Attachment 1 – City of Richmond Annual Comprehensive Financial Report for the year ended June 30, 2024.pdf — Richmond City Council, February 4, 2025 (part 1 of 2)

City of Richmond, California
Annual ComprehensiveFinancial Report
FOR THE YEAR ENDED JUNE 30, 2024

City of Richmond
California
Financial Report
Fiscal Year Ended June 30, 2024
Prepared by the Finance Department
Andrea Miller
Director of Finance/Treasurer

This Page Left Intentionally Blank
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
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INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Organizational Chart .................................................................................................................................................. xix List of Elected and Appointed Officials .................................................................................................................... xx

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 ......................................................................................... .................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 35 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 36 Reconciliation of the Govern mental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 37 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds .............................................................................. ............... 40 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 42 Statement of Cash Flows – Proprietary Funds ............................................................................................... 44 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 48 Statement of Changes in Fiduciary Net Position – Fidu ciary Funds .......................................................... 49 Notes to Basic Financial Statements ................................................................................................................... 53 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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Required Supplemental Information:

Budget and Budgetary Accounting ...................................................................................................................... 173 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 175 Community Development and Loan Programs Special Revenue Fund ..................................................... 176 American Rescue Plan Act Special Revenue Fund ......................................................................................... 177 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ........................... 178 Schedule of Contributions – Miscellaneous Plan ........................................................................................................ 180 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ....................................... 182 Schedule of Contributions – Safety Plan ............................................................................................................... 184 Schedule of Changes in the Net Pension Liability and Related Ratios:

General Pension Plan ..................................................................................................................................................... 186 Police and Firemen’s Pension Plan ........................................................................................... .......................... 188 Other Post-Employment Benefits Plan Schedules - OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 190 Schedule of Plan Contributions .............................................................................................. ........................... 192 Schedule of Investment Returns .............................................................................................. .......................... 192 Other Post-Employment Benefits Plan Schedules - RPOA Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 194 Schedule of Plan Contributions .............................................................................................. ........................... 195 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Fund s ....................................................................... 202 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................ ....... 208 Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Governmental Funds:

State Gas Tax Fund ......................................................................................................... ................................. 213 General Purpose Fund ....................................................................................................... .............................. 214 Paratransit Operations Fund ................................................................................................ .......................... 215 Employment and Training Fund ............................................................................................... .................... 216 Public Safety Fund ......................................................................................................... .................................. 217 Lighting and Landscaping Districts Fund .................................................................................... ................ 218 Developer Impact Fees Fund ................................................................................................. ......................... 219 Secured Pension Override Fund .............................................................................................. ...................... 220 Richmond Neighborhood Stabilization Corporation Fund ....................................................................... 221 Rent Program Fund .......................................................................................................... ............................... 222 Cost Recovery Fund ......................................................................................................... ................................ 223 Environmental and Community Investment Agreement Fund ................................................................ 224 Transformative Climate Grant Fund .......................................................................................... ................... 225 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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Supplementary Information (Continued):

Combining and Individual Fund Statements and Schedules (Continued):

Encampment Resolution Grant Fund ........................................................................................... ................ 226 General Pension Fund ....................................................................................................... .............................. 227 Police and Firemen’s Pension Fund .......................................................................................... .................... 228 2022 Pension Obligation Bonds Fund ......................................................................................... .................. 229 General Debt Service Fund .................................................................................................. ........................... 230 Civic Center Debt Service Fund ............................................................................................. ........................ 231 General Capital Improvement Fund ........................................................................................... .................. 232 Measure C/J Fund ........................................................................................................... ................................ 233 Harbor Navigation Fund ..................................................................................................... ........................... 234 Combining Statements of Net Position – Nonmajor Enterprise Funds ........................................................... 236 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds .............................................................................. ......... 237 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ........................................................... 238 Combining Statement of Net Position – Internal Service Funds ................................................................... 240 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ...................................................................................... ..................... 241 Combining Statement of Cash Flows – Internal Service Funds .................................................................... 242 Combining Statement of Fiduciary Net Position – Pension Trust Funds.................................................... 244 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds ............................... 245 Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds ...................................... 246 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ................. 247 Sub-Combining Statement of Fiduciary Net Position –
Successor Agency to the Richmond Community Redevelopment Agency ............................................. 248 Sub-Combining Statement of Changes in Fiduciary Net Position – Successor Agency to the Richmond Community Redevelopment Agency ............................................. 250 Combining Statement of Fiduciary Net Position – Custodial Funds ........................................................... 254 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 256 City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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STATISTICAL SECTION
Net Position by Component Last Ten Fiscal Years ................................................................................ ............ 264 Changes in Net Position Last Ten Fiscal Years ................................................................................................... 266 Fund Balances of Governmental Funds Last Ten Fiscal Years ......................................................................... 268 Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years ...................................................... 270 Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ....................................... 272 Property Tax Rates – All Overlapping Governments Last Ten Fiscal Years .................................................. 274 Principal Property Tax Payers Current Year and Nine Years Ago .................................................................. 276 Property Tax Levies and Collections Last Ten Fiscal Years .............................................................................. 277 Utility Users Tax Collections Last Ten Fiscal Years ........................................................................................... 278 Utility Users Tax Direct Rates On Charges For Services Last Ten Fiscal Years ............................................. 279 Top Ten Utility Users Taxpayers .............................................................................................. ............................ 280 Ratio of Outstanding Debt by Type Last Ten Fiscal Years ................................................................................ 281 Computation of Legal Bonded Debt Margin ...................................................................................................... 282 Revenue Bond Coverage 1999, 2006, 2008, 2010A, 2010B, 2017A, 2019A and 2019B Wastewater Revenue Bonds Last Ten Fiscal Years...................................................................... 283 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 ............................................. 284 Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds and Refunding Bonds Last Ten Fiscal Years ................................................................................................. .............................. 285 General Bonded Debt Pension Obligation Bonds Last Ten Fiscal Years ........................................................ 286 Computation of Direct and Overlapping Debt .................................................................................................. 287 Demographic and Economic Statistics Last Ten Calendar Years ..................................................................... 288 Principal Employers Current Year and Nine Years Ago ................................................................................... 289 Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years .............................. 290 Operating Indicators by Function/Program Last Ten Fiscal Years ................................................................. 291 Capital Asset Statistics by Function/Program Last Ten Fiscal Years .............................................................. 292

FINANCE DEPARTMENT
450 CIVIC CENTER PLAZA
RICHMOND, CA 94804
(510) 620-6740
January 2, 2025
Citizens of the City of Richmond
The Honorable Mayor and
Members of the City Council
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Richmond, California (City). The Finance Department has prepared this report to present the financial position and the results of the City’s operations for the fiscal year ended June 30, 202 4, and the cash flows of its proprietary fund types for the year then ended. The basic financial statements and supporting schedules have been prepared 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 representations concerning the finances of the City.

Consequently, management assumes full responsibility for the completeness 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 internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

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

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

The City’s financial statements have been audited 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, 2024, are free v
of material misstatement. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements on a test basis ; assessing the accounting principles used and significant estimates made by management ; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2024, 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 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, 2024. 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 the 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 RHA RAD LLC.

The City’s component units and assessment districts are as follows: the Richmond Housing Authority, the Richmond Joint Powers Financing Authority, the Richmond Neighborhood Stabilization Corporation, the Richmond Surplus Property Authority and Harbor Navig ation, Country Club Vista, and Atlas Interchange Special Assessment Districts. The City also has one inactive component unit, Richmond Parking Authority.

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 north), spanning 3 2 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 major 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, the state capitol, is approximately 90 minutes to the east. Central Marin County is 15 minutes from Richmond directly across the Richmond -San Rafael Bridge.

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

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

3.7 million and within a 70-mile radius is approximately 7.8 million. Richmond is located on the western shore of Contra Costa County, and 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, including 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 Mayor 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.
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Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment 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. The City expects to obligate all ARPA funds by December 31, 2024, and expend them by December 31, 2026.

Property Tax continues to see steady growth in FY2023-24 with actual General Fund Property Taxes increase by 4% compared to the previous year. More recently, the 202 3-2024 County Assessment Roll indicates growth of the Assessed Valuation (AV) at 6.77% for Secured Property Taxes, the main component in changes to secure 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.

The City received $61.3 million in Sales Tax revenue, which is $5.8 million more than the previous fiscal year, an increase of 10.4% The most recent forecast from the City’s financial 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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Significant Events and Accomplishments
The City of Richmond is committed to providing excellent municipal services to its diverse residents and visitors. Highlights of the City’s activities and accomplishments for the fiscal year ended June 30, 2024, include the following:

Community Services
Library
• Increased attendance at library events by 18% in FY2023 -24, reaching 12,047 attendees, compared to FY2022-23.
• Visits to library locations increased by 43% in FY2023-24, 60,979 visitors, compared to FY2022-23.
• The library established a Library of Things collection: patrons can now borrow pickleball sets, hiking backpacks (with binoculars and hiking poles!), citizen science kits, and other useful items with their library cards. All for free!
• The library offered 619 free homework help sessions with trained tutors at the main and branch libraries, and 740 additional sessions were offered at May Valley and Shields-Reid community centers.

Literacy for Every Adult Program (LEAP)
• The Literacy for Every Adult Program (LEAP) gave 800 books to parents with children to build their home libraries. LEAP distributed 1,000 kits and non -book materials to support literacy.
• Library and LEAP partnered with Noll & Tam Architects, Contigo Communications, and Richmond Fund for Children and Youth to conduct community outreach regarding the $30 million renovation of the Richmond Main Library, resulting in valuable feedback about needed features and services.
• LEAP had 88 new enrollees in FY2023-24.

Office of Neighborhood Safety (ONS)
• The White House Office of Violence Prevention recognized ONS with a visit this year. In addition, ONS received two invitations to the White House. • No fellows have been lost to gun violence.
• The US Department of State brought a delegation of 25 from states across Mexico to do a round table discussion for their Security Exchange Program – Focused Deterrence. ix
Recreation
• With support from the Department of Children and Families Grant, Camp Achieve Sites exceeded their goals of adding an average of 20 Middle School children to Camp Achieve enrollment, which formerly only served elementary-age children. • The Mobile Recreation Unit Trailer was activated by staff to serve the Richmond community at parks and special events, including the Marina Farmers Market and the Civic Center Farmers.
• Collaboratively engaged over 50 volunteers, two nonprofit organizations and other city departments in the renovation and beautification of Booker T. Anderson Community Center, in preparation for the grand reopening after being closed for four years due to a fire.
• Collaboratively organized and hosted 6 community paint days, engaging 580 volunteers over 1500 hours of service to paint a community mural in Parchester. • Increased program offerings for the seniors by adding three (3) new senior programs:

Senior Morning Circle Chat, Sit & Chat, Gardening, and the Joy of Living. • Recipient of a grant for the Outdoor Leadership program that allowed us to offer the following programs:
• Overnight Camping- San Luis Reservoir: Youth from Richmond participated overnight camps to San Luiz Reservoir. Camp equipment, (tents, sleeping bags, food, and games) were provided to participants at no cost. • Safari West: Forty-two Richmond residents went to the Safari West, Santa Rosa wildlife park and conservation center. Safari west promotes conservation and environmental education while imparting knowledge that helps everyone make well informed choices regarding the environment and wildlife conservation. • Family Bay Cruise: Twenty-two Richmond residents joined the Community Services- Recreation Division on a 3-hour educational family Bay Cruise on Wednesday October 16.
• Santa Cruz Beach Boardwalk: Fifty-five Richmond residents visited the Santa Cruz Beach Boardwalk amusement park. They participated in a variety of games and rides.

