41.5%
35.8% 3
0.6%
FCERS
1% Decrease
Health Care
Cost Trend
Rates 1% Increase
Total OPEB Liability
$
582,392 $
665,452 $
767,509
Plan Fiduciary Net Position 3
84,612 3
84,612 3
84,612
Net OPEB Liability $
197,780 $
280,840 $
382,897
FCERS plan fiduciary net position as a percentage of the total OPEB liability
66.0%
57.8% 5
0.1%
167 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
OPEB Fiduciary Net Position
The City issues the publicly available financial reports that may be obtained from the Office of Retirement Services, 1737 North First Street, Suite 600, San José, CA 95112-4505.
Recognition of Deferred Outflows and Deferred Inflows of Resources for PFDRP and FCERS Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.
One fifth of the net earnings is recognized in the first year when the gain or loss occurred for the difference between projected and actual earnings on OPEB plan investments. The other deferred amounts are amortized over the expected average remaining service lifetime. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual earnings on OPEB plan investments
5 Years
All other amounts Expected average remaining service lifetime (EARSL) (5.0 Years at June 30, 2021 measurement date)
PFDRP
For the year ended June 30, 2022, the City recognized an OPEB expense of $17,985,000. As of June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources (dollar amounts in thousands):
PFDRP (consolidated with Police and Fire)
Deferred Outflows
of Resources
De
ferred Inflows
of Resources
O
PEB contributions subsequent to measurement date $ 3
0,763
$ -
Diff
erence between expected and actual experience 7
8 63,867
Changes in assumptions
40,343
-
Net difference between projected and actual earnings on OPEB plan
investments - 26,458
Total $ 7
1,184
$ 9
0,325
The $30,763,000 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2023.
The City’s contribution for the Postemployment Healthcare Plan during the year ended June 30, 2022, was $30,763,000. This consisted of City contributions in the amount of $27,502,000, and $3,261,000 in implicit subsidy.
168
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
Other amounts reported as deferred outflows/(inflows) of resources related to OPEB will be recognized as expense as follows (dollar amounts in thousands):
Fiscal Year Ending June 30:
Deferred Outflows /
(Inflows) of Resources
2023 $ (2
5,042)
2024 (1
0,030)
2025 (6
,930)
2026 (7
,902)
$ (4
9,904)
FCERS
For the year ended June 30, 2022, the City recognized a negative OPEB expense of $813,000. As of June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources (dollar amounts in thousands):
FCERS
Deferred Outflows
of Resources
De
ferred Inflows
of Resources
O
PEB contributions subsequent to measurement date $ 2
4,787 $ -
Diff
erence between expected and actual experience
-
31,177
Changes in assumptions 2
2,997 4
,934
Net difference between projected and actual earnings on OPEB plan investments -
31,488
Total $ 4
7,784 $ 6
7,599
The $24,787,000 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2023.
The City’s contributions for the Postemployment Healthcare Plan during the year ended June 30, 2022, was $24,787,000. This consisted of City contributions in the amount of $19,319,000, and $5,468,000 in adjustments and accruals.
Other amounts reported as deferred outflows/(inflows) of resources related to OPEB will be recognized as expense as follows (dollar amounts in thousands):
Fiscal Year Ending June 30:
Deferred Outflows /
(Inflows) of Resources
2023 $ (1
8,512)
2024 (6
,176)
2025 (8
,258)
2026 (1
1,656)
$ (4
4,602)
169 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
B. Commitments and Contingencie s
1. Norman Y . Mineta San José International Airport
Purchase Commitments and Capital Outlay Projections. As of June 30, 2022, the Airport was obligated for purchase commitments of approximately $31.6 million primarily for the parking revenue control system upgrade, airfield electrical circuit rehabilitation, parking accessibility upgrades, terminal paging system, and various operating and maintenance agreements. The Airport has projected that it will expend or encumber approximately $244.9 million on construction related capital projects during the next five fiscal years. It is anticipated that funding for such capital projects will be provided primarily by proceeds from federal grants, CP proceeds, and other Airport revenues.
Master Plan. In 1997, after extensive planning and environmental studies, the San José City Council approved a comprehensive update to the previous 1980 Master Plan. In turn, the FAA in 1999 conditionally approved a new Airport Layout Plan (ALP) displaying the proposed Master Plan projects and unconditionally approved all the near-term projects. Both the Master Plan and the ALP , which identify facility improvements needed to accommodate forecast demand for commercial passenger service, air cargo, and general aviation, have been kept up to date through periodic amendments. Implementation of the Master Plan has been ongoing, and since 1997 has included major runway extensions, new taxiways, new terminal buildings, parking garages, roadways, and environmental mitigation programs.
The most recent amendment to the Master Plan was approved by the City Council in April 2020. This amendment extended the planning horizon year out to 2037, incorporated the airfield reconfiguration improvements recommended in an FAA-funded Runway Incursion Mitigation/Design Standards Analysis Study, modified the passenger, cargo, and general aviation facility improvement program to serve projected 2037 demand, and added a proposed business hotel to the passenger terminal complex. The Master Plan is currently intended to serve a projected 2037 demand of 22.5 million annual passengers and a total of 184,000 annual aircraft operations and includes up to 42 airline terminal gates in 1.8 million square feet of passenger terminal facilities. The FAA conditionally approved a new ALP in June 2020 displaying the amended Master Plan development program.
Phase I of the Master Plan’s Terminal Area Improvement Program (TAIP) was substantially completed in 2010. The Phase I improvements included nine new airline gates and approximately 366,000 square feet of terminal space in a new Terminal B; improvements to existing Terminal A, including new ticketing facilities, in-line baggage system, security checkpoint, and concession space; the demolition of the original Terminal C; design and construction of a Consolidated Rental Car Facility (ConRAC); and realignment and improvement of existing terminal roadways and parking facilities. The Phase I program also included preliminary design of certain TAIP Phase II projects. On the airfield, the build-out of the Airport’s two commercial runways (12R/30L and 12L/30R) to 11,000 x 150 feet was completed in 2004, allowing the Airport to regularly serve takeoffs and landings by all domestic and most international commercial airline aircraft. Airfield project construction since 2004 has consisted of improvements to taxiways, aircraft parking aprons, and navigational aids to increase efficiency and compliance with current FAA airfield design standards.
TAIP Phase II projects (also referred to as the “New Terminal Project”) will consist primarily of the design and construction of a Terminal C extending from the south end of existing Terminal B, including a total of 16 additional airline gates plus a new parking garage. Eight of those 16 future gates will replace existing interim gates bolted on to the south end of Terminal B in 2018 and 2019 to accommodate increases in airline flights and passenger volume. Two of the 16 gates will be relocated from Terminals A and B for operational efficiency. Pursuant to the terms of the current Signatory Airline-Airport Lease and Operating Agreement and subject only to prior consultation with the Signatory Airlines, the City retains sole discretion to proceed 170
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
to construct the New Terminal Project upon its determination that an increase in terminal capacity to be achieved by the New Terminal Project is needed. After completing its consultation with the Signatory Airlines and having given due consideration to the information provided by the Signatory Airlines, the City may proceed with the New Terminal Project if the City determines, in its sole discretion, that the New Terminal Project continues to be needed and can be financed on reasonable terms.
FAA Audit of Use of Revenue. Federal law requires all airport owners that receive federal assistance, such as the City, to use airport revenues for the capital or operating costs of the Airport. Generally, any use of airport revenues by an airport owner for costs that cannot properly be considered airport capital or operating costs is deemed to be improper revenue diversion. On June 2, 2010, auditors from the FAA provided the City with a draft of its audit findings alleging improper use of Airport revenues by the City in three areas of expenditure.
On August 14, 2015, as the result of discussions and correspondence with City staff, the FAA notified the City that it has closed two of the three audit issues. The remaining audit issue is described below.
Cost Allocations - The City uses both direct and indirect methodologies to allocate costs to the Airport.
The FAA auditors found the direct cost allocations to be acceptable. The FAA contends that the City’s indirect methodology does not correlate to the cost of services actually provided by the City to the Airport.
