Richmond City Council
February 6, 2024

Grantee shall pay all taxes required on payments made under this Agreement including applicable income taxes and FICA.

22. Force Majeure: Neither the California State Library nor the Grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by the California State Library or the Grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party.

23. Forfeit of Grant Funds and Repayment of Funds Improperly Expended: If grant funds are not expended, or have not been expended, in accordance with this Agreement, the State Librarian or designee, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the Grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the ten percent (10%) withhold, and/or to repay to the California State Library any funds improperly expended.

24. Fringe Benefit Ineligibility: Grantee agrees that neither the Grantee nor its employees and contract personnel are eligible to participate in any employee pension, health benefit, vacation pay, sick pay or other fringe benefit plan of the State of California or the State Library.

25. Generally Accepted Accounting Principles: The Grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures.

26. Grant Monitor: The Grant Monitor’s responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to the California State Library pursuant to this Agreement.

The Grant Monitor may monitor Grantee performance to ensure Grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Monitor does not have the authority to approve any deviation from or revision to the Terms and Conditions (Exhibit A) or the Procedures and Requirements unless such authority is expressly stated in the Procedures and Requirements.

27. Grantee: the government or legal entity to which a grant is awarded and which is accountable to the California State Library for the use of the funds provided. a. The grantee will make reports to the State Librarian in such form and containing such information as may be required to ensure the proper used of funds consistent with the grantee’s application and award agreement. The grantee will keep such records and afford such access as DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 296
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the California State Library may find necessary to assure the correctness and verification of such reports.

28. Grantee Accountability: The Grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the Grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to the California State Library, the Grantee is responsible for repayment of the funds to the California State Library.

29. Grantee Funds: It is mutually agreed that the Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete the project.

30. Independent Action: Grantee reserves the right to fulfill its obligations under this Agreement in an independent manner, at any location and at any time within the agreed-upon timeline. Grantee’s employees or contract personnel shall perform all services required by this Agreement, but their time need not be devoted solely to fulfilling obligations under this Agreement. Grantee shall furnish all equipment and materials used to meet its obligations, and complete the Project. The State Library shall not provide any personnel or other resources beyond the grant award, and is not required to provide training in connection with this Agreement.

31. Indemnification: Grantee agrees to indemnify, defend and save harmless the State of California, the California State Library and its officers, employees, and agents, from any and all claims, losses, and liabilities accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Grantee in the performance of this Agreement.

32. License to Use: The California State Library reserves a fully paid-up, royalty-free, nonexclusive, sub-licensable and irrevocable license to reproduce, publish, prepare derivative works, distribute or otherwise use, and to authorize third parties to use, any material received or maintained by Grantee in connection with this Agreement. This includes intellectual property, with or without third- party rights. All such usages will be for public library and State governmental purposes:

a. The copyright in any work developed under this grant, sub-grant, or contract under this grant or sub-grant; and
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b. Any rights of copyright to which a Grantee, sub-grantee, or a contractor purchases ownership with grant support.

33. Limitation of Expenditure: Expenditure for all projects must conform to the grantee’s approved budget and with applicable State laws and regulations. The total amount paid by the California State Library to the Grantee under this agreement shall not exceed $250,000 and shall be expended/encumbered in the designated award period.

During the award period, the grantee may find that the awarded budget may need to be modified. Budget changes, requests for additional funds, or requests for reductions in award funding must be discussed with the assigned State Library Grant Monitor and a Grant Award Modification may be required to be submitted according to the instructions. Approval is by the State Librarian or their designee. Adjustments should be reported on the next financial report. Any adjustments in approved budgets must be documented and documentation retained in project accounts.

34. Lobbying: Grantee confirms that the grant funds will not be used for the purposes of lobbying or otherwise attempting to influence legislation, as those purposes are defined by the U.S. Internal Revenue Code of 1986.

35. Non-Discrimination Clause: During this grant period, the Grantee and the Grantee’s contractors, and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status. Grantee shall insure that the evaluation and treatment of contractors, employees and applicants for employment are free from such discrimination and harassment.

Additionally, Grantee, contractors, and subcontractors, if applicable, shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by the California State Library to implement such article.

Grantee shall permit access by representatives of the Department of Fair Employment and Housing and the California State Library upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the California State Library shall require ascertaining compliance with this clause. Grantee, and it’s contractors, and subcontractors shall give written notice of their obligations DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 298
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under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement.

36. Notices: All notices and other communications in connection with this Agreement shall be in writing, and shall be considered delivered as follows:
a. Electronic Mail (E-mail): When sent by e-mail to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
b. DocuSign (e-signature platform): When sent via DocuSign a notification will be sent to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
c. Grants Management System: When sent via / uploaded to the California State Library’s Grants Management System a notification will be sent to the last e-mail address of the recipient known to the party giving notice.

Notice is effective upon transmission.
d. Personally: When delivered personally to the recipient’s physical address as stated in this Agreement.
e. U.S. Mail: Five days after being deposited in the U.S. Mail, postage prepaid, and addressed to recipient’s address as stated in this Agreement.

37. Order of Precedence: The performance of this Agreement shall be conducted in accordance with the Terms and Conditions, Procedures and Requirements, Certificate of Compliance, Project Summary, Activities Timeline, and Budget, of this Agreement, or other combination of exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”).

Grantee’s California State Library-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply:
a. Grant Agreement Coversheet and any Amendments thereto b. Terms and Conditions
c. Procedures and Requirements
d. Certificate of Compliance
e. Project Summary
f. Grantee’s Application (including Budget and Activities Timeline) g. All other attachments hereto, including any that are incorporated by reference.

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38. Payment:
a. The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Project Summary and Activity Timeline included in the project application. California State Library shall provide funding to the Grantee for only the work and tasks specified in the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement.
b. The Grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget and shall obtain the Grant Monitor’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application, or the approved Budget prior to performing the changed work or incurring the changed cost. If the Grantee fails to obtain such prior written approval, the State Librarian or designee, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. c. The Grantee shall request funds in accordance with the funding schedule included in this agreement.
d. Ten percent (10%) will be withheld from the Payment Request (if applicable) and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld.
e. Lodgings, Meals and Incidentals: Grantee’s eligible costs are limited to the amounts authorized in the California State Administrative Manual (see Exhibit C or contact the Grant Monitor for more information). f. Payment will be made only to the Grantee.
g. Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements.

39. Personal Jurisdiction: The Grantee consents to personal jurisdiction in the State of California for all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

Native American Tribal grantees expressly waive tribal sovereign immunity as a defense to any and all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

40. Personnel Costs: Any personnel expenditures to be paid for with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for their DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 300
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regular job duties, including a proportionate share of any benefits to which the employee is entitled.

41. Pledge: This Agreement shall not be interpreted to create any pledge or any commitment by the State Library to make any other or further grants or contributions to Grantee, or any other person or entity in connection with the Project. It is mutually agreed that Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete outcomes or deliverables.

42. Privacy Protection: Both parties agree to protect the confidentiality of any non- public, personal information that may be contained in materials received or produced in connection with this Agreement, as required by Civil Code, section 1798, et. seq.

43. Prohibited Use: The expenditure under this program shall not be used to supplant Grantee efforts in other grant programs provided by the California State Library.

44. Public Records Act: Material maintained or used by the California State Library is considered “public record” under the Public Records Act (PRA) at Government Code, sections 6250, et. seq. This includes the Interim and Final reports, and any other written communications between the parties. Grantee agrees to ensure that all content contained in its written reports are appropriate for publication.

Said material, along with all other reports, documentation and data collected during the term of the Agreement, will be subject to disclosure unless it qualifies for exemption under the PRA in whole or in part. Grantee agrees to alert the State Library as to a basis for exemption, if any exists.

45. Publicity Obligations: Grantee will notify the State Library of any promotional materials or publications resulting from the grant no later than five (5) days in advance of distribution, whether they are print, film, electronic, or in any other format or medium. Copies of all promotional materials will be provided to the State Library. Grantee will acknowledge the State Library’s support as noted above. Grantee agrees that the State Library may include information about this grant and its outcomes in its own annual reports, with specific reference to Grantee, and may distribute such information to third parties.

46. Records: Communications, grant related documents, data, original receipts, and invoices must be maintained by Grantee and shall be made available to the State Library upon request. Grantee agrees to maintain adequate grant program records and adequate financial records consistent with generally accepted accounting practices, and to retain all records for at least five (5) years after the end-of-term. The State Library may monitor or conduct an onsite DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 301
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evaluation of Grantee’s operation to ensure compliance with this Agreement, with reasonable advance notice.

47. Reduction of Waste: In the performance of this Agreement, Grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate.

48. Reimbursement Limitations: Under no circumstances shall the Grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The Grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other California State Library funded program.

49. Reports and Claims: It is the responsibility of the grantee make the required reports and claims to the California State Library.
a. The grantee shall be responsible for submitting to the State Library Narrative Reports detailing progress and activities. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
b. The grantee shall be responsible for submitting to the State Library Financial Reports reflecting grantee expenditure activity. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
c. To obtain payment hereunder the grantee shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit.
d. The final 10% of the grant award (if applicable) is payable only upon approval of all final reports and receipt of claim form. Failure to provide timely reports is a serious breach of an award recipient’s administrative duty under the award.
e. Payment will be provided to cover the expenditures incurred by the grantee for the project in the following manner:
o $112,500 upon execution of the agreement and submission of claim by the grantee organization.
o If applicable, second payment will be made after the submission and approval of the first reports and receipt of claim form in the amount of $112,500
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o If applicable, final payment will be made upon approval of all final reports and receipt of claim form in the amount of $25,000.

50. Self-Dealing and Arm’s Length Transactions: All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s- length transactions and not the result of, or motivated by, self-dealing on the part of the Grantee or any employee or agent of the Grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.

51. Severability: If any part of this Agreement is found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement, but the remainder of the provisions in the Agreement will remain in full force and effect.

52. Site Visits: The Grantee shall allow the California State Library to access and conduct site visits, with reasonable notice, at which grant funds are expended and related work being performed at any time during the performance of the work and for up to ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. A site visit may include, but not be limited to, monitoring the use of grant funds, provide technical assistance when needed, and to visit the State funded project.

53. Termination: The Agreement shall be subject to termination by the State Librarian or designee upon notice to the Grantee at least thirty (30) days prior to the effective date of termination. In the event this agreement is terminated, the Grantee shall deliver to the State Librarian copies of all reports, accounting, data, and materials prepared up to the date of termination. The State Librarian shall determine and pay the Grantee for necessary and appropriate expenditures and obligations up to the date of termination which have not been covered by prior installments previously paid to the Grantee. Upon such termination, the unused portion of the grant award must be returned to the California State Library within 45 days. If funding has been advanced to the Grantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 45 days of the notice of termination.

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54. Timeline: Time is of the essence to this Agreement. It is mutually agreed between the parties that the grant application and the timeline included therein are part of the Agreement.

55. Unused Funds: At the end-of-term Grantee agrees to return any unexpended or unaccounted for funds to the State Library, or to submit a written request for an extension of the grant period. Funds will be considered unexpended or unaccounted if they were: (1) not used for their intended purpose, or (2) used inconsistent with the terms of this Agreement.

Funds will also be considered unaccounted for, and must be returned, if the proposal outcomes or deliverables are materially incomplete by the end-of-term or earlier termination, as determined by the State Library in its sole discretion.

56. Waiver of Rights: California State Library shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by California State Library. No delay or omission on the part of California State Library in exercising any rights shall operate as a waiver of such right or any other right. A waiver by California State Library of a provision of this Agreement shall not prejudice or constitute a waiver of California State Library’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by California State Library, nor any course of dealing between California State Library and Grantee, shall constitute a waiver of any of California State Library’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of California State Library is required under this Agreement, the granting of such consent by California State Library in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of California State Library.

57. Work Products: Grantee shall provide California State Library with copies of all final products identified in the Work Plan and Application. Grantee shall also provide the State Library with copies of all public education and advertising material produced pursuant to this Agreement.

58. Worker’s Compensation: The State of California will not provide Workers’ Compensation insurance for Grantee or Grantee’s employees or contract personnel. If Grantee hires employees to perform services required by this Agreement, Grantee shall provide Workers’ Compensation insurance for them.

The Grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the Grantee DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 304
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agrees to comply with such provisions before commencing the performance of the work of this Agreement.

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EXHIBIT B: CERTIFICATION of COMPLIANCE FORM

1. AUTHORIZED REPRESENTATIVE: I certify that the authorized representative named below is the legally designated representative of the Grantee for this Grant Agreement and project and is authorized to receive and expend funds in order to administer this grant program.

2. I certify that all information provided to the California State Library for review in association with this award is correct and complete to the best of my knowledge, and as the authorized representative of the Grantee, I commit to the conditions of this award, and I have the legal authority to do so.

3. I certify that any or all other participants or contractors in the grant program have agreed to the terms of the application/grant award and have entered into an agreement(s) concerning the final disposition of equipment, facilities, and materials purchased for this program from the funds awarded for the activities and services described in the attached, as approved and/or as amended in the application by the California State Librarian.

4. The authorized representative, on behalf of the Grantee, certifies that the Grantee will comply with all applicable requirements of State and Federal laws, regulations, and policies governing this program, to include the requirements listed below in this Certification of Compliance Form.

5. The authorized representative, on behalf of the Grantee, hereby certifies to the California State Library, for an award of funds in the amount $250,000. This award will provide library services as set forth in the Project Application as approved and/or as amended by the California State Librarian.

6. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the non-discrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102).

7. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug- free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:

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1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Grantee has made false certification or violated the certification by failing to carry out the requirements as noted above. (Gov. Code § 8350 et. seq.)

8. CONFLICT OF INTEREST: Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the California State Library must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code § 10410):
a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code § 10411):
a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

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If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (Pub. Contract Code § 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub.

Contract Code § 10430 (e)).

9. LABOR CODE/WORKERS' COMPENSATION: Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code § 3700).

10. AMERICANS WITH DISABILITIES ACT: Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et. seq.)

11. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

12. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other governmental entity.

13. DRUG FREE WORKPLACE:
a. Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drug- free workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide implementation (2 C.F.R. part 182) of sections 5152-5158 of the Drug-Free Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707).
b. This includes but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drug- free workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace.

14. ACCESSIBILITY: The organization receiving this award, as listed in the certification section below, and all program staff, will ensure all project materials will meet California accessibility standards.

15. NON-DISCRIMINATION: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with all California non-discrimination laws.

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16. ACKNOWLEDGEMENT: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with California State Library acknowledgement requirements.

Certification

ORGANIZATION
Name: Address (official and complete):

PROJECT COORDINATOR
Name:

Email: Phone:

GRANTTEE AUTHORIZED REPRESENTATIVE
Name: Title:

Email: Phone:

Signature: Date:

DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 8/23/2022
City of Richmond
Christopher Larsen
[email protected]
450 Civic Center Plaza
510-620-6512
510-620-5524
City ManagerShasa Curl
9/1/2022
[email protected]
309
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Authorized Representative Signature

ORGANIZATION
Name: Address (official and complete):

AUTHROIZED REPRESENTATIVE
Signature: Date:

Printed Name of Person Signing: Title:

STATE OF CALIFORNIA
Agency Name: California State Library Address: 900 N Street, Sacramento, CA 95814 Signature: Date:

Printed Name of Person Signing: Title: California State Librarian

DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE City of Richmond
8/23/2022
City Manager
450 Civic Center Plaza
9/1/2022
Shasa Curl
9/2/2022
Greg Lucas
310
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EXHIBIT C: STATE REIMBURSABLE TRAVEL EXPENSES
Rates are subject to change per State of California, Department of Human Resources Please Check State of California, Department of Human Resources Website for updated expenses:
http://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx

Mileage:

Rate subject to change
$0.56 per mile – approved business/travel expense
Meals:

Receipts are required
$7.00 – Breakfast
$11.00 – Lunch
$23.00 – Dinner
$5.00 - Incidentals
Meals Note: Lunch can only be claimed if travel is more than 24 hours. Incidental charge may be claimed once for every 24-hour period and should cover incidental expenses, such as but not limited to, tip, baggage handling, etc.

Hotel:

Receipts are required
and MUST have a zero
balance.
$ 90.00 plus tax for all counties/cities not listed below $ 95.00 plus tax for Napa, Riverside, and Sacramento
Counties
$ 110.00 plus tax for Marin County
$ 120.00 plus tax for Los Angeles, Orange, and Ventura
Counties, and Edwards AFB. Excluding the city of Santa
Monica
$ 125.00 plus tax for Monterey and San Diego Counties
$ 140.00 plus tax for Alameda, San Mateo and Santa
Clara Counties
$ 150.00 plus tax for the City of Santa Monica
$ 250.00 plus tax for San Francisco County
Out of State: Prior authorization must be obtained, as well as three print-out hotel quotes. Actual receipt must be included with authorization and additional quotes.

Hotel Note: If the above approved reimbursable hotel rates cannot be secured, please contact your grant monitor to obtain an excess lodging form. This form must be approved prior to actual travel.

AIRLINE TICKETS:

Itinerary and receipts are
required
Actual reasonable fees pertaining to airline travel will be reimbursed. Business, First Class, or Early Bird Check-in fee is not an approved reimbursable expense.

DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 311

May 11, 2022

RE: Contractor and Grantee Compliance with Economic Sanctions Imposed in Response to Russia’s Actions in Ukraine

Dear Grantee,

You are receiving this notification because you currently have an active grant through the California State Library.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (EO) regarding sanctions in response to Russian aggression in Ukraine. The EO is located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf.

The EO directs all agencies and departments that are subject to the Governor’s authority to take certain immediate steps, including notifying all contractors and grantees of their obligations to comply with existing economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law.

This correspondence serves as a notice under the EO that as a contractor or grantee, compliance with the economic sanctions imposed in response to Russia’s actions in Ukraine is required, including with respect to, but not limited to, the federal executive orders identified in the EO and the sanctions identified on the U.S. Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country- information/ukraine-russia-related-sanctions). Failure to comply may result in the termination of contracts or grants, as applicable.

Please note that for any agreements or grants valued at $5 million or more, a separate notification will be sent outlining additional requirements specified under the EO.

Annly Roman
California State Library
900 N Street
Sacramento, CA 95814

DocuSign Envelope ID: 5721BFAE-8E19-4B9D-AEDD-E0F0269370EE 312
Amendment to the Award Agreement & Certification of Compliance City of Richmond
A New Bookmobile for Richmond Kids
2021-2022, ST-OOST-21-15

AMENDMENT TO THE

GRANT AGREEMENT AND CERTIFICATE OF COMPLIANCE
The original Grant Agreement (“Agreement”) between the California State Library (“State Library”) and City of Richmond (“Grantee”) was effective September 1, 2022 and will be amended upon execution of this document by both parties.

This Amendment to the Award Agreement pertains to Grantee’s State-funded project, A New Bookmobile for Richmond Kids.

GRANT TERM
The grant terms began on 09/01/22 with an end date of 03/31/2024. Now the grant term is extended with a new end date of 03/31/2026.

PAYMENTS
Payment will be provided to cover the expenditures incurred by the Grantee for the project in the following manner:
 Initial Payment of 45% of Approved Award Amount ($112,500): was given upon execution of the initial agreement and submission of claim and certification by Grantee.
 Payment of 45% of Approved Award Amount ($112,500): was given upon submission and approval of the first reports and receipt of claim form by Grantee.
 Payment of 10% of Approved Award Amount ($25,000): upon submission and approval of the 4th reports and receipt of claim form due on January 31, 2024 by Grantee.

If the amount of payment made by the California State Library shall exceed the actual expenses during the term of this agreement, as reflected in the financial reports to be filed by the Grantee, the Grantee shall refund to the California State Library the amount of such excess payment.

DocuSign Envelope ID: 74D5860D-09E4-4504-A0B7-A36EFE87114B 313
Amendment to the Award Agreement & Certification of Compliance City of Richmond
A New Bookmobile for Richmond Kids
2021-2022, ST-OOST-21-15

REPORTS AND CLAIMS
The Grantee shall make all required reports and claims to the California State Library.

Reports shall be submitted on the amended dates listed below.

I. The Grantee shall be responsible for the submission of interim and final narrative and financial reports on the progress and activities of the project, to the California State Library. The financial reports shall reflect the expenditures made by the Grantee under the Agreement. The financial reports may be incorporated into the same reporting structure as the narrative reports. The financial reports shall be submitted by the following dates:
a. First Grant Reports (mid-project narrative and financial) (covering start of grant-July 2022): 08/01/22
b. Second Grant Reports (mid-project narrative and financial) (covering August 2022 – December 2022): 01/31/23
c. Third Grant Reports (mid-project narrative and financial) (covering January 2023 – June 2023): 07/31/23
d. Fourth Grant Reports (mid-project narrative and financial) (covering July 2023 – December 2023): 01/31/24
e. Fifth Grant Reports (mid-project narrative and financial) (covering January 2024 – June 2024): 07/31/24
f. Sixth Grant Reports (mid-project narrative and financial) (covering July 2024 – December 2024): 01/31/25
g. Seventh Grant Reports (mid-project narrative and financial) (covering July 2024 – December 2024): 07/31/2025
h. Eighth Grant Reports (mid-project narrative and financial) (covering July 2024 – December 2024): 01/31/2026
i. Final Grant Reports (final narrative and financial, and expenditure detail report): 04/30/2026

OTHER PROVISIONS
All other Terms and Conditions shall remain the same as relate to the Stronger Together, Out of School Time grant program as agreed to in the original Grant Agreement and Certification of Compliance document.

DocuSign Envelope ID: 74D5860D-09E4-4504-A0B7-A36EFE87114B 314
Amendment to the Award Agreement & Certification of Compliance City of Richmond
A New Bookmobile for Richmond Kids
2021-2022, ST-OOST-21-15

SIGNATURES

ORGANIZATION
Name: Address (official and complete):

PROJECT COORDINATOR
Name:

Email: Phone:

GRANTEE AUTHORIZED REPRESENTATIVE
Name: Title:

Email: Phone:

Signature: Date:

STATE LIBRARIAN
Name:

Signature: Date:

DocuSign Envelope ID: 74D5860D-09E4-4504-A0B7-A36EFE87114B 10/13/2023
Greg Lucas
[email protected]
325 Civic Center Plaza
510-650-5452
510-620-6512
Shasa Curl
Kate Eppler
[email protected]
City Manager
City of Richmond
12/7/2023
315

February 6, 2024

Mayor's Office

DATE: February 6, 2024
TO: Members of the City Council
FROM:

Mayor Eduardo Martinez
Subject:

Appointment to the Environmental and Community
Investment Agreement (ECIA) Transportation Oversight
Committee
FINANCIAL IMPACT: N/A

PREVIOUS COUNCIL
ACTION:

N/A

STATEMENT OF THE
ISSUE:

Richard T Johnson is applying for a vacant seat on the
ECIA Transportation Oversight Committee
RECOMMENDED ACTION:

APPOINT Richard T. Johnson to a vacant seat on the
Environmental and Community Investment Agreement
(ECIA) Transportation Oversight Committee, Term
Expires July 25, 2027 – Mayor’s Office (Mayor Eduardo
Martinez 510-620-6503).

DISCUSSION:

Richard Johnson’s interest in joining the Richmond ECIA Transportation Oversight Committee stems from a desire to use his legal skills for community benefit, particularly in areas related to climate change and sustainability. As an attorney with a strong academic background from the University of California, Berkeley, School of Law, and the University of California, San Diego, his legal expertise will be valuable in the success of this committee.

DOCUMENTS ATTACHED:

Attachment 1 – Richard T Johnson Application - Redacted AGENDA
REPORT
316
317

February 6, 2024

Public Works

DATE: February 6, 2024
TO: Mayor Martinez and Members of the City Council
FROM:

Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works –
Operations & Maintenance

Subject:

Citywide Installation of Street Sweeping Signs
FINANCIAL IMPACT: Staff proposes to utilize $550,000 as a transfer out from General Fund (Account String: 01917090-400901) into
General Capital Fund as a transfer-in (Account String:
20136031-391993-23048) with expenditure appropriation
in the Account String 20136031-400645-23048.

PREVIOUS COUNCIL
ACTION:

On January 23, 2024, City Council passed an Agenda
Item on Consent entitled, “Request for Update from Staff Regarding the Date that Parking Enforcement for Street
Sweeping will Resume.”

STATEMENT OF THE
ISSUE:

The City desires to resume enforcing street sweeping
parking restrictions in an equitable matter and citywide.

The purpose is to facilitate removal of debris from City gutters during street sweeping operations, and meet
City’s legal requirement to prevent pollutants from
entering the storm drain system.

RECOMMENDED ACTION:

APPROPRIATE $550,000 from the General Fund
(Fund0001) to the General Capital Fund (Fund2001) for
the effort to install street sweeping signs equitably
throughout all City neighborhoods – Public Works
Department (Daniel Chavarria/Tawfic Halaby 510-620-
5482).

AGENDA
REPORT
318

February 6, 2024
DISCUSSION:

On March 19. 2020, at the onset of the COVID-19 pandemic, Governor Newsom issued Executive Order N-33-20, known as the “shelter-in-place order.” As a result of this order, many Richmond residents stayed home during normal workday working hours, and consequently, they did not move their vehicles for street sweeping activities. City Council directed staff to temporarily cease enforcing street sweeping parking restrictions.

Street sweeping activities have continued unabated since before the COVID-19 pandemic. However, parking enforcement due to street sweeping activities, is not currently being implemented. When performing street sweeping activities, street sweeping trucks are currently veering away from gutters and into streets to avoid parked cars, and thus are not properly removing debris from City gutters.

Street sweeping is required as stated in the Contra Costa County Municipal Regional Permit (MRP) Version 3.0, Section C10, Trash Load Reduction. The permit states that permittees, such as the City of Richmond, are to implement practices to “control and reduce non-stormwater and polluted stormwater discharges into storm drains and watercourses.” The permit goes on to state that permittees shall evaluate street sweeping effectiveness and that examples of evaluations include, “effectiveness associated with enhanced street/curb accessibility via proper signage, ticketing, and towing vehicles when appropriate.”

In order to conform to the MRP requirements, the City must remove debris that is accumulating in the gutter. The best way to remove debris from the gutters is to enforce street sweeping parking restrictions. When residents, businesses, and visitors know that street sweeping parking restrictions are enforced, then they are likely to remove their vehicles from restricted areas as posted. Street sweepers can then do their jobs properly and remove debris from the gutters, thus precluding pollutants from entering the storm drain system.

Public Works staff is working on developing a “No Parking” street sweeping sign inventory that documents the locations of all of the existing and missing street sweeping signs throughout the City. Given current staffing levels, this inventory will take months to develop if performed entirely in-house. However, according to recent studies, there are 16 subdivisions or neighborhoods in the City of Richmond that do not have street sweeping signs, namely: Bristlecone, Canyon Oaks, Carriage Hills South, Country Club, Greenridge, Hasford Heights, Hilltop Bayview, Hilltop Green, Lenora, Marina Bay, Metro Richmore, Panhandle Annex, Point Richmond, Quail Hill, Richmond Annex, and Via Verdi (Sobrante Glen).

The City desires to have an equitable street sweeping program wherein:

 residents, business owners, and visitors all have a clear understanding of street sweeping parking restrictions;
319

February 6, 2024
 all streets that are swept are properly signed for parking restrictions during programmed street sweeping activities;
 the City’s street sweeping program is implemented in a fair, consistent, and predictable manner throughout all of Richmond’s neighborhoods; and  street sweeping parking violations will be enforced in a fair and equitable manner throughout all neighborhoods in the City.

To this end, City staff is requesting City Council to adopt the attached resolution, appropriating $550,000 from the General Fund to initiate a street sweeping sign installation project. This allocation represents an initial estimate to install street sweeping signs throughout the City, while the more accurate inventory is developed.

If adopted, staff estimates that the initial project can be planned, bid, constructed, and closed out in eight to nine months. Staff proposes to hire a consultant from the existing on-call engineering or transportation list to assist with developing the citywide street sweeping sign installation project. Inventory services can be included in the consultant’s scope of work to accelerate its development. Staff can then bid the project through the BidsOnline procurement platform to hire a contractor to perform the citywide street sweeping sign installation. After completion of the initial street sign installation project, staff can provide City Council with an update on the initial effort and make any additional recommendations, as appropriate, for funding, maintaining, and improving the program into the future.

Public Works staff will work closely with Parking Enforcement staff to ensure that after the initial street sign installation project is completed, a public outreach effort is initiated alerting residents, businesses, and visitors to publicize the City’s intention to resume enforcement of street sweeping parking restriction violations. A brief grace period will be enacted wherein only parking violation warnings are issued. After the grace period expires, street sweeping parking restriction violators will be ticketed.

SCHEDULE:

City staff will aim to meet the schedule outlined below.

Fabrication and Installation of No-Parking Signs Citywide for the City of Richmond

 For the February 6, 2024, City Council meeting, Public Works will confer with Finance to finalize a staff report re: $550k for signs for Citywide Street Sweeping Sign Installation (source of the $550k is general fund)  Bid Start: Feb 8, 2024  Bid Opening: Feb 29, 2024
 Contract Award/Execution: April 12, 2024
 Project Installation: May, June, July 2024

320

February 6, 2024
DOCUMENTS ATTACHED:

Attachment 1 – Resolution

321
Reso. No. xx-23

RESOLUTION NO. xx-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, TO APPROPRIATE $550,000 FROM THE GENERAL FUND TO THE

GENERAL CAPITAL FUND TO BE USED SPECIFICALLY FOR THE STREET

SWEEPING SIGN PROGRAM TO ENSURE STREET SWEEPING SIGNS ARE INSTALLED CITYWIDE IN ALL CITY NEIGHBORHOODS.

WHEREAS, on January 23, 2024, City Council of City of Richmond passed an Agenda Item on Consent titled, “Request for Update from Staff Regarding the Date that Parking Enforcement for Street Sweeping Will Resume;” and

WHEREAS, the City of Richmond’s past practice was to enforce no parking rules on streets that included street sweeping signs; and

WHEREAS, in the early days of the COVID-19 pandemic, subsequent to Governor Newsom’s March 19, 2020 Executive Order N-33-20 – known as the “Stay at Home” order or the “Shelter-in-Place” order – City Council directed staff to cease issuing parking tickets for street sweeping violations; and

WHEREAS, on June 15, 2021 the state of California “Shelter-in-Place” order was lifted, and on February 28, 2023, Governor Gavin Newsom terminated the state’s COVID-19 State of Emergency that was originally declared on March 4, 2020; and

WHEREAS, street sweeping is required as stated in the Contra Costa County Municipal Regional Permit (MRP) Version 3.0, Section C.10, Trash Load Reduction, in order to control and reduce non-stormwater and polluted stormwater discharges to storm drains and watercourses; and

WHEREAS, citywide sweeping activities have continued despite the temporary cessation of parking enforcement due to street sweeping violations, and debris is accumulating in the city’s gutters because cars are not being moved to accommodate street sweeping and street sweepers are veering into the middle of the road and thereby not removing debris from the gutter; and

WHEREAS, the City desires to remove debris from City gutters in order to meet the intent of the MRP, and desires to do so in an equitable manner throughout all City neighborhoods, and desires to post street sweeping signs across all City neighborhoods to ensure that all residents, businesses, and visitors are aware of the street sweeping no parking requirements; and

WHEREAS, after installation of street sweeping signs in all City neighborhoods, then street sweeping parking restrictions can be enforced, and the City will resume meeting its obligations as set forth in the MRP; and

WHEREAS, the initial estimated cost to install street sweeping signs citywide so that all neighborhoods are posted for street sweeping is $550,000, and City staff is recommending that the City Council approve the appropriation of General Fund money in the amount of $550,000; and

WHEREAS, City staff can create a capital project for this effort and has outlined a schedule for this capital project indicating the work can be bid and installed within roughly a six month period; and

WHEREAS, by the agenda report (“Agenda Report”) accompanying this resolution the City Council has been provided with additional information upon which the findings and actions set forth in this Resolution are based.

322
Reso. No. xx-23

NOW, THEREFORE, BE IT RESOLVED that the City Council finds the above recitals are true and correct and have served, together with the Agenda Report, as the basis for the findings and actions set forth in this Resolution.

BE IT FURTHER RESOLVED that the City Council hereby approves to transfer from General Fund (Fund 0001) and appropriate in the General Capital Fund (Fund 2001) funds in the amount of $550,000 for the city-wide street sweeping sign installation project.

BE IT FURTHER RESOLVED that the City Council hereby authorizes City staff to create a capital project for this effort, issue bid documents in accordance with California Public Contracting Code and Richmond City procurement policies and procedures and bring a proposed contract to the lowest responsible, responsive bidder before council for award.

BE IT FURTHER RESOLVED that the City Council hereby expects to award a contract for this proposed work and to receive a council report when the work is completed.

BE IT FURTHER RESOLVED that the City Council designates the City Clerk as the custodian of the documents and other materials which constitute the record of proceedings upon which the decision herein is based. These documents may be found at the office of the City Clerk at the Richmond City Hall, 450 Civic Center Plaza, Richmond, California 94804.

*************************

I certify that the foregoing resolution was passed and adopted by the C ouncil of the City of Richmond at a regular meeting thereof held February 6, 2024, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor

Approved as to form:

City Attorney
323

February 6, 2024

City Attorney's Office

DATE: February 6, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Shannon Moore, Chief City Attorney
Kimberly Chin, Senior Assistant City Attorney
Nickie Mastay, Deputy City Manager - Internal Services

Subject:

Ordinance Amending the Monthly Salary for the Mayor
and City Councilmembers.

FINANCIAL IMPACT: This action has an estimated fiscal impact of $50,464 to the General Fund based on the terms of the agreement.

All costs must be allocated to the City Council’s budget

PREVIOUS COUNCIL
ACTION:

2007

STATEMENT OF THE
ISSUE:

The City Council’s approval is required to approve the
first reading of an Ordinance amending the monthly
salary for the Mayor and City Councilmembers
RECOMMENDED ACTION:

INTRODUCE an ordinance (first reading) amending the
monthly salary for the Mayor and City Council members – City Attorney’s Office (Shannon Moore/Kimberly Chin
510-620-6509).

DISCUSSION:

The City of Richmond’s elected officials have not received a cost-of-living increase since 2007. The current monthly salary for the Mayor is $3,875 and the current monthly salary for Councilmembers is $1,402.50 (Attachment 1: Ordinance No. 24-07 N.S.; Ordinance No. 32-07 N.S.; and Ordinance No. 14-07 N.S.)

AGENDA
REPORT
324

February 6, 2024
Given the substantial increase in the cost of living in the Bay Area since the last salary increase in 2007, and to make compensation equitable and commensurate with comparable cities (See Attachment 1 - Bay Area and Contra Costa Cities Compensation Survey), staff is proposing an increase of five percent per year, non-compounding for sixteen (16) years which is the maximum allowed per California Government Code 36516, as recently amended by Senate Bill No 329 (Attachment 4).

The following table shows a comparison between their current and proposed salaries.

Title Current Proposed
Mayor $3,875/month $6,975.00/month
City Council Members $1,402.50/month $2,524.50/month

The Mayor’s increase will be effective January 1, 2024 and is retroactive to that date.

California Government Code 36516.5 provides that any Council salary increase may take effect only when at least one member of the Council commences a new term. The proposed monthly salary increases for Councilmembers will take effect on January 1, 2025 after the November 5, 2024 General Election since two councilmembers will commence a new term on January 1, 2025.

NEXT STEPS:

Staff recommend approval of the first reading of the Ordinance to amend the monthly salary for the Mayor and Council members.

DOCUMENTS ATTACHED:

Attachment 1 - Bay Area and Contra Costa Cities Compensation Survey Attachment 2 – Ordinance No. 24-07 N.S.; Ordinance No. 32-07 N.S.; Ordinance No. 32-07 N.S.; Ordinance No. 14-07 N.S.