Richmond Fund for Children & Youth
• Completed the 2024 Community Needs Assessment and coordinated meaningful engagement with other 400 youth and parents and caregivers. • Finalized the fiscal year 2025-28 Strategic Investment Plan identifying the Core Needs Areas that the fund will be investing approximately $20 million over the next 3 years. • Hired two permanent employees in the Department of Children & Youth. • Management Analyst
• Community Service Technician
• Completed the mid-year third-party evaluation report of the Fund and initiated the subsequent year review.
• Established meaningful connections with other funders and anchor organizations to expand investment and capacity building.
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Transportation
• Replacement of Gas-Fueled Paratransit Vehicles with Electric Vans: The city completed the replacement of its aging gas-fueled paratransit fleet with state-of-the-art electric vans.

This transition has cut greenhouse gas emissions, with the intent of improv ing the reliability and accessibility of services for residents with mobility challenges. • Citywide maintenance of EV Charging Stations: Launched a comprehensive initiative to repair and upgrade aging chargers to ensure reliability. The program prioritizes high-usage locations and underserved areas, ensuring equitable access to EV infrastructure while maintaining the city’s commitment to sustainability.
• Zero-Emission Citywide Shuttle Services: The fully electric citywide shuttle service connects residential neighborhoods to downtown and employment hubs. The service achieved an increase in ridership within three months. Our plan is to continue to add stops to significantly reduce traffic congestion and carbon emissions. • Adoption of a Green Transportation Equity Policy: Researched methods to ensure that green transportation initiatives, including EV chargers and electric transit, benefit all residents equitably. Researched funding opportunities to assist with subsidizing c hargers in disadvantaged neighborhoods and continued fare reductions for low-income users. • Ongoing Partnership with Lyft and Uber for Paratransit Services: The city strengthened its partnership with Lyft and Uber to enhance paratransit service coverage. Through this collaboration, riders in the service area continue to benefit from on -demand access to transportation, filling gaps in traditional paratransit and improving service reliability for those with mobility needs.
• Recognition as a Green Transportation Leader: The city continues to implement adopted transportation plan i.e., First Mile / Last Mile plan; Ferry to Bridge plan, that both received a statewide recognition for its innovative approach to sustainable transportation, highlighting its electric fleet initiatives, shuttle programs, and inclusive partnerships. This recognition has encouraged further collaboration between public and private sectors to advance green mobility goal.
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Economic Development
Arts and Culture
• 5 artists for public art commissions at Shields Reid, encompassing mosaic tiles, murals, sculptures, and photos have completed after school projects mosaic tile, mural, architecture, photography and sculpture.
• Secured Richmond Arts and Culture Commission (RACC) approval to proceed with the Kennedy Park Art contract.
• Solicited new art sculpture projects, including a $100,000 Kennedy Park project and a $200,000 IMTT Developer project, with RACC recommendations set for December. • Finalized a $350,000 art contract to complete the Parchester Village Mural project. • Negotiated key details (copyright, insurance, permits) for the Allen Brothers mural and mosaic tile project, selecting both a muralist and tile artist. • Completed Neighborhood Public Art (NPA) Mini Grant contracts.

Business Development
• Supported the Economic Development Commission with organizing Taste of Richmond 2023 on July 15 at Civic Center Plaza, celebrating the city’s culinary diversity with offerings from local restaurants, caterers, and craft beer and wine producers. This annual event strengthened community connections and honored Richmond’s cultural heritage with live music from Bay Area DJs and artists. Following the event’s success, worked with the Economic Development Commission and Department to present to City Council, securing financial support for Taste of Richmond 2024 and introducing plans to expand the event into a week-long celebration, enhancing community impact and broadening promotion for local businesses.
• Launched the City of Richmond’s Cannabis Equity Program, verifying over 10 applicants as equity-eligible and collaborating with Planning, Community Development, and Code Enforcement to draft ordinance amendments aimed at fostering fairness in the cannabis industry and addressing the lasting impacts of the War on Drugs. The verified applicants are currently undergoing technical assistance, training, and business planning through our consulting provider, supporting their development as successful local cannab is entrepreneurs.
• Established a business assistance and outreach program with an online booking module, allowing community members to schedule in -person or virtual meetings with business development staff. This initiative provides opportunities to learn about Richmond, get guidance on starting a business, and discuss specific business needs. Additionally, over 50 business visits and tours conducted to connect directly with Richmond’s local businesses and provide targeted support.
• In partnership with the Employment and Training Department and local organizations, celebrated Richmond’s first Small Business Week, featuring a small business fair and other events that supported and showcased local entrepreneurs. • Began efforts on the $35 million Richmond Rising initiative, focusing on the development of a Buy Local Campaign and Facade Improvement Program as part of the Transformative Climate Communities Grant to enhance community businesses and prevent displacement. • Prepared to launch a partnership with Renaissance Entrepreneurship Center to provide technical assistance, capacity -building services, and $300 ,000 in small grants aimed at supporting businesses impacted by the COVID-19 pandemic. xii
Environmental and Health Initiatives
• Completed 41 no-cost solar installations on low-income homes. • Launched outreach of the Virtual Powerplant Pilot (VPP) Program to GRID in partnership with MCE and Zero Net Energy (ZNE) Alliance to implement Richmond’s California Energy Commission grant; 50 Residential and 10 Commercial Richmond customers enrolled in VPP Program.
• Submitted pre-application for the $160,000 Energy Efficiency and Conservation Block Grant (EECBG) from the Department of Energy, application for the ~$28,000 CalRecycle Bottle and Can Grant, and application for the $650,000 Integrated Climate Adaptation and Resiliency Program (ICARP) Adaptation Planning Grant to update the City of Richmond’s Climate Action Plan, with a total of $838,000 applied for. • Completed settlement agreement with Pacific Gas and Electric (PG&E). Total additional revenue generation is estimated at $3.3M annually and one-time payment of $800,000. • Hosted litter clean-up events in Pullman, Unity Park, and the Santa Fe neighborhood with a total of 39 volunteers collecting 61 bags of litter.
• Started application for the $20 million EPA Community Change Grant to fund the "Electrify the Block" initiative, aimed at reducing greenhouse gas emissions and improving energy efficiency by electrifying homes in underserved Richmond communities.

Port of Richmond
• Continued Wharf removal project at Terminal 4, with wooden piles removed and shoreside and eel grass restoration underway.
• Increased Port Tariff Schedule by 6.2% percent, issued RFP for Basin 1 and finalized lease agreement that will increase revenue for the Port. • Submitted a comprehensive Port Report to City Council on operations, facilities, and economic opportunities for the Port of Richmond and initiated and completed third party financial and performance audit for Port of Richmond.
• Increased community outreach to Port businesses, organization and government entities including hosting a Port of Richmond Stakeholder Roundtable with Congressman John Garamendi.
• Completed painting the Riggers Loft historical buildings 1322 and 1325 Canal Blvd that houses the Port Admin office and other tenants.
• Completed milestones with the Port’s largest tenant, Auto Warehouse Company (AWC), in completing 15 -year bond payment that financed the Point Potrero Marine T erminal (PPMT), on-dock rail and other infrastructure improvements as well as having renewed the AWC lease for their first additional five-year term.

Real Estate
• Processed ten (10) Environmental Escrow Pay Packets totaling $438,950 in coordination with regulatory agencies, environmental consultants, and stakeholders. • Managed 47 Pt. Molate entry requests, including bat research, Golden Gate Bird Alliance Shore Clean-up, and raptor exercises, while overseeing volunteer work and reports for Pt.

Molate Beach Park.
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• Managed nine (9) deed -restricted environmental properties in Marina Bay, including preparations for Area FM as the last site requiring an environmental cap. • Organized and led three (3) Civic Center Campus Security Team meetings addressing tenant safety, security protocols, and First Amendment Audit actions, resulting in citywide training.
• Centralized Real Estate duties by coordinating with Recreation Staff to transfer lease development and management responsibilities, including PRAM at the Washington Field House.
• Division Manager elected as President of the San Francisco Bay Area Chapter of the International Right of Way Association and served as an International Director.

Richmond Housing Authority (RHA)
• Nevin Plaza rehabilitation kickoff celebration and construction commenced. • Completed Annual Plan and submitted Cost Allocation Plan to US Department of Housing and Urban Development (HUD) for review.
• Request for Proposals issued for the Disposition and Development of Nystrom Village. • Continued the implementation of the Public Housing Authority Recover y and Sustainability (PHARS) agreement between HUD, City of Richmond, and RHA. • Maintain and reposition RHA assets: Monitor Nevin Plaza rehabilitation construction and relocation process, enter into an agreement with a developer for Nystrom Village and begin the environmental review process, complete the transition of Public Housing u nits at Richmond Village to the Section 8 platform.
• Completed the City auditing process of RHA backlog of financial Audits for 2017, 2018, and 2019, and submitted to HUD unaudited financial data through 2023. xiv
Internal Services
Human Resources
• Implemented Citywide Class and Compensation study for SEIU 1021, IFPTE Mid Management, and Executive Management Unions.
• Completed successor MOU bargaining with the Richmond Police Management Association and the Richmond Fire Management Association. • Conducted facilitation and team-building sessions across multiple departments to enhance collaboration, improve communication, and strengthen relationships among team members.
• Successfully launched a comprehensive wellness program for the Fire.

Department, including counseling services and therapy dog visits. • Relaunched the employee recognition program to include service awards and introduction of recognition “Rosie-grams”.
• Implemented a new insurance tracking software (PINS) to effectively manage certificates Citywide and processed 602 certificates in 2023.

Information Technology
• The Information Technology Department Network staff upgraded the City’s Fire stations to fiber improving reliability and speed.
• The Information Technology Department Network staff worked with contractors to replace the legacy campus CCTV cameras with improved camera views. • IT/KCRT Department worked collaboratively with vendors and City staff to successfully upgrade the City Council Chambers audio/video systems including improved interactive in-person and hybrid meetings.
• The Information Technology Department worked collaboratively with the City Manager’s office, Mayor’s office, Economic Development Department, and IT to refresh the City’s website improving the ease of use for navigation and improved Americans with Disabilities Act (ADA) capabilities.
• The Information Technology Department modernized and managed the City’s enterprise Geographic Information System (GIS) system, Website and Social Media Management, Open Data System, and to provide efficient digital initiatives for process improvements. • The IT/KCRT Department designed over 170 billboard “Datanet” screens for the KCRT Government Television channel, and for social media publishing during the fiscal year 2024.
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Public Safety
Fire Department - Administration/Support
• Hosted a tour of the Richmond Fire Training Center which was attended by U.S.

Representative John Garamendi where the history of the site, current use, future plans, and request for funding was discussed (December 15, 2023).
• Continued to work on upgrading the Computer Aided Dispatch (CAD) system of the department.
• Initiated the design and acquisition process of new fire apparatus.

Fire Department- Office of Emergency Services
• Supported the City (co-applicant) and Pogo Park (main applicant) in securing $10 million grant from the State of California Strategic Growth Council in the first quarter of 2024 to develop Harbor Hall as a Community Resilience Hub in the Iron Triangle neighborhood. • Conducted the Spring 2024 CERT Academy and graduated 14 volunteers. • Successfully conducted an emergency evacuation drill at Brickyard Cove in Point Richmond in collaboration with the Richmond Police Department, CERT volunteers and other agencies (July 15, 2023).
• Hired an Emergency Services Manager to provide leadership to the City of Richmond and its residents through comprehensive emergency management, planning and preparedness (December 4, 2023).

