802 5,329,465 Unrestricted Intergovernmental 44,814 1,806,532 43,312 49,448 Use of Money and Property 11,331,823 (1,164,987) (4,752,198) 1,198,266 12,230,256 Gain From Sale of Capital Assets 174,874 268,927 262,667 64,651 Miscellaneous 3,461,402 3,229,898 2,151,042 4,258,061 5,138,724 Pension Stabilization Revenue 2,549,922 998,839 954,202 915,860 885,938 Developer Revenue Sharing
Transfers (590,394) 178,487 600,000 86,778
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 (5,328,244)
Total Government Activities 143,188,306 130,180,552 137,110,165 153,392,617 174,413,470 Business-Type Activities:
Taxes:
Property Taxes
Use of Money and Property 4,054,073 (185,246) (563,129) (3,076,857) 3,548,826 Settlement
Other
Special Item (14,510,000)
Transfers 590,394 (178,487) (600,000) (86,778)
Extraordinary Items 9,023,704 1,359,929
Total Business-Type Activities 13,668,171 1,174,683 (741,616) (18,186,857) 3,462,048 Total Primary Government $156,856,477 $131,355,235 $136,368,549 $135,205,760 $177,875,518 Change in Net Position
Governmental Activities ($28,597,459) ($20,607,843) ($15,727,922) ($3,128,873) $16,193,106 Business-Type Activities 19,737,751 (189,039) (702,333) (16,867,343) 7,314,747 Total Primary Government ($8,859,708) ($20,796,882) ($16,430,255) ($19,996,216) $23,507,853 (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 restated. (d) The City implemented the provisions of GASB Statement No. 75 in fiscal year 2018. Years prior to 2018 have not been restated. 258
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Fiscal Year Ended June 30
2018 (d) 2019 2020 2021 2022
$45,715,329 $45,626,305 $43,495,871 $46,917,122 $48,312,143 114,932,219 116,621,006 108,947,688 94,378,715 68,259,779 48,617,290 49,893,124 45,051,479 33,979,639 35,554,874
4,589,328 5,791,630 4,115,214 4,534,280 3,552,363
14,280,985 15,074,312 10,409,881 9,006,470 9,969,799
3,442,239 2,676,897 2,807,611 3,007,152 3,375,875
16,127,479 15,380,005 14,896,558 12,825,356 12,322,289
247,704,869 251,063,279 229,724,302 204,648,734 181,347,122 30,978,813 36,766,319 5,834,686 3,607,603 (1,750,799)
10,257,553 8,811,486 7,744,773 6,263,232 4,763,557
327,442 273,929 21,767,690 20,466,640 246,064
21,696,370 19,259,997 241,445 227,391 18,140,943
1,661,808 1,643,453 1,965,353 1,796,422 1,282,576
1,697,155 973,747 671,790 788,957 664,656
66,619,141 67,728,931 38,225,737 33,150,245 23,346,997
$314,324,010 $318,792,210 $267,950,039 $237,798,979 $204,694,119 $16,838,782 $15,310,347 $13,211,033 $13,777,010 $18,422,370 8,147,458 7,124,227 6,631,900 3,674,412 3,448,026
6,529,172 5,118,216 7,792,157 7,198,221 4,405,851
1,748,222 1,603,581 827,055 665,999 110,552
1,545,399 2,200,702 1,111,472 814,073 577,978
1,878,958 2,189,703
20,556,989 20,514,833 25,354,387 29,316,141 37,756,494
10,471,376 5,778,572 4,987,273 4,386,950 10,787,022
67,716,356 59,840,181 59,915,277 59,832,806 75,508,293
1,740,399 3,329,072 841,319 861,943 782,951
10,580,246 10,629,229 10,454,061 10,704,024 10,530,653
22,447,439 24,476,967 27,934,684 27,759,474 28,168,977
537,438 602,591 564,988 574,453 524,652
2,068,110 1,942,171 2,087,561 2,103,928 2,061,815
1,281,952 1,240,754 1,203,837 1,145,936 1,103,873
26,098,804 28,666,300 4,027,791 3,771,674 2,211,712
1,155,536 2,170,137 322,164 13,167
65,909,924 73,057,221 47,436,405 46,934,599 45,384,633
$133,626,280 $132,897,402 $107,351,682 $106,767,405 $120,892,926 ($179,988,513) ($191,223,098) ($169,809,025) ($144,815,928) ($105,838,829) (709,217) 5,328,290 9,210,668 13,784,354 22,037,636
($180,697,730) ($185,894,808) ($160,598,357) ($131,031,574) ($83,801,193) 59,441,796 60,592,022 63,004,942 65,075,408 65,248,507
44,474,973 47,659,481 44,537,156 48,998,406 53,453,323