Attachment 3 – Proposed Ordinance Amendment
Attachment 4 – Senate Bill No. 329

325
Agency Population Monthly Compensation Monthly Allowance Total Monthly Compensation Antioch 115,580 $1,600 Councilmembers $1,600 Councilmembers Berkeley 124,321 $5,633 Councilmember
$8,941 Mayor
$5,633 Councilmember
$8,941 Mayor
Concord 125,410 $1,352 Councilmembers $1,352 Councilmembers Daly City 104,901 $1,531 Councilmembers $1,531 Councilmembers Fairfield 119,881 $500 Councilmember
$600 Mayor
$150 Councilmember
$300 Mayor
$650 Councilmember
$900 Mayor
Hayward 162,954 $2,083 Councilmember
$3,333 Mayor
$2,083 Councilmember
$3,333 Mayor
Richmond 116,448 $1,402 Councilmember
$3,875 Mayor
$300 Councilmember
$350 Mayor
$1,702 Councilmember
$4,225 Mayor
Santa Clara 127,647 $2,000 Councilmember $2,500 Mayor
$2,000 Councilmember
$2,500 Mayor
Santa Rosa 178,127 $800 Councilmember
$1,200 Mayor
$800 Councilmember
$1,200 Mayor
Sunnyvale 155,805 $2,773 Councilmember
$3,698 Mayor
$2,773 Councilmember
$3,698 Mayor
Vacaville 102,386 $829 Councilmembers $250 Councilmember $525 Mayor
$1,079 Councilmember
$1,354 Mayor
Vallejo 126,090 $1,225 Councilmembers $1,900 Mayor $1,225 Councilmember $3,125 Mayor
Bay Area Cities with Population of 100,000 to 200,000
Bay Area Cities Council Compensation Survey
Attachment 1
326
Agency Population Monthly Compensation Monthly Allowance Total Monthly Compensation Antioch 115,580 $1,600 Councilmembers $1,600 Councilmembers Brentwood 66,097 $939.26 Councilmembers $939.26 Councilmembers Clayton 12,083 $470 Councilmembers $470 Councilmembers Concord 125,410 $1,352 Councilmembers $1,352 Councilmembers Danville 43,582 $675 Councilmembers $675 Councilmembers El Cerrito 25,000 $441 Councilmembers $441 Councilmembers Hercules 26,000 $872 Councilmembers $872 Councilmembers Lafayette 25,000 no pay no pay
Martinez 38,290 $585 Councilmembers $585 Councilmembers Moraga 17,692 no pay no pay
Orinda 20,000 no pay no pay
Pittsburg 74,769 $500 Councilmembers $500 Councilmembers Pleasant Hill 35,000 $585 Councilmembers $585 Councilmembers Richmond 116,448 $1,402 Councilmember
$3,875 Mayor
$300 Councilmember
$350 Mayor
$1,702 Councilmember
$4,225 Mayor
San Pablo 30,967 $1,094 Councilmembers $1,094 Councilmembers San Ramon 84,600 $949 Councilmembers
$1,085 Mayor
$500 Councilmember
$600 Mayor
$1,149 Councilmember
$1,685 Mayor
Walnut Creek 70,000 $650 Councilmembers $500 Councilmember $600 Mayor
$1,150 Councilmember
$1,250 Mayor
Contra Costa Cities
Contra Costa Cities Council Compensation Survey
327
ORDINANCE NO. N.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF RICHMOND, AMENDING ORDINANCE 14-07 N.S. SETTING FORTH THE MONTHLY SALARIES FOR

MEMBERS OF THE CITY COUNCIL AND THE MAYOR

The City Council of the City of Richmond do ordain as follows:

SECTION 1. Section 1 of Ordinance No. 14.07 is hereby amended to read as follows:

“Section 1. The City of Richmond shall pay to each member of the City Council a total monthly salary in the amount of Two Thousand Five Hundred Twenty-Four and 50/100th dollars ($2,524.50). Included in said monthly salary is the amount of Fifty and no/100ths dollars ($50.00) which each member of the City Council is authorized to receive by virtue of Ordinance No. 388, adopted on July 19, 1915. This total monthly salary is effective January 1, 2025.

SECTION 2. Section 2 of Ordinance No. 14.07 is hereby amended to read as follows:

“Section 2. Pursuant to Section 6 of Article III-A of the Charter of the City of Richmond, California, the compensation paid to the Mayor shall be Six Thousand Nine Hundred Seventy-Five and no/100ths dollars ($6,975.00) per month. This monthly compensation is effective January 1, 2024 and is retroactive to that date.”

SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held by to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, subdivision, paragraph, sentence, clause or phrase.

SECTION 4. Effective Date. Ordinance becomes effective 30 days after its final passage and adoption.

*****************************

First introduced at a regular meeting of the City Council of the City of Richmond held on _____________ and finally passed and adopted at a regular meeting held on ___________ by the following vote:

AYES:

NOES:

ABSTENTIONS:
328

ABSENT:

________________________________________
Clerk of the City of Richmond

(SEAL)

Approved:

_______________________________
Mayor

Approved as to form:

____________________________
City Attorney

329
330
331
332
333
334
335
Senate Bill No. 329
CHAPTER 27
An act to amend Section 36516 of the Government Code, relating to local government.
[Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023.]
legislative counsel’s digest
SB 329, Dodd. Cities: city council members: compensation.

Existing law authorizes a city council to enact an ordinance to pro vide each member of the city council a salary based upon the population of the city, as specified. Existing la w authorizes that amount to be increased by the city council by an amount that does not e xceed 5% for each calendar year from the operati ve date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact ordinances.

This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill w ould authorize the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in ef fect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Inde x, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council.

The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:
(a)  The compensation schedule for general la w cities has not been adjusted since 1984, meaning that city council compensation has not k ept pace with inflation.
(b)  Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.

SEC. 2. Section 36516 of the Government Code is amended to read:

96 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL

336
36516. (a)  (1)  A city council may enact an ordinance pro viding that each member of the city council shall recei ve a salary based on the population of the city as set forth in paragraph (2).
(2)  The salaries approved by ordinance under paragraph (1) shall be as follows:
(A)  In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B)  In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month.
(C)  In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)  In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)  In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)  In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month.
(3)  For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4)  The salary of council members may be increased beyond the amount provided in this subdi vision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not e xceed the greater of either of the following:
(A)  An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in ef fect when the ordinance or amendment is enacted.
(B)  An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Inde x, which shall not e xceed 10 percent for each calendar year.
(5)  No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b)  Notwithstanding subdi vision (a), at an y municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors v oting at the election f avor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c)  Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serv es. If the other statute that authorizes the compensation does not specify the amount 96 — 2 — Ch. 27

337
of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority , or similar body.
(d)  Any amounts paid by a city for retirement, health and welf are, and federal social security benefits shall not be included for purposes of determining salary under this section, pro vided that the same benefits are available and paid by the city for its employees.
(e)  Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f)  A city council member may w aive any or all of the compensation permitted by this section.
(g)  (1)  For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council.
(2)  At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3)  At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

O
96 Ch. 27 — 3 —

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February 6, 2024

Finance Department

DATE: February 6, 2024
TO: Mayor Martinez and Members of the City Council
FROM:

Nickie Mastay, Deputy City Manager, Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Chak, Accounting Manager
Subject:

City of Richmond Annual Comprehensive Financial Report
for the Fiscal Year Ended June 30, 2023
FINANCIAL IMPACT: There is no fiscal impact to receiving this report.

PREVIOUS COUNCIL
ACTION:

N/A

STATEMENT OF THE
ISSUE:

The City retains an independent auditor to annually
review and express an opinion regarding the accurate
representation of the City’s financial statements.

RECOMMENDED ACTION:

RECEIVE a report on the City’s Annual Comprehensive
Financial Report (ACFR) for Fiscal Year ended June 30,
2023 – Finance Department (Andrea Miller/Mubeen
Qader/Jerry Chak 510-620-6740).

DISCUSSION:

The Finance Department issued a Request for Proposals (RFP) to select certified public accountants to audit the City of Richmond’s (City) financial statements and financial statements of component entities, including the Richmond Housing Authority (RHA), for the fiscal years ending June 30, 2020 through June 30, 2022, with an option to extend the contract in one-year periods, not to exceed a total of two additional fiscal years.

AGENDA
REPORT
339

February 6, 2024

Based on the RFP and interview rating matrixes, Badawi & Associates scored the highest points and was selected as our external auditors. On March 17, 2020, City Council approved a contract with Badawi & Associates. City staff later exercised the option to extend the contract for the fiscal year ending June 30, 2023.

The Annual Comprehensive Financial Report (ACFR) contains the basic financial statements (including notes to the financial statements) and required supplementary information such as the management’s discussion and analysis of the City. The ACFR is prepared in accordance with generally accepted accounting principles (GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB). The report is designed to highlight changes in the City’s financial condition and practices over time and to allow consistencies between all state, municipal, and other governmental agencies.

California Government Code section 53891 requires every local government agency to submit a report of all financial transactions to the State Controller’s Office based on data from the audited financial statements prepared in accordance with GAAP, and that the report is audited by an independent firm of certified public accountants. Since the ACFR is audited by an independent expert, the report provides additional assurance to the community that the City is being responsible stewards of the tax dollars.

Badawi & Associates has audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City for the fiscal year ended June 30, 2023, and the related notes to the financial statements.

For the fiscal year ended June 30, 2023, Badawi & Associates did not audit RHA. Maze and Associates, the external auditors for RHA, are completing the financial audit for the fiscal year ended June 30, 2019, with an anticipated completion by the end of the current fiscal year. Once that audit has been completed, Badawi & Associates will complete the RHA audit for the fiscal year ended June 30, 2020, and subsequent years.

The Independent Auditor’s Report begins on page 17 of 312 of Attachment 1 – Annual Comprehensive Financial Report, highlights as follows:

Disclaimer of Opinion on Business-Type Activities, Aggregated Discretely Presented Component Units and Richmond Housing Authority

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

340

February 6, 2024

Basis for Disclaimer of Opinion

“The financial statements of the Richmond Housing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2023. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 8.11 percent,

18.66 percent, and 8.67 percent of the assets, net position, and revenues, respectively, of the City’s business-type activities. The financial activities of the RHA Properties, RHA Housing Corporation and RHA RAD LLC are included in the City’s financial activities as discretely presented component units and represent the City’s only discretely presented component units.”

Unmodified Opinions on Governmental Activities, Major Governmental Funds, Port of Richmond, Municipal Sewer Fund and Aggregate Remaining Fund Information

Badawi & Associates conducted their audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and has provided an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2023. The financial statements in their opinion present fairly, in all material respects, the respective financial position of the governmental activities, the General Fund, the Community Development and Loan Programs Special Revenue Fund, the Port of Richmond Enterprise Fund, the Municipal Sewer Enterprise Fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

DOCUMENTS ATTACHED:

Attachment 1 – City of Richmond Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2023
341
Annual Comprehensive
Financial Report
2023
For The Year Ended June 30, 2023
City of Richmond, California
342
343
City of Richmond
California
Financial Report
Fiscal Year Ended June 30, 2023
Prepared by the Finance Department
Andrea Miller
Director of Finance/Treasurer
344
This Page Left Intentionally Blank
345
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Organizational Chart .................................................................................................................................................... xi List of Elected and Appointed Officials .................................................................................................................... xii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 7 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... .................................. 26 Statement of Activities ..................................................................................................... ..................................... 28 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... .................... 33 Reconciliation of the Governmental Fu nds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 34 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 35 Reconciliation of the Govern mental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 36 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds .............................................................................. ............... 38 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 40 Statement of Cash Flows – Proprietary Funds ................................................................................ ............... 42 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 45 Statement of Changes in Fiduciary Net Position – Fidu ciary Funds .......................................................... 46 Notes to Basic Financial Statements ......................................................................................... .......................... 49346 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
ii
Required Supplemental Information:

Budget and Budgetary Accounting ...................................................................................................................... 179 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 181 Community Development and Loan Programs Special Revenue Fund ..................................................... 182 American Rescue Plan Act Special Revenue Fund ............................................................................... .......... 183 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ........................... 184 Schedule of Contributions – Miscellaneous Plan ........................................................................................................ 186 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ....................................... 188 Schedule of Contributions – Safety Plan ............................................................................................................... 190 Schedule of Changes in the Net Pension Liability and Related Ratios:

General Pension Plan ..................................................................................................................................................... 192 Police and Firemen’s Pension Plan ........................................................................................... .......................... 194 Garfield Pension Plan ....................................................................................................... ................................... 196 Schedule of Contributions:

General Pension Plan ........................................................................................................ ................................... 198 Police and Firemen’s Pension Plan ............................................................................................................................. 198 Garfield Pension Plan ....................................................................................................... ................................... 198 Schedule of Investment Returns:

Police and Firemen’s Pension Plan ........................................................................................... .......................... 199 General Pension Plan ..................................................................................................................................................... 199 Garfield Pension Plan ....................................................................................................... ................................... 199 Other Post-Employment Benefits Plan Schedules - OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Relate d Ratios ........................................................... 200 Schedule of Plan Contributions .............................................................................................. ........................... 202 Schedule of Investment Returns .............................................................................................. .......................... 202 Other Post-Employment Benefits Plan Schedules - RPOA Plan:

Schedule of Changes in the Net OPEB Liability and Relate d Ratios ........................................................... 204 Schedule of Plan Contributions .............................................................................................. ........................... 205 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Fund s ....................................................................... 212 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................ ....... 216 347
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
iii
Supplementary Information (Continued):

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

Nonmajor Governmental Funds:

State Gas Tax Fund ......................................................................................................... ................................. 220 General Purpose Fund ....................................................................................................... .............................. 221 Paratransit Operations Fund ................................................................................................ .......................... 222 Employment and Training Fund ............................................................................................... .................... 223 Public Safety Fund ......................................................................................................... .................................. 224 Lighting and Landscaping Districts Fund .................................................................................... ................ 225 Developer Impact Fees Fund ................................................................................................. ......................... 226 Secured Pension Override Fund .............................................................................................. ...................... 227 Richmond Neighborhood Stabilization Corporation Fund ....................................................................... 228 Rent Control Fund .......................................................................................................... ................................. 229 Cost Recovery Fund ......................................................................................................... ................................ 230 Environmental and Community Investment Agreement Fund ................................................................ 231 2005 Pension Obligation Bonds Fund ......................................................................................... .................. 232 General Debt Service Fund .................................................................................................. ........................... 233 Civic Center Debt Service Fund ............................................................................................. ........................ 234 General Capital Improvement Fund ........................................................................................... .................. 235 Measure C/J Fund ........................................................................................................... ................................ 236 Harbor Navigation Fund ..................................................................................................... ........................... 237 Combining Statements of Net Position – Nonmajor Enterprise Funds ........................................................... 2 40 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds .............................................................................. ......... 241 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ........................................................... 242 Combining Statement of Net Position – Internal Service Funds ................................................................... 244 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ...................................................................................... ..................... 245 Combining Statement of Cash Flows – Internal Service Funds .................................................................. .. 246 Combining Statement of Fiduciary Net Position – Pension Trust Funds.................................................... 248 Combining Statement of Changes in Fiduciary Net Positi on – Pension Trust Funds ............................... 249 Combining Statement of Fiduciary Net Position – Privat e Purpose Trust Funds ...................................... 250 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ................. 251 Sub-Combining Statement of Fiduciary Net Position –
Successor Agency to the Richmond Community Redevelopment Agency ............................................. 252 Sub-Combining Statement of Changes in Fiduciary Net Position – Successor Agency to the Richmond Community Redevelopment Agency ............................................. 254 Combining Statement of Fiduciary Net Position – Custodial Funds ........................................................... 2 58 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 260 348
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
iv

STATISTICAL SECTION
Net Position by Component Last Ten Fiscal Years .............................................................................. .............. 268 Changes in Net Position Last Ten Fi scal Years ................................................................................................... 270 Fund Balances of Governmental Funds Last Ten Fiscal Years .................................................................... ..... 272 Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years ...................................................... 274 Assessed and Estimated Actual Value of Taxable Property La st Ten Fiscal Years ....................................... 276 Property Tax Rates – All Overlapping Governments Last Te n Fiscal Years .................................................. 278 Principal Property Tax Payers Current Year and Nine Ye ars Ago .................................................................. 280 Property Tax Levies and Collections Last Ten Fiscal Years .................................................................... .......... 281 Utility Users Tax Collections Last Ten Fiscal Years ... ........................................................................................ 282 Utility Users Tax Direct Rates On Charges For Services Last Ten Fiscal Years ............................................. 283 Top Ten Utility Users Taxpayers .............................................................................................. ............................ 284 Ratio of Outstanding Debt by Type Last Ten Fiscal Years ...................................................................... .......... 285 Computation of Legal Bonded Debt Margin ...................................................................................... ................ 286 Revenue Bond Coverage 1999, 2006, 2008, 2010A, 2010B, 2017A, 2019A and 2019B Wastewater Revenue Bonds Last Ten Fiscal Years..................................................................... . 287 Revenue Bond Coverage 1996, 1999, 2004, 2007 and 2009 Port Terminal Lease Revenue Bonds, Note and Point Potrero Lease Revenue Bonds Last Ten Fiscal Years ............................................. 288 Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds and Refunding Bonds Last Ten Fiscal Years ................................................................................................. .............................. 289 General Bonded Debt Pension Obligation Bonds Last Ten Fiscal Years ........................................................ 29 0 Computation of Direct and Overlapping Debt ................................................................................... ............... 291 Demographic and Economic Statistics Last Ten Calendar Years .................................................................. ... 292 Principal Employers Current Year and Nine Years Ago .... ............................................................................... 293 Full-Time Equivalent City Government Employees by Func tion Last Ten Fiscal Years .............................. 294 Operating Indicators by Function/Program Last Ten Fiscal Years ............................................................... .. 295 Capital Asset Statistics by Function/Program Last Ten Fiscal Years ........................................................... ... 296 349
v

FINANCE DEPARTMENT
450 CIVIC CENTER PLAZA
RICHMOND, CA 94804
(510) 620-6740
January 23, 2024
Citizens of the City of Richmond
The Honorable Mayor and
Members of the City Council
We are pleased to present the Annual Comprehe nsive Financial Report (ACFR) of the City of Richmond, California (City). Th e Finance Department has prepar ed this report to present the financial position and the results of the City’s operations for the fiscal year ended June 30, 2023, and the cash flows of its proprietary fund types for the year then ended. The basic financial statements and supporting schedules have been pr epared in compliance with Article IV, Section 1(b)3 of the City Charter, with California Government Code Sections 25250 and 25253, and in accordance with generally accepted accounting principles (GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB).

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

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

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

The City Council is required to adopt an initial budget for the fiscal year to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution, which 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. Expenditures are controlled at the fund level for all budgeted departments within the City, which means the level at which expenditures may not legally exceed the appropriations. 350
vi
The City’s financial statements have been audite d by an independent auditing firm of licensed certified public accountants. The objective of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audi t involved examining evidence supporting the amounts and disclosures in the fi nancial statements on a test basis; assessing the accounting principles used and significant estimates ma de by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2023, but with a disclaimer of opinion for business-type activities as it relates to the Richmond Housing Authority Enterprise Fund and the aggregate discretely presented component units, as the financial st atements of the Richmond Housing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2023. The Independent Auditors ’ Report is presented as the first component of the Financial Section of this report.

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

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

The City’s component units and assessment dist ricts are as follows: the Richmond Housing Authority, the Richmond Joint Powers Financing Authorit y, the Richmond Neighborhood Stabilization Corporation, the Richmond Surplu s Property Authority a nd Harbor Navigation, Country Club Vista, and Atlas Interchange Specia l Assessment Districts. The City also has one inactive component unit, Richmond Parking Authority.
351
vii
Profile of the Government
The City of Richmond was chartered as a city in 1909, and is located 16 miles northeast of San Francisco, directly across San Francisco Bay. Richmond is on a peninsula separating San Francisco Bay (on the south) and San Pablo Bay (to the nort h), spanning 32 total miles of shoreline. The City's total area is 56.1 square miles, 33.8 of which is land area and 22.3 water area. Richmond is situated near major metropolitan cities and majo r new growth areas. San Francisco is within 35 minutes from Richmond by freeway; Oakland is 20 minutes; San Jose is approximately 60 minutes to the south; and Sacramento, th e state capitol, is approximately 90 minutes to the east. Central Marin County is 15 minutes from Richmond direct ly across the Richmond-San Rafael Bridge.

Freeways provide direct access from Richmond to major new gr owth areas along Interstate 80 north and east to Vallejo, Fairfield, and Sacramento ; along Interstate 680 in central Contra Costa County; and south along Interstate 880 to the San Jose area.

Richmond’s population is 113,518. The population within a 30-mi le radius of Richmond is over

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

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

The City of Richmond operates under a Council-Manager form of government with six members elected at-large to alternating four-year terms and the Mayor elected at-large as the seventh member. The City Manager, appointed by the Ma yor and Council, has authority to manage the administrative and fiscal operations of the City. In addition to the City Manager, the City Attorney, and City Clerk are appointed by the Mayor and Council.

The mission of the City of Richmond is:

The City of Richmond provides services that enhance economic vitality, the environment, and the quality of life of our community.
352
viii
Factors Affecting Financial Condition
The information presented in the financial stat ements is perhaps best understood when it is considered from the broader pers pective of the specific envir onment within which the City operates.

Local economy
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. The City’s allocated amount was $27.7 million received in two installments, $13.8 million in August 2021 and $13.8 million in August 2022. These funds have been allocated to programs that provide rent relief for those negatively impacted by COVID-19, assistance for the unhoused, community needs assessment, and community infrastructure improvements.

COVID-19 pandemic impacts on the City of Richmond’s tax revenues have significantly subsided. Revenue reduction is reflected in Transient Occupancy Tax (TOT), and fees and rentals collected by both the Police Department and Community Services. The major revenue streams, including Sales Tax, Property Taxes, and Utility Users Tax are well above pre- pandemic levels. Additionally, voter approved changes to the Business Tax Ordinance have yielded significantly higher amounts of General Fund revenue.

Property Tax continues to see steady growth with actual General Fund Property Taxes in FY2022- 23 increase more than 10% compared to the previous year. More recently, the 2022-2023 County Assessment Roll indicates growth of the Assessed Valuation (AV) at 6.77% for Secured Property Taxes, the main component in changes to se cure property taxes year-to-year. While most properties in Richmond had a year-over-year increase of the 2% maximum allowed under Proposition 13, the major growth leading to the 6.77% AV change was driven by properties sold during the previous calendar year and the updated valuation of the Chevron Refinery by the County Assessor. A component of the General Fund Property Taxes are the Successor Agency Surplus and Pass-through revenues, which increased over $410 million in FY2022-23, almost 20% more compared to the previous year.

The City received $55.5 million in Sales Tax reve nue, which is $5.8 million more than the pre- pandemic high of $44.5 million in FY2018-19, a total increase of 13% over the last three years.

The most recent forecast from the City’s financia l consultants, using the most likely scenarios, expects this trend to continue.

Measure U, which was approved by voters in November 2020, significantly changed the calculation for the Business License Tax. Measure U imposes a calculation based on Gross Receipts. This changed the tax calculation from being based on number of employees or location to a percentage of the business gross receipts. The business tax collected by the City will change with inflation, and with the number of businesses opening and closing. This will more closely tie to the local economy than in years past.
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ix
Significant Events and Accomplishments
The City of Richmond is commi tted to providing excellent muni cipal services to its diverse residents and visitors. Highlights of the City’s activities and accomplishments for the fiscal year ended June 30, 2023, include the following:

Library
x Restored Saturday hours to the Main Librar y, for a total of 46 service hours per week exceeding the pre-pandemic 40 hours.
x Library users borrowed 113,220 items.
x Library users made 42,661 visits to the library.
x 10,168 people attended 327 library events for children, teens, and adults including expansive Summer Programming at all locations from numerous performers and community organizations.
x Partnerships: Collaborated with Scientific Adventures for Girls to offer co-ed space science programs to children on Saturdays in July. Productive partnerships with East Bay Regional Parks, Habitat Children’s Museum and Richmond Head Start classrooms led to dozens of well-attended special events and story times. x Acquired additional hotspots and laptops to be circulated to patrons, expanding access to online resources.
x Accepted a $250,000 grant from the California State Library to design and procure a replacement Bookmobile.
x Accepted a $9.7 million library renovation grant from the California State Library to renovate Richmond Main Library.
x Accepted a $150,000 grant from the Richmond Fund for Children and Youth for an expansive Homework Help program to be operated in conjunction with Bay Area Tutoring Association at three library locations and two community centers in 2023-2024.

Literacy for Every Adult Program (LEAP)
x LEAP received grants to support literacy se rvices including adult literacy instruction, families for literacy services, and Englis h as a Second Language services totaling $183,869.
x LEAP provided literacy services to Richmond residents, offered GED preparation classes at Bay Area Rescue Mission and English as a Second Language classes at a local business, Online Bindery. LEAP partnered with the Office of Neighborhood Safety to serve –at-risk youth, Richmond Builds to provide math training for the plumber’s exam, and the West Contra Costa Unified School district to offer ESL classes to parents. LEAP also served as host site for Contra Costa Health Services Health Career Pathways and collaborated with other City departments to host the Annual Literacy Festival. x 287 active adult learners; 6 GED certificates earned, 38 adults and 59 children participated in the Families for Literacy Services.
x LEAP has a group of dedicated volunteers who donated 2,203.5 hours, the equivalent of $61,900 in salary costs.
x Entered partnership with T-Mobile Government contracting to secure 109 free iPads for students to continue their education remotely with free hotspots. 354
x
Office of Neighborhood Safety
x Awarded over $6 million dollars in grant funding.
x Completed our 7th cohort of our Operation Peacemaker Fellowship. x Hired 7 new Neighborhood Change Agents and 2 new administrative staff. x Had 5,100+ engagements with Richmond community members. x Spent 5,000+ hours engaging Richmond community members.

Recreation
x Expanded the hours for many of our programs into evening and weekend times. x Transitioned all afterschool and summer camp programs to in-person opportunities. x Increased attendance at all our programs and Special Events such as Spring Egg Hunt, Park Rx Day, Fireworks, Fall Festival, and Tree Lighting.
x Senior Centers and Developing Personal Resources Center continued to provide programs in a hybrid format to allow our participants the freedom to choose programs of their comfort level.
x Continued to award Love Your Block Mini-Grants and supported community beautification projects through the fee waiver process. x Celebrated the opening of the City of Richmond’s first mobile Tool Lending Library. x Opened the first cooling center at Nevin Park through a grant received from Pacific Gas & Electric.

Transportation
x Increased Richmond MOVES on demand ride destinations by 15%. x Expanded the R-Transit senior / disabled ri deshare van service by contracting with a transportation provider to assist with rides and outreach promotions to enroll additional consumers.
x Approved by the US DOT as a Transportation Service provider. x Increased participation in th e annual electric vehicle ca rshare program to encourage increased EV purchases.

Respectfully submitted,
Andrea Miller
Director of Finance/Treasurer
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People of Richmond

People of Richmond

Mayor and City Council

Mayor and City Council

City Manager

City Manager

Director of Public Works

Director of Public Works

Richmond Rent Board

Richmond Rent Board

Confidential
Investigative Appeals
Officer
(Police Commission)
Confidential
Investigative Appeals
Officer
(Police Commission)
City Clerk

City Clerk

City Attorney

City Attorney

Executive
Assistant

Executive
Assistant

Deputy City Manager
Community Services

Deputy City Manager
Community Services

Deputy City Manager
Internal Services
Deputy City Manager
Internal Services
Employment and
Training

Employment and
Training

Office of
Neighborhood Safety

Office of
Neighborhood Safety

ECIA Grant
Administration

ECIA Grant
Administration

Engineering and
Capital Improvement
Program (CIP)
Engineering and
Capital Improvement
Program (CIP)
Building Maintenance

Building Maintenance

Water Resource
Recovery

Water Resource
Recovery

Fleet

Fleet

Maintenance and
Abatement

Maintenance and
Abatement

Parks Maintenance

Parks Maintenance

Finance

Finance

Human Resources

Human Resources

Information
Technology
Information
Technology
Library

Library

Department of
Children and Youth

Department of
Children and Youth

Rent Program

Rent Program

Rev. 1.12.2023
Chief of Police

Chief of Police

Patrol

Patrol

Traffic

Traffic

Investigations

Investigations

Administration and
Support

Administration and
Support

Director of Community
Development

Director of Community
Development

Planning

Planning

Building

Building

Code Enforcement

Code Enforcement

Housing

Housing

Redevelopment
Successor Agency

Redevelopment
Successor Agency

Chief of Fire

Chief of Fire

Fire Prevention

Fire Prevention

Emergency Services

Emergency Services

Emergency
Operations

Emergency
Operations

Training

Training

Administration and
Support

Administration and
Support

Transportation

Transportation

Recreation

Recreation

Special Projects

Special Projects

Director of Economic
Development

Director of Economic
Development

Business
Development

Business
Development

Arts & Culture

Arts & Culture

Richmond Housing
Authority

Richmond Housing
Authority

Environmental &
Health Initiatives

Environmental &
Health Initiatives

Port

Port

Real Estate

Real Estate

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CITY OFFICIALS
JUNE 30, 2023

CITY COUNCIL
Mayor …........................................
............................................................................................................................................ Eduardo Martinez Vice Mayor ........................................................................................................................................................................................ Gayle McLaughlin Councilmember …..................................................................................................................................................................................... Soheila Bana Councilmember …............................................................................................................................................................................... Claudia Jimenez Councilmember …..................................................................................................................................................................................Doria Robinson Councilmember ….......................................................................................................................................................................................Melvin Willis Councilmember …....................................................................................................................................................................................Cesar Zepeda

ADMINISTRATION AND EXECUTIVE MANAGEMENT
Ci
ty Manager ……………………….……………………………………………………………………………………………………………… Shasa Curl Deputy City Manager, Community Services …........................................................................................................................... LaShonda White Deputy City Manager, Internal Services …...................................................................................................................................... Nickie Mastay City Attorney …................................................................................................................................................................................ Dave Aleshire City Clerk …................................................................................................................................................................................. Pamela Christian Director of Community Development ….............................................................................................................................................. Lina Velasco Director of Economic Development …………….……………………………………………………………………………………. Nannette Beacham Director of Finance …....................................................................................................................................................................... Andrea Miller Director of Information Technology …............................................................................................................................................... Sue Hartman Director of Public Works …......................................................................................................................................................... Daniel Chavarria Human Resources Director ….........…........................................................................................................................................ Sharrone Taylor Interim Fire Chief .................................................................................................................................................................................... Michael Smith Police Chief …............................................................................................................................................................................................. Bisa French Port Director ….……………………………………………………………………………………………………......... .......................... Charles Gerard xii
357
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California
Report on the Audit of the Financial Statements
Disclaimer of Opinion and Unmodified Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Richmond, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements. We were engaged to audit the financial statements of the discretely presented component units as of and for the year ended June 30, 2023. These financial statements collectively comprise the City’s basic financial statements as listed in the table of contents.

Summary of Opinions
Opinion Unit Type of Opinion
Governmental Activities Unmodified
Business-Type Activities Disclaimer
Aggregate Discretely Presented Component Units Disclaimer Major Governmental Funds:

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

Richmond Housing Authority Disclaimer
Port of Richmond Unmodified
Municipal Sewer Unmodified
Aggregate Remaining Fund Information Unmodified
Disclaimer of Opinion on Business-Type Activities, Aggregated Discretely Presented Component Units and Richmond Housing Authority
Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit ev idence to provide a basis for an audit opinion on the financial statements of the business-type activities, Richmond Housing Authority Enterprise Fund, and the aggregate discretely presented component units of the City. Accordingly, we do not express an opinion on these financial statements.
358
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

2 Basis for Disclaimer of Opinion
The financial statements of the Richmond Hous ing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2023. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 8.11%, 18.66%, and 8.67% of the assets, net position, and revenues, respectively, of the City’s business-type activities. The financial activities of the RHA Properties, RHA Housing Corporation and RHA RAD LLC are included in the City’s financial activities as discretely presented component units and represent the City’s only discretely presented component units.

Unmodified Opinions on Governmental Activities , Major Governmental Funds, Port of Richmond, Municipal Sewer Fund and Aggregate Remaining Fund Information In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the General Fund, the Community Development and Loan Programs Special Revenue Fund, the Port of Richmond Enterprise Fund, the Municipal Sewer Enterprise Fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control re levant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 359
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

3 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
360
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

4 Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America require that the management’s discussion and analysis, budgetary comparison in formation, and required pension and other post- employment benefits information on pages 7-19 and 179-205 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basi c financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the meth ods of preparing the information and comparing the information for consistency with management’s response s to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opin ions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedule and budget comparison information of nonmajor governmental funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedule and budget comparison information of nonmajor governmental funds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlyi ng accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedule and budget comparison information of nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the information included in the ACFR but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work pe rformed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 361
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 23, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, an d grant agreements and other matters. The purpose of that report is solely to describe the scope of our te sting of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
January 23, 2024
362
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363
7 MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2023
This narrative overview and analysis of the City of Richmond’s (City) Basic Financial Statements is for the fiscal year ended June 30, 2023. We encourage r eaders to consider the information presented here in conjunction with the accompanying transmittal letter, basic financial statements, and notes to the financial statements.

FINANCIAL HIGHLIGHTS
x The City’s total net position increased by $118.1 million during the fiscal year, attributed to $98.1 million increase in governmental activities and $20 million increase in business-type activities. x The liabilities and deferred inflows of the governmental activities of the City exceeded its assets and deferred outflows at the close of fiscal year 2023 by $62 million (net deficit). Alternatively, the assets and deferred outflows of the business-type activities of the City exceeded its liabilities and deferred inflows by $133.9 million.
x As of June 30, 2023, the City’s unrestricted net deficit (governmental and business-type activities) totaled $370.5 million, a $83.1 million decrease from prior year. The unrestricted net deficits represent the net unfunded liabilities of the government. Over time, increases and decreases in this account will allow the reader to determine if the City’s condi tion is improving or deteriorating. Restricted net position for governmental and business-type activities increased by a net $22.8 million to $140.6 million.
x The City’s financial statements include a disclaimer of opinion on the financial statements of the Richmond Housing Authority Enterprise Fund (RHA), a blended component unit included in the City’s business-type activities, and three discretely presented component units, RHA Properties, RHA Housing Corporation, and RHA RAD LLC. As of June 30, 2023, the net position of RHA is $25 million, accounting for 18.7% of the City’s business-type activities. Additional information about the disclaimer of opinion can be found in the Independent Auditor’s Report. x The City’s General Fund contingency reserve policy increased the minimum to 21% of the General Fund’s next year’s budgeted appropriations, or $47.3 million. As of June 30, 2023, the balance was $55.2 million, or 24.49%.
x The Net Pension Liability of $369.6 million, repres ents the City’s unfunded pension obligation, increased by $155.3 million from $214.3 million. Th e City reports $74.7 mill ion in the Other Post- Employment Benefit (OPEB) liability for this fiscal year, which is a decrease of $9.8 million from the $84.5 million obligation reported in the prior year.
x The City’s General Fund revenue and other financing sources (uses) exceeded expenditures by $15.8 million in fiscal year 2023. This is primarily attrib utable to property taxes, utility user taxes, and licenses, permits, and fee revenues in excess of expectations for the year. 364
8 OVERVIEW OF FINANCIAL STATEMENTS
The City’s basic financial statements are compri sed of government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business.

The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the four reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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

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

RHA Properties, RHA Housing Corporation, and RHA RAD LLC, while being legally separate entities, are included in the City's financial statement as discretely presented component units for which the City bears financial responsibility.

The government-wide financial statements can be found on pages 26-29 of the financial report.

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

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

Governmental Funds – Governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year 2023. Such information may be useful in determining what financ ial resources are available in the near future to finance the City’s programs.

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

Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
365
9 The City has 21 governmental funds, of which three are considered major funds for presentation purposes.