Fire Department- Prevention
• Conducted 2,902 Very High Fire Hazard Severity Zone (VHFHSZ) inspections (July 2023- August 2023).
• Performed School State Mandated Inspections (West Contra Costa School District). • Conducted the Fire Inspector Promotional Assessment and promoted three (3) personnel to the rank of Fire Inspector.
• Installed Fire Danger Today Signs at Station 63, Station 68 and Point Richmond area.

Fire Department- Suppression
• Responded to 14,915 calls for service (July 2023 – June 2024). • Held an open house at Fire Station 63 in celebration of the National Fire Safety Week (October 14, 2023).
• Promoted one (1) Fire Engineer to the rank of Fire Captain. • Promoted eight (8) Firefighters to the rank of Fire Engineer. • The Fire Department together with the Richmond Police Department provided toys and food to 500 families during its annual toy drive (December 2023).

Fire Department- Training
• Appointed a Training Director to oversee the department's fire suppression, rescue, apparatus operations and EMS training program.
• Conducted a Fire Engineer Academy in preparation for the Fire Engineer Promotional Assessment.
• Commenced the Richmond -El Cerrito Joint Recruit Academy graduating eight (8) Richmond recruits and three (3) El Cerrito recruits.
xvi
Police Department (RPD)
• The Richmond Police Department hosted over 600 community members at the police department for our annual “Cops and Goblins” Halloween open house. Richmond families were treated to a haunted house experience through the police department, trick-or-treating with RPD staff, a petting zoo, and a free BBQ lunch and ice cream dessert. Additionally, families were provided fresh fruits and vegetables courtesy of Urban Tilth. • RPD Police Officers and professional staff partnered with local faith -based non - profits and churches in the annual “Faith in Blue” event. RPD staff volunteered at the Bay Area Rescue Mission, preparing meals for mission residents and organizing donated clothes at the Rescue Mission’s donation warehouse. Additionally, Officers attended various church services the next day, where local pastors and congregations provided RPD staff with prayers and words of encouragement.
• The Richmond Police Department has emphasized employee mental health and wellness.

This year, personnel are now offered professional counseling services that are specifically geared towards the challenges and stressors faced in law enforcement, sleeping facilities so officers can take naps after or before extended shifts, opportunities to engage in physical activity in the department’s gym during breaks, and religious support offered by our department chaplains.
• The Richmond Police Department hosted its 5th cohort of the Community Police Academy, which provided 18 community members with an eight -week intensive deep dive into the inner workings of the Richmond Police Department and the services we provide. • The Richmond Police Department has a fully staffed parking enforcement unit, with two newly added positions to better serve our community's parking and traffic needs. xvii
Public Works
• New Hires: 25 New hires from January- December 2024.
• Paving Achievements: Slurry sealed 22 miles (400,000 square yards) and paved 2.33 miles (45,000 square yards).
• Weed Abatement: Abatement Division abated weeds from 100 locations (Includes city owned lots, alleyways, Richmond Parkway and public right of ways). The Parks and Landscaping Division spent over 17,000 hours–35% of total hours worked–clearing weeds from parks, medians, roadsides, fire trails, fire access roads, paper streets, and parking lots.

Lighting Improvements
• New Solar Lighting was installed at city hall plaza to light the managers parking lot. • Three (3) Solar lights have been installed on Castro Street between Hensley and Gertrude St. as part of the Solar Lighting pilot program.
• Installed replacement streetlights where streetlights had been missing due to knockdowns along Atlas Rd.
• Currently working to replace vandalized wiring on Cutting Blvd to re-energize the street lighting along the Cutting corridor.

Trash Cleanup
• Abatement tonnage: 2,856 tons
• Encampments: 285 tons from 114 locations.

Respectfully submitted,
Andrea Miller
Director of Finance/Treasurer
xviii
Organizational Chart
xix
List of Elected and Appointed Officials
JU
NE 30, 2024
CI

TY COUNCIL
M
ayor ….................................................................................................................................................................................... Eduardo Martinez V
ice Mayor .......................................................................................................................................................................................... Claudia Jimenez C
ouncilmember …..................................................................................................................................................................................... Soheila Bana Councilmember …............................................................................................................................................................................. Gayle McLaughlin Councilmember …..................................................................................................................................................................................Doria Robinson C
ouncilmember ….......................................................................................................................................................................................Melvin Willis Councilmember …....................................................................................................................................................................................Cesar Zepeda

ADMINISTRATION AND EXECUTIVE MANAGEMENT
Ci
ty Manager ……………………….……………………………………………………………………………………………………………… Shasa Curl D
eputy City Manager, Community Services …........................................................................................................................... LaShonda White D
eputy City Manager, Internal Services …...................................................................................................................................... Nickie Mastay Ci
ty Attorney …................................................................................................................................................................................ Dave Aleshire City Clerk …................................................................................................................................................................................. Pamela Christian Director of Community Development ….............................................................................................................................................. Lina Velasco D
irector of Economic Development …………….……………………………………………………………………………………. Nannette Beacham D
irector of Finance …....................................................................................................................................................................... Andrea Miller D
irector of Information Technology …............................................................................................................................................... Sue Hartman D
irector of Human Resources ......…........................................................................................................................................... Sharrone Taylor D
irector of Public Works …......................................................................................................................................................... Daniel Chavarria C
hief of Police ............................................................................................................................................................................................ Bisa French F
ire Chief ...................................................................................................................................................................................................Aaron Osorio P
ort Director ….……………………………………………………………………………………………………................................... Charles Gerard xx
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, 2024, 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, 2024. 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.

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

Page 2 ends

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, 2024. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 7.43%, 16.65%, and 6.54% 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, 2024, 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.

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.

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

Page 3 ends

3 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.

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

Page 4 ends

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 175-195 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 introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the fina ncial statements do not cover the other information, and we do not express an opinion or any form of assu rance thereon. In connection with our audit of the financial statements, our responsibility is to read th e other information and consider whether a material inconsistency exists between the other information an d the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 5 To the Honorable Mayor and Members of the City Council of the City of Richmond
Richmond, California

Page 5 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 2, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial rep orting 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 a udit 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 2, 2025

6 This page intentionally left blank.
7 MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2024
This narrative overview and analysis of the City of Richmond’s (City) Basic Financial Statements is for the fiscal year (FY) ended June 30, 2024. We encourage readers 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 is $138.9 million, an incr ease of $67.3 million over the prior fiscal year.

Governmental activities are negative $14.4 million, an increase of $47.9 million which is mainly attributed to an increase of $35.8 million to Cash and investments; a nd $5.8 million in Capital assets.

Business-type activities are $153.3 million, an increase of $19.4 million which is mainly attributed to an increase of $30.6 million to total assets; as well as an increase of $11.2 million to total liabilities. x The liabilities and deferred inflows of the government al activities of the City exceeded its assets and deferred outflows at the close of FY2023-24 by $14.4 million (net deficit). Alternatively, the assets and deferred outflows of the business-type activities of the City exceeded its liabilities and deferred inflows by $153.3 million.
x As of June 30, 2024, the City’s unrestricted net deficit (governmental and business-type activities) totaled $366.5 million, a $4.1 million deficit incr ease from prior year. The unrestricted net deficits represent the net unfunded liabilities of the gove rnment. Over time, increases and decreases in this account will allow the reader to determine if the C ity’s condition is improving or deteriorating.

Restricted net position for governmental and busi ness-type activities increased by a net $30.1 million to $171.5 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, 2024, the net position of RHA is $25.5 million, accounting for 16.7% 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 cash reserve policy re quires the City to maintain a minimum year-end contingency reserve balance of 21% of next year’s budgeted General Fund expenditures including transfers out or $52.3 million. As of June 30, 2024, the City’s cash reserve, which is a component of the unassigned fund balance, is $65.3 million or 26.2%. x The Net Pension Liability of $377.8 million, represents the City’s unfunded pension obligation, increased by $8.2 million from $369.6 million. The City reports $63.4 million in the Other Post- Employment Benefit (OPEB) liability for this fiscal year, which is a decrease of $11.3 million from the $74.7 million obligation reported in the prior year.
x The City’s General Fund revenue and other financing sources (uses) exceeded expenditures by $13.1 million in FY2023-24. This is primarily attributable to general government, public safety, and public works expenditures being less than expectations for the year. Property tax, sales tax, and utility user tax revenues were in excess of expectations for the year.
8 OVERVIEW OF FINANCIAL STATEMENTS
The City’s basic financial statements are comprised of government-wide financial statements, fund financial statements, and notes to the financial stat ements. 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 di fference between the four reported as net position.

Over time, increases or decreases in net position may se rve 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 re ported 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 f unctions 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 Stabiliz ation Corporation, Richmond Surplus Property Authority, and Richmond Municipal Sewer District. 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 lega lly separate entities, are included in the City's financial statement as di scretely presented componen t 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 info rmation 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 demo nstrate 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 FY2023-24. Such information may be useful in determining what financ ial resources are available in the near future to fund 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 information presented for governmental funds with similar information presented for governmental activities in the government-wide fina ncial 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.
9 The City has twenty-five governmental funds, of whic h four are considered majo r 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 four major funds are the General Fund, the Community Development and Loan Programs Special Revenue Fund, the American Rescue Plan Act Fund, and the General Capital Improvement Fund. The basic governmental fund financial statements can be found on pages 34-37 of the financial report. Data from the other twenty-one governmental funds are combined in to a single, aggregated presentation and reported separately on pages 202-212 of the financial report.

Proprietary Funds – Proprietary funds of the City are two types: (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 operations, risk management program, and compensated absences. The proprietary fund financial statements can be found on pages 40-45 and 236-242 of the financial report.

Fiduciary Funds – Fiduciary funds are used to account for r esources held for the benefit of third parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not availabl e to support the City’s own programs. The fiduciary funds for the City consist of Private-Purpose Trust Funds and Custodial Funds. The fiduciary funds financial statements for these funds can be found on pages 48-49 and 244-257 of the financial report.

The notes provide additional information that is essential 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 53-169 of the financial report.
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 provides the reader with highlights of changes between the audited fiscal year and the prior fiscal year.
11 Government-wide Activities
The following table indicates changes in the net posi tion for governmental and business-type activities between the audited fiscal year and the previous fiscal year. 12 Governmental Activities
Net position of Governmental Activities at the beginning of FY2023-24 has been restated to $62.9 million.

Governmental activities increased the net position by $48.4 million, accounting for 71.4% of the City’s total increase in net position of $67.8 million, which includes Business –type Activities. Total revenues of $328.2 million exceeded total expenses of $278.7 million by $49.5 million. Revenues increased by $33.6 million or 11.4% from the prior year’s revenue of $294 .6 million primarily due to an increase in Taxes, Operating Grant, and Capital Grant revenues. Expenses increased $83.1 million or 42.5% from the prior year’s expenses of $195.6 million primarily due to an increase in salary and administrative expenses.

Business Type Activities
Business-type activities increased the City’s net position by $19.4 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 $500 thousand from the previous year’s amount of $25 million. This increase is attributed to the collection of past due tenant rent and payment agreements.
x The Port of Richmond’s (Port) net position increased by $7.4 million, an increase of 26% from the previous year’s amount of $29 million. This is attributed to the Port’s Tariff and Lease rate increases. x The Municipal Sewer fund’s net position increased by $9.7 million from the previous year’s amount of $70.5 million. This is attributed to an increase in service charges and interest income. x Other Enterprise fund’s net position increased by $1.7 million from the previous year’s amount of $9.2 million. This is attributed to an increase in service charges.