Consequently, the auditors have recommended that the City re-allocate its costs charged to the Airport for FY 05-10 using an allocation methodology that reflects services actually provided to the Airport and repay any overcharges to the Airport, with interest. The City believes the allocation methodology used to allocate costs to the Airport is in compliance with federal cost allocation guidance. In an effort to resolve the issue, the City proposed and implemented a cap on the indirect cost allocations for certain City departments at 10%, which was the approximate rate charged to the Airport in pre-capital intensive years. This resulted in a total credit of $5.6 million that would be applied equally to the Airport cost allocation plan over a seven- year period beginning in FY 2013 and ending in FY 2019. The City has adjusted its indirect cost allocation methodology in an effort to address FAA concerns, including removal of debt expenditures from the relative expenditures base started in FY 2016, continuing with the 10% cap, and monitoring a rolling five-year average of the relative expenditure base to smooth out expenditure fluctuations.
On August 14, 2015, the FAA accepted the corrective actions that the City has already taken, however, the FAA disagrees with the City’s inclusion of capital expenditures in the allocation of indirect costs.
On May 3, 2018, the City received a letter from the FAA in which the FAA requested a copy of the City’s FY 2017 indirect cost allocation plan to substantiate indirect charges to the Airport to finalize the FAA’s financial compliance review. The City responded to the FAA on July 20, 2018 with copies of the requested information and clarified actions taken by the City to date to implement the FAA’s recommendations.
On May 19, 2022, the City received a letter from the FAA in which the FAA continues to believe that inclusion of capital costs in the indirect cost allocation methodology results in a disproportionate share of indirect costs being charged to the Airport. The FAA notes that the Modified Total Direct Cost (MTDC) is recognized as an equitable allocation base for the distribution of indirect costs and the MTDC allocation method excludes equipment and capital expenditures. See Note IV. D.2 for City’s response.
Potential Claim from FAA Regarding Reuse of Guadalupe Gardens. In early 2002, the City Council approved a Master Plan for Guadalupe Gardens, consisting of approximately 120 acres of mostly vacant, City-owned property located south of the Airport, much of which falls within an FAA-established safety zone. The City acquired the Guadalupe Gardens properties using FAA grants for airport approach protection and noise compatibility, and the FAA grant agreements consequently required FAA approval of any planned City-use of the properties acquired with grant proceeds. By letter dated August 9, 2002, addressed to the City’s Director of Aviation, the FAA San Francisco Airport District Office (ADO) approved the City’s Master Plan for reuse of 171 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
Guadalupe Gardens for runway and approach protection, and the City finalized the Master Plan in reliance upon the FAA approval.
During discussions regarding proposals to develop certain portions of the Guadalupe Gardens, the FAA has taken the position that the City must dispose of any portion of the Guadalupe Gardens that is no longer needed for noise compatibility purposes. Citing provisions of federal law that require recipients of FAA grants for acquisition of land for noise compatibility purposes to dispose of any such acquired land when no longer needed by the airport owner for noise compatibility purposes, the FAA contends that the FAA ADO erred in its 2002 approval of the Guadalupe Gardens Master Plan and that the City is obligated to prepare an inventory of the Guadalupe Gardens to identify those parcels that were acquired by the City with noise compatibility grant proceeds. This inventory would then be used to prepare for FAA review and approval of a disposition plan for those parcels no longer needed by the City for noise compatibility. Proceeds of the sale of the parcels proportionate to the FAA grant share of the original purchase price would be required to be used for other approved noise compatibility projects at the Airport or returned to the FAA.
The City believes that it has viable defenses to any potential claim by the FAA with regard to Guadalupe Gardens. The FAA ADO’s 2002 approval of the Guadalupe Gardens Master Plan constituted an official FAA approval of the City’s reuse of the parcels acquired with proceeds from FAA noise compatibility grants, and the approval expressly provides that the entire Guadalupe Gardens is necessary for the continuing aeronautical purpose of runway and approach protection. Having received official FAA approval of its reuse of the parcels, the City believes it is under no obligation to take any further action to secure further FAA approval of its continuing use of the Guadalupe Gardens. However, the City cannot predict the final outcome of any such potential claim by the FAA.
FAA Inquiry Regarding Encampments in Guadalupe Gardens. On February 1, 2021, the Director of Aviation received a letter from the FAA Western-Pacific Region Office of Airports regarding encampments of homeless persons in the Guadalupe Gardens. Guadalupe Gardens is approximately 120 acres of mostly vacant, City- owned property located south of the Airport, much of which falls within an FAA-established safety zone.
The City acquired the Guadalupe Gardens properties using FAA grants for airport approach protection and noise compatibility, and these FAA grants include certain restrictions (Grant Assurances) on the City’s use of the Guadalupe Gardens properties.
In its letter, the FAA asserts that the presence of encampments of homeless persons in the Guadalupe Gardens is: (a) inconsistent with the Grant Assurances that were a condition of the FAA grants that the City received to acquire the Guadalupe Gardens properties; and (b) contrary to the City’s Airport Noise Compatibility Plan (ANCP), both of which prohibit transient and permanent residential uses in the Guadalupe Gardens.
The City does not dispute that encampments of homeless persons in the Guadalupe Gardens is a use of the Guadalupe Gardens properties that is incompatible with the FAA Grant Assurances and with the City’s ANCP . The FAA requested and the City provided a Corrective Action Plan to remove and relocate the encampments of homeless persons from the Guadalupe Gardens on March 11, 2021 which was originally scheduled to occur by June 2022. In June 2022, the FAA agreed to extend the time for performance of the actions identified in the Corrective Action Plan. See Note IV. D.2 for update.
Federal Aviation Administration Inquiry Regarding Chick-fil-A. The City Council approved a Chick-fil-A subconcession at the Airport on March 6, 2018, as part of its approval of the Fourth Amendment to the Host Food and Beverage Agreement. Chick-fil-A does not have a direct contractual relationship with the City.
Rather, Host operates the Chick-fil-A concept at the Airport as a licensee. On April 9, 2019, the City Council approved an amendment to the Host Food and Beverage Agreement that extended the termination date 172
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
from June 30, 2026 to June 30, 2028. However, the City Council limited the additional two-year extension term only to those Airport concession locations operated by Host that are open 7-days each week. All owned and licensed Chick-fil-A locations, including the Airport location, are closed on Sundays. The City Council approved this limitation after hearing concerns from community members that the owners of Chick-fil-A have made donations to and supported certain organizations that oppose equal rights and protections for the LGBTQ+ communities. The City Council also directed Airport staff to display the Rainbow and Transgender flags at the Airport terminals to show the City’s support for those communities.
On January 22, 2020, the Director of Aviation received a Notice of Investigation from the FAA Office of Civil Rights. The FAA is investigating a complaint received by the FAA that alleges discrimination against Chick-fil-A, “because of the expression of religious beliefs by the owner of the company.” The complainant, whose identity has been withheld by the FAA, contends that the City has discriminated against Chick- fil-A for its “perceived religious and ideological convictions” and that this “discrimination” is in violation of federal law. The complainant is requesting that the FAA withhold further grant funding to the City pending its investigation.
The City responded to the FAA Notice of Investigation by letter dated May 21, 2020. In addition to responding to specific questions from the FAA regarding this matter, the City requested the FAA to find that there is no basis for the complaint and to close its investigation. On May 17, 2022, the FAA closed the investigation based upon the following corrective actions: Host confirming that the Chick-fil-A concept could not be operated for 7 days a week per the terms of the contract between Host and Chick- fil-A, Airport leadership staff participating in training regarding obligations under Title VI of the Civil Rights Act of 1964, and the dissemination of the training information to the offices of all members of the City Council.