Each major fund is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. The City’s three major funds are the General Fund, the Community Development and Loan Programs Special Revenue Fund, and the American Rescue Plan Act Fund. The basic governmental fund financial statements can be found on pages 33-36 of the financial report. Data from the other eighteen governmental funds are combined into a single, aggregated presentation and reported separately on pages 212-219 of the financial report.

Proprietary Funds – Proprietary funds of the City are two type s: (1) enterprise funds; and (2) internal service funds. The City maintains six enterprise funds that provide the same type of information as the government-wide financial statements, only more detailed. The City maintains three internal service funds to account for its vehicle operat ions, risk management program, and compensated absences. The proprietary fund financial statements can be found on pages 38-43 of the financial report.

Fiduciary Funds – Fiduciary funds are used to account for reso urces held for the benefit of third parties outside the government. Fiduciary funds are not refl ected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The fiduciary funds for the City consist of Pension Trust Funds, City OPEB Plan Trust Fund, RPOA OPEB Plan Trust Fund, Pt. Molate Private-Purpose Trust Fund, Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund, and Custodial Funds. The fiduciary funds financial statements for these funds can be found on pages 45-46 of the financial report.

The notes provide additional information that is essentia l to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 47-176 of the financial report. 366
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Government-wide Net Position
This Comparative financial information includes long- term and short-term information about the City’s overall financial condition. The following table provi des the reader with highlights of changes from the prior year.

FY2023 FY2022 FY2023 FY2022 FY2023 FY2022
Assets:

Current assets 302,062 $ 245,417 $ 71,414 $ 63,729 $ 373,475 $ 309,146 $ Other noncurrent assets 55,050 49,189 64,517 72,441 119,567 121,630 Capital assets 298,742 296,418 246,849 226,354 545,591 522,772 Total Assets 655,853 591,024 382,779 362,524 1,038,633 953,548 Deferred Outflows of Resources:

Deferred outflows related to pensions 101,707 36,064 2,134 778 103,840 36,842 Deferred outflows related to OPEB 2,512 4,095 61 122 2,574 4,217 Deferred outflows related to fair value of derivative - 21,985 - - - 21,985 Deferred charge on refunding 30,246 - 5,554 5,901 35,800 5,901 Total Deferred Outflows of Resources 134,465 62,145 7,748 6,801 142,213 68,945 Liabilities:

Current liabilities 89,810 108,322 20,173 20,953 109,983 129,275 Noncurrent liabilities 728,266 561,493 175,910 161,964 904,176 723,457 Total Liabilities 818,076 669,815 196,084 182,917 1,014,160 852,732 Deferred Inflows of Resources:

Deferred inflows related to pensions 7,266 94,876 122 2,378 7,388 97,254 Deferred inflows related OPEB 26,414 47,929 560 1,321 26,975 49,250 Deferred inflows related to leases 860 898 59,901 68,857 60,761 69,755 Total Deferred Inflows of Resources 34,540 143,702 60,583 72,556 95,124 216,258 Net Position:

Net investment in capital assets 219,126 213,930 82,405 75,469 301,531 289,399 Restricted 139,687 117,137 879 608 140,566 117,744 Unrestricted (421,111) (491,415) 50,576 37,775 (370,535) (453,640) Total Net Position (Deficit) (62,298) $ (160,348) $ 133,861 $ 113,852 $ 71,563 $ (46,495) $ City of Richmond's Net Position
June 30, 2023 and 2022
(in thousands)
Governmental
Activities
Business-typex
Activities Totals
367
11 Government-wide Activities
The following table indicates changes in the net position for governmental and business-type activities.

FY2023 FY2022 * FY2023 FY2022 * FY2023 FY2022
Revenues:

Program revenues:

Charges for services 35,662 $ 26,965 $ 46,672 $ 43,173 $ 82,334 $ 70,138 $ Operating grants/contributions 39,915 37,756 4,341 2,212 44,256 39,968 Capital grants/contributions 1,785 10,787 - - 1,785 10,787 General revenues:

Property taxes-current collections 71,090 65,249 - - 71,090 65,249 Sales taxes 55,541 53,453 - - 55,541 53,453 Utility user taxes 54,676 48,374 - - 54,676 48,374 Documentary transfer taxes 10,417 18,612 - - 10,417 18,612 Other taxes 9,207 8,177 - - 9,207 8,177 Unrestricted Intergovernmental 8,744 7,241 - - 8,744 7,241 Use of money and property 5,517 1,594 2,083 910 7,600 2,504 Gain on sale of capital assets 20 88 - - 20 88 Other 1,994 2,140 - - 1,994 2,140 Total revenues 294,568 280,436 53,096 46,295 347,664 326,731 Expenses:

General government 60,377 48,312 - - 60,377 48,312 Public safety 76,927 68,260 - - 76,927 68,260 Public works 36,476 35,555 - - 36,476 35,555 Community development 4,515 3,552 - - 4,515 3,552 Cultural & recreation 9,264 9,970 - - 9,264 9,970 Housing & redevelopment 3,235 3,376 - - 3,235 3,376 Interest and fiscal charges 4,841 12,322 - - 4,841 12,322 Richmond Housing Authority - - 4,987 (1,751) 4,987 (1,751) Port of Richmond - - 5,500 4,764 5,500 4,764 Municipal Sewer - - 20,762 18,141 20,762 18,141 Richmond Marina - - 217 246 217 246 Storm Sewer - - 1,803 1,283 1,803 1,283 Cable TV - - 735 665 735 665 Total expenses 195,635 181,347 34,004 23,347 229,639 204,695 Excess (Deficiency) of Revenues
Over (Under) Expenses 98,933 99,089 19,092 22,948 118,025 122,037 Transfers (882) (3,517) 882 3,517 - - Changes in Net Position 98,051 95,572 19,975 26,464 118,025 122,036 Net position (deficit) at beginning of
year (July 1, 2022restated) (160,348) (255,921) 113,886 87,388 (46,462) (168,533) Net position (deficit) at end of year (62,298)$ (160,348) $ 133,861 $ 113,852 $ 71,563 $ (46,495) $ * Governmental Activities beginning balance was restated and increased by $2.8 million.

Business-type Activities beginning balance was restated and decreased by $0.91 million in the Richmond Housing Authority City of Richmond's Changes in Net Position
For the Years Ended June 30, 2023 and 2022
(in thousands)
Governmental Activities Business-type Activities Totals 368
12 Governmental Activities
Governmental activities increased the City’s net po sition by $98.1 million, accounting for 83% of the City’s total increase in net position of $118 million. Total revenues of $294.6 million exceeded expenses of $195.6 million by $99 million. Revenues increased by $14.1 million or 5% from the prior year primarily due to an increase in charges for services, property tax revenues, and operating grants/contributions.

Expenses increased $14.3 million or 7.8% from the pr ior year primarily due to an increase in general government, public safety, and public works expenses.

Business Type Activities
Business-type activities increased the City’s net position by $20 million. Key factors contributing to the increase in business-type activities are as follows:
x The Richmond Housing Authority’s (RHA) net position increased by $600 thousand. This increase is due to the collection of past due tenant rent and payment agreements. x The Port of Richmond’s (Port) net position increased by $6.8 million, an increase of 6% from the previous year.
x The Municipal Sewer fund’s net position increased by $10.4 million. This increase was primarily due to an increase in revenues.
x Other Enterprise fund’s net position increased by $2.2 million. This increase was primarily due to a grant income of $1.1 million and a decrease in interest expense.

Net Program (Expenses) Revenues
Comparisons of the costs of services by functions for the City’s government-wide activities are shown in the preceding tables on page 11, along with the revenues used to cover the net expenses.

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

Net (Expenses)
Expenses Revenues Revenues
Functions
General gov ernment 60,377,362$ 29,096,998 $ (31,280,364) $ Public safety 76,926,512 4,414,291 (72,512,221) Public works 36,475,877 16,925,792 (19,550,085) Community development 4,515,446 26,096,385 21,580,939 Cultural and recreational 9,263,762 1,062,677 (8,201,085) Housing and redevelopment 3,234,605 (234,064) (3,468,669) Interest on long-term debt 4,841,105 - (4,841,105) Total 195,634,669$ 77,362,079 $ (118,272,590) $
Governmental Activities
Expenses and Program Revenues
369
13 Total governmental activities expenses of $195.6 million were offset by $77.4 million in program revenues in fiscal year 2023. Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the government’s general revenues. During the fiscal year, the net costs funded by the City’s general revenues were $118 million.

As reflected in the pie chart below, 46% of the governmental program revenues came from Charges for Services, which includes licenses, permits, fees, fines, forfeitures, penalties, and several other revenues.

The remaining 54% of governmental program revenues came from Operating Grants and Capital Grants Contributions, which include restricted revenues su ch as Gas Tax, Transportation and Sales Tax, and Federal/State Grants.

General revenues are all other revenues not categorized as program revenues and include property taxes, sales taxes, utility users’ tax, do cumentary transfer taxes, investment earnings, grants and contributions not related to specific programs and other miscellaneous general revenues. Total general revenue from governmental activities were $217.2 million in fiscal year 2023. The three largest components of general revenues received were Property Taxes-current collections of $71.1 million, Sales Taxes of $55.5 million, and Utility User Taxes of $54.7 million. The follow ing pie chart shows the City’s general revenues by source.
370
14 The following table details net program costs for business-type activities. Business-type activities revenue exceeded expenses by $17 million, as Municipal Sewer, the Port of Richmond, and other Enterprise Funds contributed net revenues of $9.6 million, $5.9 million, and $1.5 million respectively.

Program Net (Expenses)
Expenses Revenues Revenues
Business-type Activities
Richmond Housing Authority 4,986,560$ 4,591,367 $ (395,193) $ Port of Richmond 5,500,092 11,383,930 5,883,838 Municipal Sewer 20,762,028 30,312,526 9,550,498 Richmond Marina 217,343 541,632 324,289 Storm Sewer 1,803,217 3,146,595 1,343,378 Cable TV 735,080 1,037,515 302,435 Total 34,004,320$ 51,013,565 $ 17,009,245 $
Expenses and Program Revenues
Business-type Activities
371
15 As reflected in the following pie chart, 91% of the business-type program revenues came from Charges for Services and the remaining 9% were derived from Operating Grants and Contributions.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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

At the end of the fiscal year 2023, the City’s govern mental funds reported total fund balances of $193.2 million, an increase of $35.9 million, or 22.8% from pr ior year. Financial highlights for the City’s major funds are discussed below:

General Fund – The General Fund is the primary operating fund of the City. It is used to report the financial results of the daily operations of the City. The major revenue sources are utility users’ tax, sales tax, and property taxes. The major expenditures ar e salaries and administrative expenses. The City’s general fund revenues increased by $13.1 million or 6.8% and expenditures increased by $12.2 million or

7.2%. The increase in revenues is primarily due to the increased collection of both Utility User Tax and Licenses, permits and fees. Utility User Tax increased by $6.3 million or 13%. Licenses, permits and fees increased by $7.5 million, an increase of over 86.2%.

General Fund expenditures increased by 7.2% across several categories with General Government as the major source of increase. In Other Financing Sour ces and Uses, Operating Transfers-In increased by

97.9%; however, Operating Transfers Out increased by 116.7%. Operating Transfers In included $19.4 million from Secured Pension Override Fund for cu rrent year pension contributions to CalPERS.

Operating Transfers Out included $15 million to the General Capital Fund for the Main Library Renovation Project.
372
16 At the end of the fiscal year 2023, the total fund balance increased by $15.8 million from the prior year to $86.3 million. The General Fund repo rted an unassigned fund balance of $55.2 million, an increase of $10.3 million from prior year, of which the entire balance has been set aside for contingency.

Community Development and Loan Programs – This fund was established to account for the receipt of grant monies and the uses of Community Development Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program. In conjunction with the dissolution of the Redevelopment Agency, this fund also accounts for th e low- and moderate-income housing activities of the City as Housing Successor to the former Redevelopment Agency’s low-income and moderate-income housing activities. As of June 30, 2023, fund balance is $32.6 million, which represents a $1.2 million increase from prior year.

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

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

Richmond Housing Authority – The Richmond Housing Authority (RHA) provides affordable housing for low and very low-income residents of Richmond through federally funded housing programs. RHA’s net position increased by $0.6 million to $25 million as of June 30, 2023.

The Port of Richmond – The Port of Richmond (Port) is a public enterprise established by the City and is administered as a department of the City. Operations include the marine terminal facilities and commercial property rentals. The Port’s net position increased by $6.8 million to $29.1 million as of June 30, 2023.

Municipal Sewer Fund – This fund is used to account for a variety of sewer service-related revenues and expenses. Municipal Sewer’s net position increased by $10.4 million to $70.5 million as of June 30, 2023.

GENERAL FUND BUDGETARY HIGHLIGHTS
The original adopted budget, excluding transfer s, bond premium and proceeds from sale of property, reflected $190 million in estimated revenues and $198.7 million in appropriations.

Budget adjustments reflect extensive analysis and updates arising from periodic review and Council approved amendments that occurred during the fiscal year.

The final revised budget included a $5.3 millio n increase in estimated revenues and a $14.5 million decrease in appropriations. Actual revenue of $206.6 million was $11.4 million more than the revised revenue budget, a varian ce of 6%. Key elements of the variances in revenues are discussed as follows:

Property taxes totaled $51.9 million, which is $3.3 million more than the revised budget and $5.9 million more than the original budget. Th e increase stems from increases in residual Redevelopment Property Tax Trust Fund (RPTTF ) Recognized Obligation Payment Schedule (ROPS) receipts which were more than expect ed for the Successor Agency Residual and Pass- through revenue.
373
17 Sales taxes totaled $55.5 mill ion, which was $12 thousand le ss the revised budget and $259 thousand more than the original budget. This corresponded to incr eases in the regular sales tax and proportional increases in both half cent sales tax measures.

Utility users tax (UUT) totaled $54.7 million, wh ich was $3.8 million more than expected. The bulk of the increase was in tax collected from gas & electricity. The combination of a colder and wetter winter compared to previous years and significant rate increase by Pacific Gas & Electric yielded higher than anticipated gas and electricity UUT.

Licenses, permits and fees totaled $16.2 million, which was $8.1 million more than the revised budget amount. The bulk of this stemmed from the first full year of Measure U – the voter approved business tax measure that changed the way business tax is calculated from being based on number of employees to one based on gross receipts with different rates based on the type of businesses and with progressive tiers where busi nesses with higher gross receipts pay a higher tax rate. Additionally, going forward, all bu sinesses are required to have a December 31 st expiration date. This meant the City had to transition about 40% of the businesses from their previous anniversary-based expiration date to the new December 31 st expiration date. The result was that those businesses had to pay both a pror ated tax for 2022 and the full amount for 2023, within fiscal year 2022-23. This resulted in approximately $2.5 million of additional revenue on top of the tax stemming from the new methodology.

The final adjusted appropriations were $184.2 million, a decrease of $14.5 million from the original adopted budget appropriation of $198.7 million. The adopted budget appropriation was decreased primarily due to increased adjustments in public safety and engineering services. The final budget appropriation for transfers out was $34.9 million, an increase of $23 million. The increase was due to several adjustments to the budget made during mid-year to incorporate the City Council approved set asides for Reimagining Public Safety and several transfers approved as part of year-end clean-up to clear negative cash from other funds.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2023 amounted to $545.6 millio n, net of accumulated depreciat ion. Investment in capital assets includes land, construc tion in progress, buildings a nd improvements, machinery and equipment, and infrastructure. Details by type are shown in the following table. 374
18 The City’s infrastructure assets are recorded at thei r historical costs in the government-wide financial statements. Additional information about the City’s capital assets can be found in Note 6 on pages 83-87.

Debt Administration
Long Term Debt – The City’s total debt outstanding increased $18.1 million to $423.4 million as of June 30, 2023. The increase is due to $20 million Californi a State Loan drawdown used to finance the Water Resource Recovery Facility project.

The City does not have any general obligation bonds as of June 30, 2023.

Economic Factors
The City’s economic base has recovered from the slowdown related to the effects of the COVID-19 restrictions. As of January 1, 2023, Property values assessed by the County have increased by 6.77% over the prior year. Increase to the Assessed Valuation (AV) primarily stemmed from an increased valuation of the Chevron Refinery in Richmond. The CPI growth was 2.0% for most properties and there were significant property sales during the year, the refinery assessment by the County went from approximately $2.7 billion in FY2021-22, to $3.0 billion in FY2022-23. Redevelopment Property Tax Trust Fund (RPTTF) revenue from Recognized Obligation Payment Schedule (ROPS) payments have continued to increase over the years from $600 thousand in fiscal year 2016 to $10.4 million in 2023. Sales Tax revenue has rebounded to above pre-pandemic levels. Sales Tax revenue was $47.7 million in fiscal year 2019, dipped down to $44.5 million in fiscal year 2020, and finally rebounded to $49.0 million in fiscal year 2021, $53.4 in fiscal year 2022, and in fiscal year 2023, Sales Tax revenue increased to $55.5 million.

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

0.70% did not change for sales under $1 million, but for sales from $1 million and above, the rates changed according to the following table.
375
19 Even before the new tiered system, the Documentary Transfer Tax was one of the most volatile of revenue streams for the City. A few sales can have a dramatic impact on the General Fund. In fiscal year 2018, before the new tiered rate structure was approved and put in place, the transfer tax collected totaled $6.5 million. In fiscal year 2019, the tax collected went up to $8.0 million. In fiscal year 2020, it went up modestly to $8.7 million. In fiscal year 2021, due to a few unusually large real-estate transactions, it increased significantly to $19.9 millio n. In fiscal year 2022, the Transf er Tax revenue decreased by $1.2 million to $18.6 million. In fiscal year 2023, the Transfer Tax revenue saw a significant dip of $8.2 million, or a decrease of 44%, with a total of $10.4 million in Transfer Tax.

Measure U
In November 2020, Richmond voters approved Measure U which significantly changed the calculation for the business license tax. This changed the tax calculation from based on number of employees or location to a percentage of the business gross receipts. The pe rcentage charged varies based on both the type of business and the amount of gross receipts with the new rates ranging from 0.06% to 0.68% for businesses and 1.08% to 2.4% for rental properties. The new me thodology brought in an additional $5.3 million for the City in fiscal year 2022, an increase of 168% compared to prior year and an additional $7.7 million in fiscal year 2023 with a total of $16.2 million, an increase of 91% over the previous year.

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

This will include planning and addressing pension and Other Post-Employment Benefits (OPEB) funding and determining adequate reserve level per the California State Auditor’s recommendation. Additionally, the City continues to analyze the structural integrity of all funds and identify additional cost reductions and efficiencies.

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

FINANCIAL STATEMENTS
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22379

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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24381
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25382
City of Richmond
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 252,374,633$ 66,900,808 $ 319,275,441 $ Restricted cash and investments 2,573,370 1,571,515 4,144,885 Receivables:

Accounts, net 15,576,419 6,949,415 22,525,834
Interest 420,109 115,77 7 535,886
Grants 17,741,594 1,105,632 18,847,226
Loans ---
Leases 58,315 7,255,740 7,314,055
Internal balances 12,485,370 (12,485,370) -
Prepaids and supplies 832,075 - 832,075
Total current assets 302,061,885 71,413,517 373,475,402 Noncurrent assets:

Due from developer - 10,221,743 10,221,743
Loans 49,408,121 - 49,408,121
Leases 818,997 54,294,943 55,113,940
Property held for resale 78,016 - 78,016
Net pension asset 4,744,616 - 4,744,616 Capital assets:

Nondepreciable 71,080,883 97,934,526 169,015,409
Depreciable 773,529,123 359,266,195 1,132,795,318
Less accumulated depreciation (545,868,156) (210,351,684) (756,219,840) Total capital assets 298,741,850 246,849,037 545,590,887 Total noncurrent assets 353,791,600 311,365,723 665,157,323 Total assets 655,853,485 382,779,240 1,038,632,725

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 101,706,642 2,133,666 103,840,308 Deferred outflows of resources - OPEB 2,512,281 61,288 2,573,569 Deferred ouflows - change in fair value of derivative instruments --- Deferred charge on refunding 30,245,958 5,553,533 35,799,491 Total deferred outflows of resources 134,464,881 7,748,487 142,213,368

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 14,866,933 9,936,768 24,803,701 Interest payable 742,454 2,331,278 3,073,732
Refundable deposits 1,003,374 450,982 1,454,356
Unearned revenue 45,792,083 - 45,792,083
Derivative instrument at fair value ---
Compensated absences - due within one year 5,864,632 107,685 5,972,317 Claims liabilities - due within one year 13,576,850 - 13,576,850 Long-term debt - due within one year 7,963,619 7,346,782 15,310,401 Total current liabilities 89,809,945 20,173,495 109,983,440 Noncurrent liabilities:

Unearned revenue - 2,974,100 2,974,100
Compensated absences 5,771,611 137,490 5,909,101
Claims liabilities 36,104,836 - 36,104,836
Long-term debt 251,519,758 163,334,394 414,854,152
Net pension liability 362,596,831 7,016,373 369,613,204 Net OPEB liability 72,272,804 2,447,994 74,720,798
Total noncurrent liabilities 728,265,840 175,910,351 904,176,191 Total liabilities 818,075,785 196,083,846 1,014,159,631

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 7,265,770 122,335 7,388,105 Deferred inflows of resources - OPEB 26,414,344 560,401 26,974,745 Deferred inflows of resources - leases 860,212 59,900,556 60,760,768 Total deferred inflows of resources 34,540,326 60,583,292 95,123,618

NET POSITION
Net investment in capital assets 219,126,138 82,405,234 301,531,372 Restricted for:

Capital projects 30,661,967 - 30,661,967
Debt service 317,316 879,45 7 1,196,773
Housing and redevelopment 12,868,141 - 12,868,141
Community development projects 95,839,671 - 95,839,671
Total restricted 139,687,095 879,45 7 140,566,552
Unrestricted (421,110,978) 50,575,898 (370,535,080)
(62,297,745)$ 133,860,589 $ 71,562,844 $ Total net position Primary Government
See accompanying Notes to Basic Financial Statements
26383
RHA RHA Housing RHA
Properties Corporation RAD LLC
-$ 137,179$ - $ ---
---
---
---
- - 15,510,000
---
---
---
- 137,179 15,510,000
---
---
---
- - - ---
---
---
---
---
- 137,179 15,510,000
---
---
---
---
- 9,742 -
-- -
-- -
- 66,407 -
---
---
---
---
- 76,149 -
---
---
---
---
---
---
---
- 76,149 - ---
---
---
---
---
---
---
---
---
- 61,030 15,510,000
-$ 61,030$ 15,510,000$ Component Unit
s
27384
City of Richmond
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 60,377,362 $ 26,604,156 $ 2,492,842 $ - $ 29,096,998$ Public safety 76,926,512 2,820,319 1,307,023 286,949 4,414,291 Public works 36,475,877 4,897,532 10,779,605 1,248,655 16,925,792 Community development 4,515,446 581,864 25,265,043 249,478 26,096,385 Cultural and recreational 9,263,762 758,252 304,425 - 1,062,677 Housing and redevelopment 3,234,605 - (234,064) - (234,064) Interest on long-term debt 4,841,105 - - - - Total governmental activities 195,634,669 35,662,123 39,914,874 1,785,082 77,362,079 Business-type activities
Richmond Housing Authority 4,986,560 1,344,324 3,247,043 - 4,591,367 Port of Richmond 5,500,092 11,383,930 - - 11,383,930 Municipal Sewer 20,762,028 30,312,526 - - 30,312,526 Richmond Marina 217,343 541,632 - - 541,632 Storm Sewer 1,803,217 2,052,546 1,094,049 - 3,146,595 Cable TV 735,080 1,037,515 - - 1,037,515 Total business-type activities 34,004,320 46,672,473 4,341,092 - 51,013,565 Total primary government 229,638,989$ 82,334,596 $ 44,255,966 $ 1,785,082 $ 128,375,644 $ Component units:

RHA Properties - - - - - RHA Housing Corporation 17,240 - - - -

RHA RAD LLC - - - - - Total component units 17,240$ - $ - $ - $ - $ General Revenues:

Taxes:

Property taxes - current collections
Sales taxes
Utility user taxes
Documentary transfer taxes
Other taxes
Total taxes
Unrestricted intergovernmental
Use of money and property
Gain (loss) from sale of capital assets
Other
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements
28385
Governmental Business-Type RHA RHA Housing RHA
Activities Activities Total Properties Corporation RDA LLC (31,280,364)$ - $ (31,280,364)$ (72,512,221) - (72,512,221) (19,550,085) - (19,550,085) 21,580,939 - 21,580,939 (8,201,085) - (8,201,085) (3,468,669) - (3,468,669) (4,841,105) - (4,841,105) (118,272,590) - (118,272,590) - (395,193) (395,193) - 5,883,838 5,883,838 - 9,550,498 9,550,498 - 324,289 324,289 - 1,343,378 1,343,378 - 302,435 302,435 - 17,009,245 17,009,245 (118,272,590) 17,009,245 (101,263,345)
- - - - (17,240) -
- - - - (17,240) -
71,089,739 - 71,089,739 - - - 55,541,366 - 55,541,366 - - - 54,676,023 - 54,676,023 - - - 10,416,847 - 10,416,847 - - - 9,206,830 - 9,206,830 - - - 200,930,805 - 200,930,805 - - - 8,744,324 - 8,744,324 - - - 5,516,787 2,083,188 7,599,975 - - - 20,207 - 20,207 - - - 1,993,535 - 1,993,535 - - - (882,448) 882,448 - - - - 216,323,210 2,965,636 219,288,846 - - - 98,050,620 19,974,881 118,025,501 - (17,240) - (160,348,365) 113,885,708 (46,462,657) - 78,270 15,510,000 (62,297,745)$ 133,860,589 $ 71,562,844 $ - $ 61,030$ 15,510,000$ Primary Government Component Units
Net (Expense) Revenue
and Changes in Net Position
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30387
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
31388

GOVERNMENTAL FUND FINANCIAL STATEMENTS
The funds described below were determined to be major governmental funds by the City in the current fiscal year.

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

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

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

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. 32389
City of Richmond
Balance Sheet
Governmental Funds
June 30, 2023
Community
Development American Othe r Total
General and Loan Rescue Plan Governmental Governmental
Fund Program s Act Fund Fund s Funds
ASSETS
Cash and investments 76,300,396$ 5,476,19 1$ 23,730,886 $ 85,433,104 $ 190,940,577 $ Restricted cash and investments - 2,100,910 - 472,460 2,573,370 Receivables:

Accounts, net 14,404,387 46,821 - 1,125,211 15,576,419
Interest 141,040 9,096 44,446 113,746 308,328
Grant
s 18,127 22,052 - 15,176,199 15,216,378
Loans 3,011,651 43,867,457 1,750,000 779,013 49,408,12 1 Leases 877,312 - - - 877,312
Due from other funds 856,012 - - - 856,012
Advances to other funds 12,485,370 - - - 12,485,370
Property held for resale - 78,016 - - 78,016
Prepaids and supplies 682,075 - - 150,000 832,075
Total assets 108,776,370 51,600,543 25,525,332 103,249,733 289,151,978

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 8,589,405 27,820 111,219 4,615,612 13,344,056 Refundable deposits 311,619 - - 691,755 1,003,374
Due to other funds - - - 856,012 856,012
Unearned revenue 10,368,814 - 23,128,545 12,294,724 45,792,083 Total liabilities 19,269,838 27,820 23,239,764 18,458,103 60,995,525 Deferred inflows of resources:

Unavailable revenue 2,334,377 18,961,546 - 12,789,198 34,085,12 1 Leases related 860,212 - - - 860,212
Total deferred inflows of resouces 3,194,589 18,961,546 - 12,789,198 34,945,333 Fund Balances:

Nonspendable 13,867,445 - - - 13,867,445
Restricted 3,996,614 32,611,177 535,568 75,060,348 112,203,707 Committed 3,720,697 - - - 3,720,697
Assigned 9,530,225 - 1,750,000 - 11,280,225
Unassigned 55,196,962 - - (3,057,916
) 52,139,046
Total fund balances 86,311,943 32,611,177 2,285,568 72,002,432 193,211,120 Total liabilities, deferred inflows
of resources, and fund balances 108,776,370$ 51,600,543 $ 25,525,332 $ 103,249,733 $ 289,151,978 $ See accompanying Notes to Basic Financial Statements
33390
Total Fund Balances - Total Governmental Funds 193,211,120$ Capital assets used in governmental activities were not current financial resources.

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

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciabl
e 71,080,883$ (149,394 )$ 70,931,489
Depreciable, net 227,660,967 (9,342,556 ) 218,318,411
Total capital assets 298,741,850$ (9,491,950 )$ 289,249,900 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position. 19,295,661
Unavailabl
e revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 34,085,121 In th
e Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 101,340,567 Deferred outflows of resources related to OPEB 2,498,752 Deferred inflows of resources related to pension (7,244,781 )
Deferred inflows of resources related to OPEB (26,290,636) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (5,864,632) $ 28,641 $ (5,835,991)$ Interest payable (742,454) 7,205 (735,249) Long-term debt - due within one year (7,963,619) 272,341 (7,691,278) Compensated absences - due in more than one year (5,771,611) 43,508 (5,728,103) Long-term debt - due in more than one year (251,519,758) 1,201,791 (250,317,967) Deferred charge on refunding 30,245,958 - 30,245,958 Net pension liability/asset (357,852,215) 1,203,807 (356,648,408) Net OPEB liability (72,272,804) 540,393 (71,732,411 )
Total long-term liabilities (671,741,135)$ 3,297,686 $ (668,443,449 ) Net Position of Governmental Activities (62,297,745)$
City of Richmond
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
34391
City of Richmond
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Community
Development American Other Total
General and Loan Rescue Plan Governmental Governmental
Fund Program s Act Fund Fund s Funds
REVENUES:

Property taxes 51,919,490 $ - $ - $ 27,795,779$ 79,715,269 $ Sales taxes 55,541,366 - - - 55,541,366 Utility user taxes 54,676,023 - - - 54,676,023 Other taxes 19,623,678 - - - 19,623,678 Licenses, permits and fees 16,256,765 583,526 - 14,598,857 31,439,148 Fines, forfeitures and penalties 255,225 - - 3,810 259,035 Use of money and property 1,563,469 322,745 493,777 1,175,021 3,555,012 Intergovernmental 539,174 249,478 4,130,024 24,170,120 29,088,796 Charges for services 4,749,957 - - 8,375,120 13,125,077 Rent 817,496 - - - 817,496 Other 697,502 1,041,130 - 336,009 2,074,641 Total revenues 206,640,145 2,196,879 4,623,801 76,454,716 289,915,541 EXPENDITURES:

Current:

General government 42,548,567 - 216,213 19,116,954 61,881,734 Public safety 92,441,016 - - 1,558,024 93,999,040 Public works 27,689,138 - 1,440,797 9,787,035 38,916,970 Community development - 601,777 - 5,884,917 6,486,694 Cultural and recreational 10,304,044 - 180,108 348,919 10,833,071 Housing and redevelopment - 429,859 392,904 2,661,435 3,484,198 Capital outlay 2,986,140 - 150,000 7,724,310 10,860,450 Debt service:

Principal 3,997,477 - - 15,863,000 19,860,477 Debt defeasance using existing resources - - - 2,163,313 2,163,313 Interest and fiscal charges 119,404 - - 5,737,340 5,856,744 Total expenditures 180,085,786 1,031,636 2,380,022 70,845,247 254,342,691

REVENUES OVER (UNDER)
EXPENDITURES 26,554,359 1,165,243 2,243,779 5,609,469 35,572,850 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 1,264 18,943 - - 20,207 Other financing sources - SBITAs 417,005 - - - 417,005 Payment to refunded bonds escrow agent - - - (152,904,036) (152,904,036) Issuance of refunding bonds - - - 154,140,000 154,140,000 Transfers in 19,509,953 - - 30,802,917 50,312,870 Transfers out (30,634,407) - - (21,038,929) (51,673,336) Total other financing sources (uses) (10,706,185) 18,943 - 10,999,952 312,710 Net change in fund balances 15,848,174 1,184,186 2,243,779 16,609,421 35,885,560 FUND BALANCES (DEFICITS):

Beginning of year 70,463,769 31,426,991 41,789 55,393,011 157,325,560 End of year 86,311,943$ 32,611,177 $ 2,285,568 $ 72,002,432 $ 193,211,120 $ See accompanying Notes to Basic Financial Statements
35392
City of Richmond
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds 35,885,560$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 12,140,484
Depreciation expens e on capital asset s was reported in th e Government-Wide Statement of Activities , but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (13,637,801) Gain on sale of assets are not recorded in the governmental funds since the assets are not recorded there but they are recorded in the government-wide 20,207
Proceed from sal e assets are recorded in th e governmental fund s but th e gain o r loss is recorded in th e government-wide (20,207)
Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (141,196) Debt proceeds provide current financial resource s to governmental funds , but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Lon
g-term debt repayments 174,927,826
Procced from issuance of debt (154,140,000)
Loss on extinguishment of debt (58,313)
Amortization of bonds premium 863,438
Interest payable 273,305
Current year employer pension and OPEB contribution s are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 51,967,634
Pension expens
e is reported in th e Government-Wide Statement of Activitie s does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (34,224,969) OPEB expens e is reported in th e Government-Wide Statement of Activitie s does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. 14,400,153 Unavailable revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,239,076
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 7,555,423
Change in Net Position of Governmental Activities 98,050,620$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
36393

PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for operations financed and operated in a manner similar to a private business enterprise.