Net Program (Expenses) Revenues
Comparisons of the costs of services by functions fo r 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. 13 Total governmental activities expenses of $278.7 million were offset by $89.3 million in program revenues in FY2023-24. 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 $190 million.

As reflected in the chart below, 38% of the gove rnmental program revenues came from Charges for Services, which includes licenses, permits, fees, fines, forfeitures, penalties, and several other revenues.

The remaining 62% 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 revenue not categorized as program revenues and includes property taxes, sales taxes, utility users’ tax, documentary transfer taxes, investment earnings, grants and contributions not related to specific programs and other miscellaneous general revenues. Total general revenues from governmental activities were $238.9 million in FY20 23-24. The three largest components of general revenues received were Property Taxes-current collections of $74.3 million, Sales Taxes of $61.3 million, and Utility User Taxes of $59.1 million. The following chart shows the City’s general revenues by source.

14 The following table details net program costs for business-type activities. Business-type activities revenue exceeded expenses by 14 million, as Municipal Sewer, the Port of Richmond, and other Enterprise Funds contributed net revenues of $7.7 million, $5.8 million, and $0.7 million respectively.

As reflected in the following pie chart, 94% of the business-type program revenues came from Charges for Services and the remaining 6% were derived from Operating Grants and Contributions.

15 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 FY2023-24, the City’s governmental funds reported total fund balances of $241.5 million, an increase of $48.3 million, or 25% from prior year including an increase of $11.8 million from a prior period adjustment. 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 u sers’ taxes, sales taxes, and property taxes. The major expenditures are salaries and administrative expenses.

The City’s general fund revenues increased by $12.1 million or 5.8% and expenditures increased by $18.6 million or 10.3%. The increase in revenues is primarily due to the increased collection of Property Taxes, Sales Taxes, and Utility User Taxes. Property taxes increased by $1.9 million or 3.6%. Sales taxes increased by $5.8 million or 10.4%. Utility User taxes increased by $4.4 million or 8.1%. The increase in expenditures is due to an increase in salaries and administrative expenses. Public safety expenditures increased by $13.2 million or 14.3%. Public works expenditures increased by $4.4 million or 16.1%. Cultural and recreational expenditures increased by $1.9 million or 18.3%.

At the end of the FY2023-24, the total fund balance increased by $13.1 million from the prior year to $99.4 million. The General Fund reported an unassigned f und balance of $65.3 millio n, an increase of $10.1 million from prior year’s balance of $55.2 million, 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 Developm ent Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program. In conjunction with the dissolution of the Redevelopment Agency, this fund also accounts for the low- and moderate-income housing activities of the City as Housing Successor to the former Redevelo pment Agency’s low-income and moderate-income housing activities. As of June 30, 2024, fund bala nce is $34.7 million, which represents a $2.1 million increase from prior year’s fund balance of $32.6 million.

The American Rescue Plan Act Fund – This fund received $27.7 million in federal funding allocated to the City under the American Rescue Plan Act (ARPA) of 2021. These funds are designated to address the economic impacts of the COVID-19 pandemic and support a strong and equitable recovery through initiatives such as rent relief for those affected by COVID-19, assistance for the unhoused, small business support, and several infrastructure improvements. The City plans to obligate all funds by December 31, 2024, and expend these funds by December 31, 2026. In FY2023-24, total ARPA expenditures were $2.36 million in Capital Outlay and General Governmental expenditure categories. In Capital Outlay, significant projects with expenditures were Booker T. Anderson Community Center and Main Library Renovation. In the General Governmental expenditure category, significant programs were Tenant Protection – Rental Assistance and Employment & Training -Youthworks programs. 16 General Capital Improvement Fund – The General Capital Improvement Fund is used to track the City’s several capital improvement projects. In FY2023-24, there was a total of $17.58 million transferred from the General Fund for multiple capital projects. Major contributions were to projects such as Nevin Center and Recreation Community Center HVAC System improvement and Boorman Park Site Remediation and Revitalization projects.

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 $500 thousand to $25.5 million as of June 30, 2024.

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 $7.4 million to $36.5 million as of June 30, 2024.

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 $9.7 million to $80 million as of June 30, 2024.

GENERAL FUND BUDGETARY HIGHLIGHTS
The original adopted budget, excl uding transfers, bond premium and proceeds from sale of property, reflected $205.1 million in estimated revenues and $213.3 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 includes $9 million increase in estimated revenues and $8.4 million increase in appropriations. Actual revenue of $218.7 million exce eds the revised revenue budget by $4.6 million, a variance of 2%. Key elements of the variances in revenues are discussed below.

Property taxes total $53.8 million, which exceeds the re vised budget by $1.6 million and original budget by $3.2 million. The increase stems from residual Redevelopment Property Tax Trust Fund (RPTTF) Recognized Obligation Payment Schedule (ROPS) receipts for the Successor Agency Residual and Pass- through revenue.

Sales taxes total $61.3 million, which exceeds the revi sed budget by $3.4 million and original budget by $4.6 million. This corresponds to increases in the regular sales tax and proportional increases in both half- cent sales tax measures.

Utility Users Tax (UUT) totals $59.1 million, whic h exceeds expectations by $1.2 million. The primary source of the increase is in tax collections from gas and electricity due to rate increases by Pacific Gas and Electric and higher than average gas and electric use.
17 Licenses, permits and fees total $14.5 million, which exceeds the revised budget by $1.5 million, however, it was lower than the previous fiscal year by $1.4 mil lion. A significant part of this revenue stream is the Business License Tax. Richmond voters in 2020 approved Measure U which changed the way the business tax is calculated from based on number of employees to gross receipts. Additionally, it changed the due date where now all business licenses expire on December 31st of each year rather than the anniversary date of each business basis. This change in expiration date required some businesses to transition their expiration which in many cases meant they would pay both a prorat ed amount and a full amount in the first full year of Measure U. This caused the amount received for FY2 022-23 to be higher than the amount received in FY2023-24.

The final adjusted appropriations are $221.7 million, an increase of $8.4 million from the original adopted budget appropriation of $213.3 million. The increase is driven by additional appropriations in General Government and Public Safety. The final budget appropriation for transfers out is $35.9 million, an increase of $17.7 million. The increase is due to City Council approved allocations to several capital projects to appropriate fund balance above the minimum reserve level of 21 percent.

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, 2024, amounted to $573.2 million, net of accumulated depreciation. Investment in capital assets includes land, construction in progress, buildings and improvemen ts, machinery and equipment, and infrastructure.

Details by type are shown in the following table.

The City’s infrastructure assets are recorded at th eir historical costs in the government-wide financial statements. Additional information about the City’s capital assets can be found in Note 6 on pages 86-90. 18 Debt Administration
Long Term Debt – The City’s total debt outstanding decreased $6.9 million to $423.3 million as of June 30, 2024. The decrease is due to the payoff of th e 2019B Point Potrero lease revenue bonds and the reissuance of the 2005 Pension Obligation bonds. Details by type are shown in the following table.

The City does not have any general obligation bonds as of June 30, 2024.

Economic Factors
The City’s economic base has recovered from the sl owdown related to the effects of the COVID-19 restrictions. As of January 1, 2024, 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 Consumer Price Index (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 $2.8 billion in FY2021-22, to $3.1 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 FY2015-16 to $12.5 million in FY2023-24. Sales Tax revenue has rebounded to above pre-pandemic levels. Sales Tax revenue was $47.7 million in FY2018-19, dipped down to $44.5 million in FY2019-20, rebounded to $49.0 million in FY2020-21, and has continued to increase year-over-year. In FY2023-24, Sales Tax revenue increased to $61.3 million.

Measure H
In November 2018, Richmond voters approved Measure H which called for a new tiered calculation for the Documentary Transfer Tax. The tax rate increases based on the sale price of the property. The rate of 0.70% did not change for sales under $1 million, but for sa les from $1 million and above, the rates changed according to the following table.

19 Prior to the new tiered system, Documentary Transfer Tax has always been one of the most volatile of revenue streams for the City. A few sales can have a dramatic impact on the General Fund, and this has not changed as revenue fluctuates year-to-year. In FY2017-18, before the new tiered rate structure was established, the transfer tax collected totaled $6.5 million. In FY2018-19, the tax collected went up to $8.0 million. In FY2019-20, it went up modestly to $8.7 million. In FY2020-21, due to a few unusually large real-estate transactions, it increased significantly to $19.9 million. In FY2021-22, the Transfer Tax revenue decreased by $1.2 million to $18.6 million. In FY2022-23, 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. Finally, in FY2023-24, the Transfer Tax revenue saw another dip, this dip was $1.8 million, or a decrease of 18%, with a total of $8.6 million in Transfer Tax received.

Measure U
In November 2020, Richmond voters approved Measure U which significantly changed the calculation for the business license tax. This change d the tax calculation from being based on number of employees or location, to a percentage of the business’s gross receipts. The percentage charged varies based on both the type of business and the amount of gross receipts with the new rates ranging from 0.06% to 0.68% for businesses and 1.08% to 2.4% for rental properties. The new methodology brought in an additional $5.3 million for the City in FY2021-22, an increase of 168% compared to prior year, an additional $7.7 million in FY2022-23 with a total of $16.2 million, an increase of 91% over the previous year. In fiscal year 2024, revenue received totaled $14.5 million, a decrease of $1.7 million or 10.8%. This decrease was expected as businesses transitioned to the new business tax calculation methodology based on gross receipts and the updated expiration date of December 31
st of each year. This expiration date change called for some businesses that did not expire on December 31 st to make two payments during the fiscal year – one was a partial payment for 2023, and the other was the full payment for 2024.

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 Cali fornia 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 Califo rnia 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 genera l overview of the City’s finances for all its citizens, taxpayers, customers, investors, and creditors. Questions concerning any of the information provided in this report or requests for additional information should 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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22 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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25 City of Richmond
Statement of Net Position
June 30, 2024
Governmental Business-typ e
Activities Activities Total
ASSETS
Current assets:

Cash and investments 288,117,958$ 74,282,50 9$ 362,400,467 $ Restricted cash and investments 16,172,83 4 1,277,996 17,450,830 Receivables:

Accounts, net 16,488,921 7,039,055 23,527,97 6
Interest 453,030 110,260 563,290
Grants 21,910,422 2,207,54 1 24,117,963
Loans ---
Leases 49,607 4,602,252 4,651,85 9
Internal balances 12,221,772 (12,221,772 ) -
Prepaids and supplies 1,332,333 - 1,332,333
Total current assets 356,746,877 77,297,84 1 434,044,718 Noncurrent assets:

Due from developer - 10,221,743 10,221,743
Loans 49,385,008 - 49,385,008
Leases 769,389 57,174,107 57,943,49 6
Property held for resale 78,016 - 78,01 6
Capital assets:

Nondepreciable 85,587,572 127,414,145 213,001,717
Depreciable 779,834,628 359,266,195 1,139,100,823
Less accumulated depreciation (560,884,233) (218,003,647) (778,887,880) Total capital assets 304,537,967 268,676,693 573,214,66 0 Total noncurrent assets 354,770,38 0 336,072,543 690,842,923 Total assets 711,517,257 413,370,38 4 1,124,887,641

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 89,223,332 1,872,788 91,096,12 0 Deferred outflows of resources - OPEB 1,168,751 6,282 1,175,033 Deferred charge on refunding 28,733,660 5,206,437 33,940,097 Total deferred outflows of resources 119,125,743 7,085,507 126,211,250