2. San José – Santa Clara Wastewater Treatment Facility Plant Master Plan. In November 2013, the City Council approved the Plant Master Plan (“PMP”), a 30-year planning-level document focused on long-term rehabilitation and modernization of the Plant. The PMP recommends more than 114 capital improvement projects to be implemented over a 30-year planning period at an estimated investment level of approximately $2 billion. On September 24, 2013, the City Council approved a consultant agreement with MWH Americas, Inc. to assist and support the City in developing and implementing this Capital Improvement Program (“CIP”). On June 2, 2015, a funding strategy was recommended to and approved by the City Council. An update to the strategy was approved by the City Council on January 12, 2016. For the next five years, the City’s portion of the funding for the San José-Santa Clara Regional Wastewater Facility (“Plant”) Adopted CIP is programmed into the City’s 2021-2025 CIP budget. The City’s FY 2022 approved operating budget did not require a rate increase in the Sewer Service and Use Charge rate for FY 2022.
Revenues for the 2021-2025 Adopted CIP are derived from several sources: utilization of available resources from the City of San José Sewer Service and Use Charge and Sewage Treatment Plant Connection Fee; contributions from the City of Santa Clara and other tributary agencies for the treatment of sewage from their respective jurisdictions by the Plant; interest earnings; Calpine Metcalf Energy Center Facilities repayments; federal grants from the U.S. Bureau of Reclamation; and issuance of notes from credit facility.
Pursuant to an agreement executed between San José and Santa Clara in 1959 (the “1959 Agreement”), San José is co-owner and administering agency of the Plant. The Plant also provides wastewater treatment services to other neighboring agencies through five outside user agreements (“Master Agreements”) with City of Milpitas, West Valley Sanitation District, Cupertino Sanitary District, Burbank Sanitary District, and CSD 2-3 (the “Tributary Agencies”). Contributions from the City of Santa Clara and the Tributary Agencies are made pursuant to agreements with each agency based on the anticipated operation and maintenance, 173 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
and capital budget. The Tributary Agencies’ proportional contribution for the operation and maintenance cost is based on the amount and characteristics of the sewage discharged into the Plant. Each Tributary Agency’s capital contribution is based on each agency’s contractual capacity in the Plant. The balance of the Plant budget is shared between the cities of San José and Santa Clara based on the respective City’s assessed property value relative to the total assessed property value in both jurisdictions. In the 2021-2025 Adopted CIP , contributions from the City of Santa Clara and other agencies are approximately $241,500,000.
Currently, a short-term financing has been put into place (see Note III.F.10) and staff has developed a long- term bond financing plan for San José’s share of the CIP’s cost. See Note IV. D.6 for planned issuance of bonds. In addition, the City continues to build the operating reserves needed for issuing long-term bonds.
Tributary Agency Claims. On January 22, 2016 and September 7, 2016, the City, as the administering agency, received claims from the Tributary Agencies alleging a breach of contract and inequity under the Master Agreements. The Treatment Plant Advisory Committee (“TPAC”) conducted two administrative hearings, on March 24, 2016 and September 7, 2016, regarding such claims and issued reports as required by the Master Agreements. The Tributary Agencies disagreed with the reports and the parties attempted to mediate such claims, but were unable to reach resolution. All parties agreed to waive the hearings before their respective joint legislative bodies.
The Tributary Agencies filed a complaint in Santa Clara County Superior Court against the City and the City of Santa Clara on March 23, 2018. The allegations in the complaint are substantially similar to the claims raised by the Tributary Agencies and heard through the administrative hearing process in 2016. In the complaint, the Tributary Agencies allege the City breached their respective Master Agreements by, among other allegations, the City charging them for capital and operating expenditures that the Tributary Agencies allege are not authorized under the Master Agreements and, the Tributary Agencies assert, are beyond the requirements to operate the Treatment Plant. The Tributary Agencies also allege that the City has improperly concealed how the funds paid by the Tributary Agencies for Treatment Plant capacity are used. They also allege the City breached the implied covenant of good faith and fair dealing and violated certain California Constitutional provisions limiting local agencies’ imposition of property related fees, charges, and taxes.
The Tributary Agencies further allege their payments resulted in unjust enrichment to the City and the City of Santa Clara, and that the court should provide declaratory relief in support of their allegations.
The City filed and served a cross-complaint against each Tributary Agency seeking declaratory relief from the court as to each of the causes of action alleged by the Tributary Agencies in their complaint. The Tributary Agencies have fully paid their portion of the capital cost for the projects to rehabilitate the Treatment Plant to date. The City cannot predict the outcome or the timeline for resolution of this litigation. Discovery in the case has been extensive, involving millions of documents and dozens of depositions. Discovery is ongoing, and a trial date has been set for January 2023.
South Bay Water Recycling Program. The South Bay Water Recycling (“SBWR”) project is a regional water reclamation program to recycle highly treated wastewater for irrigation and industrial uses in the cities of San José, Santa Clara, and Milpitas, California. This program is part of an action plan, developed by the City and other agencies tributary to the Plant and adopted by the Regional Water Quality Control Board (“RWQCB”), to control the amount of effluent discharged by the Plant into San Francisco Bay.
The SBWR distribution system includes approximately 60 miles of pipe, a four million-gallon reservoir, a transmission pump station, and two booster pump stations. These facilities were constructed between 1996 and 1998 at a capital cost of approximately $140,000,000 funded by the tributary agencies, grants, and bond proceeds.
174
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
In June 1997, the RWQCB and the City approved the Proposed Revision to the South Bay Action Plan, which described the projects necessary to reduce average dry weather effluent flow from the Plant to below 120 million gallons per day and protect salt marsh habitat for endangered species in the South Bay as required by RWQCB Order 94-117. These projects include expanding the Phase I non-potable reuse system by extending additional piping, placing greater emphasis on water conservation programs, reducing infiltration inflow, augmenting stream flow, and creating wetlands. The estimated cost for implementing these projects was $127,500,000. These costs were funded by the City, Santa Clara, and the Tributary Agencies using the Plant through a combination of State Revolving Fund Loans, Sewage Treatment Plant Connection Fees, federal grants, and cash contributions.
In FY 2016, the City and the Santa Clara Valley Water District (“SCVWD”) accepted a report that had been commissioned by both the City and the SCVWD related to SBWR, entitled: “South Bay Water Recycling Strategic and Master Planning (‘’Strategic Report”). The Strategic Report contemplates near term projects (fiscal years 2017 to 2021) at an estimated cost of $49 million and long-term improvements and expansion of the existing system (fiscal years 2020 to 2035) at an estimated cost of $243.2 million for long-term non-potable reuse projects and an additional $522 million for long-term potable use projects. No specific plan for the development or source of financing of the other near-term improvements, nor the long-term improvements identified in the Strategic Report has been developed to date. Further, the responsibility for the development of the long-term improvements has not been established and may involve the formation of a separate entity responsible for the oversight and funding of these improvements.
Recycled Water Facilities and Programs Integration Agreement between the City of San José and the Santa Clara Valley Water District (“SCVWD”). The City and the SCVWD entered into an agreement on March 2, 2010 (“Integration Agreement”) to collaborate on design, construction and operation of an advanced treated recycled water facility and related facilities now called the Silicon Valley Water Treatment Facility (“SVWTF”). In 2003, the City and SCVWD began collaborating on design, construction and operation of an advanced treated recycled water facility and related facilities, to be located on lands owned by the Plant, in order to demonstrate the treatment capability of a local facility to produce highly purified water that could be blended with existing recycled water to expand irrigation and industrial uses. The City, as the administering agency for the Plant, and the SCVWD desired to financially support the production and use of recycled water in Santa Clara County consistent with each party’s separate and distinct interests: for wastewater treatment and disposal for the City, and water quality and supply for the SCVWD, as well as to coordinate and cooperate to achieve the most cost effective, environmentally beneficial utilization of recycled water to meet both agencies’ needs. The term of the Integration Agreement is from July 1, 2010 through June 30, 2050, and co-terminus with the Ground Lease and Property Use Agreement between the City and SCVWD for construction and operation of the SVWTF on Plant lands.
SCVWD and the City agreed to capital investment towards the construction of the SVWTF in the amount of $70,000,000 and $11,000,000, respectively, as of the date of the signed agreement on March 2, 2010.
SCVWD determines the operational and maintenance budget for the SVWTF and operates the facility.