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

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

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

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

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

The Municipal Sewer fund account s for all financial transaction s relating to the Cit y's Wastewater Collection and Treatment. Services are on a user charge basis to residents and business owners located in Richmond. 37394
City of Richmond
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2023
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
ASSETS
Current assets:

Cash and investments 3,711,842 $ 10,478,957 $ 45,231,070 $ 7,478,939 $ Restricted cash and investments 97,786 348,038 1,038,368 87,323 Receivables
:

Accounts, net 611,133 5,887,012 101,783 349,487
Interest - 17,292 85,024 13,46
1 Grants 1,011,583 - - 94,049
Leases 7,143,392 - 112,348
Total current assets 5,432,344 23,874,69
1 46,456,245 8,135,607
Noncurrent assets:

Receivables:

Due from developer 10,221,743 - - -
Lease receivables - 49,064,738 - 5,230,205
Capital assets:

Nondepreciable 1,708,686 4,937,160 86,496,310 4,792,370 Depreciable 44,836,474 87,500,286 191,344,030 35,585,405 Less accumulated depreciation (30,158,605) (62,979,221) (83,702,524) (33,511,334) Net capital assets 16,386,555 29,458,225 194,137,816 6,866,44 1 Total noncurrent assets 26,608,298 78,522,963 194,137,816 12,096,646 Total assets 32,040,642 102,397,654 240,594,06 1 20,232,253

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 678,518 230,352 681,922 542,874 Deferred outflows of resources - OPEB 10,597 3,532 27,023 20,136 Deferred charge on refunding - - 5,553,533 -
Total deferred outflows of resources 689,115 233,884 6,262,478 563,010

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,260,882 153,193 7,057,878 464,815 Interest payable - 33,833 2,209,625 87,820
Refundable deposits 120,688 238,423 - 91,87 1
Compensated absences - current 18,120 23,07 1 38,991 27,503 Claims payable - current - - - -
Long-term debt - current - 4,060,000 3,086,203 200,579
Total current liabilities 2, 399,690 4,508,520 12,392,697 872,588 Noncurrent liabilities:

Advances from other funds - 12,485,370 - -
Unearned revenue 1,814,047 531,906 36,280 591,867
Compensated absences 49,134 - 53,175 35,18 1
Claims payable ----
Long-term debt 700,000 391,473 160,224,96 1 2,017,960
Net pension liability 2,231,248 757,492 2,242,442 1,785,19 1 Net OPEB liability 423,284 141,095 1,079,375 804,240
Total noncurrent liabilities 5,217,713 14,307,336 163,636,233 5,234,439 Total liabilities 7,617,403 18,815,856 176,028,930 6,107,027

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 38,904 13,207 39,098 31,126 Deferred inflows of resources - OPEB 96,899 32,300 247,093 184,109 Deferred inflows of resources - leases - 54,642,069 - 5,258,487 Total deferred inflows of resources 135,803 54,687,576 286,19 1 5,473,722

NET POSITION (DEFICIT)
Net investment in capital assets 15,686,555 25,006,752 36,974,457 4,737,470 Restricted for debt service - 348,038 444,096 87,323
Unrestricted 9,289,996 3,773,316 33,122,865 4,389,72 1
Total net position 24,976,551$ 29,128,106 $ 70,541,418 $ 9,214,514 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
38395
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
66,900,808$ 61,434,056 $
1,571,515 -
6,949,415 -
115,777 111,78 1
1,105,632 2,525,216
7,255,740 -
83,898,887 64,071,053
10,221,743 -
54,294,943 -
97,934,526 149,394
359,266,195 31,829,64
1 (210,351,684) (22,487,085)
246,849,037 9,491,950
311,365,723 9,491,950
395,264,610 73,563,003
2,133,666 366,075
61,288 13,529
5,553,533 -
7,748,487 379,604
9,936,768 1,522,877
2,331,278 7,205
450,982 -
107,685 28,64
1 - 13,576,850
7,346,782 272,34 1
20,173,495 15,407,914
12,485,370 -
2,974,100 -
137,490 43,508
- 36,104,836
163,334,394 1,201,79 1
7,016,373 1,203,807
2,447,994 540,393
188,395,72
1 39,094,335
208,569,216 54,502,249
122,335 20,989
560,401 123,708
59,900,556 -
60,583,292 144,697
82,405,234 8,017,818
879,457 -
50,575,898 11,277,843
133,860,589$ 19,295,66 1$
39396
City of Richmond
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Richmond Housing Port of Municipal Other Enterprise
Authority Richmond Sewe r Funds
OPERATING REVENUES:

Rental 444,668 $ 7,072,117 $ - $ 168,642$ Service charges - 761,743 30,312,526 3,084,178
Lease income - 3,053,820 - 378,873
Other 899,656 496,250 - -
Total operating revenues 1,344,324 11,383,930 30,312,526 3,631,693 OPERATING EXPENSES:

Salaries and benefits 1,502,890 146,522 354,625 343,226 General and administrative 1,854,523 1,677,526 11,773,187 2,024,574 Maintenance 1,618,986 135,509 30,852 17,957
Depreciation - 3,503,066 3,898,106 260,646
Housing assistance ----
Claims losses ----
Other 10,161 42,256 8,803 13,035
Total operating expenses 4,986,560 5,504,879 16,065,573 2,659,438 OPERATING INCOME (LOSS) (3,642,236) 5,879,051 14,246,953 972,255 NONOPERATING REVENUES (EXPENSES):

Gain (loss) from retirement of capital assets ----
Interest income 181 963,574 844,349 275,084
Grants 3,247,043 - - 1,094,049
Interest expense -4 , 7 8 7 (4,696,455) (96,202)
Total nonoperating revenues (expenses) 3,247,224 968,361 (3,852,106) 1,272,931 Income (loss) before
contributions and transfers (395,012) 6,847,412 10,394,847 2,245,186 CONTRIBUTIONS AND TRANSFERS:

Capital contributions ----
Transfers in 969,226 - - -
T r a n s f e r s o u t ---
(86,778)
Total contributions and transfers 969,226 - - (86,778) Change in net position 574,214 6,847,412 10,394,847 2,158,408 NET POSITION:

Beginning of year 24,361,493 22,280,694 60,146,57 1 7,063,096 Prior period adjustments 40,844 - - (6,990)
Beginning of year, as restated 24,402,337 22,280,694 60,146,57 1 7,056,106 End of year 24,976,551$ 29,128,106 $ 70,541,418 $ 9,214,514 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
40397
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
7,685,427$ - $
34,158,447 24,816,883
3,432,693 -
1,395,906 -
46,672,473 24,816,883
2,347,263 2,211,137
17,329,810 1,203,037
1,803,304 2,436,375
7,661,818 1,916,668
--
- 12,302,386
74,255 -
29,216,450 20,069,603
17,456,023 4,747,280
--
2,083,188 1,144,28
1 4,341,092 1,248,635
(4,787,870) (62,791)
1,636,410 2,330,125
19,092,433 7,077,405
--
969,226 478,018
(86,778) -
882,448 478,018
19,974,881 7,555,423
113,851,854 11,740,238
33,854 -
113,885,708 11,740,238
133,860,589$ 19,295,66
1$
41398
City of Richmond
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers/interfund services 1,228,935 $ 10,822,277 $ 30,278,864 $ 3,479,264 $ Payments to suppliers (2,827,427) (1,977,384) (13,022,733) (2,144,379) Payments to employees (1,151,883) (308,814) (1,343,138) (896,388) Insurance premiums and claims paid ----
Net cash provided by (used in) operating activities (2,750,375) 8,536,079 15,912,993 438,497

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) - (289,116) --
Receipts from other governments 2,675,70 1 ---
Transfers in 969,226 - - -
T r a n s f e r s o u t ---
(86,778)
Net cash provided by (used in)
noncapital financing activities 3,644,927 (289,116) - (86,778)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts - - - 1,094,049
Acquisition of capital assets - - (27,045,799) (1,118,238) Issuance of long-term debt (301,530) - 19,930,696 -
Principal payments on capital debt - (4,270,000) (2,600,000) (16,663) Principal payments on lease -- (252,838) -
Interest paid - (422,270) (5,393,712) (100,584)
Net cash provided by (used in)
capital and related financing activities (301,530) (4,692,270) (15,361,653) (141,436) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 181 949,344 782,286 265,845 Net cash provided by (used in) investing activities 181 949,344 782,286 265,845 Net cash flows 593,203 4,504,037 1,333,626 476,128 CASH AND INVESTMENTS - Beginning of year 3,216,425 6,322,958 44,935,812 7,090,134 CASH AND INVESTMENTS - End of year 3,809,628$ 10,826,995 $ 46,269,438 $ 7,566,262 $

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

Operating income (loss) (3,642,236) $ 5,879,051 $ 14,246,953 $ 972,255 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 3,503,066 3,898,106 260,646 Changes in assets and liabilities:

Receivables, net (115,389) 90,068 (33,662) (93,176) Accounts payable and accrued liabilities 677,422 (122,093) (1,209,891) (91,018) Refundable deposits (21,179) - - 2,205 Unearned revenue - - - - Compensated absences payable 25,227 (15,332) 16,854 10,995 Claims payable - - - - Net pension liability and deferred outflows/inflows 503,572 (87,696) (551,996) (226,352) Net OPEB liability and deferred outflows/inflows ( 177,792) (59,264) (453,371) (337,805) lease receivable and deferred outflows/inflows - (651,721) - (59,253) Net cash provided by (used in) operating activities (2,750,375)$ 8,536,079 $ 15,912,993 $ 438,497 $ Business-type Activities
See accompanying Notes to Basic Financial Statements
42399
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
45,809,340$ 24,820,195 $
(19,971,923) (3,102,243)
(3,700,223) (3,175,805)
- (13,713,302)
22,137,194 4,828,845
(289,116) -
2,675,701 -
969,226 478,018
(86,778) -
3,269,033 478,018
1,094,049 2,013,745
(28,164,037) (1,182,975)
19,629,166 -
(6,886,663) (261,948)
(252,838) -
(5,916,566) (64,071)
(20,496,889) 504,751
1,997,656 1,064,575
1,997,656 1,064,575
6,906,994 6,876,189
61,565,329 54,557,867
68,472,323$ 61,434,056 $
17,456,023$ 4,747,280 $
7,661,818 1,916,668
(152,159) 3,312
(745,580) 537,169
(18,974) -
- -
37,744 5,846
- (1,410,916)
(362,472) (743,532)
(1,028,232) (226,982)
(710,974) -
22,137,194$ 4,828,845 $
43400

FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are presented separately from the Government-Wide and Fund financial statements.

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

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

The financial activities of the Trust and Custodial funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements. 44401
City of Richmond
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Pension Private-Purpose
Trust Funds Trust Funds Custodial Funds
ASSETS
Cash and investments - $ 7,589,310$ 6,499,557 $ Restricted cash and investments 2,265,032 17,506,951 693,280 Pension and OPEB plan cash and investments:

Mutual fund investments 8,773,122 - - Accounts receivable - 1,439 - Interest receivable 2,374 3,790 11,809 Prepaids and other assets - 5,245,489 - Total assets 11,040,528 30,346,979 7,204,646

DEFERRED OUTFLOWS OF RESOURCES
Deferred ouflows of resources - deferred loss on refunding - 346,198 - Total deferred outflows of resources - 346,198 -

LIABILITIES
Accounts payable and accrued liabilities - 206,657 529 Interest payable - 518,874 - Long-term debt:

Due within one year - 7,820,000 - Due in more than one year - 39,382,929 - Total liabilities - 47,928,460 529 NET POSITION:

Restricted for employees' pension and OPEB benefits 11,040,528 - - Held in trust for other governments - (17,235,283) - Restricted for individuals, organizations, and other governments - - 7,204,117 Total net position 11,040,528$ (17,235,283) $ 7,204,117 $ See accompanying Notes to Basic Financial Statements.
45402
City of Richmond
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Pension Private-Purpose
Trust Funds Trust Funds Custodial Funds
ADDITIONS:

Property taxes -$ 8,846,005$ 1,042,528 $ Contributions to trust - employers 165,305 - 235,841 Net investment income:

Net increase (decrease) in fair value of investments 743,317 - - Interest income 298,907 540,699 141,305 Less investment management fees (61,581) - - Gain from sale of property - 585,808 - Total additions 1,145,948 9,972,512 1,419,674 DEDUCTIONS:

Community development - 1,322,336 - Pension benefits 1,221,402 - - Payments in accordance with trust agreements - 504,574 - Interest and fiscal charges - 1,832,049 980,395 Transfers to other funds 217,243 - - Other - - 206,488 Total deductions 1,438,645 3,658,959 1,186,883 Change in net position (292,697) 6,313,553 232,791 NET POSITION:

Beginning of year 11,333,225 (23,548,836) 6,971,326 End of year 11,040,528$ (17,235,283) $ 7,204,117 $ See accompanying Notes to Basic Financial Statements.
46403
47 NOTES TO BASIC

FINANCIAL STATEMENTS
404
48 This page intentionally left blank.
405
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Richmond , California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting princi ples. The City’s significant accounting policies are described below.

A. Financial Reporting Entity
The City was incorporated in 1905 under the laws of the State of Ca lifornia and adopted its charter in 1909. The City operates under a Council-Manager form of government and provides the following services to its citizens as authorized by its charter: police and fire protection, planning and community development, streets and roads, parks and recreation, sewage treatment, drainage and capital projects.

In addition, the City has a port, marina, municipal and storm sewer enterprises, a housing authority, a joint powers financing authority, and a parking authority which is inactive.

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

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

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

Although the Housing Authority is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the Housing Authority and members of City Council serve as the governing board of the Housing Authority. The financial statements of the Housing Authority are included in the City’s basic financial statements as an enterprise fund. Separate financial statements for the Housing Authority may be obtained by contacting the Richmond Housing Authority, 330 24th Street, Richmond, California 94804.
406
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Blended Component Units, Continued
Richmond Joint Powers Financing Authority (JPFA) – A joint exercise of powers authority formed on December 1, 1989, by and between the City and the former Redevelopment Agency, the JPFA was created to assist the City, the Redevelopment Agency, and other local public agencies in financing and refinancing capital improvements and working capital pursuant to the Marks-Roos Local Bond Pooling Act of 1985. The JPFA is authorized to purchase obligations of the City, Redevelopment Agency, and other local public agencies.

Although the JPFA is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the JPFA and the members of the City Council serve as the Board of Directors. The operations of the JPFA are included in the City’s basic financial statements as a debt service fund. Separate financial statements for the JP F A m a y b e o bt a i ne d b y co nt ac t in g t he O ff ic e o f Finance, City of Richmond, 450 Civic Center Plaza, Richmond, California 94804.

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

The Corporation is governed by a board of directors consisting of the City Manager, the Finance Director, and five other City and Housing Authority Directors. Although the RNSC is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the RNSC and members of the Board of Directors are appointed by City Council and City management has operational responsibility for the RNSC. The operatio ns of the RNSC are included in the Cit y’s basic financial statements as a special revenue fund. Separate financial statements for the RNSC may be o b t a i n e d b y c o n t a c t i n g t h e O f f i c e o f F i n a n c e , C i t y o f R i c h m o n d , 4 5 0 C i v i c C e n t e r P l a z a , R i c h m o n d , California 94804.

Richmond Surplus Property Authority – Formed to become the owner of certain property declared surplus by the U.S. Government, the Authority is a separa te legal entity but it is an integral part of the City. The City exercises significant financial and management control over the Authority and members of the City Council serve as the governing board of the Authority. The Authority was reactivated in fiscal year 2011 to facilitate certain Port of Richmond transactions. The financial activities of the Authority are included in the Port of Richmond Enterprise Fund. Separate financial statements are not issued for the Authority.
407
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Blended Component Units, Continued
Richmond Parking Authority (Parking Authority) – Formed in 1975 pursuant to the provisions of California statutes for the purpose of financing the construction of off-street parking facilities. Although the Parking Authority is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the Parking Authority and members of the City Council serve as the governing board of the Parking Authority. The Parking Authority is inactive.

Richmond Municipal Sewer District (RMSD) – The Richmond Municipal Sewer District (RMSD) was established on September 17, 1956, pursuant to the Municipal Sewer District Act of 1911. It encompasses approximately fourteen square miles of the City of Richmond. The district was formed to provide “wastewater collection and treatment for the residents and businesses located in the central part of the City of Richmond”.

The RMSD contracts the operation and maintenance of the Wastewater Treatment Plant and the Sanitary Sewer Collection System to Veolia Water North America (formerly US Filter). However, the City of Richmond still maintains complete ownership of all the assets for both the wastewater treatment plant and the collection system.

The district is a separate legal entity, but it is an in tegral part of the City. The City exercises significant financial and management control over the district and members of the City Council serve as the governing board of the district. The financial activities of the district are included in the Municipal Sewer Enterprise Fund. Separate financial statements are not issued for the district.

Discretely Presented Component Units
RHA Properties – A joint powers agreement between the City and the Housing Authority formed in 2004 for the purpose of owning and managing the operations of an affordable housing residential complex known as The Hilltop at Westridge Apartments in the City, dedicated to the needs of elderly persons.

The City and the Housing Authority funded the acquisition of this complex through the issuance of debt.

The City and Housing Authority exercise signific ant financial and management control over RHA Properties and appoint members of the Board of Di rectors, however RHA Properties manages its own programs separate from the City or the Housing Authority. Therefore, the financial activities of RHA Properties are discretely presented in the RHA Properties Component Unit column of the Statement of Net Position and the Statement of Activities.
408
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Discretely Presented Component Units, Continued
RHA Housing Corporation – RHA Housing Corporation was incorporated and registered on January 26, 2004 as a California nonprofit public benefit corporation to benefit and support the RHA with respect to the Easter Hill development. RHA Housing Corporation entered into RAD Conversion redevelopment activities and it acts as the sole and managing member of RHA RAD LLC. The Corporation’s fiscal year ends on December 31. The City and Housing Author ity exercise significant financial and management control over RHA Housing Corporation and appoint members of the Board of Directors, however RHA Housing Corporation manages its own programs separate from the City or the Housing Authority.

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

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

In order for the Authority to proceed in its participation into the RAD Program as discussed in Note 17, RHA RAD LLC shall act as the managing general partner of RHA RAD Housing Partnership LP.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, defe rred outflows/inflows of resources, fund equity, revenues, and expenditures or expenses. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
409
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements
The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. Fiduciary activities of the City are not included in these statements; they are presented separately.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular prog ram and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

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

Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total column. In the Statement of Activities, internal service fund transactions have been eliminated. However, transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/from other funds
x Advances to/from other funds
x Transfers in/out
The City applies all applicable GASB pronou ncements including all NCGA Statements and Interpretations currently in effect.
410
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and in the aggregate for all non-major funds. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide financial statements.

All governmental funds are accounted for on the “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingl y, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

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

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

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

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

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

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

American Plan 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. 411
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund and in the aggregate for all non-major funds. A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements.

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

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

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

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

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

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

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

The City also reports the following proprietary fund type:

Internal Service Funds – The funds account for insurance reserves and equipment services and replacement, all of which are provided to other departments on a cost-reimbursement basis. 412
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statem ent of Fiduciary Net Position, and a Statement of Changes in Fiduciary Net Position. The City’s Fiduciary funds represent Pension and OPEB Trust funds, Private-Purpose Trust funds and Custodial funds. Cu stodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of resu lts of operations. Pension Trust funds and Private- Purpose Trust funds are accounted for on an economic resources measurement focus under the accrual basis of accounting.

The City reports the following fiduciary fund types:

Trust Funds - The Pension and OPEB Trust Funds account for assets held by the City as an Agent for various functions. The General Pension, Police and Firemen’s and Garfield Pension Funds account for the accumulation of resources to be used for retiree pension payments at appropriate amounts and times in the future. The Pt. Molate Private-Purpose Trust Fund is used to account for assets held by the City as an agent for the U.S. Navy and a priv ate developer for the cleanup of Point Molate as discussed in Note 17. The Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund was established as of February 1, 2012 to account for the activities of the Successor Agency to the former Richmond Community Redevelopment Agency as discussed in Note

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

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

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

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3) , certain disclosure requirements for deposits and investment risks were made in the following areas:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 413
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one-year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair va lue hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not ha ve any investments measured using Level 3 inputs as of June 30, 2023.

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

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

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

D. Prepaids and Supplies
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial stat ements. The cost of prepaid items is recorded as expenditures/expenses when consumed, rather than when purchased. Prepaid items in governmental funds are equally offset by nonspendable fund bal ance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.

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

Reported governmental fund inventories are equa lly offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.
414
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Capital Assets
Capital assets are valued at historical cost or at estimated acquisition value on the date donated. If actual historical costs are not available, assets have been valued at approximate historical cost. The City’s policy is to capitalize assets costing at least $5,000, and th e Housing Authority’s policy is to capitalize assets costing at least $1,000. Depreciation is recorded on a straight-line basis over the following estimated useful lives:

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

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

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

F. Property Held for Resale
Property held for resale is accounted for at the lower of cost or net realizable value or agreed upon sales price if a disposition agreement has been made with a developer.

The City received five properties for resale in fiscal year 2013 with a book value of $573,822 from the acceptance of a deed in lieu of foreclosure on the pr operty related to developer defaults on prior loans under the Richmond Neighborhood Stabilization loan program discussed in Note 4. These properties were rehabilitated during fiscal years 2014 and 2015 increasing the carrying value by a total of $749,716 and $39,303, respectively. In fiscal year 2014, the Ci ty received an additional four properties with a carrying value of $648,238. Six properties were sold in fiscal year 2016, the remaining two properties held for resale had a book value of $671,255 as of June 30 , 2017. In fiscal year 2018, one property was sold during the year, and the carrying value of the one remaining property held for resale was $78,016 as of June 30, 2023.
415
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Property Taxes
The State of California’s Constitution limits the co mbined maximum property tax rate on any given property to one percent (1%) of its assessed value except for voter approved incremental property taxes.

Assessed value equals purchase price and may be adjusted by no more than two percent (2%) per year unless the property is modified, sold, or transferred. The State Legislature distributes property tax receipts from among the counties, cities, school districts, and other districts.

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

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

H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial st atement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until th en. The first item that qualifies for reporting in this category is the deferred charge on refunding re ported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also has deferred outflows of resources related to change in fair value of derivative instruments, pensions and OPEB as discussed in Notes 8, 12, and 13.

In addition to liabilities, the statement of net position or balance sheet report a separate section for deferred inflows of resources. This separate financia l statement element, deferred inflows of resources, represents an acquisition of net assets or fund bala nce that applies to a future period(s) and so will not b e r e c o g n i z e d a s a n i n f l o w o f r e s o u r c e s ( r e v e n u e ) until that time. The first item which qualifies for reporting in this category arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: lo ans receivable, grants receivable and interest on interfund advances. See Note 9 for further discussion. The City also has deferred inflows of resources related to pensions and OPEB as discussed in Notes 12 and 13. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 416
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
60 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Position and Fund Balances
Net Position
In the City-wide financial statements, Net Position is classified as follows:

N e t I n v e s t m e n t i n C a p i t a l A s s e t s – T h i s a m o u n t consists of capital assets net of accumulated depreciation plus deferred outflows of resources associated with the refunding of related capital debt, reduced by outstanding debt that was used for the acquisition, construction, or improvement of these capital assets.

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

Unrestricted Net Position – This amount is all net po sition that does not meet the definition of “net investment in capital assets” or “restricted net position.” When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

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

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

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

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

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

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by the same formal action of the City Council. The highest level of formal action of the City Council is an Ordinance.
417
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
61 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Position and Fund Balances, Continued
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee, during the budget approval process or via budget amendments in accordance with the City’s adopted budget policy. This category includes encumbrances; nonspe ndables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

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

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

K. Bond Issuance Costs, Original Issue Discounts and Premiums and Deferred Charge on Refunding For proprietary fund types, bond premiums and disc ounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Any differences between proprietary refunded debt and the debt issued to refund it, called a deferred charge on refunding, is amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter. The defe rred charge on refunding is reported as a deferred inflow or outflow of resources, as applicable. Bond issuance costs, other than prepaid insurance, are expensed in the year incurred.

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

M. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, de ferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plans and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Trust and the PARS Trust. For this purpose, benefit payments are recognized when cu rrently due and payable in accordance with the benefit terms. Investments are reported at fair value.
418
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
62 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Use of Estimates
The preparation of financial statements in conformi ty with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

The following is a summary of cash and investments at June 30, 2023:

A. Classification
Cash and investments at June 30, 2023 consist of the following:
419
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
63 2. CASH AND INVESTMENTS, Continued
B. Deposits
The carrying amount of the City’s cash deposit was $25,164,481 at June 30, 2023. Bank balances before reconciling items were a positive amount of $26,838,4 98 at June 30, 2023. The City’s cash deposit was fully insured up to $419,365 by the Federal Deposit Insurance Corporation (FDIC). The remaining amount was collateralized with securities held by pledging the financial institutions.

The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pl edging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is cons idered to be held in the City’s name.

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

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

Investments are stated at fair value using the aggreg ate method in all funds, resulting in the following investment income in all funds for the year ended June 30, 2023:
(A)
(A) The City may invest an additional 15% or a total of 25% of City surplus money, only if dollar weighted average maturity of the entire amount does not exceed 31 days. 420
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
64 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These po rtfolio value changes are unrealized unless sold.

Generally, the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2023 include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:

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

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

At June 30, 2023, the City had $62,111,914 invested in LAIF, which had invested 2.78% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.88% in the previous year. The LAIF fair value factor of 0.98482850 was used to calculate the fair value of the investments in LAIF.

The City reports its investment in CalTrust at the fair value amount provided by CalTrust, which is the same as the value of the pool shares. The balance in the Short-Term Fund is available for withdrawal on demand and the balance in the Medium-Term Fund is available for withdrawal upon two days’ notice, and is based on the accounting records maintained by CalTrust. Included in CalTrust’s investment portfolio are: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States government-sponsored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities. CalTrust’s Short-Term Fund has a target portfolio duration of 0 to 2 ye ars and CalTrust’s Medium-Term Fund has a target portfolio duration of 1.5 to 3.5 ye ars. At June 30, 2023 the Short-Term Fund investments matured in an average of 317 days and the Medium-Term Fund investments matured in an average of 774 days.

Money market funds and mutual funds are available for withdrawal on demand and as of June 30, 2023 have an average maturity from 12 to 16 days.
421
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
65 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued Prohibited Investments
Under the City’s Investment Policy, the City imposed restrictions on investments. The City cannot invest in any funds in inverse floaters, range notes, or interest only Separate Trading of Registered Interest and Principal of Securities (STRIPS) that are derived from a pool of mortgages, or in any security that could result in zero interest accrual if held to maturity (other than money market mutual funds).

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

The City will not investment any funds in international financial instruments that benefited from slavery, in Fossil Fuel companies, or in stocks, bonds, securi ties, or other obligations issued by provider of Data Broker or Extreme Vetting services to United States Immigration and Customs Enforcement (ICE). 422
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
66 2. CASH AND INVESTMENTS, Continued
D. Investments Authorized by the Code and the Housing Authority’s Investment Policy The California Government Code allows the Authority to invest in the following; provided approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code:

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

The Authority does not have reverse repurchase agreements.

Maximum
Specified Minimum
Maximum Percenta geC r e d i t
Authorized Investment Type Maturit y of Portfolio Qualit y Local Agency Bonds 5 years None None
U.S. Treasury obligations 5 years None None
State of California obligations 5 years None None
CA Local Agency obligations 5 years None None
U.S. Agencies 5 years None None
Banker's Acceptances 180 days 40% None
Commercial Paper - select agencies 270 days 40% Highest Rating Commercial Paper - other agencies 270 days 25% Highest Rating Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Reverse Repurchase and Securities Lending Agreements 92 days 20% None Medium Term Corporate Notes 5 years 30% A
Mutual Funds N/A 20% Multiple
Money Market Mutual Funds N/A 20% Multiple
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through Securities 5 years 20% AA
Time Deposits 5 years None None
County Pooled Investment Funds N/A None None
California Local Agency Investment Fund N/A None None
Supranationals 5 years 30% AA
423
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
67 2. CASH AND INVESTMENTS, Continued
E. Investments Authorized by Debt Issues and Lease Agreements Under the terms of the City’s and Authority’s debt issues and lease agreements, the City and Authority are subject to various restrictions in the type, maturity and credit ratings of investments of the unspent proceeds of these issues. These restrictions are generally no more restrictive than those listed above regarding investment of the City’s and Authority’s funds. In addition, some bond indentures authorize investments in guaranteed investment contracts and investment agreements with maturity dates that coincide with the applicable debt maturities. At June 30, 2023, the City and Authority were in compliance with the terms of all these restrictions.

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

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
424
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
68 2. CASH AND INVESTMENTS, Continued
G. Credit Risk
Credit risk is the risk that an issuer of an investme nt will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating at June 30, 2023 for each investment type:

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

I. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 425
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
69 2. CASH AND INVESTMENTS, Continued
I. Fair Value Hierarchy, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2023:

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

Treasury securities, investment pools and money market funds at June 30, 2023.

3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
Due to/from other fund balances arise in the normal course of business and represent short-term borrowings occurring as a result of expenditures wh ich are paid prior to the receipt of revenues. These balances are expected to be repaid shortly after the end of the fiscal year when revenues are received.

The amount for due from one fund to another at June 30, 2023 were as follows:

Total
Investment Type Level 1 Level 2 Level 3 Fair Value Investments Measured at Amortized Cost
Held by Trustee:

Guaranteed Investment Contracts 625,001
Money Market Mutual Funds 15,932,156
Investments not subject to levelling:

Local Agency Investment Funds (LAIF) 62,111,914
CalTrust Short-Term Fund 243,090,418
CalTrust Medium-Term Fund 87,323
Money Market Mutual Funds (U.S. Securities) 7,557,167
Total Investments 329,403,979$
Fair Value Measurement Using
426
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
70 3. INTERFUND TRANSACTIONS, Continued
B. Advances To/From Other Funds
At June 30, 2023 the funds below had made advances which were not expected to be repaid within the next year.

In fiscal 2006 the General Fund established repayment terms for its advance of $17,139,855 to the Port of Richmond Enterprise Fund to assist the Port with various lease transactions and other projects. The advance did not bear interest for the first three years; the next five years it bore an interest rate of 4%, with the balance payable on or before June 30, 2015. The advance repayment terms were amended in October 2013, effective June 30, 2013, to convert the accrued unpaid interest of $745,119 to principal and reduce the advance balance by $842,877, and the ad vance no longer bears interest. Annual principal payments of $150,000 are due beginning June 30, 2014 through June 30, 2066, with a final principal payment of $32,593 due on June 30, 2067, and in addition to those payments, the annual berthing cost of the vessel Red Oak Victory at the Port that is to be paid by the General Fund will instead offset and reduce the principal balance of the advance based on an established rental schedule. Historical rental payments from August 2004 to June 30, 2012 totaling $842,877 were applied to the principal balance of the loan as of June 30, 2013. Another provision of the amended agreement provides that upon the sale of any Port property, including Terminal One and Terminal Four, the proceeds from the sale are to be used to repay and reduce the principal balance of the advance. The balance of the advance as of June 30, 2023 is $12,485,370.

C. Transfers In/Out
With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of the transfers is to move General Fund resources to provide funding for capital projects and an annual subsidy to non-major governmental funds, as well fund debt service. Transfers between funds during the fiscal year ended June 30, 2023 were as follows:
427
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
71 3. INTERFUND TRANSACTIONS, Continued
C. Transfers In/Out, Continued
None of these transfers were unusual or non-recurrin g in nature, except for the one-time transfer from the General Fund to the General Capital Fund in the amount of $15,000,000 for the Main Library Renovation Project and the transfer from the Secured Pension Override Special Revenue Fund to the General Fund in the amount of $19,423,175 to fund current year pension contributions CalPERS, which is included in transfers from Non-Major Governmental Funds.

4. NOTES AND LOANS RECEIVABLE
At June 30, 2023, notes and loans receivable consisted of the following:

Balance at
June 30, 2023
General Fund:

RHA RAD Project Loan 759,510 $
Deferred Loans 221,335
Infill Phase II Loan 1,496,738
Nevin Court Homeowner Development Project 534,068
Subtotal - General Fund Loans 3,011,651
Richmond Neighborhood Stabilization Loans 779,013
Community Development Block Grant, Home Investment
Partnership Program, EDA, CALHome Loans and City Loans
Deferred Loans 3,072,997
Home Improvement Program Loans 740,153
Rental Rehabilitation Loans 371,102
The Carquinez Project 148,490
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,576,621 Lillie Mae Jones Project Loan 988,460
Greater Richmond Interfaith Program 928,818
CALHome Program 2,262,443
Nevin Plaza 1,750,000
RHA RAD Project Loan 3,804,603
Subtotal - CDBG, HOME, EDA, CALHome Loans, City Loans 16,643,687 Housing Successor Loans:

Rental Rehabilitation Loans 20,000
The Carquinez Project 1,152,510
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,420,774 Lillie Mae Jones Project Loan 1,999,301
Miraflores Loan 3,500,388
MacDonald Place Senior Housing 3,124,543
Greater Richmond Interfaith Program 308,066
Silent Second Mortgage Loans 1,740,074
Deferred Loans 633,126
Chesley Avenue Mutual Housing Development 6,318,493
Easter Hill Project 4,824,108
RHA RAD Project Loan 1,182,387
Subtotal - Housing Successor Loans 27,223,770
American Rescue Plan Act Fund:

Nevin Plaza 1,750,000$
Total Notes and Loans Receivable 49,408,121 $
428
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
72 4. NOTES AND LOANS RECEIVABLE, Continued
RHA RAD Project
In December 2014, the General Fund loaned $700,000 to the Richmond Housing Authority Enterprise Fund for predevelopment costs related to the Triangle Court and Friendship Manor Rental Assistance Demonstration (RAD) Projects.

In December 2015, the loan agreement was replaced and the City entered into an amended agreement to loan $5,400,000 to the RHA Housing Corporation for the furtherance of the development of the RAD Projects as discussed in Note 17. Funding for the loan was revised in fiscal year 2018 and is as follows: $700,000 from the City’s General Fund, $3,600,000 will come from housing-in-lieu fund s and $1,100,000 from the Housing Successor funds. The hous ing-in-lieu funds and Housing Successor Funds are included in the Community Development and Loan Programs Fund. RHA Housing Corporation assigned the loan agreement and associated obligations to RHA RAD Housing Partners L.P. on December 22, 2015 upon closing of the financing for the rehabilitation of the RAD projec ts. See Note 17 for additional information related to the RAD projects. The loan is secured by a leasehold deed of trust, assignment of rents and security agreement. The loan bears simple interest of 1% and th e loan is repayable from residual receipts, as defined in the loan agreement, starting May 1 of the year after issuance of the Certificate of Completion, and unpaid principal and accrued interest is due December 1, 2070 . As noted above, $700,000 of the General Fund loan was disbursed in December 2014 and the balance at June 30, 2023, including accrued interest, was $759,510.

As of June 30, 2023, $4,986,990 of the funds had been drawn down from the Housing Successor Community Development and Loan Programs Fund.

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

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

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

During fiscal year 2019, the City’s General Fund purchased a portion of the deferred loans in the amount of $353,335 and the loans were transferred to the General Fund. As of June 30, 2023, the outstanding loan amount is $221,335. In addition, as of June 30, 2023, $3,072,997 of the funds had been drawn down from the CDBG & Home Program Fund and $633,126 from the Successor Housing Agency Fund.

Scattered Site Infill Housing Development (Infill Phase II) Under a loan agreement dated September 30, 2010, the City loaned Community Housing Development Corporation of North Richmond $1,198,013 to fund construction of 36 townhomes to be made available for very-low and low income households. Funding for the loan was as follows: $602,556 in HOME funds, $266,000 in CDBG funds and $329,457 in CDBG-R. Alth ough the developer has not drawn down all of the proceeds from the HOME funds portion of the loan , the Department of Housing and Urban Development (HUD) has indicated that future drawdowns will not be reimbursed by the grantor. Related to the grant disallowed costs discussed in Note 17, during fiscal year 2018 the City purchased $1,331,709 of the loan balance that had previously been funded with Community Development Block Grant and HOME funds. 429
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
73 4. NOTES AND LOANS RECEIVABLE, Continued
Scattered Site Infill Housing Development (Infill Phase II), Continued During fiscal year 2019, the City’s General Fund purchased the loan balance in the amount of $1,099,594 and the loan and accrued interest of $265,104 were transferred to the General Fund.

The current funding was for predevelopment activities in conjunction with the construction and development of the townhomes. The loan is secured by a deed of trust on the property. The outstanding balance of the loan bears simple interest at the rate of 3% per year. The pa yment of principal and interest is deferred and due at the end of the term due September 30, 2065. As of June 30, 2023, $1,496,738 had been drawn down on the loan.

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

During fiscal year 2019, the City’s General Fund purchased the loan balance in the amount of $365,292 and the loan and accrued interest of $124,911 were transferred to the General Fund. As of June 30, 2023, $534,068, which includes accrued interest of $10,959, had been drawn down on the loan.

Richmond Neighborhood Stabilization Loans
The Richmond Neighborhood Stabilization Corporatio n (RNSC) operates a residential rehabilitation loan program financed by Department of Housing and Urban Development grants that have passed through the City under its Neighborhood Stabilization Program (NSP 1) and additional allocation under the third round of funding referred to as (NSP3). The program prov ides affordable home ow nership opportunities for households of low and moderate income by facilit ating the development financing necessary for the purchase, rehabilitation, and resale of deed-restricted affordable ownership units. During fiscal year 2014, the City foreclosed on seven of the loans with a carrying value of $780,153 and reacquired the properties which have been recorded as property held for resale as disc ussed in Note 2. As of June 30, 2023, the total balance of outstanding loans for NSP1 was $779,013 and no NSP3 loans had been issued. Loans are payable upon the resale of improved properties.

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

Home improvement program loans include amortized loans to assist low income families in Richmond in the improvement of their homes. The interest rates for these loans range from 0% to 3% and are payable over a period of 15 to 30 years.
430
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
74 4. NOTES AND LOANS RECEIVABLE, Continued
Rental Rehabilitation Loans
Rental Rehabilitation Loans help make rental units affordable to low and very low income housing families.