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 20,881,225 19,815,70 4 40,696,929 Interest payable 4,551,857 2,234,22 0 6,786,077
Refundable deposits 1,701,428 457,31 9 2,158,747
Unearned revenue 43,672,357 - 43,672,357
Compensated absences - due within one year 6,437,81 4 124,998 6,562,812 Claims liabilities - due within one year 14,192,093 - 14,192,093 Long-term debt - due within one year 7,190,28 4 3,336,711 10,526,995 Total current liabilities 98,627,058 25,968,952 124,596,01 0 Noncurrent liabilities:

Unearned revenue - 2,384,505 2,384,505 Compensated absences 6,882,078 210,246 7,092,324 Claims liabilities 37,979,471 - 37,979,471 Long-term debt 243,466,037 169,277,488 412,743,525
Net pension liability 370,751,455 7,008,011 377,759,466 Net OPEB liability 60,965,350 2,478,673 63,444,023 Total noncurrent liabilities 720,044,391 181,358,923 901,403,314 Total liabilities 818,671,449 207,327,875 1,025,999,324

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 5,835,462 198,175 6,033,637 Deferred inflows of resources - OPEB 19,772,291 297,961 20,070,252 Deferred inflows of resources - leases 794,245 59,316,497 60,110,742 Total deferred inflows of resources 26,401,998 59,812,633 86,214,631

NET POSITION
Net investment in capital assets 232,570,273 101,268,93 1 333,839,204 Restricted for:

Capital projects 50,752,521 - 50,752,52 1
Debt service 227,326 1,180,210 1,407,536
Housing and redevelopment 12,089,128 - 12,089,128
Community development projects 102,110,923 - 102,110,923 Pension plans 5,162,825 - 5,162,825
Total restricted 170,342,723 1,180,21
0 171,522,933
Unrestricted (417,343,443) 50,866,242 (366,477,201 )
(14,430,447)$ 153,315,383 $ 138,884,93 6$ Total net position Primary Government
See accompanying Notes to Basic Financial Statements
26 RHA RHA Housin g RHA
Properties Corporation RAD LLC
-$ 125,427$ - $ ---
---
---
---
- - 15,510,00
0 ---
---
---
- 125,427 15,510,00 0
---
---
---
---
---
---
---
---
- 125,427 15,510,00
0 ---
---
---
- - - -- -
-- -
-- -
- 66,407 -
---
---
---
- 66,407 -
- - - - - - - - - ---
- - - - - - - - - - 66,407 - - - - - - - - - - ---
---
---
---
---
---
---
- 59,02
0 15,510,000
-$ 59,02 0$ 15,510,00 0$ Component Units
27 City of Richmond
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 70,311,954 $ 25,343,470 $ 397,677 $ - $ 25,741,147$ Public safety 114,081,723 2,040,106 72,115 328,851 2,441,072 Public works 51,215,494 4,702,336 4,214,756 2,656,760 11,573,852 Community development 6,710,315 915,396 44,836,356 2,103,529 47,855,281 Cultural and recreational 12,963,405 921,946 802,056 - 1,724,002 Housing and redevelopment 3,441,920 - (36,200) - (36,200) Interest on long-term debt 19,980,774 - - - - Total governmental activities 278,705,585 33,923,254 50,286,760 5,089,140 89,299,154 Business-type activities:

Richmond Housing Authority 4,444,837 358,327 3,426,450 - 3,784,777 Port of Richmond 6,438,177 12,255,674 - - 12,255,674 Municipal Sewer 24,835,079 32,563,772 - - 32,563,772 Richmond Marina 213,335 529,539 - - 529,539 Storm Sewer 2,751,735 3,762,222 - - 3,762,222 Cable TV 898,308 922,077 - - 922,077 Total business-type activities 39,581,471 50,391,611 3,426,450 - 53,818,061 Total primary government 318,287,056$ 84,314,865 $ 53,713,210 $ 5,089,140 $ 143,117,215 $ Component units:

RHA Properties - - - - - RHA Housing Corporation 14,010 7,000 - - 7,000

RHA RAD LLC - - - - - Total component units 14,010$ 7,000 $ - $ - $ 7,000$ 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
Prior period adjustments
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements
28 Governmental Business-Type RHA RHA Housing RHA
Activities Activities Total Properties Corporation RDA LLC (44,570,807)$ - $ (44,570,807)$ (111,640,651) - (111,640,651) (39,641,642) - (39,641,642) 41,144,966 - 41,144,966 (11,239,403) - (11,239,403) (3,478,120) - (3,478,120) (19,980,774) - (19,980,774) (189,406,431) - (189,406,431) - (660,060) (660,060) - 5,817,497 5,817,497 - 7,728,693 7,728,693 - 316,204 316,204 - 1,010,487 1,010,487 - 23,769 23,769 - 14,236,590 14,236,590 (189,406,431) 14,236,590 (175,169,841)
- - - - (7,010) -
- - - - (7,010) -
74,255,275 - 74,255,275 - - - 61,319,980 - 61,319,980 - 5,000 - 59,120,237 - 59,120,237 - - - 8,565,938 - 8,565,938 - - - 10,189,053 - 10,189,053 - - - 213,450,483 - 213,450,483 - 5,000 - 8,695,225 - 8,695,225 - - - 14,918,668 4,093,449 19,012,117 - - - 49,657 - 49,657 - - - 1,801,175 - 1,801,175 - - - (1,076,221) 1,076,221 - - - - 237,838,987 5,169,670 243,008,657 - 5,000 - 48,432,556 19,406,260 67,838,816 - (2,010) - (62,297,745) 133,860,589 71,562,844 - 61,030 15,510,000 (565,258) 48,534 (516,724) - - - (62,863,003) 133,909,123 71,046,120 - 61,030 15,510,000 (14,430,447)$ 153,315,383 $ 138,884,936 $ - $ 59,020$ 15,510,000$ Primary Government Component Units
Net (Expense) Revenue
and Changes in Net Position
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30 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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32 GOVERNMENTAL FUND FINANCIAL STATEMENTS
The funds described below were determined t o 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.

General Capital Improvement Fund accounts for monies designated for capital improvement projects. 33 City of Richmond
Balance Sheet
Governmental Funds
June 30, 2024
Community
Development American General Capital Othe r Total
General and Loan Rescue Plan Improvement Governmental Governmental Fund Program s Act Fund Fund Fund s Funds
ASSETS
Cash and investments 82,819,963$ 6,940,873 $ 23,206,096 $ 40,898,130 $ 69,405,159 $ 223,270,22 1$ Restricted cash and investments 2,205,685 2,689,963 - 97,543 11,179,643 16,172,834 Receivables:

Accounts, net 15,229,990 85,361 - - 1,173,570 16,488,921 Interest 144,777 11,046 37,858 52,650 106,97 1 353,302
Grants 18,127 25,526 - - 20,943,428 20,987,08 1
Loans 3,062,737 43,793,258 1,750,000 - 779,013 49,385,008 Leases 818,996 ---- 818,996
Due from other funds 3 , 3 1 5 , 9 7 3---- 3 , 3 1 5 , 9 7 3 Advances to other funds 1 2 , 1 4 4 , 8 6 2---- 1 2 , 1 4 4 , 8 6 2 Property held for resale - 78,016 - - - 78,016
Prepaids and supplies 793,356 - - - 319,297 1,112,653
Total assets 120,554,466 53,624,043 24,993,954 41,048,323 103,907,081 344,127,867

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 9,678,649 33,758 794,722 1,052,152 7,380,307 18,939,588 Refundable deposits 443,857 - - - 1,257,57 1 1,701,428
Due to other funds ---- 3 , 2 3 9 , 0 6 3 3 , 2 3 9 , 0 6 3 Unearned revenue 7,829,593 - 20,769,592 - 15,073,172 43,672,357 Total liabilities 17,952,099 33,758 21,564,314 1,052,152 26,950,113 67,552,436 Deferred inflows of resources:

Unavailable revenue 2,385,463 18,907,347 - - 12,974,588 34,267,398 Leases related 794,245 ---- 794,245
Total deferred inflows of resources 3,179,708 18,907,347 - - 12,974,588 35,061,643 Fund Balances:

Nonspendable 1 3 , 6 3 8 , 2 1 8---- 1 3 , 6 3 8 , 2 1 8 Restricted 10,667,506 34,682,938 1,679,640 39,996,17 1 68,768,576 155,794,83 1 C o m m i t t e d 3 , 7 4 8 , 5 6 6---- 3 , 7 4 8 , 5 6 6 Assigned 6,106,044 - 1,750,000 - - 7,856,044
Unassigned 65,262,325 - - - (4,786,196
) 60,476,129
Total fund balances 99,422,659 34,682,938 3,429,640 39,996,171 63,982,380 241,513,788 Total liabilities, deferred inflows
of resources, and fund balances 120,554,466$ 53,624,043 $ 24,993,954 $ 41,048,323 $ 103,907,081 $ 344,127,867 $ See accompanying Notes to Basic Financial Statements
34 Total Fund Balances - Total Governmental Funds 241,513,788$ 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 85,587,572$ (5,459,255 )$ 80,128,317
Depreciable, net 218,950,395 (11,038,097 ) 207,912,298
Total capital assets 304,537,967$ (16,497,352 )$ 288,040,615 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. 26,088,128
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. 34,267,398 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 88,946,919 Deferred outflows of resources related to OPEB 1,167,892 Deferred inflows of resources related to pension (5,806,213 )
Deferred inflows of resources related to OPEB (19,731,567) 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 (6,437,814) $ 4,549 $ (6,433,265)$ Interest payable (4,551,857) 5,874 (4,545,983) Long-term debt - due within one year (7,190,284) 283,146 (6,907,138) Compensated absences - due in more than one year (6,882,078) 8,477 (6,873,601) Long-term debt - due in more than one year (243,466,037) 918,646 (242,547,391) Deferred charge on refunding 28,733,660 - 28,733,660 Net pension liability/asset (370,751,455) 1,034,345 (369,717,110) Net OPEB liability (60,965,350) 338,771 (60,626,579)
Total long-term liabilities (671,511,215)$ 2,593,808 $ (668,917,407 ) Net Position of Governmental Activities (14,430,447)$
City of Richmond
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
35 City of Richmond
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
Community
Development American General Capital Other Total
General and Loan Rescue Plan Improvement Governmental Governmental Fund Program s Act Fund Fund Fund s Funds
REVENUES:

Property taxes 53,802,373 $ - $ - $ - $ 29,004,973$ 82,807,346 $ Sales taxes 61,319,980 - - - - 61,319,980 Utility user taxes 59,120,237 - - - - 59,120,237 Other taxes 18,754,991 - - - - 18,754,991 Licenses, permits and fees 14,519,981 938,531 - - 12,355,479 27,813,991 Fines, forfeitures and penalties 229,936 - - - 9,443 239,379 Use of money and property 4,058,357 572,224 1,144,072 1,197,428 4,378,204 11,350,285 Intergovernmental 641,157 161,266 2,358,952 - 44,348,273 47,509,648 Charges for services 4,948,584 - - - 8,240,936 13,189,520 Rent 864,042 - - - - 864,042 Other 432,808 1,066,843 - 300,001 29,725 1,829,377 Total revenues 218,692,446 2,738,864 3,503,024 1,497,429 98,367,033 324,798,796 EXPENDITURES:

Current:

General government 43,654,447 2,338 1,013,839 633,832 23,126,329 68,430,785 Public safety 105,663,918 - - - 4,402,434 110,066,352 Public works 32,133,919 - 40,263 2,413,026 14,672,476 49,259,684 Community development - 440,901 - - 6,941,428 7,382,329 Cultural and recreational 12,187,647 - - - 1,321,390 13,509,037 Housing and redevelopment - 259,103 - - 3,215,403 3,474,506 Capital outlay 1,032,495 - 1,304,850 882,591 9,600,348 12,820,284 Debt service:

Principal 3,826,278 - - - 3,865,000 7,691,278 Interest and fiscal charges 141,405 - - - 15,327,428 15,468,833 Total expenditures 198,640,109 702,342 2,358,952 3,929,449 82,472,236 288,103,088

REVENUES OVER (UNDER)
EXPENDITURES 20,052,337 2,036,522 1,144,072 (2,432,020) 15,894,797 36,695,708 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 6,299 35,239 - - 8,120 49,658 Transfers in 21,637,505 - - 18,819,926 17,759,579 58,217,010 Transfers out (28,585,425) - - - (29,893,824) (58,479,249) Total other financing sources (uses) (6,941,621) 35,239 - 18,819,926 (12,126,125) (212,581) Net change in fund balances 13,110,716 2,071,761 1,144,072 16,387,906 3,768,672 36,483,127 FUND BALANCES (DEFICITS):

Beginning of year 86,311,943 32,611,177 2,285,568 - 72,002,432 193,211,120 Prior period adjustments - - - 23,608,265 (11,788,724) 11,819,541 Beginning of year, as restated 86,311,943 32,611,177 2,285,568 23,608,265 60,213,708 205,030,661 End of year 99,422,659$ 34,682,938 $ 3,429,640 $ 39,996,17 1$ 63,982,380 $ 241,513,788 $ See accompanying Notes to Basic Financial Statements
36 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, 2024
Net Change in Fund Balances - Total Governmental Funds 36,483,127$ 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. 12,477,021
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. (13,686,306) 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 49,658
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 (49,658)
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. (1,742,772) 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 7,691,278
Amortization of deferred loss on refunding (1,512,298)
Amortization of bonds premium 863,438
Interest on long-term debt i s recognized as an expenditure in the governmental funds when it is due. In the statement of activities, interest expense is recognized as the interest accrues, regardless of when it is due.

The difference between interest expense paid and interest accrued was: (3,810,734) 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. 38,154,001
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. (50,571,997) 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. 16,334,041 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. 961,290
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. 6,792,467
Change in Net Position of Governmental Activities 48,432,556$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
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38 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. 39 City of Richmond
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2024
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
ASSETS
Current assets:

Cash and investments 3,280,169 $ 16,508,586 $ 48,754,14 1$ 5,739,613 $ Restricted cash and investments 97,786 - 1,088,890 91,320 Receivables:

Accounts, net 627,448 6,017,414 87,392 306,80 1
Interest - 22,406 78,569 9,285
Grants 1,011,583 - - 1,195,958
Leases - 4,486,723 - 115,529
Prepaids - - - -
Total current assets 5,016,986 27,035,129 50,008,992 7,458,506 Noncurrent assets:

Receivables:

Due from developer 10,221,743 - - -
Lease receivables - 52,059,432 - 5,114,675
Capital assets:

Nondepreciable 1,708,686 5,060,950 113,981,637 6,662,872 Depreciable 44,836,474 87,500,286 191,344,030 35,585,405 Less accumulated depreciation (30,158,605) (66,446,416) (87,669,945) (33,728,681) Net capital assets 16,386,555 26,114,820 217,655,722 8,519,596 Total noncurrent assets 26,608,298 78,174,252 217,655,722 13,634,27 1 Total assets 31,625,284 105,209,38 1 267,664,714 21,092,777

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 434,566 257,025 773,500 407,697 Deferred outflows of resources - OPEB 1,717 744 2,304 1,517 Deferred charge on refunding - - 5,206,437 -
Total deferred outflows of resources 436,283 257,769 5,982,24 1 409,214

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,372,968 380,97 1 17,179,741 882,024 Interest payable - - 2,150,979 83,24 1
Due to other funds - - - 76,910
Refundable de
posits 123,575 238,423 - 95,32 1
Unearned revenue 1,814,047 534,178 36,280 -
Compensated absences - current 24,970 6,522 59,665 33,84 1 Claims payable - current - - - -
Long-term debt - current - - 3,220,704 116,007
Total current liabilities 3, 335,560 1,160,094 22,647,369 1,287,344 Noncurrent liabilities:

Advances from other funds - 12,144,862 - -
Compensated absences 66,793 25,064 75,476 42,913
Claims payable ----
Long-term debt 700,000 - 166,675,535 1,901,953
Net pension liability 1,626,157 961,792 2,894,454 1,525,608 Net OPEB liability 677,542 293,60 1 909,035 598,495
Total noncurrent liabilities 3,070,492 13,425,319 170,554,500 4,068,969 Total liabilities 6,406,052 14,585,413 193,201,869 5,356,313

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 45,986 27,198 81,850 43,14 1 Deferred inflows of resources - OPEB 81,447 35,294 109,275 71,945 Deferred inflows of resources - leases - 54,226,652 - 5,089,845 Total deferred inflows of resources 127,433 54,289,144 191,125 5,204,93 1

NET POSITION (DEFICIT)
Net investment in capital assets 15,686,555 26,114,820 52,965,920 6,501,636 Restricted for debt service - - 1,088,890 91,320
Unrestricted 9,841,527 10,477,773 26,199,15 1 4,347,791 Total net position 25,528,082$ 36,592,593 $ 80,253,96 1$ 10,940,747 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
40 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
74,282,509$ 64,847,737 $
1,277,996 -
7,039,055 -
110,260 99,728
2,207,541 923,341
4,602,252 -
- 219,680
89,519,613 66,090,486
10,221,743 -
57,174,107 -
127,414,145 5,459,255
359,266,195 34,915,889
(218,003,647) (23,877,792)
268,676,693 16,497,352
336,072,543 16,497,352
425,592,156 82,587,838
1,872,788 276,413
6,282 859
5,206,437 -
7,085,507 277,272
19,815,704 1,941,637
2,234,220 5,874
76,910 -
457,319 -
2,384,505 -
124,998 4,549
- 14,192,093
3,336,71
1 283,146
28,430,367 16,427,299
12,144,862 -
210,246 8,477
- 37,979,47 1
169,277,488 918,646
7,008,011 1,034,345
2,478,673 338,77 1
191,119,280 40,279,710
219,549,647 56,707,009
198,175 29,249
297,961 40,724
59,316,497 -
59,812,633 69,973
101,268,931 15,295,560
1,180,210 -
50,866,242 10,792,568
153,315,383$ 26,088,128 $
41 City of Richmond
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
Richmond Housing Port of Municipal Other Enterprise
Authority Richmond Sewe r Funds
OPERATING REVENUES:

Rental 281,436 $ 7,075,222 $ - $ 168,642$ Service charges 42,817 883,05 1 32,563,772 4,678,415
Lease income - 4,297,40 1 - 366,78 1
Other 34,074 - - -
Total operating revenues 358,327 12,255,674 32,563,772 5,213,838 OPERATING EXPENSES:

Salaries and benefits 1,059,433 1,012,653 2,462,823 624,922 General and administrative 1,153,986 2,164,379 13,687,154 2,181,525 Maintenance 901,117 13,384 152,206 758,622
Depreciation - 3,467,194 3,967,42 1 217,345
Claims losses ----
Other 1,330,301 (2,906) 9,150 (10,388)
Total operating expenses 4,444,837 6,654,704 20,278,754 3,772,026 OPERATING INCOME (LOSS) (4,086,510) 5,600,970 12,285,018 1,441,812 NONOPERATING REVENUES (EXPENSES):

Interest income 58 1,646,990 1,983,850 462,55 1
Grants 3,426,450 - - -
Interest expense - 216,527 (4,556,325) (91,352)
Total nonoperating revenues (expenses) 3,426,508 1,863,517 (2,572,475) 371,199 Income (loss) before
contributions and transfers (660,002) 7,464,487 9,712,543 1,813,011 CONTRIBUTIONS AND TRANSFERS:

Transfers in 1,162,999 - - -
T r a n s f e r s o u t --- (86,778)
Total contributions and transfers 1,162,999 - - (86,778) Change in net position 502,997 7,464,487 9,712,543 1,726,233 NET POSITION:

Beginning of year 24,976,551 29,128,106 70,541,418 9,214,514 Prior period adjustments 48,534 - - -
Beginning of year, as restated 25,025,085 29,128,106 70,541,418 9,214,514 End of year 25,528,082$ 36,592,593 $ 80,253,96 1$ 10,940,747 $ Business-type Activities
See accompanying Notes to Basic Financial Statements.
42 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
7,525,300$ - $
38,168,055 30,217,57 1
4,664,182 -
34,074 -
50,391,611 30,217,571
5,159,831 2,279,343
19,187,044 2,612,725
1,825,329 1,433,080
7,651,960 2,023,873
- 16,614,347
1,326,15
7 28
35,150,321 24,963,396
15,241,290 5,254,175
4,093,449 2,715,032
3,426,450 (310,411)
(4,431,150) (52,347)
3,088,749 2,352,274
18,330,039 7,606,449
1,162,999 426,018
(86,778) (1,240,000)
1,076,221 (813,982)
19,406,260 6,792,467
133,860,589 19,295,66 1
48,534 -
133,909,123 19,295,66 1
153,315,383$ 26,088,128 $
43 City of Richmond
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers/interfund services 342,012 $ 11,374,102 $ 32,578,163 $ 3,506,455 $ Payments to suppliers (4,221,897) (1,947,079) (3,726,647) (2,509,100) Payments to employees (1,141,295) (654,232) (2,100,101) (1,022,533) Insurance premiums and claims paid ----
Net cash provided by (used in) operating activities (5,021,180) 8,772,791 26,751,415 (25,178)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) - (340,508) - 76,910
Receipts from other governments 3,426,450 - - -
Transfers in 1,162,999 - - -
Transfers out - - -
(86,778)
Net cash provided by (used in)
noncapital financing activities 4,589,449 (340,508) - (9,868)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts - - - -
Acquisition of capital assets - (123,789) (27,485,327) (1,870,502) Issuance of long-term debt - - 10,661,464 -
Principal payments on capital debt - (4,060,000) (2,815,000) (200,579) Principal payments on lease -- (271,203) -
Interest paid - (208,779) (5,258,061) (95,930)
Net cash provided by (used in)
capital and related financing activities - (4,392,568) (25,168,127) (2,167,011) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 58 1,641,876 1,990,305 466,728 Net cash provided by (used in) investing activities 58 1,641,876 1,990,305 466,728 Net cash flows (431,673) 5,681,591 3,573,593 (1,735,329) CASH AND INVESTMENTS - Beginning of year 3,809,628 10,826,995 46,269,438 7,566,262 CASH AND INVESTMENTS - End of year 3,377,955$ 16,508,586 $ 49,843,03 1$ 5,830,933 $

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

Operating income (loss) (4,086,510) $ 5,600,970 $ 12,285,018 $ 1,441,812 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 3,467,194 3,967,421 217,345 Changes in assets and liabilities:

Receivables, net (16,315) (130,402) 14,391 (1,059,223) Prepaids and other assets - - - - Accounts payable and accrued liabilities (839,380) 227,778 10,121,863 417,209 Refundable deposits 2,887 - - 3,450 Unearned revenue - 2,272 - (591,867) Compensated absences payable 24,509 8,515 42,975 14,070 Claims payable - - - - Net pension liability and deferred outflows/inflows ( 354,057) 191,618 603,186 (112,391) Net OPEB liability and deferred outflows/inflows 247,686 158,288 (283,439) (299,290) Lease receivable and deferred outflows/inflows - (753,442) - (56,293) Net cash provided by (used in) operating activities (5,021,180)$ 8,772,791 $ 26,751,415 $ (25,178) $ Business-type Activities
See accompanying Notes to Basic Financial Statements
44 Governmental
Activities
Total Enterprise Internal Service
Funds Funds
47,800,732$ 30,217,57 1$
(12,404,723) (3,846,753)
(4,918,161) (2,681,942)
- (14,124,469)
30,477,848 9,564,407
(263,598) -
3,426,450 -
1,162,999 426,018
(86,778) (1,240,000)
4,239,073 (813,982)
- 1,291,464
(29,479,618) (9,029,275)
10,661,464 -
(7,075,579) (272,340)
(271,203) -
(5,562,770) (53,678)
(31,727,706) (8,063,829)
4,098,967 2,727,085
4,098,967 2,727,085
7,088,182 3,413,681
68,472,323 61,434,056
75,560,505$ 64,847,737 $
15,241,290$ 5,254,175 $
7,651,960 2,023,873
(1,191,549) -
- (219,680)
9,927,470 418,760
6,337 -
(589,595) -
90,069 (59,123)
- 2,489,878
328,356 (71,540)
(176,755) (271,936)
(809,735) -
30,477,848$ 9,564,407 $
45 This page intentionally left blank
46 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. 47 City of Richmond
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Private-Purpose
Trust Funds Custodial Funds
ASSETS
Cash and investments 9,776,691 $ 5,781,738 $ Restricted cash and investments 16,127,761 849,154 Accounts receivable 854 - Interest receivable 2,530 9,030 Prepaids and other assets 4,997,462 - Total assets 30,905,298 6,639,922

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - deferred loss on refunding 301,218 - Total deferred outflows of resources 301,218 -

LIABILITIES
Accounts payable and accrued liabilities 113,029 3,147
Interest payable 446,519 -
Long-term debt:

Due within one year 6,855,000 -
Due in more than one year 32,647,830 -
Total liabilities 40,062,378 3,147 NET POSITION:

Held in trust for other governments (8,855,862) - Restricted for individuals, organizations, and other governments - 6,636,775 Total net position (8,855,862)$ 6,636,775 $ See accompanying Notes to Basic Financial Statements.
48 City of Richmond
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Pension Private-Purpose
Trust Funds Trust Funds Custodial Funds
ADDITIONS:

Property taxes -$ 10,171,374$ 1,046,160 $ Contributions to trust - employers - - 184,764 Net investment income:

Interest income - 910,081 313,455 Transfers from other funds - - - Gain from sale of property - 357,223 - Total additions - 11,438,678 1,544,379 DEDUCTIONS:

Community development - 1,219,365 - Payments in accordance with trust agreements - 273,544 - Interest and fiscal charges - 1,566,348 881,287 Other - - 1,230,434 Total deductions - 3,059,257 2,111,721 Change in net position - 8,379,421 (567,342) NET POSITION:

Beginning of year 11,040,528 (17,235,283) 7,204,117 Prior Period Adjustments (11,040,528) - - Beginning of year, restated - (17,235,283) 7,204,117 End of year -$ (8,855,862)$ 6,636,775 $ See accompanying Notes to Basic Financial Statements.
49 This page intentionally left blank
50 51

NOTES TO BASIC

FINANCIAL STATEMENTS
52 This page intentionally left blank.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
53 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 library, 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, 450 Civic Center Plaza 2
nd Floor, Richmond, California 94804.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
54 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 JPFA may be obtained by contacting Finance Department, 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 obtained by contacting the Finance Department under RNSC, City of Richmond, 450 Civic Center Plaza, Richmond, 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
55 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
56 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, 450 Civic Center Plaza 2 nd Floor, 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, 450 Civic Center Plaza 2 nd Floor, Richmond, California
94804.

In order for the Authority to proceed in its participation into the RAD Program as discussed in Note 18, 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
57 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
58 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.

General Capital Improvement Fund – accounts fo r monies designated for capital improvement projects.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
59 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, equipment services and replacement and compensated absences all of whic h are provided to other departments on a cost- reimbursement basis.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
60 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 Private-Purpose Trust funds and Custodial funds. Custodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 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 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 private developer for the cleanup of Point Molate as discussed in Note 18. The Successor Agency to the Richmo nd 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 Redeve lopment Agency as discussed in Note 19. The financial activities of the Trust Funds are exclud ed 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
61 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, 2024.

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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
62 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, 2024.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
63 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 1% of its assessed value except for vo ter approved incremental property taxes. Assessed value equals purchase price and may be adjusted by no more than 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 pensions and OPEB as discussed in Notes 12 and 14.

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 leases, pensions and OPEB as discussed in Note 5, Notes 12 and 14. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
64 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
65 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
66 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, 2024:

A. Classification
Cash and investments at June 30, 2024 consist of the following:

Primary Government:

Local Agency Investment Funds (LAIF) 70,769,777 $
CalTrust Short-Term Fund 216,908,058
CalTrust Medium-Term Fund 91,320
PARS Pension Plan Investment 2,205,685
Wellington Trust Company Mutual Fund (Police and Firemen's Plan) 9,719,501 Money Market Mutual Funds (U.S. Securities) 78,006,722
Held by Trustee:

Money Market Mutual Funds (U.S. Securities) 14,188,513
Guaranteed Investment Contracts 625,001
Total investments 392,514,577
Cash in banks and on hand - Primary Government 19,872,064 Cash in banks - RHA 125,427
Total cash on hand and deposits 19,997,491
Total cash and investments 412,512,068 $
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
67 2. CASH AND INVESTMENTS, Continued
B. Deposits
The carrying amount of the City’s cash deposit was $19,997,491 at June 30, 2024. Bank balances before reconciling items were a positive amount of $25,964,6 46 at June 30, 2024. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The remaining amount was collateralized with securities held by pledging the financial institutions.

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, 2024:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
68 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, 2024 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, 2024, the City had $70,769,777 invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of 0.996316042 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 to 3 years. At June 30, 2024 the Short-Term Fund investments matured in an average of 0.87 years and the Medium-Term Fund investments matured in an average of 2.38 years.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
69 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). 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).

D. 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 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 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, 2024, the City was in compliance with the terms of all these restrictions.

E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
70 2. CASH AND INVESTMENTS, Continued
E. Interest Rate Risk, Continued
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:
12 months 13 to 24 25 to 60 More than 60
or Less Months Months Months Total
Primary Government:

Local Agency Investment Funds (LAIF) 70,769,777 $ - $ - $ - $ 70,769,777$ CalTrust Short-Term Fund 216,908,058 - - - 216,908,058 CalTrust Medium-Term Fund 91,320 - - - 91,320 PARS Pension Plan Investment 2,205,685 - - 2,205,685 Wellington Trust Company Mutual Fund (Police
and Firemen's Plan) 9,719,501 - - - 9,719,501 Money Market Mutual Funds (U.S. Securities) 78,006,722 - - - 78,006,722 Held by Trustee:

Money Market Mutual Funds (U.S. Securities) 14,188,513 - - - 14,188,513 Guaranteed Investment Contracts - 625,001 - - 625,001 Total Investments 391,889,576 $ 625,001 $ - $ - $ 392,514,577 Cash in banks and on hand - Primary Government 19,872,064 Cash in banks - RHA Housing Corporation 125,427
Total Cash and Investments 412,512,068$
Remainin g Maturity (in Months)
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
71 2. CASH AND INVESTMENTS, Continued
F. 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, 2024 for each investment type:

G. 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.

H. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
72 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, 2024:

I. 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, 2024.

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, 2024 were as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
73 3. INTERFUND TRANSACTIONS, Continued
B. Advances To/From Other Funds
At June 30, 2024 the funds below had made advances which were not expected to be repaid within the next year.

In fiscal year 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 th e accrued unpaid interest of $745,119 to principal and reduce the advance balance by $842,877, and the advance no longer bears interest. Annual principal payments of $150,000 are due beginning June 30, 2014 through June 30, 2066, with a final principal payment of $32,593 due on June 30, 2067, and in addition to those payments, the annual berthing cost of the vessel Red Oak Victory at the Port that is to be paid by the 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, 2024 is $12,144,862.

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, 2024 were as follows:

General
Advances from Other Fun d Fund Total
Port of Richmond 12,144,862 $ 12,144,862 $ Total 12,144,862$ 12,144,862 $
Advances to Other Funds
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
74 3. INTERFUND TRANSACTIONS, Continued
C. Transfers In/Out, Continued
None of these transfers were unusual or non-recurring in nature.

4. NOTES AND LOANS RECEIVABLE
At June 30, 2024, notes and loans receivable consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
75 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 18. 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 from housing-in-lieu funds, and $1,100,000 from the Housing Successor funds. The housing-in-lieu funds and Housing Successor Funds are included in the Community Development and Loan Programs Fund. RHA Housing Corporatio n assigned the loan agreement and associated obligations to RHA RAD Housing Partners L.P. on Dece mber 22, 2015 upon closing of the financing for the rehabilitation of the RAD projects. See Note 18 for addi tional 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 the loan is repayable from residual receipts, as defined in the loan agreement, starting May 1 of the year after issuance of the Cert ificate 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, 2024, including accrued interest, was $766,528. As of June 30, 2024, $5,034,119 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, 2024, the outstanding loan amount is $221,335. In addition, as of June 30, 2024, $2,832,010 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
76 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, 2024, $1,529,817, which includes accrued interest of $430,223 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, 2024, $545,057, which includes accrued interest of $179,765, 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, 2024, the total balance of outstanding loans for NSP1 was $779,013 and no NSP3 loans had been issued. Loans are payable upon the resale of improved properties.

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

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

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
77 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 19, 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 19, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Arbors loan as of February 1, 2012.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
78 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 19, 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, 2024, Lillie Mae Jones has drawn down $2,996,592.

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, 2024, Greater Richmond Interface Program has drawn down $1,261,040.

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 19, 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 19, the City agreed to become the successor to the Redevelopment Agency’s housing activi ties and as a result City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of certain loans discussed above and all of the loans below as of February 1, 2012.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
79 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 19, 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, 2024, $3,472,661 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, 2024, $6,448,915, which includes accrue d interest of $1,707,423, had been drawn down on the loan.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
80 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.

5. LEASES RECEIVABLE
At June 30, 2024, leases receivable consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
81 5. LEASES RECEIVABLE, Continued
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, 2024, the value of the lease receivable is $2,142,661. 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, 2024 was $2,096,830, 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, 2024, the value of the lease receivable is $1,043,060. 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 re sources as of June 30, 2024 was $979,676 and the City recognized lease revenue of $489,838 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, 2024, the value of the lease receivable is $1,013,802. 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, 2024 was $978,005, and the City recognized lease revenue of $266,729 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

MSRC
On July 1, 2023, Richmond, CA 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, 2043. An initial lease receivable was recorded in the amount of $7,623,365 on July 1, 2023. As of June 30, 2024, the value of the lease receivable is $7,481,416. The lessee is required to made monthly fixed payments of $33,022.23, with step payment increase to $34,178.01 from July 1, 2024 to June 30, 2025. The lease has an interest rate of 3.6790%. The value of the deferred inflow of resources as of June 30, 2024 was $7,242,196, and Richmond, CA recognized lease revenue of $381,168 during the fiscal year.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
82 5. LEASES RECEIVABLE, Continued
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, 2025. An initial leas e receivable was recorded in the amount of $719,233.