Separate formulas were established to determine each party’s respective share of the annual operation and maintenance cost for the SVWTF following the first full fiscal year the SVWTF became operational, which was FY 2015. The formula provides that for each fiscal year when the SBWR is operating at a net loss, the City would pay to the SCVWD an amount to support SCVWD’s operational cost up to $2,000,000.
In the event that the SBWR operates at net revenue, the City would share its revenue with the SCVWD with the first 50% towards the SCVWD’s costs and the second 50% divided between the two agencies based on their respective capital investment in the recycled water infrastructure. As of June 30, 2022, the City’s investment in capitalized expenditures for the SBWR system is $248,676,000 with another $11,000,000 175 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
in contributions toward the SVWTF for a total investment of $259,676,000; and the SCVWD’s estimated investment in SVAWTF as of June 30, 2022 is $65,578,130. During the most recent SBWR operating year ended June 30, 2021, an operating profit of $6,791,145 was realized. This amount was shared with the SCVWD, City of San Jose, City of Santa Clara, and the Tributary Agencies per the terms of the Integration Agreement.
Under the Integration Agreement, commencing in January 2016, the City and SCVWD are to provide the other agency with audited financial statements for the prior fiscal years for the operation of the SBWR and the SVWTF. Since the definition of net operating cost and revenue under the Integration Agreement excludes certain costs and revenues that might otherwise be considered in either party’s overall budget, each party must prepare a separate statement following the publication of each party’s annual audited financial statements, to establish each party’s respective cost share for the operation of the SVWTF. The City and SCVWD have each provided the other with its audited financial statements for the operations of the SBWR and the SVWTF, respectively, for the FY 2016, FY 2017, and FY 2018, FY 2019, and FY 2020 with no adjustment to share cost. In January 2023, the audit report for the sixth year of full operations for the year ended June 30, 2022 will be completed and issued as per the terms of the Integration Agreement.
3. Ba y Area Water Supply and Conservation Agency
The City belongs to the Bay Area Water Supply and Conservation Agency (“BAWSCA”), which represents the interests of 24 cities and water districts, and two private utilities that purchase water wholesale from the San Francisco regional water system. On January 31, 2013, BAWSCA issued bonds in the amount of $335,800,000 to raise the funds necessary to prepay capital commitments owed to the City and County of San Francisco by BAWSCA member agencies thereby realizing a present value savings of approximately $62,300,000 over all member agencies. For the City, this translates into an annual net savings of purchased water cost of approximately $107,000.
The BAWSCA issued revenue bonds are secured by a surcharge on BAWSCA member agencies for the term of the bonds through 2034. BAWSCA’s annual debt service amount for FY 2022 is $24,693,000. San Francisco will collect the surcharge and send the amount to BAWSCA for payment to bond holders. The annual surcharge for each agency is based upon the actual wholesale water purchase percentage from the last full year for which date is available with an annual reconciliation based upon the actual water purchased.
A true-up adjustment based on the actual year ended June 30, 2019 water use is included in the FY 2022 bond surcharge.
The City’s annual bond surcharge for FY 2022 was estimated to be $820,000 based the City’s actual wholesale water use in the year ended June 30, 2019. The surcharge is on the San Francisco wholesale water bill and is accounted for by the City as operational costs.
The current best projection on the City’s annual surcharge for FY 2023 is $720,000, based upon wholesale water use in the year ended June 30, 2021.
4. Clean W ater Compliance
The federal Clean Water Act (the “CWA”) establishes the structure for federal regulation of the discharge of pollutants into the waters of the United States. Under the CWA, it is unlawful to discharge any pollutant into these waters unless the discharger has a permit under the National Pollutant Discharge Elimination System (the “NPDES”) and the permittee abides by its terms.
The City is a permittee under an NPDES permit (the “Stormwater Permit”) issued by the Regional Water Quality Control Board – San Francisco Bay Region (the “Regional Water Board”). This Regional Stormwater 176
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
Permit governs 76 entities, including the City. On May 11, 2022, the Regional Water Board adopted a new permit that will be effective as of July 1, 2022.
The regional Stormwater Permit identifies pollutants which contribute to the impairment of water bodies and sets a total maximum daily load (“TMDL ”) for some of these contaminants. For waters connected to the City (e.g., the San Francisco Bay), the Stormwater Permit identifies two pollutants of concern with TMDL limitations, mercury, and polychlorinated biphenyls (“PCBs”). The City, through its work with the Santa Clara Valley Urban Runoff Pollution Prevention Program (“SCVURPPP”), previously met the TMDL requirements for both mercury and PCBs. For PCBs, the new Stormwater Permit requires implementation of treatment measures for runoff from old industrial areas. The City is unable to determine at this time whether the source of the contaminants will be identifiable and financially solvent.
The Stormwater Permit sets a goal of 100% trash load reduction, or no adverse impact to receiving waters from trash by June 30, 2025. Under prior Permits, the City was able to meet interim targets by implementing a combination of structural trash controls, source controls, trash assessments, and creek cleanups, and direct discharge programming.
For example, fifteen percent of the City’s trash load reduction was from an offset allowed under the previous Stormwater Permit for the City’s implementation of the Direct Discharge Trash Control Program, approved by the Regional Water Board in 2016. The new Stormwater Permit phases out these credits and offsets by June 30, 2025. As a result, the City will need to implement structural controls “or equivalent” to meet trash load reduction requirements both on land and in waterways. Structural controls can be more expensive and less effective than source control measures, and the City has not yet estimated the increased cost of compliance. The new Permit also contains provisions specific to the homeless population, including mapping and ensuring that emergency, temporary or permanent housing is provided. In addition, the new Permit requires low impact development stormwater treatment for new roads or lane additions that replace or create 5,000 square feet of impervious surface, including areas within the public right of way. This will increase City costs for road, sidewalk, bike lane, and trail construction projects. The need to maintain these LID features within the public right of way will also increase costs, which will vary widely depending on the location, size, and other project conditions.
The Regional Water Board and private parties can enforce the CWA and the terms of the Stormwater Permit.
Violations can result in significant civil penalties of up to $55,800 per pollutant per day (as of January 2020), plus criminal fines, and attorney’s fees.
5. Ret irement Systems – Unfunded Commitments
As of June 30, 2022, PFDRP had unfunded commitments to contribute capital for investments in the amount of $556,369,000. FCERS had unfunded commitments to contribute capital for investments in the amount of $333,259,000.
6. F ederal Financial Assistance Programs
The City participates in a number of federally assisted grant programs, primarily with the U.S. Department of Housing and Urban Development (“HUD”), the Federal Aviation Administration (“FAA”), the U.S. Department of Transportation, U.S. Department of Justice, U.S. Department of the Treasury, U.S. Department of Homeland Security, and the U.S. Department of Labor. These programs are subject to program compliance audits by the grantors or their representatives.
Although the City’s grant programs are audited in accordance with the provisions of the Single Audit Act of 1996, and the related U.S. Office of Management and Budget 2 CFR 200 Uniform Guidance, for the year 177 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
ended June 30, 2022, these programs are still subject to financial and compliance audits by federal auditors, and to resolution of identified findings and questioned costs. At this time, the amount of expenditures, if any, which may be disallowed by the granting agencies cannot be determined.
7. St ate Tax Revenue
The City was informed by the State of California in October 2021 that a portion of the City’s previous and current tax revenues could be significantly lower. While the City disputes and appealed the State’s initial determination, this action could negatively impact the City’s General Fund outlook in the short and long-term.
Although the appeal process is likely to extend beyond next fiscal year, the City budgeted for the potential loss in the ongoing revenue for 2022-2023 and put resources in place to be in a better position to absorb any loss over the next year.