46,079,755 45,905,937 45,552,523 45,240,705 48,373,587
6,486,347 8,011,672 8,707,564 19,857,680 18,612,087
6,144,968 6,227,213 7,127,375 7,424,135 8,176,511
58,842 4,705,047 5,367,784 6,593,602 7,241,103
7,000,785 (6,825,744) 2,946,978 1,461,004 1,593,846
39,226 71,779 82,036 71,458 88,477
4,195,794 1,980,973 1,992,600 1,357,022 2,140,211
86,778 (220,947) 86,778 (11,279,988) (3,516,663)
1,208,259
175,217,523 168,107,433 179,405,736 184,799,432 201,410,989 3,431,293 (1,015,459) 770,319 145,810 909,597
(86,778) 220,947 (86,778) 11,279,988 3,516,663
3,344,515 (794,512) 683,541 11,425,798 4,426,260
$178,562,038 $167,312,921 $180,089,277 $196,225,230 $205,837,249 ($4,770,990) ($23,115,665) $9,596,711 $39,983,504 $95,572,160 2,635,298 4,533,778 9,894,209 25,210,152 26,463,896
($2,135,692) ($18,581,887) $19,490,920 $65,193,656 $122,036,056 259
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CITY OF RICHMOND
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 (b) 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $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 $14,242,186 Restricted $1,505,053
Committed $1,500,000 $9,800,000 $3,383,453
Assigned 219,646 56,786 23,934 4,460 10,013 72,506 63,180 113,349 2,436,475 6,397,688 Unassigned 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 44,935,389 Total General Fund $36,825,337 $27,541,828 $28,681,736 $29,397,395 $35,416,890 $35,630,923 $36,768,554 $38,646,231 $49,114,042 $70,463,769 (a) All Other Governmental Funds
Nonspendable $484 $550
Restricted $42,117,459 $39,066,351 41,017,602 53,752,247 $56,052,014 $64,125,353 $72,865,392 $75,880,927 $80,161,994 $88,191,500 Committed
Assigned 1,734,260 428,766 430,083 431,867 782,617 43,906 44,602 45,264 2,521,099 45,618 Unassigned (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) (1,375,327) Total all other governmental funds $29,494,607 $23,995,127 $31,693,039 $40,360,231 $44,644,243 $55,229,478 $67,506,239 $73,925,889 $81,005,318 $86,861,791 (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
$160
2013 (b) 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned 260
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2013 2014 2015 2016 2017
Revenues
Property taxes $48,518,328 $43,559,305 $46,498,061 $52,714,540 $58,042,766 Sales taxes 29,865,548 29,627,711 33,131,486 40,877,125 41,620,189 Utility user fees 48,398,349 48,033,706 48,299,958 43,365,249 44,966,489 Other taxes 6,247,352 7,053,691 9,918,447 11,628,519 12,566,579 Licenses, permits and fees 11,830,426 7,713,634 12,409,625 12,235,483 16,577,695 Developer revenue sharing
Fines, forfeitures and penalties 617,509 821,411 1,353,518 901,838 1,065,421 Use of money and property 557,936 153,958 225,529 212,787 422,324 Intergovernmental 19,995,922 17,078,035 19,228,997 14,440,543 19,913,858 Private grants 12,971,138 5,000,000
Charges for services 9,350,051 20,022,968 13,607,840 13,462,270 15,947,909 Pension stabilization revenue 2,549,922 998,839 954,202 915,860 885,938 Rent 681,141 708,626 809,113 768,753 839,821
Other 2,703,133 2,845,117 1,977,688 4,300,150 5,472,719 Total Revenues 181,315,617 178,617,001 188,414,464 208,794,255 223,321,708 Expenditures
Current:
General government 33,251,610 32,005,878 29,786,089 31,819,369 36,973,645 Public safety 87,573,539 91,676,955 90,219,981 94,774,545 95,479,682 Public works 26,065,996 26,363,885 25,806,437 25,690,663 30,327,553 Community development 4,709,478 4,357,885 4,586,333 4,843,687 6,374,607 Cultural and recreational 11,175,362 10,223,708 10,021,481 10,551,337 10,786,216 Housing and redevelopment 3,089,640 2,266,265 2,625,533 3,038,135 7,672,540 SERAF
Capital outlay 15,704,486 14,365,888 8,178,649 8,566,563 3,667,134 Debt service:
Principal repayment 8,691,629 6,775,769 7,842,830 9,148,909 9,966,416 Interest and fiscal charges 7,504,922 10,989,996 13,407,604 12,503,442 11,471,169 Swap termination payment 28,554,000
Total Expenditures 197,766,662 199,026,229 192,474,937 229,490,650 212,718,962 Excess (deficiency) of revenues over
(under) expenditures (16,451,045) (20,409,228) (4,060,473) (20,696,395) 10,602,746 Other Financing Sources (Uses)
Proceeds from sale of property 53,618 174,874 268,927 262,667 181,022 Transfers in 21,145,031 20,145,264 12,879,975 12,124,166 18,770,780 Transfers out (19,666,470) (20,859,344) (13,815,569) (12,091,206) (19,251,041) Payment to refund bond escrow agent
Issuance of long-term debt 2,621,558 6,165,445 11,175,436 28,390,000 Bond issuance premium 106,740 82,880 1,393,619
Total other financing sources (uses) 4,260,477 5,626,239 10,591,649 30,079,246 (299,239) Special and Extraordinary Items
Assets transferred to/liabilities assumed by
Housing Successor/Successor Agency
Transfer of loans to housing successor
Interfund advance restructuring 745,119
Total Special and Extraordinary Items 745,119
Net Change in fund balances ($11,445,449) ($14,782,989) $6,531,176 $9,382,851 $10,303,507 Debt service as a percentage of
noncapital expenditures 8.7% 9.4% 11.4% 9.8% 10.3%
CITY OF RICHMOND
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
262
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2018 2019 2020 2021 2022
$60,963,189 $66,816,032 $68,285,321 $70,294,487 $72,362,382 44,474,973 47,659,481 44,537,156 48,998,406 53,453,323
46,079,755 45,905,937 45,552,523 45,240,705 48,373,588
12,413,127 14,020,347 15,619,151 27,066,292 26,573,077
21,552,883 18,865,730 15,385,538 18,316,552 20,710,335
1,001,927 964,255 815,910 455,470 407,493
746,525 1,302,922 1,302,020 472,216 622,268
20,137,593 17,691,976 24,284,779 23,912,334 28,014,581
9,000,000 9,000,000
17,045,201 16,625,733 16,807,806 15,371,589 13,551,503
852,940 988,741 892,579 699,301 723,596
4,418,779 2,999,947 1,998,535 1,491,314 2,157,113
238,686,892 242,841,101 235,481,318 252,318,666 266,949,259 44,009,256 42,470,628 47,122,400 47,429,988 48,844,022
96,546,035 99,824,574 100,037,206 97,682,457 96,752,490 35,016,495 37,133,097 34,207,196 32,067,844 33,922,641
8,057,638 5,126,848 5,189,613 5,606,322 5,680,870
11,347,436 12,713,460 11,482,027 9,717,875 10,583,266
1,942,637 3,436,988 3,544,492 3,225,876 3,357,987
10,000,595 5,774,234 4,871,461 6,135,189 13,403,045
11,032,933 12,518,807 12,552,283 14,423,082 17,234,527
10,785,342 10,026,887 10,431,652 7,044,795 6,117,847
228,738,367 229,025,523 229,438,330 223,333,428 235,896,695 9,948,525 13,815,578 6,042,988 28,985,238 31,052,564
39,226 71,779 82,036 71,458 88,477
14,472,164 19,215,848 18,336,677 15,524,305 20,744,118
(14,868,906) (19,688,813) (18,221,126) (27,033,761) (24,861,799) (77,315,000)
79,171,752
(357,516) (401,186) 2,054,339 (11,437,998) (4,029,204)
1,208,259
1,208,259
$10,799,268 $13,414,392 $8,097,327 $17,547,240 $27,023,360
10.0% 10.2% 10.3% 9.9% 10.5%
Fiscal Year Ended June 30,
263
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CITY OF RICHMOND
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(In Thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
ASSESSED VALUE (1)
Land $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 $6,573,641 Improvements 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 10,494,291 Total Real Property 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 17,067,932 Personal Property 795,573 53,195 460,661 669,634 585,832 $589,457 $584,968 $617,157 $652,386 $635,202 TOTAL $13,280,654 $10,453,101 $12,429,550 $13,539,643 $14,322,848 $14,937,014 $16,137,560 $16,720,799 $17,471,611 17,703,134.00 EXEMPTIONS(2)