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

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

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

Creely Avenue Housing Rehabilitation (Arbors)
On September 15, 2006, the former Redevelopment Agency and the City loaned Arbors Preservation Limited Partnership the amount of $2,558,557, to construct ex tremely low, very low and low income rental housing units and a new community room on Creely Avenue. On October 31, 2008, the loan was amended to provide the developer a total loan amount of $3,208,113. Funding for the loan is as follows: $2,160,282 in HOME funds, $103,377 in CDBG funds and $1,594,057 in 2007 Series B bond funds. Although the developer has not drawn down all of the proceeds from the HOME funds portio n of the loan, the Department of Housing and Urban Development (HUD) has indicated that future drawdown s will not be reimbursed by the grantor. The loan bears simple interest at the rate of 3% per year. All un paid principal and interest on the loan is due on April 29, 2063. With the dissolution of the Redevelopment Ag ency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Arbors loan as of February 1, 2012. 431
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
75 4. NOTES AND LOANS RECEIVABLE, Continued
Lillie Mae Jones Project
On January 19, 2010, the former Redevelopment Agency and the City entered into an agreement with Lillie Mae Jones Plaza, L.P. and the Community Housing De velopment Corporation of North Richmond to loan $3,119,000 to construct and provide 26 housing units to very low and low income households. Funding for the loan is as follows: $1,081,291 in HOME funds, $84,000 in Section 108 funds and $1,953,709 in 2007 Series B bonds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will not be reimbursed by the grantor. The loan bears an interest rate of 3% per year and repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest is due in January 2065. The agreement was amended in November 2011, due to securing a $293,884 loan from County of Contra Costa with Mental Health Services Act, which specifies that two units are required to be available to and occupied by Mental Health Services Act Eligible Tenants pursuant to the County Regulatory Agreement with Lillie Mae Jones Plaza, L.P. With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Lillie Mae Jones loan as of February 1, 2012. As of June 30, 2023, Lillie Mae Jones has drawn down $2,987,761.

Greater Richmond Interfaith Program
The loan agreement date was on June 20, 2005. The bo rrower shall use the Loan funds for development and related soft costs that are eligible under the applicable CDBG and HOME regulations, and consistent with the approved development budget. In addition, the borrower shall submit to the City’s Community and Economic Development Department a copy of the Constr uction Plans for the Development. As of June 30, 2023, Greater Richmond Interface Program has drawn down $1,236,884.

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

Housing Successor Loans
With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activi ties and as a result City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of certain loans discussed above and all of the loans below as of February 1, 2012. 432
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
76 4. NOTES AND LOANS RECEIVABLE, Continued
Miraflores Loan
Under an amended loan agreement dated June 21, 20 11, the City agreed to loan Community Housing Development Corporation of North Richmond and Eden Housing, Inc., $1,465,000 to fund the construction of 110 senior housing units for low and moderate income residents. Fu nding for the loan is as follows:
$449,000 in CDBG funds, $925,000 in HOME funds, and $91,000 Redevelopment Agency Low and Moderate Income Housing Fund funds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will not be reimbursed by the grantor.

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

The loan does not bear interest and the unpaid princi pal balance was due September 22, 2015, unless it was converted to a permanent loan. The loan was converted in to a permanent loan on June 25, 2015. In addition to the converted permanent loan, the Housing Successor approved an additional predevelopment loan in the amount of $1,500,000. As of June 30, 2023, $3,500,388 of the loan had been drawn down.

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

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

Chesley Avenue Mutual Housing Development
On December 1, 2003, the former Redevelopment Agency loaned Chesley Avenue Limited Partnership the amount of $4,741,492, which includes accrued interest of $1,272,798 to construct very low and low income housing units. The loan’s principal is due in 2058; interest is payable starting May 1, 2006, at the rate of 2% per annum or in the amount of 95% of any residual receipts remaining from the prior year, whichever is less.

As of June 30, 2023, $6,318,493, which includes accrue d interest of $1,620,355, had been drawn down on the loan.
433
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
77 4. NOTES AND LOANS RECEIVABLE, Continued
Easter Hill Project
The loan from the former Redevelopment Agency to Easter Hill Development, L.P. is providing financial assistance in the development of the Easter Hill Proj ect. The Easter Hill Project consists of single and multifamily home components. Easter Hill Development, L.P. shall use the loan to pay for predevelopment, acquisition and construction costs. The outstanding balance of the loan bears simple interest at the rate of 2% per year. Repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest on the loan is due February 1, 2069.

Nevin Plaza I, L.P.

On March 1, 2023, the City entered into an agreement wi th Navin Plaza I, L.P., in the amount of $3,500,000, which includes $1,750,000 to evidence developer’s obligation to repay th e portion of the loan funded with Coronavirus State and Local Fiscal Recovery Funds provided to the City through the American Rescue Plan Act of 2021 and $1,750,000 with City Affordable Housing Impact Fee Funds. The loan bears interest of 3% per year, the entire outstanding principal balance of the loan together with accrued interest. The maturity date, which is the earlier of the 55
th anniversary of the date upon which the city building department issue its sign off on its final inspection following completion of rehabilitation of the project and the 57th anniversary of the date of the notes.
434
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
78 5. LEASES RECEIVABLE
At June 30, 2023, leases receivable consisted of the following:

Alcatraz Cruises
On October 15, 2021, the City entered into a lease as Lessor for the use of Basin 4 and half of Basin 3 at Point Potrero Marine Terminal and the lease end date was on October 14, 2036. An initial lease receivable was recorded in the amount of $2,559,422 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $2,294,889. The lessee is required to make monthly fixed payments of $15,000.00, with step payment increase to $15,600 from October 15, 2026 to October 14, 2031 and 4% annual increase from October 15, 2031 to October 14, 2036. The lease has an interest rate of 1.2480%. The value of the deferred inflow of resources as of June 30, 2023 was $2,267,458, and the City recognized lease revenue of $170,628 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

California Oils
On July 1, 2016, the City entered into a lease as Less or for the use of Terminal 2 at 1145 Harbour Way South and the lease end date was on June 30, 2026. An initial lease receivable was recorded in the amount of $2,449,191 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $1,533,614. The lessee is required to make monthly fixed payments of $38,868, wi th step payment increase to $40,810.54 from July 1, 2022 to June 30, 2023 and 3% monthly increase from July 1, 2023 to June 30, 2026. The lease has an interest rate of 1.0590%. The value of the deferred inflow of resources as of June 30, 2023 was $1,469,515 and the City recognized lease revenue of $489,838 during the fiscal year.

Balance at
June 30, 2023
Lease Receivable
Alcatraz Cruises 2,294,889$
California Oils 1,533,614
Garamendi 20,100
Foss Maritime 1,254,453
Watershed Nursery 51,230
Nematode 566,640
NRC 294,238
Point San Pablo 62,000
PRAM 3,833
Richmond Art Center 789,178
Richmond Bay Marina 5,291,322
Terminal Three Partners 39,307,637
Dutra 2,001,910
YWCA 64,204
AWC 8,892,747
Total Lease Receivable 62,427,995$
435
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
79 5. LEASES RECEIVABLE, Continued
DeSaulnier
On January 3, 2019, the City entered into a lease as Lessor for the use of the office space located at 440 Civic Plaza and the lease end date was on January 2, 2023. An initial lease receivable was recorded in the amount of $15,459 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $0. The lessee is required to make monthly fixed payments of $862. The lease has an interest rate of 0.5140%. The value of the deferred inflow of resources as of June 30, 2023 was $0, and the City recognized lease revenue of $5,191 during the fiscal year.

Foss Maritime
On October 1, 2012, the City entered into a lease as Le ssor for the use of Basin 1 and Finger Pier 2 at Point Potrero Marine Terminal and the lease end date was on February 29, 2028. An initial lease receivable was recorded in the amount of $2,806,842 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $1,254,453. The lessee is required to make monthly fixed payments of $21,430 from March 1, 2023 to April 30, 2023, $22,501 from May 1, 2023 to April 30, 2024, and 3% annual increase from May 1, 2024 to February 29, 2028. The lease has an interest rate of 2.6820%. The value of the deferred inflow of resources as of June 30, 2023 was $1,244,733, and the City recognized lease revenue of $88,910 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

MSRC
On July 1, 1993, the City entered into a lease as Lessor for the use of Finger Pier 1 at 1314 Canal Boulevard and the lease end date was on June 30, 2023. An init ial lease receivable was re corded in the amount of $750,849.26 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $0. The lessee is required to make monthly fixed payments of $30,976.25, with step payment increase to $31,906 from July 1, 2022 to June 30, 2023. The lease has an interest rate of 0.5140%. The value of the deferred inflow of resources as of June 30, 2023 was $0, and the City recognized lease revenue of $375,425 during the fiscal year.

Nematode
On July 1, 2020, the City entered into a lease as Lesso r for the use of Terminal 4 at 1950 Stenmark Drive and the lease end date was on June 30, 2023. An initial leas e receivable was recorded in the amount of $719,233.

As of June 30, 2023, the value of the lease receivable is $566,640. The lessee is required to make monthly fixed payments of $6,816.50. The lease has an interest rate of 0.8930%. The value of the deferred inflow of resources as of June 30, 2023 was $559,403, and the City recognized lease revenue of $79,915 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

NRC
On October 1, 2017, the City entered into a lease as Lessor for the use of Basin 3 at 1337 Canal Boulevard and the lease end date was on September 30, 2027. An init ial lease receivable was recorded in the amount of $414,304 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $294,238. The lessee is required to make monthly fixed payments of $5,000, with step payment increase to $5,300 from October 1, 2022 to September 30, 2023 and 4% annual increase from Octo ber 1, 2023 to September 30, 2027. The lease has an interest rate of 0.3870%. The value of the deferred inflow of resources as of June 30, 2023 was $281,727, and the City recognized lease revenue of $66,289 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.
436
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
80 5. LEASES RECEIVABLE, Continued
Point San Pablo
On June 1, 2023, the City entered into a lease as Lessor for the use of Terminal 4 at 1950 Stenmark Drive and the lease end date was on May 31, 2029. An initial lease receivable was recorded in the amount of $62,787 on June 1, 2023. As of June 30, 2023, the value of the lease receivable is $62,000. The lessee is required to make monthly fixed payments of $786, with step payment increase to $842 from June 1, 2024 to May 31, 2025 and 7% annual increase from June 1, 2025 to May 31, 2029. The lease has an interest rate of 2.3260%. The value of the deferred inflow of resources as of June 30, 2023 was $61,915, and the City recognized lease revenue of $872 during the fiscal year. The lessee has 5 extension option(s), each for 12 months.

PRAM
On September 1, 2019, the City entered into a lease as Lessor for the use of The Washington Field House at 110 East Richmond Avenue and the lease end date was on August 31, 2024. An initial lease receivable was recorded in the amount of $10,333.79 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $3,833. The lessee is required to make monthly fixed payments of $275.00. The lease has an interest rate of

0.7270%. The value of the deferred inflow of resources as of June 30, 2023 was $3,807, and the City recognized lease revenue of $3,263 during the fiscal year.

Richmond Art Center
On July 1, 2017, the City entered into a lease as Lessor for the use of The Art Center buildings at 2540 and 2544 Barrett Avenue and the lease end date was on June 30, 2067. An initial lease receivable was recorded in the amount of $807,820.53 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $789,178.

The lessee is required to make monthly fixed payments of $2,344, with step payment increase to $2,503 from July 1, 2022 to June 30, 2067. The lease has an interest rate of 2.5830%. The value of the deferred inflow of resources as of June 30, 2023 was $772,698, and the City recognized lease revenue of $17,561 during the fiscal year.

Richmond Bay Marina – Re – assigned to SHM MBYH LLC
On July 1, 2000, the City entered into a lease as Lessor for the use of the land at 1340 Marina Way South and the lease end date was on June 30, 2055. An initial lease receivable was recorded in the amount of $5,534,412.78 on July 1, 2021. As of June 30, 2023, the va lue of the lease receivable is $5,291,322. The lessee is required to make quarterly fixed payments of $60,876. The lease has an interest rate of 2.5830%. The value of the deferred inflow of resources as of June 30, 2023 was $5,208,859, and the City recognized lease revenue of $162,777 during the fiscal year.

Terminal Three Partners
On December 15, 2020, the City entered into a lease as Lessor for the use of Terminal 3 at 1411 Harbour Way South and the lease end date was on December 14, 2086. An initial lease receivable was recorded in the amount of $39,376,061.50 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $39,307,637.

The lessee is required to make monthly fixed payments of $36,667, with step payment increase to $38,133 from July 1, 2022 to June 30, 2023 and 2% annual increase from July 1, 2023 to December 14, 2086. The lease has an interest rate of 1.1000%. The value of the defe rred inflow of resources as of June 30, 2023 was $38,172,923, and the City recognized lease revenue of $601,569 during the fiscal year. The lessee has 4 extension option(s), each for 120 months.
437
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
81 5. LEASES RECEIVABLE, Continued
Dutra
On June 1, 2017, the City entered into a lease as Lessor for the use of Basin 2, Basin 3 and the structure at 1319 Canal Boulevard and the lease end date was on May 31, 2032. An initial lease receivable was recorded in the amount of $2,393,510.09 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $2,001,910. The lessee is required to make monthly fixed payments of $16,500.00, with step payment increase to $17,160 from June 1, 2022 to May 31, 2023 and 2% annual increase from June 1, 2023 to May 31, 2032. The lease has an interest rate of 0.3160%. The value of the deferred inflow of resources as of June 30, 2023 was $1,955,004 and the City recognized lease revenue of $219,253 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

YWCA
On July 1, 2015, the City entered into a lease as Lessor for the use of the building at 3230 MacDonald Avenue and the lease end date was on June 30, 2025. An init ial lease receivable was re corded in the amount of $127,360.86 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $64,204. The lessee is required to make monthly fixed payments of $2,700.00. The lease has an interest rate of 0.8930. The value of the deferred inflow of resources as of June 30, 2023 was $63,680, and the City recognized lease revenue of $31,840 during the fiscal year.

AWC
On May 1, 2009, the City entered into a lease as Lessor for the use of the land at 1311 Canal Boulevard and the lease end date was on December 31, 2024. An init ial lease receivable was recorded in the amount of $20,135,248.98 on July 1, 2021. As of June 30, 2023, the value of the lease receivable is $8,892,747. The lessee is required to make annual fixed payments of $5,718,800.00, with a fixed increase to $5,833,350 from July 1, 2022 to June 30, 2023 and $5,950,800 from July 1, 2023 to June 30, 2024. The lease has an interest rate of 0.8930%.

The value of the deferred inflow of resources as of June 30, 2023 was $8,629,392, and the City recognized lease revenue of $5,752,928 during the fiscal year.

Garamendi
On January 3, 2023, the City entered into a lease as Lessor for the use of the office space located at 440 Civic Plaza and the lease end date was on January 2, 2025. An initial lease receivable was recorded in the amount of $26,677 on January 3, 2023. As of June 30, 2023, the value of the lease receivable is $20,100. The lessee is required to make monthly fixed payments of $1,141. Th e lease has an interest rate of 2.7070%. The value of the deferred inflow of resources as of June 30, 2023 was $20,026, and the City recognized lease revenue of $6,651 during the fiscal year.

Watershed Nursery
On December 17, 2019, the City entered into a lease as Lessor for the use of 601 Canal Blvd Suite A and the lease end date was on December 18, 2031. An initial lease receivable was recorded in the amount of $55,493 on July 1, 2022. As of June 30, 2023, the value of the lease receivable is $51,230. The lessee is required to make monthly fixed payments of $480. The lease has an interest rate of 2.8420%. The value of the deferred inflow of resources as of June 30, 2023 was $49,628, and the City recognized lease revenue of $5,865 during the fiscal year.
438
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
82 5. LEASES RECEIVABLE, Continued
The future revenue payments as of June 30, 2023, are as follows:
439
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
83 6. CAPITAL ASSETS
The following is a summary of capital assets for governmental activities:

Balance at
July 1, 2022 Balance at
(as restated) Additions Retirements Transfers Adjustment June 30, 2023 Governmental Activities
Capital assets not being depreciated:

Land 24,634,683 $ - $ - $ - $ - $ 24,634,683$ Construction in progress 34,549,467 11,896,733 - - - 46,446,200 Total capital assets not being depreciated 59,184,150 11,896,733 - - - 71,080,883 Capital assets being depreciated:

Buildings and improvements 157,794,660 - - - - 157,794,660 Machinery and equipment 55,945,913 1,395,916 (421,129) - 3,352 56,924,052 Land improvements and infrastructure 547,534,722 - - - - 547,534,722 Total capital assets being depreciated 761,275,295 1,395,916 (421,129) - 3,352 762,253,434 Less accumulated depreciation for:

Buildings and improvements (55,047,802) (3,641,894) - - - (58,689,696) Machinery and equipment (42,549,012) (2,556,770) 421,129 - (3,352) (44,688,005) Land improvements and infrastructure (431,223,103) (6,381,117) - - - (437,604,220) Total accumulated depreciation (528,819,917) (12,579,781) 421,129 - (3,352) (540,981,921) Capital asset being depreciated, net 232,455,378 (11,183,865) - - - 221,271,513 Capital assets being amortized:

Leased buildings and improvements 6,690,416 - - - - 6,690,416 Subscription based I.T. agreeemnts 4,168,268 417,005 - - - 4,585,273 Total capital assets being amortized 10,858,684 417,005 - - - 11,275,689 Less accumulated amortization for:

Leased buildings and improvements (1,911,547) (1,911,547) - - - (3,823,094) Subscription based I.T. agreeemnts - (1,063,141) - - - (1,063,141) Total accumulated amortization (1,911,547) (2,974,688) - - - (4,886,235) Capital assets being amortized, net 8,947,137 (2,557,683) - - - 6,389,454 Governmental activity capital assets, net 300,586,665 $ (1,844,815) $ - $ - $ - $ 298,741,850$ 440
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
84 6. CAPITAL ASSETS, Continued
Governmental activities depreciation expenses for ca pital assets and amortization expense for lease assets charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program for the year ended June 30, 2023 were as follows:

Lease Asset
Dicon Fiberoptics
On January 1, 2020, the City entered into a lease as Lessee for the use of DiCon Fiberoptics’ Building and the lease end date was on December 31, 2024. The City is required to make monthly fixed payments of $152,298, with step payment increase to $156,735 from January 1, 2022 to December 31, 2022 and 3% annual increase from January 1, 2023 to December 31, 2024. The lease has an interest rate of 0.3160%. The value of the right to use asset as of June 30, 2023 of $6,690,416 with accumulated amortization of $3,823,094. The City has 3 extension option(s), each for 12 months.

Subscription Based Information Technology Arrangements
Cobalt
On May 1, 2017, the City entered into a subscription for the use of Cobalt RMS Software and the lease end date was on June 30, 2027. The City is required to make annual fixed payments of $360,000 until June 30, 2023, and $200,000 from July 1, 2023 to June 30, 2027. The subscription has an interest rate of 2.5360%. The value of the right to use asset as of June 30, 2023 of $1,111,743 with accumulated amortization of $222,349. There are no options to extend the arrangement or purchase the software. eScribe
On April 27, 2021, the City entered into a subscription for the use of eScribe and the lease end date was on April 26, 2026. The City is required to make annual fixed payments of $47,242 with 5% annual increase. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2023 of $158,237 with accumulated amortization of $41,399. The City has 1 extension option(s), each for 60 months.

Governmental Activities
Depreciation expense
General Government 3,741,761 $
Public Safety 602,976
Public Services 6,067,937
Cultural and Recreational 180,524
Housing and Redevelopment 57,608
Community Development 12,307
Internal Service Funds 1,916,668
Total depreciation expense 12,579,781
Amortization expense
General Government 418,00 8
Public Safety 2,556,68 0
Total amortization expense 2,974,68 8
Total Governmental Activities 15,554,469$
441
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
85 6. CAPITAL ASSETS, Continued
GovInvest
On March 6, 2023, the City entered into a subscription for the use of GovInvest, Inc and the lease end date was on June 30, 2026. The City is required to make fixed payments of $26,400 until June 30, 2023 and $80,000 from July 1, 2023 to June 30, 2026. The subscription has an interest rate of 2.7960%. The value of the right to use asset as of June 30, 2023 of $267,729 with accumulated amortization of $25,765. The City has 1 extension option(s), each for 12 months.

Public Safety Systems Data
On November 1, 2021, the City entered into a subscripti on for the use of Public Safety Systems Data and the lease end date was on October 31, 2026. The City is required to make fixed payments of $219,500. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2023 of $840,217 with accumulated amortization of $193,896. There are no options to extend the arrangement or purchase the software.

RippleWorx
On January 1, 2023, the City entered into a 36-month subscription for the use of RippleWorx. The City is required to make annual fixed payments of $50,000.00. The subscription has an interest rate of 2.7960%. The value of the right to use asset as of June 30, 2023 of $149,276 with accumulated amortization of $24,879. There are no options to extend the arrangement or purchase the software.

ShotSpotter
On July 1, 2021, the City entered into a subscription for the use of ShotSpotter Subscription and the lease end date was on June 30, 2026. The City is required to make fixed payments of $203,907 until June 30, 2023 and $214,101 from July 1, 2023 to June 30, 2026. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2023 of $816,036 with accumulated amortization of $204,009. There are no options to extend the arrangement or purchase the software.

Tyler Technologies
On July 1, 2019, the City entered into a subscription for the use of Tyler Technologies and the lease end date was on June 30, 2024. The City is required to make fixed payments of $120,000. The subscription has an interest rate of 2.1940%. The value of the right to use asset as of June 30, 2023 of $237,424 with accumulated amortization of $118,712. There are no options to extend the arrangement or purchase the software.

Microsoft
On September 29, 2020, the City entered into a subscription for the use of Microsoft and the lease end date was on October 28, 2026. the City is required to make fixed payments of $140,021 until September 28, 2023 and $227,425 from September 29, 2023 to October 28, 2026. The subscription has an interest rate of 1.8500%.

The value of the right to use asset as of June 30, 2023 of $1,004,611 with accumulated amortization of $232,131.

The City has 1 extension option(s), each for 36 months. 442
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
86 6. CAPITAL ASSETS, Continued
The following is a summary of capital assets for business-type activities:

Included in buildings and improvements is the Rich mond Housing Authority’s Hacienda Property with a net book value of $7,203,134 at June 30, 2023 has been uninhabitable for an extended period of time and as a result necessitates major rehabilitation. The property was appraised in July 2019 at $6,290,000 “as is” and Mercy Housing is in negotiation with the City and th e Housing Authority to acquire the improvements and to undertake significant renovation that would result in to 150 units, a fitness center and a library. The current site encompasses a total of 2.98 acres of land which is intended to be split into two parcels upon approval by HUD for which the currently improved portion of 1.9 41 acres will be subject to a ground lease to Mercy Housing and the remaining 1.043 acres will be retained by the City for future development. 443
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
87 6. CAPITAL ASSETS, Continued
Business-type activities depreciation expenses for capital assets allocated to each program for the year ended June 30, 2023 were as follows:

Lease Asset
West County Wastewater District
On January 1, 2010, the City entered into a lease as Lessee for the use of West County Wastewater District’s land and the lease end date was on December 31, 2025. The City is required to make annually fixed payments of $153,000, with 3% annual increase from January 1, 2013 to December 31, 2017 and 6% annual increase from January 1, 2018 to December 31, 2025. The lease has an in terest rate of 1.0590%. The value of the right to use asset as of June 30, 2023 of $1,172,173 with accumulated amortization of $520,966.

Owen Equipment – Water Resource Rec Dept
On March 1, 2022, the City entered into a lease as Lessee for the use of Owen Equipment and the lease end date was on February 29, 2024. The City is required to make monthly fixed payments of $11,212. The lease has an interest rate of 0.3800%. The value of the righ t to use asset as of June 30, 2023 of $256,921 with accumulated amortization of $170,319.
444
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
88 7. COMPENSATED ABSENCES PAYABLE
Changes in compensated absence liabilities for the year ended June 30, 2023 were as follows:

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

8. LONG-TERM DEBT
A. Governmental Activities
Following is a summary of governmental activities long-term debt transactions during the fiscal year ended June 30, 2023:

Bonds Payable
Bonds payable at June 30, 2023 consisted of the following:

Balance at
July 1, 2022 Balance at Due Within Due in More
(as restated) Additions (A) Retirements June 30, 2023 One Year than One Year Bonds payable:

Bonds 101,965,012 $ - $ (7,238,438)$ (B) 94,726,574 $ 3,865,000 $ 90,861,574 $ Bonds from direct placements 134,251,078 154,140,000 (134,251,078) 154,140,000 - 154,140,000 Loans payable from direct borrowings 887,622 - (138,040) 749,582 140,511 609,071 Financed purchases from direct borrowings 4,581,187 - (1,075,111) 3,506,076 911,735 2,594,341 Lease liability 4,852,956 - (1,896,420) 2,956,536 1,959,774 996,762 Subscription based I.T. agreeemnts 4,152,458 402,005 (1,149,854) 3,404,609 1,086,599 2,318,010 Total 250,690,313 $ 154,542,005 $ (145,748,941) $ 259,483,377 $ 7,963,619 $ 251,519,758 $ 445
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
89 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
1999 Series A City of Richmond Taxable Limi ted Obligation Pension Bonds – Original Issue $36,280,000
The bonds were issued to fund a portion of the unfunded accrued actuarial liability in the City’s pension plans together with the prepayment of certain pension benefit costs of the Beneficiaries and to pay the costs of issuance associated with the issuance of the bonds. Interest rates vary from 6.37% to a maximum of 7.39% and are payable semiannually on February 1, and August 1. The term bonds consist of $8,960,000 due August 1, 2020 with an interest rate of 7.57% and $3,435,000 due August 1, 2029 with an interest rate of 7.62%. The bonds are payable from certain pension tax override revenues received by the City from a special tax pursuant to City Council Ordinance 9-99 adopted by the City Council on March 30, 1999. On September 1, 2022, using funds on hand , net proceeds of $2,368,563 were deposited in an irrevocable trust with an escrow agent to provide fu nds for the future debt services payments on the Series 1999 Bonds. As a result, the 1999 Bonds are considered defeasance and the liability for those bonds have been removed from the Statement of Net Position. As of June 30, 2023, the outstanding balance of the defeasance of bond was $2,105,000.
2005 Taxable Pension Funding Bonds – Original Issue $114,995,133 These Bonds from direct placements were issued to prepay the unfunded liability of the Miscellaneous and Safety pension plans provided through the Cali fornia Public Employees’ Retirement System. The Bonds consist of three series as shown below:

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

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

Capital Appreciation Bonds – The Series 2005B-1 Bonds and 2005B-2 Bonds are capital appreciation bonds, which means no interest is paid until the Adjusted Maturity Value is reached on the Full Accretion Date.

Capital appreciation bonds are issued at a deep discount which then “accretes” over time. The discount on these bonds represented as the effective interest rate on each series is shown above. 446
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
90 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2005 Taxable Pension Funding Bonds – Original Issue $114,995,133, Continued Mandatory Index Rate Conversion – On the respective Full Accretion Date, the Series 2005B-1 or 2005B- 2 Bonds convert from Capital Appreciation Bonds to Index Rate Bonds. From that date forward, the Bonds bear interest at a rate based on the 1-month LIBOR index plus 1.4%. This rate fluctuates according to the market conditions and is limited to 17% per year. Following the applicable Full Accretion Date, interest on the converted bond series is due semiannually each February 1 and August

1. The Series 2005B-1 Bonds are due in annual installments from 2014 to 2023 ranging from $4,468,000 to $11,593,000. The 2005B-2 Bonds are due in annual installments from 2024 to 2034 ranging from $6,466,000 to $18,538,000.

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

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

Swap Agreements – The City entered into two interest rate swap agreements related to the 2005B-1 and 2005B-2 Bonds. The interest rate swap related to the 2005B-1 Bonds became effective August 1, 2013. The combination of the variable rate bonds and a floating swap rate created a synthetic fixed-rate debt for the City. On September 1, 2022, the City issued Taxable Pension Refunding Bond, Series 2022 in the amount of $154,140,000 to refund and terminate the swap agreement for the 2005B-1 and 2005B-2 Bonds. 447
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
91 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2016 – Original Issue - $28,390,000
On February 1, 2016, the Authority issued Series 2016 Lease Revenue Bonds in the amount of $28,390,000. The proceeds from the Bonds were used to pay the obligations of the City related to the termination of the interest rate swap agreement and the option on swap agreement (swaption) related to the Authority’s Series 2009 Lease Revenue Refunding Bonds and to pay the costs associated with the issuance of the Series 2016 Bonds. On February 3, 2016 the interest rate swap agreement and the swaption related to the Series 2009 Bonds were terminated with a swap termination payment of $28,554,000.

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

At June 30, 2023, the 2016 Bonds consisted of the following:

The annual debt service requirements are as follows:
448
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
92 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2019A – Original Issue - $63,970,000
The Series 2019A Bonds are being issued to: redeem $77,315,000 outstanding principal amount of the Authority’s Lease Revenue Refunding Bonds (Civic Ce nter Project) Series 2009, purchase a reserve facility for deposit into the reserve account established for the Series 2019A Bonds, fund a deposit into the Interest Account within the Revenue Fund to capitalize a portion of the interest due on May 1, 2020, and pay costs associated with the issuance of the Series 2019A Bonds. The Bonds are payable solely from, and secured solely by, Revenues of the Authority, cons isting primarily of Base Rental Payments to be received by the Authority from the City of Richmond under a Facility Lease, dated as of August 1, 2019, by and between the City and the Authority, for the right to use and the occupancy of certain real property and facilities. The Series 2019A Bonds will mature on November 1 annually commencing November 1, 2020. Interest on the Series 2019A Bonds is payable at the rate of 5% on November 1 and May 1 of each year, commencing May 1, 2020. The refunding resulted in an overall debt service savings of $29,893,316.

The net present value of the debt service savings is called an economic gain and amounted to $25,000,596.

At June 30, 2023, the 2019A Bonds consisted of the following:

The annual debt service requirements are as follows:
449
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
93 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Interest Rate Swap and Swaption Agreements
On September 1, 2022, the City issued Series 2022 Bonds in the amount of $154,140,000, and used a portion of the proceeds of the Series 2022 Bonds in the amount of $21,991,660 to pay amounts due to Royal Bank of Canada as a result of the termination of the 2016 Swap Agreement. Upon payment of the Termination Fee, the City will no longer be a party to any interest rate swap agreement.

The City entered into an interest swap agreement in connection with the 2005B-1 Taxable Pension Funding Bonds. The transaction allows the City to create a synthetic fixed rate or a synthetic variable rate on the Bonds, protecting it against increases and decreases in short-term interest rates and fair value. The various risks associated with the swap agreemen ts are disclosed below. For the swap agreement pertaining to the 2005B-2 Taxable Pension Funding Bonds, the disclosure is included below, but the swap agreement does not become effective until August 1, 2023.

On May 13, 2015, Moody’s Investor Services (“Moody’s”) downgraded the City’s issuer rating from “A1” to “Ba1” and the rating on its 1999 Taxable Limited Obligation Pension Bonds from “A2” to “Baa2”. In addition, the City and its Wastewater Enterprise bonds were placed under review for possible downgrades. On August 4, 2015, Moody’s further downgraded the City’s issuer rating from “Ba2” to “Ba1” and its rating on the City’s Taxable Pension Obligation Bonds and 1999 Taxable Limited Obligation Pension Bonds (“POB’s) from “Baa2”. In addition, Moody’s downgraded its rating on the City’s Wastewater Revenue Bonds, Series 2006A to “Baa2” from “A2”. On November 21, 2018, Moody’s upgraded the City’s issuer rating to “Baa3” from “Bal” and the Pension Obligation Bond rating from “Ba1” to “Ba2”. On September 1, 2015, Standard and Poor’s Rating Services (“S&P”) lowered the City’s Issuer Credit Rating from “AA-” to “BBB+” placin g the City on CreditWatch. Other credit ratings downgrades included S&P’s assigned underlying rating (SPUR) for the Wastewater Enterprise Fund that was lowered from “A+” to “BBB”.
450
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
94 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Interest Rate Swap and Swaption Agreements, Continued
Moody’s downgrade of the City’s issuer rating to “Ba1” resulted in allowing the counterparty, JPMorgan Chase Bank, NA (“JPM”) to declare an Additional Termination Event (ATE) with the interest rate swaps the City entered in conjunction with the 2005 Taxable POBs (2007 Swaps). This means that JPM could exercise a right to terminate the 2007 Swaps and demand immediate payment of an approximately $31.5 million settlement amount that represented the present value of the City’s expected future performance obligations under the 2007 Swaps at the time of the ATE. The City entered into a restructuring of certain of its obligations through the issuance by the Richmond Joint Powers Financing Authority of Lease Revenue Bonds Series 2016A (tax-exempt) to fund the cost of terminating the Civic Center Swaps relating to the Richmond Joint Powers Financing Authority Se ries 2009 Civic Center Lease Revenue Bonds held by Royal Bank of Canada (RBC). RBC simultaneously entered into a novation of the 2007 Swaps with JPM. By terminating the Civic Center Swaps, the City reduced RBC’s credit exposure to the City sufficiently to allow RBC to accept the additional cr edit exposure associated with stepping into JPM’s position in the 2007 swaps through novation. Contemporaneous with the novation from JPM to RBC, RBC and the City amended and restated the 2007 Swaps, including eliminating the existence of the ATE by removing reference to a Moody’s rating in the ATE provisions, reducing the Standard & Poor’s rating threshold for a future ATE to BBB- from BBB and pr oviding a mandatory early termination of the 2007 Swaps in 2023. The early termination will require the City to either refund or restructure the 2007 Swap at that date if a termination payment is due at the time. In addition, terminating the Civic Center Swaps eliminated the risk of an ATE with respect to the Civic Center Swaps, which require the City to maintain its Issuer Credit Rating at the current level of BBB+ to avoid an ATE.

The City’s issuer credit rating from S&P was BBB+ as of June 30, 2017. On December 4, 2017, the City received an updated issuer credit rating from S&P up grading the previous BBB+ issuer credit rating to an A- issuer credit rating. On June 15, 2022, the Ci t y r e c e i v e d a n u p d a t e d i s s u e r c r e d i t r a t i n g f r o m Moody’s Investors Service upgrading the previous Baa2 issuer credit rating to a Baa3 issuer credit rating and its pension obligation bond (POB) to Baa3 from Ba 1. On February 17, 2023, the City received an updated issuer credit rating from Moody’s Investors Service upgrading the previous Baa2 issuer credit rating to an A3 issuer credit rating and its pension obligation bond (POB) to A3 from Baa3. 451
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
95 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Pension Funding Bond Series 2022 (Refunding) – Amount $154,140,000 Taxable Pension Refunding Bonds, Series 2022 was issued under an Indenture, dated November 1, 2005, as supplemented by the First Supplemental Indenture, dated as of September 1, 2022 both by and between the City and U.S. Bank Trust Company, National Association, as trustee 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, pay interest rate swap termination fees as described herein, and pay the costs of issuance related to the Series 2022 Bonds.

The Series 2022 Bonds accrue interest from the date of delivery thereof and are payable semiannually on January 15 and July 15 of each year, commencing July 15, 2023. The refunding resulted in an overall debt service increase of $35.3 million over the term of the debt. The net present value of the debt service savings is called an economic gain and amounted to approximately $10.2 million.

The annual debt service requirements are as follows:

Loans Payable
Loans payable from direct borrowing at June 30, 2023 consisted of the following:

California Energy Commission Phase 1 – Original Amount $621,558 On April 22, 2013, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $621,558. The purpose of the loan is to provide funding for the replacement of street lighting with new LED lights. The loan bear s a 3% interest rate and is due in semi-annual payments in December and June through December 2025.