8. Encumbr ances
The City uses encumbrances to control expenditure commitments for the year and to enhance cash management. Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled (executory contracts; and open purchase orders). Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year-end are not accounted for as expenditures and liabilities but, rather, as restricted or committed governmental fund balance. As of June 30, 2022, total governmental fund encumbrance balances for the City are as follows (in thousands):
General Fund $ 7
0,319
Housing Activities
25,169
Low and Moderate Income Housing Asset
53,627
Special Assessment Districts 6
8 San José Financing Authority Debt Service 1
Nonmajor Go
vernmental Funds 1
06,854
Total governmental funds $ 2
56,038
9. Curb Ramp Consent Decree
Plaintiffs filed a class action lawsuit in the case of Lashbrook v. City of San José in the United States District Court for the Northern District of California. This lawsuit alleged that the City violated federal and state disability access laws by failing to ensure that its pedestrian right of way contains curb ramps that are necessary to ensure that the pedestrian right of way is accessible to individuals with mobility disabilities.
On April 14, 2020, the City Council approved a proposed settlement of this case in the form of a consent decree whereby Mr. Lashbrook will recover a total of $55,000. The City will pay attorney’s fees and costs in the amount of $725,000. The City will be required to expend $13 million each year until 2030 to remediate curb ramps, and after 2030 will expend 10% of its pavement maintenance budget to remediate curb ramps, which is accounted for within the City’s pavement maintenance budget. The Court preliminarily approved the consent decree on May 27, 2020. At a Fairness Hearing on September 2, 2020, the Court granted final approval of the consent decree. The City is in compliance with the terms of this consent decree.
10. Consent Decree with San Francisco Baykeeper
San Francisco Baykeeper (“Baykeeper”) filed a lawsuit in federal district court against the City in February 2015. Baykeeper’s complaint alleged violations of the Clean Water Act (“CWA”) and the Stormwater Permit.
Specifically, the complaint alleged that the City was not in compliance with trash reduction requirements, 178
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
and that there were CWA violations resulting from the discharge of sewage from the City’s Sanitary Sewer System that infiltrated into the City’s municipal separate storm sewer systems (“MS4”).
To settle the lawsuit, the City and Baykeeper agreed to a consent decree that was approved by the U.S.
District Court in August 2016 (the “Consent Decree”). The Consent Decree has a 10-year term expiring in August 2026 and will require the City to:
● Comply
with trash provisions of the current Stormwater Permit including installing full trash capture devices, supporting additional creek cleanup efforts, and monitoring of trash in receiving waters; ● Rehabilitate, r
eplace, or repair 65 miles of high-risk sanitary sewer system pipes at an average of 6.5 miles per year, based on the City’s existing program with some changes in the priority of segments of this work;
● Monit
or and report fecal indicator bacteria (“FIB”) in receiving waters for a five-year period; ● Comply with green infrastructure planning as required in the Stormwater Permit, adding FIB as a pollutant for planning purposes;
● Bring for
ward new revenue measure options for Council consideration by December 31, 2017; ● Appropriate, contingent upon the receipt of sufficient new revenues, $100,000,000 over a ten-year period for acquisition of land, review, design, construction, maintenance, and operation of various green infrastructure projects with the goal of reducing pollutants and/or flows from the City’s urban areas into receiving waters, with expenditures anticipated to occur as follows:
○ Identify and design $
25,000,000 in total projects by September 2024;
○ A
ward $25,000,000 in total projects by September 2025;
○ Identify
and design an additional $10,000,000 ($35,000,000 in the aggregate) in total projects by September 2025;
○ Award an additional $10,000,000 ($35,000,000 in the aggregate) in total projects by the termination date of the consent decree; and
○ Identify and design an additional $15,000,000 ($50,000,000 aggregate) in total projects by the termination date of the consent decree.
In addition to the expenditures outlined above, the City has incurred or will incur the following expenditures during the Consent Decree’s term: (1) lump sum payment of attorney’s fees and costs to Baykeeper in the amount of $425,000, which payment has been made; (2) ongoing oversight costs payable to Baykeeper in the amount of $10,000 per year for a total of $100,000; and (3) $200,000 per year for five years (a total of $1,000,000) for supplemental environmental mitigation for trash clean up grants, habitat restoration, or projects that generally improve the water quality in the Guadalupe and Coyote creeks and associated watershed areas. The City is in compliance with these payments under the Consent Decree.
The City and Baykeeper entered into a First Amendment and Second Amendment to the Consent Decree in 2017 and 2019, respectively. Both Amendments were approved by the Court and made technical changes to the terms of the Consent Decree but did not modify the substantive requirements itemized above.
Identification of Funds. The Consent Decree requires that by December 31, 2020, the City identify funding sufficient to implement the green infrastructure projects and meet the FIB load reduction standard. If it did not meet this deadline, the parties were required to meet and confer to discuss what measures the City will take to insure funding. In addition, by December 31, 2020, the City was required to obtain funding to implement the green infrastructure projects. The City believes it has identified funds to implement the 179 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
Consent Decree, and fulfilled its meet and confer obligations, but is unable to make any representations regarding Baykeeper’s interpretation of the Consent Decree. In the event of a dispute between Baykeeper and the City, the Consent Decree provides for a resolution process that includes ongoing judicial oversight.
The Consent Decree also specifies limits on the ability to pursue additional litigation against the City during its 10-year term and caps litigation fees for dispute resolution at $200,000.
On December 19, 2017, the City Council considered a report from City staff concerning potential new revenue sources to fund the green infrastructure requirements specified in the Baykeeper Consent Decree described above. The City identified potential revenues of general obligation bonds and a parcel tax, both of which would require voter approval by a two-thirds margin. In November 2018, voters approved Measure T by the appropriate margin, and the City Council subsequently approved $25 million of these funds to be allocated for clean water projects, including green infrastructure improvements. There are Consent Decree obligations that would be ineligible for funding from general obligation bond proceeds and staff continues to assess additional funding mechanisms.
Potential projects identified in the Green Infrastructure Plan (the “GIP”) require further review and approval.
The total construction and maintenance costs will be dependent on several factors including, among others, future costs of construction, whether the project will be on City-owned property or required as part of a future private development.
Green Stormwater Infrastructure Projects. The City’s GIP forecasts green stormwater projects and goals through 2050. The City further estimates that complete implementation and maintenance of the potential projects over the course of the thirty-year plan may be on the magnitude of $6.85 billion. The new Stormwater Permit (effective July 1, 2022) includes requirements for green infrastructure sufficient to treat 5 acres, which the City will be able to meet based on the existing projects and the schedule in the Consent Decree. The City will continue to explore funding opportunities and strategies for the implementation of the GIP .
The City is not able to predict the projects that will ultimately be approved or whether they will be funded for the GIP . In addition, the City is unable to predict whether Baykeeper’s interpretation of the Consent Decree will align with the City’s interpretations or the Regional Water Board’s NPDES Permit.
11. W orkers’ Compensation Program
The City is self-insured for workers’ compensation, with all claims administered by third party administrator Intercare Holdings Services, Inc. (“Intercare”). Every year, the City reviews a five-year forecast for workers’ compensation expenditures based on the prior year payout. Based on this review, the City’s budget for 2021- 2022 is $25.8 million and the budget for 2022-2023 is $23.5 million.
The City extended the current agreement with Intercare for an additional three-years beginning July 1, 2022, to provide comprehensive workers’ compensation services including claims administration services, bill review, utilization review, medical case management, and other ancillary services at a total compensation not to exceed $32,582,834 based on an estimated caseload of 2,330 to 2,850 claims. As of June 30, 2022, the open claims inventory handled by Intercare was 2,575.
As of June 30, 2022, open claims data for Intercare were at 2,575. The total number of open claims has increased (by approximately 3.5%) since June 30, 2021 when the open claim inventory was 2,489.
The City is required to submit to the CA Department of Industrial Relations (DIR) Office of Self-Insured Plans (OSIP) a State Public Self-Insured Annual Report. The Public Self-Insured Annual Report completed jointly with Intercare describes: (1) claims paid in indemnity and medical, (2) future liability on open claims, and 180
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
(3) average number of employees and total wages for each adjusting locations, and (4) a list of all open indemnity claims. The annual report for FY 2022 was submitted by the October 1, 2022 deadline.