Homeowners
(a) $104,144 $100,680 $98,456 $96,539 $95,052 $94,266 $93,219 $91,907 $91,372 $91,348 Other(b) 519,976 527,179 587,350 641,475 688,713 760,841 809,325 932,222 1,008,837 1,214,858 TOTAL $624,120 $627,859 $685,806 $738,014 $783,765 $855,107 $902,544 $1,024,129 $1,100,209 $1,306,206
ASSESSED VALUE
(Net of Exemptions) $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 $16,396,928 Redevelopment Tax
Increments(3) 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 3,175,294
NET ASSESSED
VALUE $11,098,301 $8,230,209 $9,943,913 $10,745,818 $11,290,341 $11,514,846 $12,342,193 $12,521,376 $13,196,108 $13,221,634
NET INCREASE
(DECREASE) $1,855,654 ($2,868,092) $1,713,704 $801,905 $544,523 $224,505 $827,347 $179,183 $853,915 $700,258 % OF INCREASE
(DECREASE) 20.08% -25.84% 20.82% 8.06% 5.07% 1.99% 7.19% 1.45% 6.92% 5.59% Total Direct Tax Rate(4) 0.38653% 0.41948% 0.41930% 0.43781% 0.43675% 0.43591% 0.43540% 0.43473% 0.43360% 0.43360% (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
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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 (2) 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 2022 1.00000 0.14000 0.00600 0.00200 0.00000 0.00000 0.00000 0.29390 0.01760 1.45950 NOTES:
(1) In 1978, California voters passed Proposition 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) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest next taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.
(4) Redevelopment 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. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
(5) Total Direct Rate is the weighted average of all individual direct rates applied by the City 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 of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
Source: County of Contra Costa Assessor
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Hundred $
Series7 Series3 Series1 Series4 Series5 Series9 Series6 Series2 Series8 266
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City's
Share of General Total
1% Levy Per Obligation Debt Redevelopment Direct
Prop 13 (3) Rate Rate (4) Rate (5)
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
0.28784 0.14000 0.00000 0.43360
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CITY OF RICHMOND
Principal Property Tax Payers
Current Year and Nine Years Ago
(In Thousands)
2021-2022 2012-2013
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Type of Business Value Rank Value Value Rank Value Chevron USA Inc. Industrial $3,112,362 1 18.98% $5,194,308 1 41.04% Guardian KW Hilltop LLC Residential 212,657 2 1.30% 143,382 2 1.13% LIPT Giant Road Inc. Industrial 90,150 3 0.55%
Richmond Essex, LP Residential 82,699 4 0.50% 60,694 5 0.48% Kaiser Foundation Hospitals Industrial 82,557 5 0.50% 76,677 3 0.61% Transmontaigne Partners LP Industrial 58,459 6 0.36%
2995 Atlas Road Associates LLC Industrial 57,921 7 0.35% IPT Richmond DC LP Industrial 56,909 8 0.35%
Exeter 700 702 National LP Institutional 50,138 9 0.31% Phillips 66 Company Industrial 50,132 10 0.31%
US Bank Commerical 75,184 4 0.59%
Biorichland LLC Industrial 59,777 6 0.47%
Cherokee Simeon Venture I LLC Commericial 46,477 7 0.37% Pacific Atlantic Terminals LLC Industrial 45,295 8 0.36% Auto Warehousing Company Unsecured 42,817 9 0.34%
Foss Maritime Company Unsecured 42,314 10 0.33%
Subtotal $3,853,984 23.50% $5,786,925 45.72%
Total Net Assessed Valuation:
Fiscal Year 2021-2022 $16,396,928
Fiscal Year 2012-2013 $12,656,534
Source: Contra Costa County Assessor Fiscal Year Combined Tax Rolls and the SBE Non Unitary Tax Roll 268