For the Years
Ending June 30, Principal Interest Total
2024 - $ 11,398,165$ 11,398,165 $ 2025 - 8,425,749 8,425,749 2026 2,980,000 8,425,749 11,405,749 2027 3,345,000 8,299,575 11,644,575 2028 3,730,000 8,154,603 11,884,603 2029-2033 25,555,000 37,718,595 63,273,595 2034-2038 40,565,000 29,716,448 70,281,448 2039-2043 62,220,000 15,946,505 78,166,505 2044 15,745,000 911,006 16,656,006 Total 154,140,000$ 128,996,395 $ 283,136,395 $ 452
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
96 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
California Energy Commission Phase 1 – Original Amount $621,558, Continued The annual debt service requirements on the loan are as follows:

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

The annual debt service requirements on the loan are as follows:
453
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
97 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Financed Purchases
Financed purchases payable from direct borrowing at June 30, 2023 consisted of the following:

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

The annual debt service requirements on the financed purchase are as follows:
454
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
98 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Recovery Zone Economic Development – Original Amount $1,316,000
On December 22, 2010 the Authority entered into a direct borrowing financed purchase with Bank of America in the amount of $1,316,000 to finance the improvements to three of the City’s fire stations and a senior center. The City agreed to use the three fire stations to the Authority in exchange for payments in the amount of the debt. The Authority received the proceeds under an allocation of the National Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009, which includes a direct subsidy from the United States Treasury for the interest payable on the Bonds. The subsidy will be payable on or about the date that the Authority makes its debt service payments and is equal to 45% of the interest payable on the lease upon filing of a request by the Authority. The total subsidy received in fiscal year 2019 was $19,824. The lease bears interest at a rate of

6.50% and principal and interest payments on th e lease are due semi-annually each June 15 and December 15, commencing on June 15, 2011, through 2026.

The annual debt service requirements on the financed purchase are as follows:

Holman Capital Corporation #4 – West Contra Co sta Family Justice Center - Original Amount $2,000,000
On November 1, 2012 the City entered into a direct borrowing financed purchase agreement with Holman Capital Corporation in the amount of $2,000 ,000 to finance improvements to the City’s West Contra Costa Family Justice Center. The purchase bears an interest rate of 3.17%. Principal and interest payments on the purchase are due semi-annually on each July 14 and January 14 commencing on July 14, 2013 through January 14, 2023. As of June 30, 2023, the agreement was paid off. 455
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
99 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Street Light - Original Amount $4,641,936
On July 31, 2013 the City entered into a direct bo rrowing financed purchase agreement with Bank of America in the amount of $4,641,936 to finance the purchase of streetlights and the associated upgrade costs. The purchase bears an interest rate of 2.55%. Principal and interest payments on the purchase are due semi-annually on each October 30 and April 30 commencing on April 30, 2014 through October 30, 2026.

The annual debt service requirements on the financed purchase are as follows:

Holman Capital Corporation #5 – Fire Apparatus Equipment Lease - Original Amount $2,687,645 On May 17, 2018 the City entered into a direct bo rrowing financed purchase agreement with Holman Capital Corporation in the amount of $2,687,645 to finance the purchase of one Spartan Ladder Truck and two Spartan Pumper Trucks, which are pledged as collateral for the purchase. The purchase bears an interest rate of 3.91%. Principal and interest payments on the purchase are due quarterly on each August 17, November 17, February 17, and May 17 commencing on August 17, 2018 through May 17, 2028.

The annual debt service requirements on the financed purchase are as follows:
456
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
100

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Lease Liability (Dicon Fiberoptics)
On January 1, 2020, the City entered into a lease as Lessee for the use of Dicon Fiberoptics and the lease end date was on December 31, 2024. An initial lease liability was recorded in the amount of $6,690,415.64 on July 1, 2021. As of June 30, 2023, the value of the lease liability is $2,956,536. The City is required to make monthly fixed payments of $152,298.00, with st ep payment increase to $ 156,735 from January 1, 2022 to December 31, 2022 and 3% annual increase from January 1, 2023 to December 31, 2024. The lease has an interest rate of 0.3160%.

At June 30, 2023, the aggregate maturities of the governmental lease liability were as follows:

Subscription Based Information Technology Arrangements (SBITA) At June 30, 2023, SBITA liabilities consisted of the following:
457
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
101

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Cobalt
On May 1, 2017, the City entered into a subscription for the use of Cobalt RMS Software and the lease end date was on June 30, 2027. An initial subscription liability was recorded in the amount of $1,111,743 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $751,741. The City is required to make annual fixed payments of $360,000 until June 30, 2023, and $200,000 from July 1, 2023 to June 30, 2027. The subscription has an interest rate of 2.5360%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:
eScribe
On April 27, 2021, the City entered into a subscription for the use of eScribe and the lease end date was on April 26, 2026. An initial subscription liability was recorded in the amount of $142,427 on July 1, 2022.

As of June 30, 2023, the value of the subscription liability is $98,049. The City is required to make annual fixed payments of $47,242 with 5% annual increase. The subscription has an interest rate of 2.4450%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:
458
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
102

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
GovInvest
On March 6, 2023, the City entered into a subscription for the use of GovInvest, Inc and the lease end date was on June 30, 2026. An initial subscription liability was recorded in th e amount of $257,729 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $232,610. The City is required to make fixed payments of $26,400 until June 30, 2023 and $80,000 from July 1, 2023 to June 30, 2026. The subscription has an interest rate of 2.7960%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:

Public Safety Systems Data
On November 1, 2021, the City entered into a subscription for the use of Public Safety Systems Data and the lease end date was on October 31, 2026. An initia l subscription liability was recorded in the amount of $840,217 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $627,565. The City is required to make fixed payments of $219,500. The subscription has an interest rate of 2.4450%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:
459
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
103

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
RippleWorx
On January 1, 2023, the City entered into a 36-month subscription for the use of RippleWorx. An initial subscription liability was recorded in the amount of $144,276 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $95,957. The Ci ty is required to make annual fixed payments of $50,000.00. The subscription has an interest rate of 2.7960%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:

ShotSpotter
On July 1, 2021, the City entered into a subscription for the use of ShotSpotter Subscription and the lease end date was on June 30, 2026. An initial subscripti on liability was recorded in the amount of $816,036 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $612,128. The City is required to make fixed payments of $203,907 until June 30, 2023 and $214,101 from July 1, 2023 to June 30, 2026.

The subscription has an interest rate of 2.4450%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:
460
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
104

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Tyler Technologies
On July 1, 2019, the City entered into a subscription for the use of Tyler Technologies and the lease end date was on June 30, 2024. An initial subscription liability was recorded in th e amount of $237,424 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $117,424. The City is required to make fixed payments of $120,000. The subscription has an interest rate of 2.1940%.

At June 30, 2023, the aggregate maturity of the SBITA was as follow:

Microsoft
On September 29, 2020, the City entered into a subscription for the use of Microsoft and the lease end date was on October 28, 2026. An initial subscription liability was recorded in the amount of $1,004,611 on July 1, 2022. As of June 30, 2023, the value of the subscription liability is $869,135. The City is required to make fixed payments of $140,021 until September 28, 2023 and $227,425 from September 29, 2023 to October 28, 2026. The subscription has an interest rate of 1.8500%.

At June 30, 2023, the aggregate maturities of the SBITA were as follows:
461
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
105

8. LONG-TERM DEBT, Continued
B. Business-Type Activities
The following is a summary of long-term debt of busi ness-type activities during the fiscal year ended June 30, 2023:

Bonds payable at June 30, 2023 consisted of the following:
462
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
106

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

At June 30, 2023 the 2019B Bonds consisted of the following:

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

Richmond Wastewater Revenue Bonds, Series 2017A – Original Issue $33,530,000 On July 19, 2017 the City issued Series 2017A Wast ewater Revenue Bonds in the amount of $33,530,000.

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

At June 30, 2023 the Series 2017A Bonds consisted of:
463
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
107

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bonds, Series 2017A – Original Issue $33,530,000, Continued The annual debt service requirements on the 2017A Bonds are as follows:

Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000) On June 26, 2019 the City issued Series 2019A Wastewater Revenue Bonds and the 2019B Wastewater Revenue Refunding Bonds in the amounts of $22,510,000 and $66,075,000, respectively. The proceeds from the 2019A Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system. The proceeds from the 2019B Bonds were used to refund all of the City’s outstanding Wastewater Revenue Refunding Bonds, Se ries 2008A, and to partially refund and defease the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2010B. The outstanding balance of the defeased 2010B Bonds was $36,480,000 at June 30, 2019. Principal payments are due annually on August 1. Interest rates on the Bonds range from 3% to 5% and payments are due semiannually on August 1 and February 1 beginning February 1, 2020. The refunding resulted in an overall debt service savings of $6,799,507. The net present value of the debt service savings is called an economic gain and amounted to $4,738,022. The bonds mature on August 1, 2049.

At June 30, 2023 the Series 2019A Bonds consisted of:

For the Years
Ending June 30, Principal Interest Total
2024 - $ 1,396,600$ 1,396,600
2025 - 1,396,600 1,396,600 2026 - 1,396,600 1,396,600 2027 - 1,396,600 1,396,600 2028 - 1,396,600 1,396,600 2029-2033 - 6,983,000 6,983,000 2034-2038 - 6,983,000 6,983,000 2039-2043 7,415,000 6,511,875 13,926,875 2044-2048 19,540,000 2,671,988 22,211,988 Total 26,955,000$ 30,132,863 $ 57,087,863 $
464
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
108

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000), Continued The annual debt service requirements on the 2019A Bonds are as follows:

At June 30, 2023 the Series 2019B Bonds consisted of:

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

For the Years
Ending June 30, Principal Interest Total
2024 - 973,900$ 973,900 2025 - 973,900 973,900 2026 - 973,900 973,900 2027 - 973,900 973,900 2028 - 973,900 973,900 2029-2033 - 4,869,500 4,869,500 2034-2038 - 4,869,500 4,869,500 2039-2043 5,320,000 4,168,000 9,488,000 2044-2048 5,435,000 2,934,050 8,369,050 2049-2050 11,755,000 474,900 12,229,900 Total 22,510,000$ 22,185,450 $ 44,695,450 $ 465
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
109

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Pledge of Wastewater Revenues
The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay the 2017A, 2019A and 2019B Bonds through 2050. The Municipal Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $190,858,013. The Municipal Sewer Enterprise Fund’s principal and interest paid for the current year, an d total customer net revenues were $7,968,100 and $17,984,041, respectively.

Notes and Loans Payable – Direct Borrowing
Notes and loans payable at June 30, 2023, consisted of the following:

California Department of Boating and Waterways
The City has four direct borrowing loan agreements with the California Department of Boating and Waterways for total borrowings of $3,772,278. Proceeds from the loans were used to finance marina construction projects. The loans bear interest at rates ranging from 4.5% to 7.9% and are due in annual installments through August 2042. The total amount outstanding at June 30, 2023 was $2,128,971.

The annual debt service requirements on these loans are as follows: 466 City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
110

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

In fiscal year 2015, the City had advanced the $700 ,000 to the Richmond Hous ing Authority Enterprise Fund, however, in fiscal year 2016 that loan was assigned to RHA RAD Housing Partners L.P. as discussed in Note 4. Therefore, the Richmond Housing Authority Enterprise Fund now owes this amount to RHA RAD Housing Partners L.P. and the interfund advance was converted to long-term debt in fiscal year 2016. The repayment schedule is not available.

Contra Costa County Loan Payable
On December 1, 2019, the Richmond Housing Authority entered into a loan agreement with the County of Contra Costa in the amount of $401,523 to assist in the repair of the elevators at Nevin Plaza which is a 142 unit public housing development for senior and disabled residents. The loan repayment is deferred for 20 years unless a transfer or default occurs prior to the 20 years term. The loan bears no interest. The repayment schedule is not available. On March 16, 2023, the Richmond Housing Authority had no further obligation related to the CDBG loan and the original Promissory Note is being provided to the Richmond Housing Authority for its record.

California State Loan
Based on resolution Nos. 2019-0031 and 2019-0064, the City Council approved the California State Loan agreement between the City of Richmond and the California State Water Resources Control Board for a $50 million loan for the Water Resource Recovery Facility Project. The principal is paid over 30 years and the applicable interest rate was set at 1.4%. As of June 30, 2023, the City had partially drawn down the loan and had an outstanding principal balance of $31,923,263. 467
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
111

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
California State Loan, Continued
The annual debt service requirements on the loan is as follows:

Lease Liability
At June 30, 2023 Lease Liabilities consisted of the following:
468
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
112

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
West County Wastewater District
On January 1, 2010, the City entered into a lease as Lessee for the use of West County Wastewater District and the lease end date was on December 31, 2025. An initial lease liability was recorded in the amount of $1,172,173 on July 1, 2021. As of June 30, 2023, the value of the lease liability is $561,907. The city is required to make annually fixed payments of $153,000, with 3% annual increase from January 1, 2013 to December 31, 2017 and 6% annual increase from January 1, 2018 to December 31, 2025. The lease has an interest rate of 1.0590%.

At June 30, 2023, the maturities of the lease liability were as follows:

Owen Equipment
On March 1, 2022, the City entered into a lease as Lessee for the use of Owen Equipment and the lease end date was on February 29, 2024. An initial lease li ability was recorded in the amount of $223,496 on July 1, 2022. As of June 30, 2023, the value of the le ase liability is $89,568. The City is required to make monthly fixed payments of $11,212. The lease has an interest rate of 0.3800%.

At June 30, 2023, the maturities of the lease liability were as follows:
469
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
113

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses Below is a summary of certain events of defaul t and termination events with finance related consequences, along with the subjective acceleration clauses, as applicable, for all of the City’s outstanding long-term debt obligations. Each agreement may contain additional events of default, termination events or other subjective acceleration clauses. (A) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. (B) If the City fails to pay rental payable when due or the Authority fails to pay debt service when due, the delinquent principal and interest is due and pa yable immediately. In the event of default, the Authority has the option to exercise the right of en try and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent rent.

Events of default Termination events Subjective
with finance-related with finance-related acceleration
consequences consequences clauses
Governmental Activities
Bonds Payable
Series 2022 Taxable Pension Refunding Bonds (A) N/A (A) JPFA Lease Revenue Refunding Bonds - 2009 (B) (B) N/A
JPFA Lease Revenue Bonds - 2016 (B) (B) N/A
JPFA Lease Revenue Bonds - 2019 (B) (B) N/A
Loans Payable
California Energy Commission Loan #1 (C) (C) (C)
California Energy Commission Loan #2 (C) (C) (C)
California State Loan (L) (L) (L)
Capital Leases
Qualified Energy Conservation Lease (D) (D) N/A
JPFA Recovery Zone Economic Development Lease (E) (E) N/A Street Light Capital Lease (G) (G) N/A
Holman Capital Corporation Lease #5 (H) (H) N/A
Business-Type Activities
Bonds Payable
2019B Point Potrero Lease Revenue Bonds (B) (B) N/A
Wastewater Revenue Bonds Series 2017A (A) N/A (A)
Wastewater Revenue Bonds Series 2019A (I) N/A (I)
Wastewater Revenue Bonds Series 2019B (I) N/A (I)
Notes and Loans Payable
California Department of Boating and Waterways (J) (J) (J) RHA RAD Housing Partners L.P. Promissory Note (K) (K) (K) 470
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
114

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events an d Subjective Acceleration Clauses, Continued (C) Events of default include the failure to comply wi th 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 pr incipal 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 be en 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, cond ition 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 en try 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 du e 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. 471
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
115

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events an d 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 intere st are immediately due and payable. In the event of default, the Department of Boating and Waterways has the op tion to declare all unperformed obligations immediately due and payable without further demand or notice to the City. (K) Events of default include the failure to repay th e principal and any interest on the loan within ten days of receipt of written notice that such payment is due pursuant to the loan documents, breach of covenants included in the loan documents, or becomi ng 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 legall y 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, 2023, the balances of these Districts’ outstanding debt were as follows:

Richmond JPFA Reassessment Revenue Refunding Bonds, Series 2016 (Country Club Vista) $3,995,000 E. Conduit Debt
The City has assisted private-sector entities by spon soring their issuance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or morally obligated to pa y these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuer s. At June 30, 2023, the balance of this issuers’ outstanding debt was as follows:

Richmond Community Foundation, Richmond Housing Rehabilitation Program, Social Impact Bonds, Taxable Series 2015A $3,000,000 472
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
116

9. UNAVAILABLE AND UNEARNED REVENUE
At June 30, 2023, 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, 2023, the following unearned revenues were recorded in the City-wide financial statements on the Statement of Net Position:
473
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
117

10. FUND BALANCE AND NET POSITION
A. Fund Balance Classification
Detailed classifications of the City’s fund balances, as of June 30, 2023, are below:

Community American Nonmajor
General Development and Rescue Plan Governmental
Fund Balance Classifications Fund Loan Program Fund Act Fund Funds Total Nonspendable:

Items not in spendable form:

Prepaids, supplies and other assets 682,075 $ - $ - $ - $ 682,075$ Loans receivable 700,000 - - - 700,000 Advances to other funds 12,485,370 - - - 12,485,370 Total Nonspendable Fund Balances 13,867,445 - - - 13,867,445 Restricted for:

Street Improvement Projects - - - 5,375,930 5,375,930 Public Safety Grant Programs (Police and Fire) - - - 260,994 260,994 Lighting and Landscaping - - - 1,004,855 1,004,855 Housing and Community Development - 32,611,177 - 1,352,714 33,963,891 Debt Service - - - 317,316 317,316 Community Development Projects - - - 40,169,762 40,169,762 Kids First Initiative 3,996,614 - - - 3,996,614 Employment and Training - - - 1,292,740 1,292,740 Other Capital Projects - - 535,568 25,286,037 25,821,605 Total Restricted Fund Balances 3,996,614 32,611,177 535,568 75,060,348 112,203,707 Committed to:

Appropriation Authority 1,049,375 - - - 1,049,375 Pension Policy (estimated) 1,335,661 - - - 1,335,661 OPEB Policy (estimated) 1,335,661 - - - 1,335,661 Total Committed Fund Balances 3,720,697 - - - 3,720,697 Assigned to:

Other Capital Projects 9,520,218 - - - 9,520,218 Other Contracts 10,007 - 1,750,000 - 1,760,007 Total Assigned Fund Balances 9,530,225 - 1,750,000 - 11,280,225 Unassigned:

General Fund 55,196,962 - - - 55,196,962 Other Governmental Fund Deficit Residuals - - - (3,057,916) (3,057,916) Total Unassigned Fund Balances 55,196,962 - - (3,057,916) 52,139,046 Total Fund Balances (Deficits) 86,311,943$ 32,611,177 $ 2,285,568 $ 72,002,432 $ 193,211,120 $ 474
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
118

10. FUND BALANCE AND NET POSITION, Continued
B. Contingency Reserve Policy
In fiscal year 2023, the City Council updated the fu nd balance policy to require the City to maintain a year-end contingency reserve balance of a minimum of 21% of the next year’s budgeted General Fund expenditures including transfer out. 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.

A policy based upon percentage assures that the reserve will remain a prudent cushion as the City’s budgets grow over time.

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 expenditures. 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 and approved by City Council.

The City’s cash reserve as of June 30, 2023, which is a component of unassigned fund balance of the General Fund, is $55,196,962, which is approximately 24.49% of fiscal year 2023-24 budgeted General Fund expenditures including transfers out. As the City experiences net revenue gains in future years, the reserve balance must continue to be maintained at a minimum of 21% of tota l 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 with minimal to no impact to City services.

C. Deficit Fund Balances and Accumulated Deficits
At June 30, 2023, the following funds had deficit fu nd balance or deficit net position, which will be eliminated by future revenues:

D. Restatement of Net Position
During fiscal year 2023, 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 adjustment for settlement account and bank deposit. In addition, there was an accrued expense adjustment for RHA reimbursement, operating, and capital fund subsidy drawdown. 475
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
119

10. FUND BALANCE AND NET POSITION, Continued
D. Restatement of Net Position, Continued
For Storm Sewer Fund, the adjustment was related to the restatement for recording Owen Equipment lease.

11. EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following funds incurred departmental expenditures in excess of appropriations. 476
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
120

12. DEFINED BENEFIT PENSION PLANS
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2023:

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 Misce llaneous (all other) Plans, agent multiple-employer defined benefit pension plans admi nistered 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.

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 B e n e f i t , o r t h e O p t i o n a l S e t t l e m e n t 2 W D e a t h Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
477
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
121

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

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:
478
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
122

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 employ er 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 or can be prepaid in advance before July 31
st to receive a savings of approximately 3%. 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 $10,923,369 and $17,310,526 respectively, as noted in the tables above.

Employees Covered – As of the June 30, 2021 actuarial valuation date and the June 30, 2022 measurement date, the following employees were covered by the benefit terms for each Plan:

As of June 30, 2023, the City had 434 active employees in the Miscellaneous Plan and 186 active employees in the Safety Plan.

Contributions – Section 20814(c) of the California Public Em ployees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial b a s i s a s o f J u n e 3 0 b y C a l P E R S . T h e a c t u a r i a l l y determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to fi nance any unfunded accrued liability. The City is required to contribute the difference between the ac tuarially determined rate and the contribution rate of employees.

Contributions for the measurement period were $14,802,460 for the Miscellaneous Plan and $21,911,673 for the Safety Plan.

II. Net Pension Liability
The City’s net pension liability for each Plan is meas ured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 202 1 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 479
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
123

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, 2022, the total pension liabilities were determined by the June 30, 2021 total pension liability. The June 30, 2022 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, 2021 valuation were based on the results of 2021 actuarial experience study for the period 2001 to 2019. 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 6.90%.

The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Reti rement Fund (PERF) will be made at the current member contribution rates and that contributions fr om employers will be made at statutorily required rates, actuarially determ i n e d . B a s e d o n t h o s e a s s u m p t i o n s , e a c h P l a n ’ s f i d u c i a r y n e t p o s i t i o n w a s projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 480
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
124

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 ap plied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. 481
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
125

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, 2022 Measurement Date for each Plan follows:

Miscellaneous Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 Measurement Date 519,300,516 $ 449,273,857 $ 70,026,659 $ Changes in the year:

Service cost 6,682,973 - 6,682,973 Interest on the total pension liability 35,458,653 - 35,458,653 Differences between actual and
expected experience (5,319,202) - (5,319,202) Changes in assumptions 12,173,403 - 12,173,403 Net Plan to plan resource movement - - - Contribution - employer - 14,802,460 (14,802,460) Contribution - employees - 2,518,762 (2,518,762) Net investment income - (33,609,940) 33,609,940 Administrative expenses - (279,875) 279,875 Benefit payments, including refunds of
employee contributions (31,205,396) (31,205,396) - Net changes 17,790,431 (47,773,989) 65,564,420 Balance at June 30, 2022 Measurement Date 537,090,947 $ 401,499,868 $ 135,591,079 $ Safety Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 Measurement Date 709,482,081 $ 565,662,471 $ 143,819,610 $ Changes in the year:

Service cost 10,872,256 - 10,872,256 Interest on the total pension liability 48,797,968 - 48,797,968 Differences between actual and
expected experience (6,331,832) - (6,331,832) Changes in assumptions 19,873,614 - 19,873,614 Net Plan to plan resource movement - 21,911,673 (21,911,673) Contribution - employer - 3,884,791 (3,884,791) Contribution - employees - (42,434,599) 42,434,599 Net investment income - -
Administrative expenses - (352,374) 352,374 Benefit payments, including refunds of
employee contributions (42,486,153) (42,486,153) - Net changes 30,725,853 (59,476,662) 90,202,515 Balance at June 30, 2022 Measurement Date 740,207,934 $ 506,185,809 $ 234,022,125 $ Totals - Miscellaneous and Safety Plans 1,277,298,881 $ 907,685,677 $ 369,613,204 $ Increase (Decrease)
Increase (Decrease)
482
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
126

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.

III. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $36,902,592. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
483
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
127

12. DEFINED BENEFIT PENSION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued III. Pension Expenses and Deferred Outflows/Inflo ws of Resources Related to Pensions, Continued $37,944,173 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 outflo ws of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

IV. Pension Funding Policy & Section 115 Trust
In an effort to reduce Unfunded Actuarially Accrued Li abilities of the City’s pension plan, the City Council approved to establish a 115 Trust account on July 19, 2022. On June 27, 2023, the City adopted a Pension funding policy to place 10 percent of each year-end operating surplus (Total Actual Revenues minus Total Actual Expenditures, including Transfers In and Transfer s Out) in the General Fund in excess of the City’s Cash Reserve Policy into the Trust. The primary object ives of the policy are to: 1)Address the increasing annual employer required UAL contributions due to variance in actual experience versus CalPERS actuarial assumptions including investment returns. 2)Prefunding the Trust Fund account can help the City improve its UAL funding ratio faster. 3)Provide budgetary flexibility during challenging budget years or to “smooth” payment spikes that could cause financial stress on the City. 484
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
128

12. DEFINED BENEFIT PENSION PLANS, Continued
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 three 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 twelve 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 reti red police chief. The Plans provide retirement, disability, and death benefits based on the employee’s years of service, age and final compensation.

Benefit provisions for the Plans are established by City Ordinance. No separate financial statements are issued for the Plans.

The City established the Secured Pension Override Special Revenue Fund to which proceeds of a special incremental property tax levy voted by the citizens of the City of Richmond are credited for the payment of benefits under the City’s pension plans. The incremental property tax revenue received for the year ended June 30, 2023 was $26,010,577 and the Ci ty used the funds to pay General Pension Plan contributions of $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 age- normal actuarial method as specified by Ordinance. Management of the Plan is vested in the Pension Board which consists of seven members: the Mayor, City Manager, Director of Finance, two members appointed by the Mayor, with the concurrence of four members of the City Council, each of whom shall be and remain a resident of the City in order to be a member of the Board and serve a term of five years, one representative of the Police Department and one representative of the Fire Department. The Plan is closed to new members. Retirement benefits for Plan members are calculated as one-half of the annual salary attached to the rank or position held by th e 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 change s in the salary attached to the retiree’s rank in the year before retirement.
485
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
129

12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
I. Plan Descriptions and Funding Policies, Continued
General Pension Plan – Retirement and other benefits are paid from the assets of the Plan and from related investment earnings. The City is required 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 benefi ts for Plan members are calculated as one-half of the average annual salary attached to the position held by the retiree during the three years prior to the date of retirement. Surviving spouses receive 100% of the retiree’s pension. Benefit terms provide for annual cost-of-living adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustments are an automatic increase of 2% per year. City Council may grant additional increases of up to 3% per year to bring the total increase in a given year to 5%.

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

Mr. Garfield’s pension and any continuation to his sp ouse receive the same cost-of-living increases as the City’s police employees covered by CalPERS (CalPERS cost-of-living increases include a 2% per year increase, subject to CPI increase constraints, an d purchasing power protection through the CalPERS Purchasing Power Protection Allowance). Mr. Garfield’s surviving spouse receives 50% of the retiree’s pension. As of June 30, 2023, Mr. Garfield’s spouse passed away. As such, remaining Plan assets reverted back to the City and there is no pension liability as of the end of the measurement year.

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 inve stment earnings. Assets are valued at fair value based on available market information obtained from independent sources. 486
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
130

12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets
At June 30, 2023 the pension plans reported assets av ailable 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 pric es and other information generated from market transactions, which typically includes securities priced with unadjusted market quotes, evaluated bids, market multiples, and trade information, and also ge nerally includes short term securities valued at a m o r t i z e d c o s t w h i c h a p p r o x i m a t e s m a r k e t v a l u e . T h e C i t y o f R i c h m o n d I n v e s t m e n t P o o l a n d t h e California Local Agency Investment Fund (LAIF) are not subject to the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.

Investment Policies
The General Pension and Police and Firemen’s Pension Pl a n s ’ p o l i c i e s i n r e g a r d t o t h e a l l o c a t i o n o f invested assets is established and may be amended by Resolution of the respective Boards. The Plans allow investments in the following:
(a) In investments which are authorized by General law for savings banks. (b) In investments other than those specified in su bdivision (a) hereof, including, but not limited to, corporate bonds and securities, common stocks, preferred stocks, investments in real estate and investment trusts, provided that the total amount invested pursuant to this subdivision shall not exceed fifty percent (50%) of the total amount of funds invest ed pursuant to this section, and provided further that the following conditions are met:
(1) Any stocks or other corporate securities, in wh ich funds are invested, except stocks of banks, insurance companies or mutual funds, shall be registered on a national securities exchange as provided by the Federal Securities Exchange Act.
(2) The total amount invested in common and preferre d stocks shall not exceed at cost at the time of purchase twenty-five percent (25%) 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 (2%) of the total amount invested pursuant to this section and shall not exceed five percent (5%) of the outstanding preferred or common stock of that company.
487
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
131

12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
III. Pension Plan Assets, Continued
(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 (25%) of the total amount invested pursuant to this section and such investments shall be restricted to first trust deeds which are insured by the Federal Housing Administration or which are guaranteed by the Veterans Administration.

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

Interest and Credit Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City invests in equities which may be drawn down as needed, subject to terms of the underlying trust agreement. The investments held in 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, 2023, the investments in the Pension Trust Funds were not rated.

Rate of Return
For the year ended June 30, 2023, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, for the Po lice and Firemen’s, General Pension and Garfield Pension Plans was 9.93%, 2.38% and 2.76%, respectively. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
488
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
132

12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
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, 2023 was determined based on June 30, 2023 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 2021 experience study (based on CalPERS 2000-2019 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 5.50%, 3.25%, and N/A, respectively, as of June 30, 2023 and 3.50%, 1.00%, and 1.00%, respectively, as of June 2022.

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 fu ture 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, 2023) 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 5.50% was used as the discount rate.
489
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
133

12. DEFINED BENEFIT PENSION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Net Pension Liability of the Plans, Continued
Based on the 5 previous years the City has on average contributed 78% and 113% of the Actuarially Determined Contribution (ADC) for the General Pens ion Plan and Garfield Pension Plan, respectively.

A sufficiency test was performed including: (1) expe cted 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, 2023) 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

3.25% 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 in flation (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 reflec t both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blen ded with forward-looking ex pectations available in market data.
490
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
134

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. 491
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
135

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, 2023 as follows:

Police and Firemen's Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 7,839,576 $ 10,057,651 $ (2,218,075) $ Changes in the year:

Interest on the total pension liability 257,381 - 257,381 Differences between actual and expected experience (515,830) - (515,830) Changes in assumptions Changes in benefit terms (912,308) - (912,308) Contribution - City - - - Contribution - employer - - - Contribution - employees - - - Net investment income - 954,475 (954,475) Other deductions (2,546) 2,546
Benefit payments, including member contribution refunds (971,644) (971,644) - Net changes (2,142,401) (19,715) (2,122,686) Balance at June 30, 2023 5,697,175 $ 10,037,936 $ (4,340,761) $ Plan fiduciary net position as a percentage of the total pension liability 176.19% General Pension Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 1,452,567 $ 1,070,264 $ 382,303 $ Changes in the year:

Interest on the total pension liability 13,321 - 13,321 Differences between actual and expected experience (528,328) - (528,328) Changes in assumptions Changes in benefit terms (91,811) - (91,811) Contribution - City - 152,897 (152,897) Contribution - employer - - - Contribution - employees - - - Net investment income - 26,443 (26,443) Benefit payments, including refunds of employee contributions (240,913) (240,913) - Net changes (847,731) (61,573) (786,158) Balance at June 30, 2023 604,836 $ 1,008,691 $ (403,855) $ Plan fiduciary net position as a percentage of the total pension liability 166.77% Increase (Decrease)
Increase (Decrease)
492
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
136

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, 2023, 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, 2022 272,057 $ 207,855 $ 64,202 $ Changes in the year:

Interest on the total pension liability 2,676 - 2,676 Differences between actual and expected experience (265,888) - (265,888) Changes in assumptions - - - Changes in benefit terms - - - Contributions - City - 12,408 (12,408) Contribution - employees - - - Net investment income - 5,825 (5,825) Administrative expenses - - - Benefit payments, including refunds of employee contributions (8,845) (8,845) - Other deductions (217,243) 217,243
Net changes (272,057) (207,855) (64,202) Balance at June 30, 2023 - $ - $ - $ Plan fiduciary net position as a percentage of the total pension liability N/A Total - Net Pension Liability/ (Asset) 6,302,011 $ 11,046,627 $ (4,744,616) $ Increase (Decrease)
493
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
137

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, 2023 are presented below:

VII. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense for each of the Plans as follows:
494
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
138

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, 2023, 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 defe rred 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, 2023 follows:

Year Ended Annual
June 30, Amortization
2024 (61,973) $
2025 (50,953)
2026 350,551
2027 (126,666)
2028 -
Thereafter -
495
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
139

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, 2023 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 contribu tion 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 $27,619 and the employees’ required contributions of $131,640 were made during the fiscal year ended June 30, 2023. 496
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
140

13. OTHER POSTEMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB amounts for the year ended June 30, 2023:

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 admi nisters the investment trust. The City OPEB Plan does not issue separate financial statements. PARS issues a publicly available financial report that includes financial statements and required suppleme ntary 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, co nsisting 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 info rmation. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703. 497
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
141

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
Plan Provisions for Future Retirees
498
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
142

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 non- Medicare eligible premium for coverage selected. Percentage is 90%, increased to 100% after 27 years of service.

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

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

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

Retiree only or surviving spouse: $124/$82
Retiree +1 or more: $244/$184
499
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
143

13. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans, Continued 500
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
144

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:
(1)
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
501
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
145

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 $151 in 2023.

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, 20 08, the City joined the Public Agencies Post- Retirement Health Care Defined Benefit Plan, an agen t multiple employer trust administered by Public Agency Retirement Services (PARS). The balance in the City’s PARS trust account as of June 30, 2023 was $41,321,443.

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 an effort to pay down the unfunded liability, in January 2022, the City adopted funding policy that requires the City to contribute 50 percent of any one-time General Fund revenues and 50 percent of year-end General Fund surplus in excess of the City’s minimum required reserve level into the 115. Per the adopted policy, the City made a onetime contribution from the FY2022 year surplus into the 115 trust accounts totaling $6,102,459 in Fiscal Year 2023. In June 2023, the City updated the funding policy for additional contributions. Per the current policy the City shall place 10 percent of year-end operating surplus in the General Fund more than the City’s Cash Reserve Policy into the Trust accounts. 502
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
146

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 2023.

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 $9,746,155 as of June 30, 2023.

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 assu mptions applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2023
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 A gency 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 transitionin g to ultimate rate of 3.9% in 2075 and further years
Dental To increase 3.25% annually
Vision To increase 2.00% annually
503
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
147

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 fu ture benefit payments of current plan members.

T h e r e f o r e , t h e l o n g t e r m e x p e c t e d r a t e o f r e t u r n o n C i t y O P E B p l a n i n v e s t m e n t s w a s a p p l i e d t o a l l 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 pr ojected 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, 2023
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 A gency Miscellaneous, Police and Fire members published in the 2021 CalPERS Experience Stud y.

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
504
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
148

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, 2023 the Fidelity 20-Year General Obligation AA Municipal Bond Index.

Changes of assumptions since the prior actuarial valuation for the City OPEB Plan were:
x The long-term investment return assumption was changed from 5.75% to 6.00% based on updated capital market assumptions.
x 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. x An underlying wage growth rate was changed fr om 2.75% to 3.00% per year based on a revised understanding of the CalPERS assumption.
x The CPI medical rate was changed from 3.75% to 3.50%
x The index rate for 20 year, tax exempt municipal bonds was changed from 1.92% to 3.69% x The mortality assumption was changed from 2017 CalPERS Experience to 2021 x The Healthcare Cost Trend Rates were changed from 6.4% to 6.7% and the ultimate rate from 4% to 3.9%
x 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, 2023, 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 9.03%.

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 Hig hmark 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 , 2023 consisted of $31,123,971 invested in mutual funds.
505
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
149

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

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 comb ined with the inflation and investment expense assumptions to produce the portfolio long-term expected rate of return.