12. T ax Abatement
As of June 30, 2022, the City provides three tax abatement programs - the Storefronts Assistance Grant Program, the Downtown High-rise Incentive Program, and the Utility Users Tax Reimbursement Agreement:
Storefronts Assistance Grant Program is an incentive program designed to enhance or enliven storefronts in the City. There are two types of grants: Vacant Storefront Grants reimburse businesses for City permit fees and taxes; Existing Storefront Grants reimburse businesses for City fees and permits, plus furnishings, fixtures, equipment and materials related to exterior improvements (no labor is eligible). The City Council approved the implementation of the program in 2013, and through the budget process, City Council allocated up to $215,000 to reimburse eligible businesses for City permit fees and taxes in FY 2022.
Downtown High-Rise Residential Incentive Program
The City has had several iterations of a program designed to spur high-rise development in downtown. As of September 30, 2021, the Downtown High-Rise Residential Incentive Program suspends 50% of construction taxes on high-rise developments in the Downtown Area and allows for payment of the taxes to be delayed until the issuance of the Certificate of Occupancy. It also provides a reduction or exemption of affordable housing in-lieu fees. The tax reduction is available for new construction of residential buildings of at least twelve (12) stories in height in the Downtown Planned Growth Area. The affordable housing in-lieu fee reduction or exemption is available for new construction in the Downtown Core to residential buildings at least 150 feet above street-level with ten (10) or more floors or stories in height not including any non- residential uses.
Utility Users Tax Reimbursement Agreement
The City has a Utility Users Tax Reimbursement Agreement with Samsung Semiconductor, Inc., that will provide funding in an amount equal to 50% of the City’s 5% of net new utility user taxes received from Samsung Semiconductor for 10 consecutive years in an amount not to exceed $500,000. The agreement commenced on July 1, 2021 and expires on June 30, 2031.
Tax Abatement Program
Amount of
Taxes Abated
(in thousands)
Storefronts Assistance Grant Program $ -
Downtown High-Rise Residential Incentive Program 2
,130
Utility Users Tax Reimbursement Agreement 6 6
181 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
C. Su ccessor Agency to the Redevelopment Agency of the City of San José
1. Cash and Inv estments Held by SARA
The SARA’s cash and investments consist of the following at June 30, 2022 (in thousands):
Cash & Investments Amount
Cash and Investments $ 2
,154
Restricted Cash and Investments 1
21,843
Total Cash and Investments $ 1
23,997
A summary of SARA’s cash and investments at June 30, 2022 is as follows (in thousands):
Maturity (in Days)
Moody’s
Credit Rating Under 30 31-180 181-365
Balance
at June 30
Inv
estments:
LAIF Not rated $ -
$ -
$ 1
,860
$ 1
,860
Money Market Mutual Funds Aaa
121,843
-
-
121,843
Subtotal Investments
123,703
Bank Deposits 294
Total Cash and Investments
$ 1
23,997
The LAIF is part of the State’s Pooled Money Investment Account that allows cities, counties and special districts to place money into the fund. LAIF operating accounts allow a maximum of 15 transactions per account in a calendar month. The transaction amount shall be no less than $5,000 and in increments of a thousand. LAIF allocates interest earnings once every quarter. The interest earnings can be withdrawn in exact amount at any time. LAIF bond accounts have no restrictions on the amounts allowed on deposit, but are limited to one withdrawal every 30 days.
The SARA categorizes its fair value measurements within the fair value hierarchy established by GAAP . The Money Market Mutual Funds and LAIF are valued by net asset value. The inputs and techniques used for securities are not necessarily an indication of risk associated with investing in these securities. The SARA’s investments in Money Market Mutual Funds and LAIF are not subject to the fair value hierarchy. 182
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
2. Capit al Assets Held by SARA
The following is a summary of capital assets activity for the year ended June 30, 2022 (in thousands):
July 1, 2021 Addition Disposal Transfer June 30, 2022 Capital Assets, Not Being Depreciated:
Land $ 2
,078
$ -
$ -
$ -
$ 2
,078
Total Capital Assets, Not Being Depreciated 2
,078
-
-
-
2 ,078
Capital Assets, B
eing Depreciated:
Buildings 1
,071
-
-
-
1 ,071
Less Accumulated Depr
eciation:
Buildings (4
02)
(2
7)
-
-
(4
29)
T
otal Capital Assets, Being Depreciated, net
669
(2
7)
-
-
642
Total Capital Assets, net $ 2
,747
$ (2
7)
$ -
$ -
$ 2
,720
On August 27, 2015, the Oversight Board approved a revised Asset Disposition Schedule for the non- governmental purpose properties listed on the Long Range Property Management Plan (“LRPMP”), and approved the Disposition Process For Sale of Properties, which requires the sale of assets either through an open and competitive solicitation process or through a direct sale to the affected taxing entities or a non-profit organization. Additional amendments to the Asset Disposition Schedule were approved by the Oversight Board on January 14, 2016, April 28, 2016, October 27, 2016, and April 13, 2017.
3. Summar y of SARA’s Long-Term Debt
The following is a summary of long-term debt of the SARA as of June 30, 2022 (in thousands):
Type of Indebtedness Purpose
Original
Issue
Amount Issue Date
Maturity
Date
Interest
Rate
Range
Annual Principal
Installments
June 30,
2022
Balance
Senior
Tax Allocation Bonds:
2017 Refunding Bonds Series A
Refunding - merged
area projects $ 7
9,825 12/21/2017 8/1/2035 5.00% $0 - 53,810 $ 7
9,825
2017 Refunding Bonds Series A-T
Refunding - merged
area projects
1 ,333,325 12/21/2017 8/1/2034 1.90-3.38% $32,910 - 93,735 1,031,305
Total Senior Tax Allocation Bonds 1,111,130
Subordinate Tax Allocation Bonds:
2017 Refunding Bonds Series B
Refunding - merged
area projects
264,390 12/21/2017 8/1/2029 2.00-5.00% $7,820 - 29,835 1 76,500
Total Subordinate Tax Allocation Bonds 1
76,500
Total Long-Term Debt $ 1 ,287,630
183 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
A summary of the changes in long-term debt for the year ended June 30, 2022 follows (in thousands):
June 30, 2021 Additions Reductions June 30, 2022
Amount Due
Within One Year
Senior Tax Allocation Bonds:
2017 Refunding Bonds Series A $ 7
9,825
$ -
$ -
$ 7
9,825
$ -
2 017 Refunding Bonds Series A-T
1,104,980
-
(7
3,675)
1,031,305
7 5,505
Subtotal Senior Tax Allocation Bonds
1,184,805
-
(7
3,675)
1,111,130
7 5,505
Subordinate Tax Allocation Bonds:
2017 Refunding Bonds Series B 198,765 - (2 2,265) 176,500 2 3,375 Subtotal Subordinate Tax Allocation Bonds
198,765
-
(2
2,265)
176,500
2 3,375
Subtotal Long-Term Debt, Unamortized 1,383,570 - (9 5,940) 1,287,630 9 8,880 Issuance Premium (Discount), Net 3
6,411
-
(4
,205)
3 2,206
4,204
Total Long-Term Obligations $ 1
,419,981
$ -
$ (1
00,145)
$ 1
,319,836
$ 1
03,084
RPTTF revenue distributed by the County to the SARA in FY 2022 was $141,842,000 which was assigned to pay recognized payment obligations, including debt service and debt related expenses on the Successor Agency Senior and Subordinate Tax Allocation Refunding Bonds, SARA administrative costs, and other enforceable obligations. During FY 2022, total RPTTF revenue collected by the County was $366,014,000.
After payment of County Administrative fees totaling $3,254,000, the balance is distributed based on the Health and Safety Code unless such payments have been subordinated to the payment of debt service on the 2017 Senior Tax Allocation Refunding Bonds described in the following section, as is the case with all agencies except for the senior pass-through payments due to San José Unified School District ($11,093,000).
After meeting obligations to make debt service payments on the 2017 Bonds, subordinated pass-through payments are made to the County ($47,944,000), Basic Aid ($440,000) and other taxing entities ($37,117,000).