As of June 30, 2024, the value of the lease receivable is $489,588. 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, 2024 was $479,488, 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, 2024, the value of the lease receivable is $229,755. 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, 2024 was $215,438, and the City recognized lease revenue of $66,289 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

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, 2024, the value of the lease receivable is $53,864. 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, 2024 was $51,450, and the City recognized lease revenue of $10,464 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, 2024, the value of the lease receivable is $550. 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, 2024 was $544, and the City recognized lease revenue of $3,263 during the fiscal year.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
83 5. LEASES RECEIVABLE, Continued
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, 2024, the value of the lease receivable is $779,412.

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, 2024 was $755,137, 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, 2024, the va lue of the lease receivable is $5,183,454. 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, 2024 was $5,046,082, and the City recognized lease revenue of $162,777 during the fiscal year.

Terminal Three Partners – Re-assigned to IV1 1411 Harbor Way S. Owners LLC 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, 2024, the value of the lease receivable is $39,273,095.

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, 2024 was $37,571,353, and the City recognized lease revenue of $601,569 during the fiscal year. The lessee has 4 extension option(s), each for 120 months.

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, 2024, the value of the lease receivable is $1,797,553. 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, 2024 was $1,735,752 and the City recognized lease revenue of $219,253 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
84 5. LEASES RECEIVABLE, Continued
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, 2024, the value of the lease receivable is $32,244. 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, 2024 was $31,840, 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, 2024, the value of the lease receivable is $3,021,360. 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, 2024 was $2,876,464, 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, 2024, the value of the lease receivable is $6,791. 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, 2024 was $6,725, and the City recognized lease revenue of $13,302 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, 2024, the value of the lease receivable is $46,750. 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, 2024 was $43,763, and the City recognized lease revenue of $5,865 during the fiscal year.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
85 5. LEASES RECEIVABLE, Continued
The future revenue payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2025 8,999 $ 1,158 $ 550 $ 1 $ 10,022$ 20,014 $ 110,682 $ 132,822 $ 44,306 $ 431,781 $ 209,218 $ 5,378 $ 2026 9,929 939 - - 10,284 19,752 113,568 129,936 54,366 431,243 214,179 4,710 2027 10,931 697 - - 10,552 19,483 116,530 126,974 64,728 430,593 219,240 4,026 2028 12,011 432 - - 10,828 19,208 119,570 123,934 75,400 429,827 224,406 3,325 2029 11,994 140 11,111 18,925 122,688 120,816 86,389 428,943 229,677 2,609 2030-2034 - - - - 60,067 90,112 663,141 554,379 608,418 2,127,026 700,833 3,355 2035-2039 - - - - 68,339 81,840 754,249 463,271 935,219 2,084,932 - - 2040-2044 - - - - 77,749 72,430 857,874 359,646 1,310,924 2,023,567 - - 2045-2049 - - - - 88,455 61,723 975,736 241,784 1,741,464 1,940,083 - - 2050-2054 - - - - 100,636 49,543 1,109,791 107,729 2,233,436 1,831,290 - - 2055-2059 - - - - 114,494 35,685 239,625 3,881 2,794,173 1,693,613 - - 2060-2064 - - - - 130,260 19,919 - - 3,431,824 1,523,054 - - 2065-2069 - - - - 86,615 3,492 - - 4,155,443 1,315,143 - - 2070-2074 - - - - - - - - 4,975,085 1,064,883 - - 2075-2079 - - - - - - - - 5,901,916 766,698 - - 2080-2084 - - - - - - - - 6,948,327 414,361 - - 2085-2089 - - - - - - - - 3,911,677 56,257 - - Total 53,864$ 3,366 $ 550 $ 1 $ 779,412$ 512,126 $ 5,183,454 $ 2,365,172 $ 39,273,095 $ 18,993,294 $ 1,797,553 $ 23,403 $ PRAM Richmond Art Center Richmond Bay Marina Terminal Three Partners DutraPoint San Pablo Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2025 32,244 $ 156 $ 3,021,360$ 13,490 $ 6,791 $ 54 $ 4,847 $ 1,267 $ 4,651,859$ 942,402 $ 2026 - - - - - - 5,235 1,124 1,674,743 903,146 2027 - - - - - - 5,643 970 1,211,024 878,560 2028 - - - - - - 6,074 804 1,117,347 855,851 2029 - - - - - - 6,527 626 944,794 837,744 2030-2034 - - - - - - 18,424 695 4,563,307 3,916,114 2035-2039 - - - - - - - - 4,561,690 3,366,595 2040-2044 - - - - - - - - 4,931,634 2,666,733 2045-2049 - - - - - - - - 2,805,655 2,243,590 2050-2054 - - - - - - - - 3,443,863 1,988,562 2055-2059 - - - - - - - - 3,148,292 1,733,179 2060-2064 - - - - - - - - 3,562,084 1,542,973 2065-2069 - - - - - - - - 4,242,058 1,318,635 2070-2074 - - - - - - - - 4,975,085 1,064,883 2075-2079 - - - - - - - - 5,901,916 766,698 2080-2084 - - - - - - - - 6,948,327 414,361 2085-2089 - - - - - - - - 3,911,677 56,257 Total 32,244$ 156 $ 3,021,360$ 13,490 $ 6,791 $ 54 $ 46,750$ 5,486 $ 62,595,355$ 25,496,283 $ YWCA TotalAWC Garamendi Watershed Nursery
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
86 6. CAPITAL ASSETS
The following is a summary of capital assets for governmental activities:

Balance at Balance at
July 1, 2023 Additions Retirements Transfers Adjustment June 30, 2024 Governmental Activities
Capital assets not being depreciated:

Land 24,634,683 $ - $ - $ - $ - $ 24,634,683$ Construction in progress 46,446,200 17,610,682 - (3,103,993) - 60,952,889 Total capital assets not being depreciated 71,080,883 17,610,682 - (3,103,993) - 85,587,572 Capital assets being depreciated:

Buildings and improvements 157,794,660 - - - - 157,794,660 Machinery and equipment 56,924,052 3,900,383 (698,871) 2,864,138 - 62,989,702 Land improvements and infrastructure 547,534,722 - - 239,855 - 547,774,577 Total capital assets being depreciated 762,253,434 3,900,383 (698,871) 3,103,993 - 768,558,939 Less accumulated depreciation for:

Buildings and improvements (58,689,696) (3,635,162) - - - (62,324,858) Machinery and equipment (44,688,005) (2,666,960) 694,102 - - (46,660,863) Land improvements and infrastructure (437,604,220) (6,353,601) - - - (443,957,821) Total accumulated depreciation (540,981,921) (12,655,723) 694,102 - - (552,943,542) Capital asset being depreciated, net 221,271,513 (8,755,340) (4,769) 3,103,993 - 215,615,397 Capital assets being amortized:

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

Leased buildings and improvements (3,823,094) (1,911,547) - - - (5,734,641) Subscription based I.T. agreeemnts (1,063,141) (1,142,909) - - - (2,206,050) Total accumulated amortization (4,886,235) (3,054,456) - - - (7,940,691) Capital assets being amortized, net 6,389,454 (3,054,456) - - - 3,334,998 Governmental activity capital assets, net 298,741,850 $ 5,800,886 $ (4,769) $ - $ - $ 304,537,967$ City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
87 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, 2024 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, 2024 of $6,690,416 with accumulated amortization of $5,734,641. 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, 2024 of $1,111,743 with accumulated amortization of $444,697. 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, 2024 of $158,237 with accumulated amortization of $82,799. The City has 1 extension option(s), each for 60 months.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
88 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, 2024 of $267,729 with accumulated amortization of $106,419. 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, 2024 of $840,217 with accumulated amortization of $387,793. 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, 2024 of $149,276 with accumulated amortization of $74,638. 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, 2024 of $816,036 with accumulated amortization of $408,018. 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, 2024 of $237,424 with accumulated amortization of $237,424. 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, 2024 of $1,004,611 with accumulated amortization of $464,262.

The City has 1 extension option(s), each for 36 months.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
89 6. CAPITAL ASSETS, Continued
The following is a summary of capital assets for business-type activities:

Balance at Balance at
July 1, 2023 Additions Retirements Transfers Adjustments June 30, 2024 Business-type Activities
Capital assets not being depreciated:

Land 7,195,986 $ - $ - $ - $ - $ 7,195,986$ Construction in progress 90,738,540 29,479,619 - - - 120,218,159 Total capital assets not being depreciated 97,934,526 29,479,619 - - - 127,414,145 Capital assets being depreciated:

Buildings and improvements 79,908,481 - - - - 79,908,481 Machinery and equipment 18,931,015 - - - - 18,931,015 Infrastructure 259,038,020 - - - - 259,038,020 Total capital assets being depreciated 357,877,516 - - - - 357,877,516 Less accumulated depreciation for:

Buildings and improvements (58,519,174) (740,263) - - (3) (59,259,440) Machinery and equipment (16,089,915) (681,284) - - - (16,771,199) Infrastructure (135,091,725) (5,883,328) - - - (140,975,053) Total accumulated depreciation (209,700,814) (7,304,875) - - (3) (217,005,692) Capital asset being depreciated, net 148,176,702 (7,304,875) - - (3) 140,871,824 Capital assets being amortized:

Leased land and improvements 1,172,173 - - - - 1,172,173 Leased machinery and equipments 216,506 - - - - 216,506 Total Capital assets being amortized 1,388,679 - - - - 1,388,679 Less accumulated amortization for:

Leased land and improvements (520,966) (260,483) - - - (781,449) Leased machinery and equipments (129,904) (86,602) - - - (216,506) Total accumulated amortization (650,870) (347,085) - - - (997,955) Capital assets being amortized, net 737,809 (347,085) - - - 390,724 Business-type activity capital assets, net 246,849,037 $ 21,827,659 $ - $ - $ (3) $ 268,676,693$ City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
90 6. CAPITAL ASSETS, Continued
Business-type activities depreciation expenses for capital assets allocated to each program for the year ended June 30, 2024 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, 2024 of $1,172,173 with accumulated amortization of $781,449.

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, 2024 of $256,921 with accumulated amortization of $256,921.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
91 7. COMPENSATED ABSENCES PAYABLE
Changes in compensated absence liabilities for the year ended June 30, 2024 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, 2024:

Bonds Payable
Bonds payable at June 30, 2024 consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
92 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, 2024, the outstanding balance of the defeasance of bond was $0. The bonds were paid off in fiscal year 2024.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
93 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, 2024, the 2016 Bonds consisted of the following:

The annual debt service requirements are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
94 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, 2024, the 2019A Bonds consisted of the following:

The annual debt service requirements are as follows:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024 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.

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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:

Financed Purchases
Financed purchases payable from direct borrowing at June 30, 2024 consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
97 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
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 2024 was $8,774. 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:

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 2024 was $6,739. 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:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
98 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:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
99 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 $6,690,416 on July 1, 2021. As of June 30, 2024, the value of the lease liability is $996,762. 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%.

At June 30, 2024, the aggregate maturities of the governmental lease liability were as follows:

Subscription Based Information Technology Arrangements (SBITA) At June 30, 2024, SBITA liabilities consisted of the following:

City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
100

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, 2024, the value of the subscription liability is $570,807. 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, 2024, 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, 2024, the value of the subscription liability is $50,843. 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%.