Investment Policy – The target allocation for the RPOA OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:
506
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
150

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, 2022 106,956,742 $ 31,123,971 $ 75,832,771 $ Changes Recognized for the Measurement Period:

Service Cost 1,756,058 - 1,756,058 Interest on the total OPEB liability 6,314,835 - 6,314,835 Differences between expected and actual experience (1) 103,835 - 103,835 Changes of assumptions - - - Contributions from the employer - 13,518,089 (13,518,089) Contributions from the employee - 585,950 (585,950) Net investment income - 3,089,068 (3,089,068) Administrative expenses - (64,547) 64,547 Benefit payments (2) (6,931,088) (6,931,088) - Net changes 1,243,640 10,197,472 (8,953,832) Balance at June 30, 2023 (Measurement Date) 108,200,382 $ 41,321,443 $ 66,878,939 $ (2) Benefit payments equal $4,734,537 explicit subsidy payments to retirees and $2,196,551 implicit subsidy costs incurred dur ing the measurement period ending 6/30/2023.
(1) Due to the difference between expected and actual benefit payments during the measurement period ending 6/30/2023. 507
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
151

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 th at is 1-percentage-point lo wer or 1-percentage point higher than the current discount rate:

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

5.00% 6.00% 7.00%
78,811,548$ 66,878,939 $ 56,819,800 $ RPOA OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%

4.75% 5.75% 6.75%
10,509,941$ 7,841,859 $ 5,652,126 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset)
508
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
152

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 b e i f i t w e r e c a l c u l a t e d u s i n g h e a l t h c a r e c o s t t r e n d r a t e s t h a t a r e 1 - p e r c e n t a g e - p o i n t l o w e r o r 1 - percentage-point higher than the current healthcare cost trend rates:

E. OPEB Expense and Deferred Outflows/In flows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense on the City OPEB Plan and RPOA OPEB Plan of ($14,573,142) and ($390,700), respective ly. At June 30, 2023, 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
56,481,539$ 66,878,939 $ 79,148,184 $ RPOA OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
6,264,489$ 7,841,859 $ 9,852,805 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset) Healthcare Cost Trend
509
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
153

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

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

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 liab ility and employment practices coverage. In April 2009 the City joined the California State Association of Counties Excess Insurance Authority (CSAC EIA) for worker’s compensation insurance. The City has chosen to establish a risk financing internal service fund where assets are accumulated for claim settlements and expenses associated with the above risks of loss up to certain limits.
510
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
154

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 co ntributions of $2,658,116 for the year ended June 30, 2023. Actual surpluses or losses are shared accordin g to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

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

CSAC-EIA
C S A C - E I A i s a p u b l i c e n t i t y r i s k p o o l o f c i t i e s a nd counties within California. The CSAC-EIA provides workers’ compensation coverage up to the statutory lim it and the City retains a self-insured retention of $750,000. Loss contingency reserves established by the CSAC-EIA are funded by contributions from member agencies. The City pays an annual contribution to the CSAC-EIA, which includes its pro-rata share of excess insurance premiums, charges for pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the risk pool. The City paid contributions of $567,040 for the year ended June 30, 2023. CSAC- EIA provides insurance through the pool up to a cert ain level, beyond which group purchased commercial excess insurance is obtained. CSAC-E IA is currently fully funded. No provision has been made on these financial statements for liabilities related to possible additional assessments. 511
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
155

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

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

The Authority pays annual premiums to Housing Au thority Insurance Group for its property damage insurance as follows:

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

Liability for Self-Insured Claims
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims ) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims is based on case reserves and include amounts for claims incurred but not reported (IBNR), and is recorded in the Insurance Reserves Internal Service Fund. At June 30, 2023, the estimated claims pa yable of $49,681,686 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 $53,444,000 at June 30, 2023. Changes in the claims liabilities for the years ended June 30, 2023 and 2022 were as follows:

For the years ended June 30, 2023, 2022 and 2021 the amount of settlements did not exceed insurance coverage. 512
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
156

16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City’s non-major enterprise funds include the following:
x Richmond Marina Fund – Marina operations and maintenance, including berth rentals and use of marina facilities.
x Storm Sewer Fund – Storm sewer management and urban runoff control. x Cable TV Fund – Administration and enforcement of the franchise agreements with two cable television systems, management of a municipal cable channel, departmental video services, media and public information, and telecommunications planning. 513
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
157

16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS , Continued Fiscal 2023 condensed financial information for the Richmond Marina Enterprise Fund is as follows:

Condensed Statement of Net Position
Assets:

Current assets 5,080,81 1$
Lease receivables 5,291,323
Capital assets 1,349,149
Total assets 11,721,283
Liabilities
:

Current liabilities 289,50 2
Long-term liabilities 2,017,96 0
Total liabilities 2,307,46 2
Deferred inflows of resources:

Deferred inflows of resources - leases 5,208,859
Net position:

Net investment in capital assets (779,822)
Restricted for debt service 87,323
Unrestricted 4,897,46 1
Total net position 4,204,96 2$
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Operating revenues:

Rental 162,777 $
Lease income 378,85 5
Operating expenses:

General and administrative (36,863)
Depreciation (84,278)
Operating income 420,49 1
Nonoperating revenues (expenses):

Interest income 230,219
Interest expense (96,202)
Income (Loss) Before Contributions and Transfers 554,50 8 Transfers out (86,778)
Change in net position 467,73 0
Beginning net position 3,737,23 2
Ending net position 4,204,96 2$
Condensed Statement of Cash Flows
Net cash provided (used) by:

Operating activities 426,904 $
Noncapital and related financin g activities (86,778)
Capital and related financin g activities (206,815)
Investing activities 224,007
Net increase 357,31 8
Beginning cash and investments 4,621,483
Ending cash and investments 4,978,80 1$
514
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
158

17. COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City’s future commitments under construction and other projects totaled approximately $138.2 million at June 30, 2023 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, except for what is noted below:

In March 2012, a developer and Native American Tribe (collectively, “Developer”) 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 Point Molate for a specific use. Th e Developer seeks damages of $30 million as well as lost profits of over $750 million. The City disput es 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 resulted in the Ninth Circuit reversing the decision, concluding the plaintiffs sh ould be given another opportunity to amend their complaint. The plaintiffs filed an amended compla int and the City answered, denying the plaintiffs’ allegations and asserting affirmative defenses and counterclaims. In April 2018, the City again obtained judgement in the matter under which the City will pay no monetary damages to the Developer. Under the terms of the judgment, amended in August 2019, future proceeds from the sale of the property will be shared equally between the City and the Developer.

Under the amended judgment, the City was required to and did engage a new developer for Point Molate. After the City approved the CEQA-required EIR for development, environmental rights groups challenged and appealed the certification of EIR. In November 2023, the appellate court set aside the EIR and all “project related approvals” impacting two pending actions.

First, the federal court continues to oversee the 2012 lawsuit involving the Developer. The Developer claims after the CEQA ruling that the City is obligated to cure the EIR deficiencies in order to maximize the value of the property (now being marketed and sold by the Developer under the amended judgment).

The City denies the claim, however, if an application is filed in federal court, the court could find a breach of implied covenant and the City may be negatively impacted. However, any such impact cannot be determined at this time.

Second, the new developer that the City secured under the amended judgment filed a separate legal action against the City, asserting the City interfered with the Point Molate project and development.

While the subject contracts were set aside based on the CEQA ruling, and therefore the agreements at issue were invalidated, the new developer continues to press litigation claiming over $70 million in damages which the City denies. The City no longer owns the property; the Developer above obtained title in 2022 under the amended judgment. The City may be negatively impacted should the court rule in favor of the new developer in the second suit, however, any such impact cannot be determined at this time, especially given the CEQA ruling.
515
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
159

17. COMMITMENTS AND CONTINGENCIES , Continued
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 Re vitalization 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 Au thority does not expect such disallowed amounts, if any, to materially affect the financial statements.

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

The California Tax Credit Committee, City of Richmond, Bank of America, Silicon Valley, Federal Home Loan Bank, California Housing Finance Agency, the Richmond Housing Authority along with the $35 million dollar HUD grant financed this $120 million revitalization effort. Physical costs are estimated to be approximately $108 million and life services, relo cation, 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 thes e 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, 2023 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 ho useholds 60% or below the area median income for Contra Costa County.
516
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
160

17. COMMITMENTS AND CONTINGENCIES , Continued
D. Housing Authority – Easter Hill Project, Continued
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. 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 (P oint 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, 2023, 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 Po int 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 ef fective 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.
517
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
161

17. COMMITMENTS AND CONTINGENCIES , Continued
F. 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 ef fect 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 rangin g from $4 million to $13 million starting July 1, 2011, with payments totaling $114 million. In addition, the agreement incorporated the prior settlement of a dispute over fiscal year 2006, 2007 and 2008 utility user’s taxes totaling $28 million that was paid in four installments beginning in fiscal year 2009. Payments totaling $106 million were received under the settlement agreements in fiscal years 2011 through 2023.

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 2023, the City received $6 million that is restricted for use on pre-approved projects, and the City has received $5 million of Guaranteed Payments and $71 million of Contingent Payments to date.

G. 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 Alloca tion Committee made a preliminary reservation of federal tax credits in the amount of $1,228,999 accommodated upon executing Tax-Exempt Bond Project to raise funding in the amount of $36.7 million, the approximate estimated cost of the RAD project; of which $16.5 million shall be provided by a third-party Tax Credit investor.

The Authority has partnered with the John Stewart Company and The Richman Group to form a Limited Partnership, RHA RAD Housing Partners L.P., that will complete the conversion, manage the property and own the buildings. The Authority will relinquish the land via a long term ground lease. 518
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
162

17. COMMITMENTS AND CONTINGENCIES, Continued
G. Housing Authority Rental Assistance Demonstration, Continued In furtherance of the finances provided by the Autho rity, 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 3.5%.

H. 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 Succes sor 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. 519
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
163

17. COMMITMENTS AND CONTINGENCIES, Continued
H. Marina Bay – Pollution Remediation, Continued
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 2 020 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 Ma rina 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 preliminar y 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.

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 DTSC- approved 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 temp orary 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 te mporary 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 in stall 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 esti mate cost to construct the temporary cap can’t be made.
520
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
164

17. COMMITMENTS AND CONTINGENCIES , Continued
I. 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.G.

J. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that po rtion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to li quidate 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, 2023 were as listed below: 521 City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
165

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 specif ically directs the State Controller to review the activities of all redevelopment agencies to determin e 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 af ter 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 nece ssary. 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 ap proving the transfer of the loans to the Housing Successor.

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

Under the provisions of AB 1484, the City can elect to become the Housing Successor and retain the housing assets. The City elected to become the 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.
522
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
166

18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES , Continued A. Redevelopment Dissolution, Continued
T h e C i t y a l s o e l e c t e d t o b e c o m e t h e S u c c e s s o r A g e n c y a n d o n F e b r u a r y 1 , 2 0 1 2 t h e R e d e v e l o p m e n t Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency.

ABx1 26 requires the establishment of an Oversigh t 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 activiti es 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 D ecem ber 20 1 4, a nd no fund s we re re quire d to be remit ted to th e C o unt y. Th e Success or Age ncy 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, 2023 are discussed in Note 2 above.

Information presented in the follow ing footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2023.

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

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, 2023.
523
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
167

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 hist orical 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 poli cy is to capitalize all a ssets 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, 2023:

Bonds Payable
Bonds payable at June 30, 2023 consisted of the following:
1998 Harbour Redevelopment Project Tax Allocati on Refunding Bonds Series A – Original Issue $21,862,779
The bonds were issued by the Agency to refinance a portion of the 1991 Harbour Redevelopment Project Tax Allocation Refunding Bonds, refinance certain lo ans from the City to the Agency, which were used by the City to finance certain publicly owned capita l 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 th rough 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 Bond s 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.
524
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
168

18. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES , Continued D. Long-term Obligations, Continued
1998 Harbour Redevelopment Project Tax Allocati on Refunding Bonds Series A – Original Issue $21,862,779, Continued
At June 30, 2023, 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 issu ed as variable auction rate bonds with interest calculated every thirty-five days, however, the Ag ency 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. Th e 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.
525
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
169

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, 2023, 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, 2023 were as follows:

For the Years
Ending June 30, Principal
2024 1,145,000
2025 1,175,000
2026 1,230,000
2027 1,285,000
2028 2,020,000
2029-2033 4,165,000
2034-2037 3,340,000
Total 14,360,000 $ 526
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
170

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, 2023, 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 (Tax- Exempt) 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 Refundin g 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 Ma rch 1 and September 1, commencing September 1, 2021.
527
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
171

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, 2023, the bond premium consisted of the following:

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

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

The outstanding balances of loans payable to the Authority at June 30, 2023 came from the Bond issues listed below:
528
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
172

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 Ci ty of Richmond $18,000,000 in partial payment of prior obligations. Under the terms of the loan agre ement 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 Seri es 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, 2023 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. Th e net proceeds of the bond issue were loaned to the Agency to provide funding for certain capital improvements, low/moderate income housing and to repay the City of Richmond $6,367,031 in prior obligations. Under the terms of the loan agreement between the Agency and the Authority dated August 1, 2003, repayment of the loan is being made from certain subordinate housing and non-housing tax increment revenues derived from the taxable property within the Merged Project Area pledged by the Agency for the purpose of loan repayment. 529
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
173

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, 2023 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 prop erty taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2023 calculated by the County Auditor–Controller were $51,791,076.

The total received by the Successor Agency for fiscal year 2023 debt service and other enforceable obligations was $8,846,005, which the Successor Agency used along with cash on-hand to pay debt service of $8,440,704.

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 $1,560,000 at June 30, 2023.
530
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
174

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, 2023, 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 15,154,750 E. Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Oblig ation 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 disa llow 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. 531
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
175

19. NEW ACCOUNTING STANDARDS
Accounting Standards Adopted
¾ 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 did not apply to the City for the current fiscal year.
¾ 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 part nership 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 prov ide 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 did not apply to the City for the current fiscal year. ¾ 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 subscription- based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Th e City recognized intangible assets and SBITA liabilities as part of implementation of this statement. ¾ 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 Statemen t 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 remeas urement 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.
¾ GASB Statement No. 99, Omnibus 2022 – The primary objectives of this Statement are to enhance comparability in accounting and financial reportin g 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. 532
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
176

19. NEW ACCOUNTING STANDARDS, Continued
New Accounting Standards
The City is currently analyzing its accounting practice s to determine the potentia l impact on the financial statements for the following GASB Statements:
¾ GASB Statement No. 100, Accounting Changes and Error Corrections-a n 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.
¾ GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the information needs of financial stat ement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unif ied model and by amending certain previously required disclosures. The requirements of this Statement are effective for the City’s year ending June 30, 2025.
533

REQUIRED

SUPPLEMENTARY INFORMATION
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178535
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023

BUDGET AND BUDGETARY ACCOUNTING
Budgeting Procedures
The City adopts a budget annually to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and c annot legally be exceeded except by subsequent amendments of the budget by the City Council.

The City uses an encumbrance system as an extension of normal budgetary accounting for the General Fund, special revenue funds, and capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year- end.

An operating budget is adopted each fiscal year on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the General Fund, certain Special Revenue Funds (State Gas Tax, General Purpose, Paratransit Operations, Public Safety, Lighting and Landscaping Districts, Developer Impact Fees, Community Development and Loan Programs, Richmond Neighborhood Stabilization Corporation, Rent Control, Cost Recovery and Environmental Community Investment Agreement) and the debt service funds (2005 Pension Obligation Bonds, General Debt Service and Civic Center Debt Service). Public hearings are conducted on the proposed budgets to review all appropriations and sources of financing. Capital projects funds are budgeted on a project length basis and are therefore not comparable on an annual basis.

Expenditures are controlled at the fund level for all budgeted departments within the City. This is the level at which expenditures may not legally exceed appropriations. Budgeted amounts for the Statement of Revenues, Expenditures and Changes in Fun d Balances-Budget and Actual include budget amendments approved by City Council.
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180537
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 46,056,962$ 48,608,929 $ 51,919,490 $ 3,310,561 $ Sales taxes 55,282,200 55,554,137 55,541,366 (12,771) Utility user taxes 49,963,589 50,861,279 54,676,023 3,814,744 Other taxes 21,638,449 22,452,187 19,623,678 (2,828,509) Licenses, permits and fees 8,122,600 8,123,394 16,256,765 8,133,371 Fines, forfeitures and penalties 475,275 465,275 255,225 (210,050) Use of money and property 236,079 1,021,047 1,563,469 542,422 Intergovernmental 553,569 563,569 539,174 (24,395) Charges for services 6,578,094 6,526,354 4,749,957 (1,776,397) Rent 874,506 874,506 817,496 (57,010) Other 187,500 231,945 697,502 465,557 Total revenues 189,968,823 195,282,622 206,640,145 11,357,523 EXPENDITURES:

Current:

General government 46,716,108 31,128,899 42,548,567 (11,419,668) Public safety 108,543,739 107,039,445 92,441,016 14,598,429 Public works 29,892,191 29,972,191 27,689,138 2,283,053 Cultural and recreational 11,322,954 11,461,124 10,304,044 1,157,080 Capital outlay 1,178,000 3,542,791 2,986,140 556,651 Debt service:

Principal 951,204 951,204 3,997,477 (3,046,273) Interest and fiscal charges 85,805 85,805 119,404 (33,599) Total expenditures 198,690,001 184,181,459 180,085,786 4,095,673

REVENUES OVER (UNDER)
EXPENDITURES (8,721,178) 11,101,163 26,554,359 15,453,196 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 100,000 100,000 1,264 (98,736) Other financing sources - SBITAs -- 4 1 7 ,005 417 ,005 Transfers in 20,500,320 23,657,314 19,509,953 (4,147,361) Transfers out (11,877,605) (34,893,588) (30,634,407) 4,259,181 Total other financing sources (uses) 8,722,715 (11,136,274) (10,706,185) 430,089 Net change in fund balances 1,537$ (35,111) $ 15,848,174 15,883,285 $ FUND BALANCES (DEFICITS):

Beginning of year 70,463,769
End of year 86,311,943$
Budgeted Amounts
181538
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 568,000$ 591,150 $ 583,526 $ (7,624) $ Use of money and property 63,005 63,005 322,745 259,740 Intergovernmental 466,432 466,432 249,478 (216,954) Other 915,170 935,245 1,041,130 105,885 Total revenues 2,012,607 2,055,832 2,196,879 141,047 EXPENDITURES:

Current:

Community development 2,522,706 2,522,706 601,777 1,920,929 Housing and redevelopment 1,292,148 1,338,462 429,859 908,603 Capital outlay 1,150,000 1,150,000 - 1,150,000 Total expenditures 4,964,854 5,011,168 1,031,636 3,979,532

REVENUES OVER (UNDER)
EXPENDITURES (2,952,247) (2,955,336) 1,165,243 4,120,579 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 133,664 152,607 18,943 (133,664) Transfers out (480,000) (480,000) - 480,000 Total other financing sources (uses) (346,336) (327,393) 18,943 346,336 Net change in fund balances (3,298,583)$ (3,282,729) $ 1,184,186 4,466,915 $ FUND BALANCES (DEFICITS):

Beginning of year 31,426,991
End of year 32,611,177$
Budgeted Amounts
182539
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual American Rescue Plan Act Special Revenue Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 493,777$ 493,777 $ Intergovernmental 2,770,400 2,770,400 4,130,024 1,359,624 Total revenues 2,770,400 2,770,400 4,623,801 1,853,401 EXPENDITURES:

Current:

General government - 296 ,330 216 ,213 80 ,117
Public works -2 ,800,000 1 ,440,797 1 ,359,203
Cultural and recreational 150 ,000 150 ,000 180 ,108 (30,108) Housing and redevelopment 800,000 1,253,109 392,904 860,205 Capital outlay 1,820,400 5,626,890 150,000 5,476,890 Total expenditures 2,770,400 10,126,329 2,380,022 7,746,307 Net change in fund balances -$ (7,355,929)$ 2,243,779 9,599,708 $ FUND BALANCES (DEFICITS):

Beginning of year 41,789
End of year 2,285,568$
Budgeted Amounts
183540
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Service cost 6,682,973 $ 6,902,037 $ 7,529,439 $ 7,652,864 $ Interest 35,458,653 35,423,024 34,974,846 34,315,542 Differences between actual
and expected experience (5,319,202) (6,412,719) (4,393,691) (331,531) Changes in assumptions 12,173,403 - - - Benefit payments, including refunds
of employee contributions (31,205,396) (30,000,846) (29,018,486) (27,565,398) Net change in the total pension liability 17,790,431 5,911,496 9,092,108 14,071,477 Total pension liability - beginning 519,300,516 513,389,020 504,296,912 490,225,435 Total pension liability - ending (a) 537,090,947$ 519,300,516 $ 513,389,020 $ 504,296,912 $ Plan Fiduciary Net Position
Contributions - employer 14,802,460 $ 14,612,575 $ 13,778,755 $ 12,156,723 $ Contributions - employee 2,518,762 2,657,439 2,749,990 2,843,043 Net investment income (33,609,940) 83,636,340 18,237,576 23,350,283 Plan to plan resource movement - (4,882) - - Administrative expense (279,875) (378,350) (526,586) (259,047) Benefit payments, including refunds
of employee contributions (31,205,396) (30,000,846) (29,018,486) (27,565,398) Other miscellaneous income (expense) - - - 842 Net change in plan fiduciary net position (47,773,989) 70,522,276 5,221,249 10,526,446 Plan fiduciary net position - beginning 449,273,857 378,751,581 373,530,332 363,003,886 Plan fiduciary net position - ending (b) 401,499,868$ 449,273,857 $ 378,751,581 $ 373,530,332 $ Net pension liability - ending (a) - (b) 135,591,079 $ 70,026,659 $ 134,637,439 $ 130,766,580 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 74.75% 86.52% 73.77% 74.07% Covered payroll 31,565,766 $ 32,686,024 $ 35,129,597 $ 36,295,759 $ Net pension liability as a percentage of
covered payroll 429.55% 214.24% 383.26% 360.28%
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 deem ed to be material by the plan actuary.
184541
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
7,637,812$ 8,053,459 $ 7,200,571 $ 7,446,410 $ 7,816,868 $ 33,323,855 32,804,753 32,305,003 31,414,256 30,597,498 (4,642,948) (4,464,966) (3,484,064) (5,280,549) - (3,224,832) 25,548,824 - (7,116,200) - (25,970,450) (25,074,448) (23,917,069) (23,302,793) (23,007,539) 7,123,437 36,867,622 12,104,441 3,161,124 15,406,827 483,101,998 446,234,376 434,129,935 430,968,811 415,561,984 490,225,435$ 483,101,998 $ 446,234,376 $ 434,129,935 $ 430,968,811 $ 10,489,795$ 8,860,295 $ 8,093,834 $ 7,189,716 $ 6,661,038 $ 2,894,841 2,996,354 3,087,656 3,141,565 3,195,699 28,880,923 35,805,938 1,630,388 7,502,958 51,867,728 (842) (50,018) (4,762) (6,885) - (542,721) (481,651) (205,714) (379,925) - (25,970,450) (25,074,448) (23,917,069) (23,302,793) (23,007,539) (1,030,636) - - - - 14,720,910 22,056,470 (11,315,667) (5,855,364) 38,716,926 348,282,976 326,226,506 337,542,173 343,397,537 304,680,611 363,003,886$ 348,282,976 $ 326,226,506 $ 337,542,173 $ 343,397,537 $ 127,221,549$ 134,819,022 $ 120,007,870 $ 96,587,762 $ 87,571,274 $

74.05% 72.09% 73.11% 77.75% 79.68%
35,725,311$ 35,964,798 $ 36,638,889 $ 36,151,102 $ 37,210,225 $ 356.11% 374.86% 327.54% 267.18% 235.34%
Changes in Assumptions: None in 2019,2020 or 2021. In 2022, the accounting discount rate was reduced from 7.15% to 6.90%. 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% to

7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
185542
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Actuarially determined contribution 14,802,460 $ 14,466,499 $ 14,438,844 $ 13,783,427 $ Contributions in relation to actuarially
determined contributions (14,802,460) (14,466,499) (14,438,844) (13,783,427) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 33,889,757 $ 31,565,766 $ 32,686,024 $ 35,129,597 $ Contributions as a percentage of covered payroll 43.68% 45.83% 44.17% 39.24% Notes to the schedule:

Valuation date: 6/30/2021 6/30/2020 6/30/2019 6/30/2017 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 2021- 22 were derived from the June 30, 2019 funding valuation report.

Varies by Entry Age and Service.

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and

7.00% for 2021 & 2022 net of pension plan investment and administrative expenses, including inflation.

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

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
For details, see June 30, 2019 CalPERS Funding Valuation Entry age normal
For details, see June 30, 2019 CalPERS Funding Valuation Report

2.500%

2.750%186543
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
12,150,650$ 10,436,250 $ 8,867,763 $ 8,084,584 $ 7,178,549 $ (12,150,650) (10,436,250) (8,867,763) (8,084,584) (7,178,549) -$ - $ - $ - $ - $ 36,295,759$ 35,725,311 $ 35,964,798 $ 36,638,889 $ 36,151,102 $

33.48% 29.21% 24.66% 22.07% 19.86%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
187544
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Service cost 10,872,256$ 10,261,858 $ 10,958,278 $ 11,313,128 $ Interest 48,797,968 48,387,109 47,218,257 46,009,128 Differences between actual
and expected experience (6,331,832) (1,211,011) (2,189,929) 433,759 Changes in assumptions 19,873,614 - - - Benefit payments, including refunds
of employee contributions (42,486,153) (41,557,485) (38,982,005) (37,105,985) Net change in the total pension liability 30,725,853 15,880,471 17,004,601 20,650,030 Total pension liability - beginning 709,482,081 693,601,610 676,597,009 655,946,979 Total pension liability - ending (a) 740,207,934$ 709,482,081 $ 693,601,610 $ 676,597,009 $ Plan Fiduciary Net Position
Contributions - employer 21,911,673$ 21,598,699 $ 19,362,087 $ 16,658,515 $ Contributions - employee 3,884,791 4,314,111 4,232,707 4,238,132 Net investment income (42,434,599) 105,126,083 22,875,702 29,333,974 Plan to plan resource movement - 4,881 - - Administrative expense (352,374) (476,147) (662,340) (326,144) Benefit payments, including refunds
of employee contributions (42,486,153) (41,557,485) (38,982,005) (37,105,985) Other miscellaneous income (expense) - - - 1,062 Net change in plan fiduciary net position (59,476,662) 89,010,142 6,826,151 12,799,554 Plan fiduciary net position - beginning 565,662,471 476,652,329 469,826,178 457,026,624 Plan fiduciary net position - ending (b) 506,185,809$ 565,662,471 $ 476,652,329 $ 469,826,178 $ Net pension liability - ending (a) - (b) 234,022,125$ 143,819,610 $ 216,949,281 $ 206,770,831 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 68.38% 79.73% 68.72% 69.44% Covered payroll 30,325,691$ 33,272,769 $ 34,316,884 $ 35,870,534 $ Net pension liability as a percentage of
covered payroll 771.70% 432.24% 632.19% 576.44%
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.
188545
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
11,391,456$ 11,650,927 $ 10,297,536 $ 10,142,245 $ 10,167,167 $ 44,562,419 43,264,626 41,950,593 40,142,006 38,254,517 413,272 797,969 2,950,295 3,799,388 - (2,676,340) 35,109,898 - (9,563,090) - (35,123,568) (33,620,000) (30,593,589) (28,747,508) (27,199,743) 18,567,239 57,203,420 24,604,835 15,773,041 21,221,941 637,379,740 580,176,320 555,571,485 539,798,444 518,576,503 655,946,979$ 637,379,740 $ 580,176,320 $ 555,571,485 $ 539,798,444 $ 14,016,085$ 12,699,049 $ 11,488,714 $ 10,652,641 $ 9,352,438 $ 4,226,345 4,471,008 4,607,993 3,797,568 3,348,408 36,380,672 45,166,243 2,062,417 9,408,186 64,842,562 (1,062) 50,018 4,762 3,476 - (684,883) (607,337) (258,432) (477,249) - (35,123,568) (33,620,000) (30,593,589) (28,747,508) (27,199,743) (1,300,605) - - - - 17,512,984 28,158,981 (12,688,135) (5,362,886) 50,343,665 439,513,640 411,354,659 424,042,794 429,405,680 379,062,015 457,026,624$ 439,513,640 $ 411,354,659 $ 424,042,794 $ 429,405,680 $ 198,920,355$ 197,866,100 $ 168,821,661 $ 131,528,691 $ 110,392,764 $

69.67% 68.96% 70.90% 76.33% 79.55%
34,439,607$ 37,273,957 $ 37,352,212 $ 36,161,966 $ 35,479,947 $ 577.59% 530.84% 451.97% 363.72% 311.14%
Changes in Assumptions: None in 2019, 2020 or 2021. In 2022, the accounting discount rate was reduced from 7.15% to 6.90%. 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% to

7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
189546
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Actuarially determined contribution 21,911,673 $ 21,603,382 $ 21,315,231 $ 19,355,578 $ Contributions in relation to actuarially
determined contributions (21,911,673) (21,603,382) (21,315,231) (19,355,578) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 28,453,678 $ 30,325,691 $ 33,272,769 $ 34,316,884 $ Contributions as a percentage of covered payroll 77.01% 71.24% 64.06% 56.40% Notes to the schedule:

Valuation date: 6/30/2021 6/30/2020 6/30/2019 6/30/2017 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.

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

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
Entry age normal
For details, see June 30, 2019 CalPERS Funding Valuation Report
For details, see June 30, 2019 CalPERS Funding Valuation Report

2.50%

2.750%
Varies by Entry Age and Service.

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and

7.00% for 2021 & 2022 net of pension plan investment and administrative expenses, including inflation.
190547
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
16,363,802$ 14,013,858 $ 12,696,582 $ 11,492,798 $ 10,650,057 $ (16,363,802) (14,013,858) (12,696,582) (11,492,798) (10,650,057) -$ - $ - $ - $ - $ 35,870,534$ 34,439,607 $ 37,273,957 $ 37,352,212 $ 36,151,966 $

45.62% 40.69% 34.06% 30.77% 29.46%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
191548
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
General Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total Pension Liability
Service cost - $ - $ - $ - $ Interest 13,321 16,222 35,526 57,712 Differences between actual
and expected experience (528,328) - 106,639 - Changes in assumptions (91,811) - 72,660 66,443 Changes in benefits - - - - Benefit payments, including refunds
of employee contributions (240,913) (371,727) (401,991) (424,760) Net change in the total pension liability (847,731) (355,505) (187,166) (300,605) Total pension liability - beginning 1,452,567 1,808,072 1,995,238 2,295,843 Total pension liabilty - ending (a) 604,836$ 1,452,567 $ 1,808,072 $ 1,995,238 $ Plan Fiduciary Net Position
Contributions - employer 152,897 $ 345,348 $ 319,025 $ 503,714 $ Contributions - donations and other income - - - - Contributions - member - - - - Net investment income 26,443 3,617 5,501 23,724 Other additions - - - - Benefit payments, including member
contribution refunds (240,913) (371,727) (401,991) (424,760) Administrative expenses - - - - Other deductibles - - - - Net change in the total pension liability (61,573) (22,762) (77,465) 102,678 Plan fidcuiary net position - beginning 1,070,264 1,093,026 1,170,491 1,067,813 Plan fidcuiary net position - ending (b) 1,008,691$ 1,070,264 $ 1,093,026 $ 1,170,491 $ Net pension liability - ending (a) - (b) (403,855) $ 382,303 $ 715,046 $ 824,747 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 166.8% 73.7% 60.5% 58.7% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
* Fiscal year 2014 was the 1st year of implementation.
192549
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 -$ - $ - $ - $ - $ - $ 70,585 80,100 92,742 107,632 128,954 147,247 150,123 - 40,459 - 345,786 - 102,792 (20,669) - - 322,312 - - - - - - - (494,605) (524,939) (584,272) (623,662) (672,546) (592,105) (171,105) (465,508) (451,071) (516,030) 124,506 (444,858) 2,466,948 2,932,456 3,383,527 3,899,557 3,775,051 4,219,909 2,295,843$ 2,466,948 $ 2,932,456 $ 3,383,527 $ 3,899,557 $ 3,775,051 $ 812,561$ 814,594 $ 73,592 $ 602,970 $ 602,970 $ 602,970 $ - - - - - - - - - - - - 8,124 2,207 3,351 2,255 2,017 (837) - - - - - - (494,605) (524,939) (584,272) (623,662) (672,546) (592,105) - - - - - - - - - - - - 326,080 291,862 (507,329) (18,437) (67,559) 10,028 741,733 449,871 957,200 975,637 1,043,196 1,033,168 1,067,813$ 741,733 $ 449,871 $ 957,200 $ 975,637 $ 1,043,196 $ 1,228,030$ 1,725,215 $ 2,482,585 $ 2,426,327 $ 2,923,920 $ 2,731,855 $

46.5% 30.1% 15.3% 28.3% 25.0% 27.6%
n / an / an / an / an / an / a
n / an / an / an / an / an / a
193550
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
Police and Firemen's Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total Pension Liability
Interest 257,381 $ 283,996 $ 561,163 $ 606,022 $ Differences between actual
and expected experience (515,830) - (3,680,825) - Changes in assumptions (912,308) - 28,483 - Benefit payments, including refunds
of employee contributions (971,644) (1,117,194) (1,412,673) (1,793,082) Net change in the total pension liability (2,142,401) (833,198) (4,503,852) (1,187,060) Total pension liability - beginning 7,839,576 8,672,774 13,176,626 14,363,686 Total pension liabilty - ending (a) 5,697,175$ 7,839,576 $ 8,672,774 $ 13,176,626 $ Plan Fiduciary Net Position
Contributions - employer - $ - $ 937,004$ 937,004 $ Net investment income 954,475 (1,939,002) 2,527,138 584,954 Benefit payments, including member
contribution refunds (971,644) (1,117,194) (1,412,673) (1,793,082) Other deductibles (2,546) - - - Net change in the total pension liability (19,715) (3,056,196) 2,051,469 (271,124) Plan fidcuiary net position - beginning 10,057,651 13,113,847 11,062,378 11,333,502 Plan fidcuiary net position - ending (b) 10,037,936$ 10,057,651 $ 13,113,847 $ 11,062,378 $ Net pension liability - ending (a) - (b) (4,340,761) $ (2,218,075) $ (4,441,073) $ 2,114,248 $ Plan fiduciary net position as a percentage
percentage of the total pension liability 176.2% 128.3% 151.2% 84.0% 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.
194551
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 952,312$ 1,031,753 $ 1,111,386 $ 1,214,089 $ 1,464,746 $ 1,579,762 $ (3,103,425) - 261,891 - (323,462) - 1,037,914 - - - 1,380,854 - (2,170,136) (2,656,508) (2,859,902) (3,140,552) (3,074,421) (3,436,887) (3,283,335) (1,624,755) (1,486,625) (1,926,463) (552,283) (1,857,125) 17,647,021 19,271,776 20,758,401 22,684,864 23,237,147 25,094,272 14,363,686$ 17,647,021 $ 19,271,776 $ 20,758,401 $ 22,684,864 $ 23,237,147 $ 1,270,466$ 1,270,466 $ 1,270,466 $ 1,222,197 $ 740,235 $ 740,235 $ 645,593 589,027 1,340,997 (165,490) 369,240 2,968,492 (2,170,136) (2,656,508) (2,859,902) (3,140,552) (3,074,421) (3,436,887) - - - - - (3,424,568) (254,077) (797,015) (248,439) (2,083,845) (1,964,946) (3,152,728) 11,587,579 12,384,594 12,633,033 14,716,878 16,681,824 19,834,552 11,333,502$ 11,587,579 $ 12,384,594 $ 12,633,033 $ 14,716,878 $ 16,681,824 $ 3,030,184$ 6,059,442 $ 6,887,182 $ 8,125,368 $ 7,967,986 $ 6,555,323 $