With the residual balance ($124,324,000) distributed to taxing entities.
All summaries of documents related to debt contained in this Note are made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. Each reference in this Note is qualified in its entirety by reference to such document, which is on file with the SARA’s Chief Financial Officer.
2017 Tax Allocation Refunding Bonds
On December 21, 2017, the SARA issued refunding bonds (“2017 Refunding Bonds”) pursuant to an Indenture of Trust dated as of December 1, 2017 (“2017 Indenture”), by and between the SARA and Wilmington Trust, National Association, as trustee (“Trustee”). The 2017 Refunding Bonds were issued in the aggregate original principal amount of $1,677,540,000, in two senior series and one subordinate series. The senior series bonds, collectively referenced herein as 2017 Senior Tax Allocation Refunding Bonds, consist of $79,825,000 original principal amount of the tax-exempt senior lien 2017 Series A Bonds Senior Tax Allocation Refunding Bonds (“2017A Bonds”) and $1,333,325,000 original principal amount of taxable senior lien 2017 Series A-T Bonds Senior Taxable Tax Allocation Refunding Bonds (“2017A-T Bonds”). The subordinate series bonds, referred to herein as 2017 Subordinate Tax Allocation Refunding Bonds, consist of $264,390,000 original principal amount of tax-exempt subordinate lien 2017 Series B Bonds Tax Allocation Refunding Bonds.
Proceeds of the 2017 Refunding Bonds were used to (i) redeem, defease, or prepay all of the former Agency’s then outstanding tax allocation bonds and reimbursement obligations under an agreement entered into in connection with the Financing Authority’s Revenue Bonds, Series 2001A (4 th and San Fernando Parking
184
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
Facility Project) and Lease Revenue Bonds, Series 2001F (Convention Center Refunding Project)(Refunded Obligations), and (ii) pay the costs of issuing the 2017 Refunding Bonds, including the cost of debt service reserve insurance policies. The refunding resulted in a difference between the reacquisition price (the amount required to repay previously issued debt in a refunding transaction) and the net carrying amount of the Refunded Obligations. This difference was reported as deferred outflows of resources in the statement of fiduciary net position and is being amortized over the next 14 years.
The 2017 Refunding Bonds are secured and payable from Tax Revenues and certain funds and accounts held by the Trustee. Tax Revenues are generally defined in the 2017 Indenture as the portion of property tax revenues collected in the Merged Project Area derived from incremental growth in assessed property values over the initial base year values in each of 17 component areas of the Merged Project Area, less certain County administrative fees, the AB1290 statutory pass-through payment to the San José Unified School District and amounts collected pursuant to the pension override or State Water Project override provisions of the Redevelopment Dissolution Law, if any. All other AB1290 statutory pass-through payments and the negotiated pass-through payments to Santa Clara County are subordinate to the payment of debt service on the 2017 Refunding Bonds and other debt service related obligations under the 2017 Indenture. Under the distribution provisions of the Redevelopment Dissolution Law, AB1290 statutory pass-through payments and negotiated pass-through payments are made from funds on deposit in the RPTTF before funds are transferred to the SARA for the payment of enforceable obligations (including payment of debt service on the 2017 Refunding Bonds) unless there are insufficient funds to pay such debt service and other payment obligations under the 2017 Indenture and certain other conditions are satisfied. Such conditions include the timely filing of a Notice of Insufficiency by the SARA in accordance with the Redevelopment Dissolution Law and the concurrence by the State Controller that there are insufficient funds for such purpose. The SARA has covenanted in the 2017 Indenture to comply with the provisions of the Redevelopment Dissolution Law related to placing its obligations under the 2017 Indenture on the recognized obligations under the 2017 Indenture throughout the term of the 2017 Refunding Bonds and, if applicable, file a Notice of Insufficiency in the event that are insufficient Tax Revenue to make payment of debt service or other payment obligations under the 2017 Indenture.
The SARA has covenanted in the 2017 Indenture to take such actions as required under the Redevelopment Dissolution Law to include in each annual Recognized Obligation Payment Schedule the amount of debt service on the 2017 Refunding Bonds so as to enable the County Auditor-Controller to distribute from the RPTTF to SARA on each January 2 and June 1 the amounts required for the SARA to pay principal of, and interest on, the 2017 Refunding Bonds coming due in the respective six-month period following such distribution dates. These actions will include, without limitation, placing on the periodic Recognized Obligation Payment Schedule for approval by the Oversight Board and State Department of Finance the amounts to be held by the SARA as a reserve until the next six-month period, as contemplated by the Redevelopment Dissolution Law, that are necessary to comply with the 2017 Indenture.
Separate municipal bond debt service reserve policies issued by Build America Mutual Assurance Company (“BAM”) were deposited in the Senior Bonds Reserve Account of the Bond Reserve Fund for the 2017 Senior Tax Allocation Refunding Bonds (“2017 Senior Bonds Reserve Policy”) and in the Subordinate Bonds Reserve account of the Bond Reserve Fund for the 2017 Subordinate Tax Allocation Bonds (“2017 Subordinate Bonds Reserve Policy”). The 2017 Senior Bonds Reserve Policy was issued in the original stated amount of $112,102,000, to satisfy the Senior Bonds Reserve Requirement under the 2017 Indenture on the date the 2017 Senior Tax Allocation Refunding Bonds were issued. The 2017 Subordinate Bonds Reserve Policy was issued in the original stated amount of $30,978,000, to satisfy the Subordinate Bonds Reserve Requirement under the 2017 Indenture on the date the 2017 Subordinate Tax Allocation Refunding Bonds were issued. 185 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
The 2017 Senior Bonds Reserve Policy will terminate the earlier to occur of (i) the date on which the 2017 Senior Tax Allocation Refunding Bonds are no longer outstanding under the 2017 Indenture; or (ii) August 1, 2035. The 2017 Subordinate Bonds Reserve Policy will terminate the earlier to occur of (i) the date on which the 2017 Subordinate Tax Allocation Refunding Bonds are no longer outstanding under the Indenture; or (ii) August 1, 2029. Per the terms of the 2017 Indenture, the SARA is not obligated to replace either reserve policy or to fund either reserve account with cash if, at any time that the 2017 Senior Tax Allocation Refunding Bonds or 2017 Subordinate Tax Allocation Refunding Bonds are outstanding, amounts are not available under such policy or if the rating of the claims-paying ability of BAM is downgraded, suspended or withdrawn.
The 2017 Senior Tax Allocation Refunding Bonds are rated “AA” by S&P and Fitch and the 2017 Subordinate Tax Allocation Refunding Bonds were rated “AA-” by S&P and Fitch. 2017 Senior Tax Allocation Refunding Bonds - The 2017 Senior Tax Allocation Refunding Bonds were issued in two series – the tax-exempt 2017A Bonds and the taxable 2017A-T Bonds, with a parity senior lien on Tax Revenues. The 2017A Bonds are structured as two serial maturities in 2034 and 2035; both maturities bear interest at 5% per annum. The 2017A-T Bonds are structured as serial maturities in 2018 through and including 2029 and a term bond of $361,845,000 maturing in 2034 (which term bond is subject to mandatory payment of principal beginning on August 1, 2030 through final maturity on August 1, 2034). The 2017A-T Bonds bear interest at rates ranging from 1.898% to 3.375% per annum. The 2017A and the 2017A-T Bonds maturing on and after August 1, 2028 are subject to redemption at the option of the SARA on or after August 1, 2027 at par. The 2017A Bonds have $79,825,000 in principal subject to call and the 2017A-T Bonds have approximately $544,790,000 in principal subject to redemption at the option of the SARA. The total debt service payments on the 2017 Senior Tax Allocation Refunding Bonds was $111,183,000 for the year ended June 30, 2022.The principal and interest remaining on the 2017 Senior Tax Allocation Refunding Bonds as of June 30, 2022 is $1,374,611,000.