78.9% 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 n/a n/a
195552
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
Garfield Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total Pension Liability
Interest 2,676 $ 2,950 $ 4,877 $ 7,756 $ Differences between actual
and expected experience (265,888) - 51,995 - Changes in assumptions - - 10,397 10,225 Benefit payments, including refunds
of employee contributions (8,845) (51,807) (50,048) (49,067) Net change in the total pension liability (272,057) (48,857) 17,221 (31,086) Total pension liability - beginning 272,057 320,914 303,693 334,779 Total pension liabilty - ending (a) -$ 272,057$ 320,914 $ 303,693 $ Plan Fiduciary Net Position
Contributions - employer 12,408 $ 12,408 $ - $ - $ Net investment income 5,825 (1,751) 1,984 6,914 Other deduction
s (217,243) ---
Benefit payments, including member
contribution refunds (8,845) (51,807) (50,048) (49,067) Net change in the total pension liability (207,855) (41,150) (48,064) (42,153) Plan fidcuiary net position - beginning 207,855 249,005 297,069 339,222 Plan fidcuiary net position - ending (b) -$ 207,855$ 249,005 $ 297,069 $ Net pension liability - ending (a) - (b) - $ 64,202$ 71,909 $ 6,624 $ Plan fiduciary net position as a percentage
percentage of the total pension liability n/a 76.4% 77.6% 97.8% 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.
196553
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 17,334$ 19,334 $ 19,517 $ 21,615 $ 28,597 $ 30,759 $ (220,079) - 67,810 - (45,458) - (1,426) - - - 64,544 - (77,703) (94,323) (92,474) (90,660) (88,883) (87,140) (281,874) (74,989) (5,147) (69,045) (41,200) (56,381) 616,653 691,642 696,789 765,834 807,034 863,415 334,779$ 616,653 $ 691,642 $ 696,789 $ 765,834 $ 807,034 $ 102,140$ 102,140 $ 102,140 $ 102,140 $ 102,140 $ 102,140 $ 7,024 2,627 1,517 933 577 227 ------
(77,703) (94,323) (92,474) (90,660) (88,883) (87,141) 31,461 10,444 11,183 12,413 13,834 15,226 307,761 297,317 286,134 273,721 259,887 244,661 339,222$ 307,761 $ 297,317 $ 286,134 $ 273,721 $ 259,887 $ (4,443)$ 308,892 $ 394,325 $ 410,655 $ 492,113 $ 547,147 $ 101.3% 49.9% 43.0% 41.1% 35.7% 32.2%
n / an / an / an / an / an / a
n / an / an / an / an / an / a
197554
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
Schedule of Contributions - Last 10 Years
(1) (3)
Actuarially Contribution (4) (5)
Determined (2) Deficiency Covered ADC / Covered
Fiscal Year Contribution Employe r (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 June 30, 2023 152,897 152,897 - 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 June 30, 2023 - - - 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 June 30, 2023 12,408 12,408 - n/a n/a 198555
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Pension Plan 2.38% 0.36% 0.44% 1.54% 0.64% 1.00% 0.50% 0.30% 0.30% 0.10% Police and Firemen's
Pension Plan 9.93% -15.40% 22.61% 5.11% 5.51% 4.90% 11.80% -1.20% 2.40% 3.90% Garfield Pension Plan 2.76% -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.
n/a
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)
Garfield
Pension Plan
General
Pension Plan
Police and
Firemen's Plan
Market value of
assets
Market value of
assets
Market value of
assets
(based on CalPERS 1997 - 2015 experience)
n/a
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

3.25%
Closed to new
members
n/a n/a n/a

2.50% 2.50%
199556
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023

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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total OPEB Liability
Service cost 1,756,058 $ 2,088,997 $ 2,072,961 $ 4,292,499 $ Interest 6,314,835 6,997,592 6,846,932 7,222,766 Changes in benefit terms - - - - Differences between actual
and expected experience 103,835 (11,982,490) (140,135) (28,723,614) Changes in assumptions - (6,119,213) 1,173,106 (42,412,472) Benefit payments (6,931,088) (7,272,797) (7,011,178) (7,753,129) Net change in the total OPEB liability 1,243,640 (16,287,911) 2,941,686 (67,373,950) Total OPEB liability - beginning 106,956,742 123,244,653 120,302,967 187,676,917 Total OPEB liabilty - ending (a) 108,200,382$ 106,956,742 $ 123,244,653 $ 120,302,967 $ Plan Fiduciary Net Position
Contributions - employer 13,518,089 $ 10,042,891 $ 9,515,699 $ 12,720,085 $ Contributions - employee 585,950 589,125 623,088 642,475 Net investment income 3,089,068 (4,613,857) 6,562,745 709,908 Administrative expense (64,547) (61,195) (111,868) (89,764) Benefit payments (6,931,088) (7,272,797) (7,011,178) (7,753,129) Plan to Plan transfer (1) - - - - Net change in the total OPEB liability 10,197,472 (1,315,833) 9,578,486 6,229,575 Plan fidcuiary net position - beginning 31,123,971 32,439,804 22,861,318 16,631,743 Plan fidcuiary net position - ending (b) 41,321,443$ 31,123,971 $ 32,439,804 $ 22,861,318 $ Net OPEB liability - ending (a) - (b) 66,878,939 $ 75,832,771 $ 90,804,849 $ 97,441,649 $ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 38.19% 29.10% 26.32% 19.00% Covered employee payroll 47,613,516 $ 45,133,662 $ 46,698,024 $ 50,016,647 $ Net OPEB liability as a percentage of
covered employee payroll 140.46% 168.02% 194.45% 194.82% (1) Transferred to the RPOA Plan established in fiscal year 2019. * Fiscal year 2017 was the 1st year of implementation.
200557
6/30/2019 6/30/2018 6/30/2017
3,452,679$ 6,730,397 $ 7,558,987 $
7,625,498 7,927,217 7,064,307
(19,910,800) - -
- (2,816,969) -
(1,409,953) 8,715,168 (15,340,529)
(7,247,073) (6,861,529) (6,497,645)
(17,489,649) 13,694,284 (7,214,880)
205,166,566 191,472,282 198,687,162
187,676,917$ 205,166,566 $ 191,472,282 $
6,714,785$ 13,599,120 $ 13,218,475 $
532,288 765,475 278,850
1,170,454 632,089 227,394
(81,950) (49,169) (11,250)
(7,247,073) (6,861,529) (6,497,645)
(1,879,640) - -
(791,136) 8,085,986 7,215,824
17,422,879 9,336,893 2,121,069
16,631,743$ 17,422,879 $ 9,336,893 $
171,045,174$ 187,743,687 $ 182,135,389 $

8.86% 8.49% 4.88%
49,511,523$ 65,359,713 $ 66,774,795 $
345.47% 287.25% 272.76%
201558
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Contractually required contributions (CRC)
(1)/Actuarially determined employer
contribution (ADEC) 8,107,624$ 9,525,000 $ 12,641,000 $ 7,753,129 $ Contributions in relation to the CRC/ADEC (13,518,089) (10,042,891) (9,515,697) (7,753,129) Contribution deficiency (excess) (5,410,465) $ (517,891) $ 3,125,303 $ - $ Notes:

Schedule of Investment Returns - Last 10 Years*
Fiscal Year Ended: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Annual money weighted rate of return,
net of investmentment expense 9.03% -13.92% 26.66% 3.48% * 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.
202559
6/30/2019 6/30/2018 6/30/2017
7,247,073$ 6,861,529 $ 6,497,645 $
(7,247,073) (6,861,529) (6,497,645)
-$ - $ - $
6/30/2019 6/30/2018 6/30/2017

6.74% 6.30% 10.75%
203560
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB Liability
Service cost 751,175 $ 1,027,120 $ 1,871,012 $ 2,053,367 $ 1,939,517 $ Interest 962,027 1,107,706 800,939 850,944 764,597 Changes in benefit terms - - - - 21,995,467 Differences between actual
and expected experience 52,738 (4,595,658) 10,367 (1,784,304) - Changes in assumptions - (323,325) (9,082,375) 401,383 - Benefit payments (315,302) (382,892) (277,277) (156,536) (82,673) Net change in the total OPEB liability 1,450,638 (3,167,049) (6,677,334) 1,364,854 24,616,908 Total OPEB liability - beginning 16,137,379 19,304,428 25,981,762 24,616,908 - Total OPEB liabilty - ending (a) 17,588,017$ 16,137,379 $ 19,304,428 $ 25,981,762 $ 24,616,908 $ Plan Fiduciary Net Position
Contributions - employer 1,952,362 $ 1,955,147 $ 1,028,868 $ 1,851,964 $ - $ Contributions - employee 344,550 403,650 453,163 425,213 82,673 Net investment income 321,979 (833,976) 935,134 170,322 - Plan to Plan transfer (1) - - - - 1,879,640 Benefit payments (315,302) (382,892) (277,277) (156,536) (82,673) Administrative expense (4,052) (3,187) (2,612) - - Net change in the total OPEB liability 2,299,537 1,138,742 2,137,276 2,290,963 1,879,640 Plan fidcuiary net position - beginning 7,446,621 6,307,879 4,170,603 1,879,640 - Plan fidcuiary net position - ending (b) 9,746,158$ 7,446,621 $ 6,307,879 $ 4,170,603 $ 1,879,640 $ Net OPEB liability - ending (a) - (b) 7,841,859 $ 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 55.41% 46.15% 32.68% 16.05% 7.64% Covered employee payroll 12,167,295 $ 13,527,611 $ 16,100,126 $ 16,699,113 $ 17,404,407 $ Net OPEB liability as a percentage of
covered employee payroll 64.45% 64.24% 80.72% 130.61% 130.64% (1) Transferred from the OPEB Plan.
* Fiscal year 2019 was the 1st year of implementation.
204561
City of Richmond
Required Supplementary Information
For the year ended June 30, 2023
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: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Contractually required(CRC)
/Actuarially determined
employer contributions (ADEC) (1) 1,107,178$ 1,627,000 $ 1,878,000 $ 1,851,964 $ 82,673 $ Contributions in relation to the CRC/ADEC (1,952,362) (1,955,147) (1,028,868) (1,851,964) (82,673) Contribution deficiency (excess) (845,184)$ (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. 205562
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206563

SUPPLEMENTARY

INFORMATION
207564
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208565

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
State Gas Tax Fund accounts for the subventions received from state gas taxes under the provision of the Streets and Highways Code. State gas taxes are restricted for street construction activities including location of underground utilities, geotechnical work relating to identification of so il and groundwater contamination, materials sampling, and testing.

General Purpose Fund accounts for other restricted monies that are to be used for the specific purposes for which the funds were set up.

Paratransit Operations Fund accounts for monies used to provide subsidized, accessible transportation to the seniors and disabled residents of the City of Richmond and the adjacent unincorporated areas of West Contra Costa County.

Employment & Training Fund is a fund set up to plan, administer and operate job training programs for the adult and youth residents of Richmond.

Public Safety Fund records the receipt and use of grant monies under the Local Law Enforcements Block Grant Program, Office of Traffic Safety Grants, OES Grants, FEMA Grants, and various other grants.

Lighting and Landscaping Districts Fund was set up to account for maintenance services in the nature of landscaping, lighting, cleaning provided to the Hilltop parking lot area, the Marina Way Development area, and the Marina Bay area.

Developer Impact Fees Fund is used to account for monies received from fees levied by the City on new commercial and residential projects. These funds will be used to mitigate the additional public safety and infrastructure costs resulting from these development projects.

Secured Pension Override Fund records the receipt of Pension Tax override collected through property taxes for payment of pension contributions.

Richmond Neighborhood Stabilization Corporation Fund accounts for the activities of the Corporation.

Rent Control Fund is used to account for fees paid by landlords to find the operation of Richmond's Fair Rent, Just Cause for Eviction, and Homeowner Protection programs.

Cost Recovery Fund is used to record the receipt and use of monies for services provided to the public and developers.

Environmental and Community Investment Agreement (ECIA) Fund accounts for funding received from Chevron in conjunction with the Chevron Modernization Project Environmental and Community Investment Agreement to fund various projects and programs within the City of Richmond. 209566
NONMAJOR GOVERNMENTAL FUNDS (Continued)
Debt Service Funds
2005 Pension Obligation Bonds Debt Service Fund receives transfers from the General Fund and the Pension Tax Override Fund, and pays the debt service on the 2005 Pension Obligation Bonds.

General Debt Service Fund accounts for monies received in connection with the 1995A and the 1999 Series A Pension Obligation Bonds and the related payments on such debt. The 1995 Series A bonds were to refinance the cost of capital improvements, and the 1999 Series A bonds were issued to fi nd a portion of the unfunded accrued actuarial liability in the Pension Fund.

Civic Center Debt Service Fund accounts for principal and interest payments on the Civic Center Project Lease Revenue Bonds.

Capital Projects Funds
General Capital Improvement Fund accounts for monies designated for capital improvement projects.

Measure C/J Fund was set up when the voters of Contra Costa County approved Measure C providing for the creation of the Contra Costa County Transportation Authority. The half-cent transportation sales tax was renewed under Measure J, effective April 1, 2009. The Authority collects one-half percent (0.5%) sales and use tax. Twenty percent (20%) 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. 210567
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211568
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Paratransit Employment
State Gas Tax General Purpos e Operations and Training
Fund Fund Fund Fund
ASSETS
Cash and investments 3,141,866$ 9,781,322 $ - $ 868,088$ Restricted cash and investments --- 1 7 , 5 0 4
Receivables:

Accounts, net 487,838 12,503 50 46,076
Interest 5,394 12,438 - - Grants - 4,953,517 35,903 1,641,524
Loans ----
Prepaids, supplies and other assets ----
Total assets 3,635,098$ 14,759,780 $ 35,953 $ 2,573,192 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 162,089$ 1,105,874 $ 36,593 $ 506,756 $ Refundable deposits ----
Due to other funds - - 801,233 -
Unearned revenue - 7,514,244 - 118,149
Total liabilities 162,089 8,620,118 837,826 624,905
Deferred inflows of resources:

Unavailable revenue - 4,461,890 35,903 655,547
Total deferred inflows of resouces - 4,461,890 35,903 655,547 Fund Balances:

Restricted 3,473,009 1,677,772 - 1,292,740
Unassigned - - (837,776) -
Total fund balances 3,473,009 1,677,772 (837,776) 1,292,740 Total liabilities, deferred inflows
of resources, and fund balances 3,635,098$ 14,759,780 $ 35,953 $ 2,573,192 $ Special Revenue Funds
212569
Richmond
Lighting and Develope r Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
306,072$ 1,241,713 $ 11,252,378 $ 5,805,054 $ - $ 1,318,685$ ---- 124,772 -
- 1,496 - - - 3,91 1
564 2,401 20,757 6,739 - 3,196 ------
---- 779,013 -
------
306,636$ 1,245,610 $ 11,273,135 $ 5,811,793 $ 903,785 $ 1,325,792 $ 45,642$ 239,259 $ 94,998 $ - $ 2,797$ 34,475 $ ------
---- 5 4 , 7 7 9-
----- 5 , 7 9 9
45,642 239,259 94,998 - 57,576 40,274
- 1,496 - - 779,013 -
- 1,496 - - 779,013 -
260,994 1,004,855 11,178,137 5,811,793 67,196 1,285,518 ------
260,994 1,004,855 11,178,137 5,811,793 67,196 1,285,518 306,636$ 1,245,610 $ 11,273,135 $ 5,811,793 $ 903,785 $ 1,325,792 $ Special Revenue Funds
213570
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Environmental
and Community 2005 Pension General
Cost Recovery Investment Obligation Bond s Debt Service Fund Agreement Fund Fund Fund
ASSETS
Cash and investments 8,765,947$ 17,932,914 $ 1,984 $ 80,526 $ Restricted cash and investments - - 234,805 -
Receivables:

Accounts, net 573,337 - - -
Interest 27,684 31,930 1 - Grants 6,606,374 - - -
Loans ----
Prepaids, supplies and other assets 150,000 - - -
Total assets 16,123,342$ 17,964,844 $ 236,790 $ 80,526 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 1,857,957$ 163,342 $ - $ - $ Refundable deposits 691,755 - - -
Due to other funds ----
Unearned revenue 2,345,424 - - -
Total liabilities 4,895,136 163,342 - -
Deferred inflows of resources:

Unavailable revenue 5,896,406 - - -
Total deferred inflows of resouces 5,896,406 - - -
Fund Balances:

Restricted 5,331,800 17,801,502 236,790 80,526
Unassign e d ----
Total fund balances 5,331,800 17,801,502 236,790 80,526 Total liabilities, deferred inflows
of resources, and fund balances 16,123,342$ 17,964,844 $ 236,790 $ 80,526 $ Special Revenue Funds Debt Service Funds
214571
Debt Service
Fund
Total
Civic Center General Capital Harbo r Nonmajor
Debt Service Improvement Measure C/ J Navigation Governmental Fund Fund Fund Fund Fund s
88,196$ 23,730,045$ 1,071,870 $ 46,444 $ 85,433,104$ 2,772 92,607 - - 472,460
---- 1 , 1 2 5 , 2 1 1
- - 2,556 86 113,746 - - 1,938,88 1 - 15,176,199
---- 779,013
---- 150,000
90,968$ 23,822,652$ 3,013,307 $ 46,530 $ 103,249,733$ -$ 214,387$ 151,443 $ - $ 4,615,612$ ---- 691,755
---- 856,012
2,311,108 - - - 12,294,724
2,311,108 214,387 151,443 - 18,458,103
- - 958,943 - 12,789,198
- - 958,943 - 12,789,198
- 23,608,265 1,902,92 1 46,530 75,060,348
(2,220,140) -- (3,057,916)
(2,220,140) 23,608,265 1,902,92 1 46,530 72,002,432
90,968$ 23,822,652$ 3,013,307 $ 46,530 $ 103,249,733$ Capital Projects Funds
215572
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Paratransit Employment
State Gas Tax General Purpose Operations and Training
Fund Fund Fund Fund
REVENUES:

Property taxes - $ - $ - $ - $ Licenses, permits and fees - 438,638 - - Fines, forfeitures and penalties - 3,810 - - Use of money and property 67,483 93,460 - - Intergovernmental 5,475,775 2,675,055 (19,190) 3,487,543 Charges for services - 1,528,674 55,531 - Other - - 50 117 Total revenues 5,543,258 4,739,637 36,391 3,487,660 EXPENDITURES:

Current:

General government - 2,485,134 855,873 - Public safety - 1,406,174 - - Public works 4,587,621 377,739 - - Community development - - - 5,934,917 Cultural and recreational - 339,874 - - Housing and redevelopment - - - - Capital outlay 1,430,179 953,569 - - Debt service:

Principal - - - - Debt defeasance using existing resources
Interest and fiscal charges - - - - Total expenditures 6,017,800 5,562,490 855,873 5,934,917

REVENUES OVER (UNDER)
EXPENDITURES (474,542) (822,853) (819,482) (2,447,257) OTHER FINANCING SOURCES (USES):

Payment to refunded bonds escrow agent - - - - Issuance of refunding bonds - - - - Transfers in - 624,208 - 2,624,137 Transfers out - (64,084) - - Total other financing sources (uses) - 560,124 - 2,624,137 Net change in fund balances (474,542) (262,729) (819,482) 176,880 FUND BALANCES (DEFICITS):

Beginning of year 3,947,551 1,940,501 (18,294) 1,115,860 End of year 3,473,009$ 1,677,772 $ (837,776) $ 1,292,740 $ Special Revenue Funds
216573
Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Control Fund Districts Fund Fund Fund Corporation Fund Fund
-$ 1,785,202$ - $ 26,010,577$ - $ - $ - - 1,745,035 - - 2,553,651 - - - - - - 6,107 23,817 220,470 34,736 - 39,267 - - - - - 10,000 - - - - - - 5,017 - - - - 40,078 11,124 1,809,019 1,965,505 26,045,313 - 2,642,996 - - - 820 - - 63,660 - 87,635 - - - - 2,768,238 337,376 - - - - - - - - - - - 9,045 - - - - - - - 8,490 2,652,945 - 216,855 164,470 - - - - - - - - - - - - - - - 63,660 2,985,093 598,526 820 8,490 2,652,945 (52,536) (1,176,074) 1,366,979 26,044,493 (8,490) (9,949) - - - - - - - - - - - - 6,209 703,081 - - - - - - (52,000) (20,232,700) - - 6,209 703,081 (52,000) (20,232,700) - - (46,327) (472,993) 1,314,979 5,811,793 (8,490) (9,949) 307,321 1,477,848 9,863,158 - 75,686 1,295,467 260,994$ 1,004,855 $ 11,178,137 $ 5,811,793 $ 67,196 $ 1,285,518$ Special Revenue Funds
217574
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Environmental
and Community 2005 Pension General
Cost Recovery Investment Obligation Bonds Debt Service
Fund Agreement Fund Fund Fund
REVENUES:

Property taxes - $ - $ - $ - $ Licenses, permits and fees 9,861,533 - - - Fines, forfeitures and penalties - - - - Use of money and property 281,888 326,886 31,914 291 Intergovernmental 5,561,000 6,000,000 - - Charges for services 1,320,285 - - - Other 20 49,824 - - Total revenues 17,024,726 6,376,710 31,914 291 EXPENDITURES:

Current:

General government 11,624,240 4,150,887 - - Public safety - 555 - - Public works 893,648 111,865 - - Community development (50,000) - - - Cultural and recreational - - - - Housing and redevelopment - - - - Capital outlay 3,002,204 169,177 - - Debt service:

Principal - - 11,593,000 620,000 Debt defeasance using existing resources 2,163,313
Interest and fiscal charges - - 1,513,139 109,495 Total expenditures 15,470,092 4,432,484 13,106,139 2,892,808

REVENUES OVER (UNDER)
EXPENDITURES 1,554,634 1,944,226 (13,074,225) (2,892,517) OTHER FINANCING SOURCES (USES):

Payment to refunded bonds escrow agent - - (152,904,036) - Issuance of refunding bonds - - 154,140,000 - Transfers in 782,154 - 4,944 2,972,836 Transfers out - - (690,145) - Total other financing sources (uses) 782,154 - 550,763 2,972,836 Net change in fund balances 2,336,788 1,944,226 (12,523,462) 80,319 FUND BALANCES (DEFICITS):

Beginning of year 2,995,012 15,857,276 12,760,252 207 End of year 5,331,800$ 17,801,502 $ 236,790 $ 80,526 $ Special Revenue Funds Debt Service Funds
218575
Debt Service
Fund
Total
Civic Center General Capital Harbor Nonmajor
Debt Service Improvement Measure C/J Navigation Governmental Fund Fund Fund Fund Fund s
-$ - $ - $ - $ 27,795,779$ - - - - 14,598,857 - - - - 3,810 8,994 3,303 35,493 912 1,175,021 - - 979,937 - 24,170,120 5,470,630 - - - 8,375,120 3,603 237,300 - - 336,009 5,483,227 240,603 1,015,430 912 76,454,716 - - - - 19,116,954 - - - - 1,558,024 - 48,529 662,019 - 9,787,035 - - - - 5,884,917 - - - - 348,919 - - - - 2,661,435 - 909,432 878,424 - 7,724,310 3,650,000 - - - 15,863,000 2,163,313
4,114,706 - - - 5,737,340 7,764,706 957,961 1,540,443 - 70,845,247 (2,281,479) (717,358) (525,013) 912 5,609,469 - - - - (152,904,036) - - - - 154,140,000 1,418,372 21,666,976 - - 30,802,917 - - - - (21,038,929) 1,418,372 21,666,976 - - 10,999,952 (863,107) 20,949,618 (525,013) 912 16,609,421 (1,357,033) 2,658,647 2,427,934 45,618 55,393,011 (2,220,140)$ 23,608,265 $ 1,902,921 $ 46,530 $ 72,002,432$ Capital Projects Funds
219576
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 67,483$ 67,483 $ Intergovernmental 5,713,569 5,713,569 5,475,775 (237,794) Total revenues 5,713,569 5,713,569 5,543,258 (170,311) EXPENDITURES:

Current:

Public works 2,809,594 4,867,09 1 4,587,621 279,470
Capital outlay 2,401,498 2,892,37 1 1,430,179 1,462,192 Total expenditures 5,211,092 7,759,462 6,017,800 1,741,662 Net change in fund balances 502,477$ (2,045,893)$ (474,542) 1,571,351 $ FUND BALANCES (DEFICITS):

Beginning of year 3,947,551
End of year 3,473,009$
Budgeted Amounts
220577
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 149,207$ 149,207 $ 438,638 $ 289,43 1$ Fines, forfeitures and penalties - - 3,810 3,810
Use of money and property - - 93,460 93,460
Intergovernmental 7,714,689 39,854,278 2,675,055 (37,179,223) Charges for services 200,000 200,000 1,528,674 1,328,674 Other 500 500 - (500)
Total revenues 8,064,396 40,203,985 4,739,637 (35,464,348) EXPENDITURES:

Current:

General government 7,474,050 12,730,737 2,485,134 10,245,603 Public safety 1,558,727 4,201,422 1,406,174 2,795,248
Public works 201,037 2,919,630 377,739 2,541,89 1
Cultural and recreational 183,606 1,699,857 339,874 1,359,983 Capital outlay 234,000 22,123,159 953,569 21,169,590
Total expenditures 9,651,420 43,674,805 5,562,490 38,112,315

REVENUES OVER (UNDER)
EXPENDITURES (1,587,024) (3,470,820) (822,853) 2,647,967 OTHER FINANCING SOURCES (USES):

Transfers in - 406,812 624,208 217,396
Transfers out - (64,084) (64,084) -
Total other financing sources (uses) - 342,728 560,124 217,396 Net change in fund balances (1,587,024)$ (3,128,092) $ (262,729) 2,865,363 $ FUND BALANCES (DEFICITS):

Beginning of year 1,940,501
End of year 1,677,772$
Budgeted Amounts
221578
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Paratransit Operations Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Intergovernmental 859,097$ 859,097 $ (19,190)$ (878,287)$ Charges for services -- 5 5 , 5 3 1 55,531
Other 20,000 20,000 50 (19,950)
Total revenues 879,097 879,097 36,391 (842,706) EXPENDITURES:

Current:

General government 836,102 848,408 855,873 (7,465)
Community development 13,400 1,094 - 1,094
Total expenditures 849,502 849,502 855,873 (6,371) Net change in fund balances 29,595$ 29,595 $ (819,482) (849,077) $ FUND BALANCES (DEFICITS):

Beginning of year (18,294)
End of year (837,776)$
Budgeted Amounts
222579
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Intergovernmental 7,000,280$ 12,455,84 1$ 3,487,543 $ (8,968,298)$ Other - - 117 117
Total revenues 7,000,280 12,455,841 3,487,660 (8,968,181) EXPENDITURES:

Current:

Community development 9,213,589 15,498,139 5,934,917 9,563,222 Capital outlay 100,000 100,000 - 100,000
Total expenditures 9,313,589 15,598,139 5,934,917 9,663,222

REVENUES OVER (UNDER)
EXPENDITURES (2,313,309) (3,142,298) (2,447,257) 695,041 OTHER FINANCING SOURCES (USES):

Transfers in 2,723,20 1 2,787,285 2,624,137 (163,148)
Total other financing sources (uses) 2,723,201 2,787,285 2,624,137 (163,148) Net change in fund balances 409,892$ (355,013) $ 176,880 531,893 $ FUND BALANCES (DEFICITS):

Beginning of year 1,115,860
End of year 1,292,740$
Budgeted Amounts
223580
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 6,107$ 6,107 $ Other 20,000 20,000 5,017 (14,983)
Total revenues 20,000 20,000 11,124 (8,876) EXPENDITURES:

Current:

Public safety 83,400 208,400 63,660 144,740
Total expenditures 83,400 208,400 63,660 144,740

REVENUES OVER (UNDER)
EXPENDITURES (63,400) (188,400) (52,536) 135,864 OTHER FINANCING SOURCES (USES):

Transfers in - - 6,209 6,209
Total other financing sources (uses) - - 6,209 6,209 Net change in fund balances (63,400)$ (188,400) $ (46,327) 142,073 $ FUND BALANCES (DEFICITS):

Beginning of year 307,321
End of year 260,994$
Budgeted Amounts
224581
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 1,780,698$ 1,780,698 $ 1,785,202 $ 4,504 $ Use of money and property - - 23,817 23,817
Total revenues 1,780,698 1,780,698 1,809,019 28,321 EXPENDITURES:

Current:

Public works 2,698,662 2,705,662 2,768,238 (62,576)
Capital outlay - 223,000 216,855 6,145
Total expenditures 2,698,662 2,928,662 2,985,093 (56,431)

REVENUES OVER (UNDER)
EXPENDITURES (917,964) (1,147,964) (1,176,074) (28,110) OTHER FINANCING SOURCES (USES):

Transfers in 691,55 1 703,081 703,081 -
Total other financing sources (uses) 691,551 703,081 703,081 - Net change in fund balances (226,413)$ (444,883) $ (472,993) (28,110) $ FUND BALANCES (DEFICITS):

Beginning of year 1,477,848
End of year 1,004,855$
Budgeted Amounts
225582
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees -$ 1,605,377$ 1,745,035 $ 139,658 $ Use of money and property - - 220,470 220,470
Total revenues - 1,605,377 1,965,505 360,128 EXPENDITURES:

Current:

Public safety 89,383 89,383 87,635 1,748
Public works 278,639 586,628 337,376 249,252
Cultural and recreational 329,295 338,245 9,045 329,200 Capital outlay 1,307,394 3,200,685 164,470 3,036,215
Total expenditures 2,004,711 4,214,941 598,526 3,616,415

REVENUES OVER (UNDER)
EXPENDITURES (2,004,711) (2,609,564) 1,366,979 3,976,543 OTHER FINANCING SOURCES (USES):

Transfers out - (52,000) (52,000) -
Total other financing sources (uses) - (52,000) (52,000) - Net change in fund balances (2,004,711)$ (2,661,564) $ 1,314,979 3,976,543 $ FUND BALANCES (DEFICITS):

Beginning of year 9,863,158
End of year 11,178,137$
Budgeted Amounts
226583
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 17,350,450$ 17,350,450 $ 26,010,577 $ 8,660,127 $ Use of money and property - - 34,736 34,736
Total revenues 17,350,450 17,350,450 26,045,313 8,694,863 EXPENDITURES:

Current:

General government - - 820 (820)
Public safety 937,004 937,004 - 937,004
Total expenditures 937,004 937,004 820 936,184

REVENUES OVER (UNDER)
EXPENDITURES 16,413,446 16,413,446 26,044,493 9,631,047 OTHER FINANCING SOURCES (USES):

Transfers out (16,413,985) (16,413,985) (20,232,700) (3,818,715) Total other financing sources (uses) (16,413,985) (16,413,985) (20,232,700) (3,818,715) Net change in fund balances (539)$ (539) $ 5,811,793 5,812,332 $ FUND BALANCES (DEFICITS):

Beginning of year -
End of year 5,811,793$
Budgeted Amounts
227584
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property 144$ 144 $ - $ (144)$ Other 15,000 15,000 - (15,000)
Total revenues 15,144 15,144 - (15,144) EXPENDITURES:

Current:

Housing and redevelopment 13,193 5,693 8,490 (2,797)
Total expenditures 13,193 5,693 8,490 (2,797) Net change in fund balances 1,951$ 9,451 $ (8,490) (17,941) $ FUND BALANCES (DEFICITS):

Beginning of year 75,686
End of year 67,196$
Budgeted Amounts
228585
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Rent Control Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 3,062,687$ 3,062,687 $ 2,553,65 1$ (509,036)$ Use of money and property 14,000 14,000 39,267 25,267
Intergovernmental - - 10,000 10,000
Other 30,000 30,000 40,078 10,078
Total revenues 3,106,687 3,106,687 2,642,996 (463,691) EXPENDITURES:

Current:

Housing and redevelopment 2,735,580 2,738,580 2,652,945 85,635 Total expenditures 2,735,580 2,738,580 2,652,945 85,635 Net change in fund balances 371,107$ 368,107 $ (9,949) (378,056) $ FUND BALANCES (DEFICITS):

Beginning of year 1,295,467
End of year 1,285,518$
Budgeted Amounts
229586
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cost Recovery Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Licenses, permits and fees 7,230,259$ 7,230,259 $ 9,861,533 $ 2,631,274 $ Use of money and property - - 281,888 281,888
Intergovernmental 15,009,778 28,884,250 5,561,000 (23,323,250) Charges for services 3,726,592 3,726,592 1,320,285 (2,406,307) Other - - 20 20
Total revenues 25,966,629 39,841,101 17,024,726 (22,816,375) EXPENDITURES:

Current:

General government 12,186,939 18,079,374 11,624,240 6,455,134 Public works 1,006,309 1,826,199 893,648 932,55 1
Community development - - (50,000) 50,000
Capital outlay 14,409,778 26,038,712 3,002,204 23,036,508 Total expenditures 27,603,026 45,944,285 15,470,092 30,474,193

REVENUES OVER (UNDER)
EXPENDITURES (1,636,397) (6,103,184) 1,554,634 7,657,818 OTHER FINANCING SOURCES (USES):

Transfers in 1,800,000 1,800,000 782,154 (1,017,846)
Total other financing sources (uses) 1,800,000 1,800,000 782,154 (1,017,846) Net change in fund balances 163,603$ (4,303,184)$ 2,336,788 6,639,972 $ FUND BALANCES (DEFICITS):

Beginning of year 2,995,012
End of year 5,331,800$
Budgeted Amounts
230587
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 326,886$ 326,886 $ Intergovernmental 206,842 206,842 6,000,000 5,793,158
Other 69,000 69,000 49,824 (19,176)
Total revenues 275,842 275,842 6,376,710 6,100,868 EXPENDITURES:

Current:

General government 8,729,305 8,729,305 4,150,887 4,578,418 Public safety 223,000 223,000 555 222,445
Public works 123,842 233,208 111,865 121,343
Cultural and recreational 534,430 534,430 - 534,430 Capital outlay 1,313,655 1,519,116 169,177 1,349,939
Total expenditures 10,924,232 11,239,059 4,432,484 6,806,575 Net change in fund balances (10,648,390)$ (10,963,217) $ 1,944,226 12,907,443 $ FUND BALANCES (DEFICITS):

Beginning of year 15,857,276
End of year 17,801,502$
Budgeted Amounts
231588
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Property taxes 13,052,125$ 13,052,125 $ - $ (13,052,125)$ Use of money and property - - 31,914 31,914
Total revenues 13,052,125 13,052,125 31,914 (13,020,211) EXPENDITURES:

Debt service:

Principal 11,593,000 11,593,000 11,593,000 -
Interest and fiscal charges 1,459,125 1,459,125 1,513,139 (54,014) Total expenditures 13,052,125 13,052,125 13,106,139 (54,014)

REVENUES OVER (UNDER)
EXPENDITURES - - (13,074,225) (13,074,225) OTHER FINANCING SOURCES (USES):

Payment to refunded bonds escrow agent - - (152,904,036) (152,904,036) Issuance of refunding bonds - - 154,140,000 154,140,000 Transfers in - 4,944 4,944 -
Transfers out - -
(690,145) (690,145)
Total other financing sources (uses) - 4,944 550,763 545,819 Net change in fund balances -$ 4,944$ (12,523,462) (12,528,406) $ FUND BALANCES (DEFICITS):

Beginning of year 12,760,252
End of year 236,790$
Budgeted Amounts
232589
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount s (Negative)
REVENUES:

Use of money and property -$ - $ 29 1$ 29 1$ Total revenues - - 291 291 EXPENDITURES:

Debt service:

Principal 620,000 620,000 620,000 -
Debt defeasance using existing resources - - 2,163,313 (2,163,313) Interest and fiscal charges 189,023 189,023 109,495 79,528 Total expenditures 809,023 809,023 2,892,808 (2,083,785)