2017 Subordinate Tax Allocation Refunding Bonds - The 2017 Subordinate Tax Allocation Refunding Bonds are structured as serial tax-exempt bonds with maturities in 2018 through 2029; and bear interest at rates ranging from 2% to 5% per annum. The 2017 Subordinate Tax Allocation Refunding Bonds are subject to redemption at the option of the SARA on or after August 1, 2027 at par. In total, nearly $17,490,000 in principal is subject to this ten-year par call. The 2017 Subordinate Tax Allocation Refunding Bonds are payable from Tax Revenues on a subordinate basis to the 2017 Senior Tax Allocation Refunding Bonds.
The debt service payment on the 2017 Subordinate Tax Allocation Refunding Bonds was $31,647,000 for the year ended June 30, 2022. The principal and interest remaining on the 2017 Subordinate Tax Allocation Refunding Bonds as of June 30, 2022 is $207,649,000.
2017 Refunding Bonds - Events of Default - The events of default under the 2017 Indenture for the 2017 Refunding Bonds are: (i) failure to pay debt service when due; (ii) failure to comply with covenants and conditions of the 2017 Indenture or the 2017 Refunding Bonds or any Senior Parity Debt Instrument or Subordinate Parity Debt Instrument (as those terms are defined in the 2017 Indenture) and such default shall have continued for a period of 30 days following SARA’s receipt from the Trustee or any bond owner of written notice of the occurrence of such default, provided that if in SARA’s reasonable opinion the failure stated in the notice can be corrected, but not within such 30 day period, such failure will not constitute an event of default if corrective action is instituted by the SARA within such 30 day period and SARA thereafter diligently and in good faith cures such failure in a reasonable period of time; and (iii) bankruptcy or similar debtor relief proceedings. Upon the occurrence and during the continuance of an event of default under the 2017 Indenture, the Trustee may, or, if requested by the owners of a majority of the principal amount of the outstanding 2017 Senior Tax Allocation Refunding Bonds (for events of default with respect to the 2017 Senior Tax Allocation Refunding Bonds) or the 2017 Subordinate Tax Allocation Refunding Bonds (for 186
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
events of default with respect to the 2017 Subordinate Tax Allocation Refunding Bonds), as applicable, shall, subject to the provisions of the 2017 Indenture, exercise any remedies available to the Trustee in law or at equity. The 2017 Indenture does not provide for acceleration of payment of the 2017 Refunding Bonds. The 2017 Indenture, however, provides for application of Tax Revenues upon an event of default in the order of priority set forth in the 2017 Indenture.
Tax Sharing Agreement with the County of Santa Clara - Prior to 1994, the Redevelopment Law authorized redevelopment agencies to enter into tax sharing agreements with school districts and other taxing agencies to alleviate any financial burden or detriments to such taxing agencies caused by a redevelopment project. In 1983, the Agency and County entered into a tax sharing agreement (“Original Agreement”) under which the Agency would pay a portion of tax increment revenue generated in the Merged Area (“County Pass-Through Payment”). On December 16, 1993, the Agency, the County, and the City entered into a settlement agreement, which continued the County Pass-Through Payment.
On May 22, 2001, the County, the City and the Agency approved an Amended and Restated Agreement (“Amended Agreement”), which amended and restated the Original Agreement in its entirety. In addition to the continued Pass-Through Payment, the Amended Agreement delegated to the County the authority to undertake redevelopment projects in or of benefit to the Merged Area, and required the Agency to transfer funds to the County to pay for such projects (“Delegated Payment”). Until June 30, 2004, the Delegated Payment was equal to the County Pass-Through Payment. After January 1, 2004, 20% of the proceeds of any debt secured by the Agency’s Tax Increment Revenues (excluding bonds payable from Housing Set-Aside and refunding bonds) was required to be paid to the County as the Delegated Payment.
Debt Service Requirements - The debt service requirements for all debt are based upon a fixed rate of interest.
The annual requirements to amortize outstanding tax allocation bonds outstanding at June 30, 2022, including mandatory sinking fund payments, are as follows (in thousands):
Year Ending
June 30 Principal I nterest
2023 $ 9
8,880 $ 4
3,842
2024 1
02,035
40,555
2025 1
05,455
37,023
2026 1
09,100
33,262
2027 1
12,975
29,271
2027-2031 4
95,780
90,768
2032-2036 2
63,405
19,910
Total $ 1
,287,630 $ 2
94,631
4. Commit ments and Contingencies Related to SARA
Risk Management
The SARA is exposed to various risks of loss related to torts, theft, damage to and destruction of assets, errors and omissions, general liabilities for which the SARA carries a property insurance policy, or is self- insured. Claim expenses and liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated using actuarial methods or other estimating techniques. The technique to estimate claims is based on many complex factors, such as inflation, changes in legal doctrines, past settlements, and damages awarded. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimated claims liability will include amounts of incremental claims adjustment expense related to specific claims.
187 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
The SARA does not have any claims liabilities outstanding at June 30, 2022.
Contractual Commitments
At June 30, 2022, the SARA had $391,000 for contractual obligations and commitments. 188
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
D. Su bsequent Events
1. 2022 Tax and Revenue Anticipation Notes
On July 1, 2022, the City issued a $275,000,000 short-term note (the “2022 Note”) to facilitate the prefunding of employer retirement contributions for Tier 1 and OPEB in FY 2023. The 2022 Note was sold in a direct placement to Bank of America, N.A. Security for repayment of the 2022 Note is a pledge of the City’s FY 2022-2023 secured property tax and other legally available General Fund revenues of the City including sales tax revenues, if required. The interest expense for the 2022 Note is estimated to be $7.4 million, and costs associated with the financing were $94,000, resulting in a total projected cost of borrowing at approximately $7.5 million. The 2022 Note matures and is payable in full on June 30, 2023.
2. Norman Y . Mineta San José International Airport
On July 7, 2022, the FAA announced that they would award the Airport $10.0 million in Bipartisan Infrastructure Law (“BIL ”) Airport Terminal Program (“ATP”) funding for Airport Accessibility Upgrades. The project will make significant accessibility improvements to the airport terminal buildings to expand access to those with disabilities and maintain compliance with the federal Americans with Disabilities Act (“ADA”), state, and local requirements.
On July 15, 2022, the City responded to the FAA’s letter of May 19, 2022 regarding inclusion of capital costs in the indirect cost allocation methodology, explaining that the City is in the process of evaluating the methodology used for the City’s overall cost allocation plan (“CAP”). On June 23, 2022, the City posted an RFP to hire an independent consultant to support this evaluation, with the RFP scope of work including an in-depth analysis of the City’s current CAP , as well as scope to develop recommendations for potential changes in the CAP methodology as it relates to all City departments. The City will follow up with the FAA once this evaluation process has been completed. The City cannot predict the final outcome of the audit.
On August 26, 2022, Fitch affirmed its “A” rating to the Airport Revenue Bonds and also affirmed its subordinated CP notes at “A-”. The rating outlook on all obligations remained stable.
In August 2022, Air Transport Research Society (“ATRS”), one of the most reputable aviation research societies, awarded Mineta San Josè International Airport the 2022 Airport Efficiency Excellence Award, for being the most efficient airport in the 5-15 million passenger category in North America, based on 2020 financial year data.
On September 9, 2022, the Airport was awarded $10.8 million in federal funding for the New Taxiway V Phase 1A project, which is part of the larger Airfield Configuration Updates project.
On October 5, 2022 the City notified the FAA that actions identified in the Corrective Action Plan including the removal and relocation of the encampments from the Guadalupe Gardens had concluded.
Starting October 6, 2022, American Airlines will resume daily nonstop flights to Charlotte, North Carolina.
Starting November 6, 2022, Southwest Airlines will begin daily (six days a week) round trip service to Palm Springs, California. In December 2022, ZIPAIR (a subsidiary of Japan Airlines) will begin nonstop service to Tokyo, Japan.
On October 25, 2022, the City Council adopted a resolution revising the Airport Air Service Support Program to provide additional benefits for New Entrant Carriers, who have not previously served SJC, waiving landing fees for 18 months, waiving ticket counter and gate fees for 12 months, and providing up to an additional $100,000 in marketing funds in addition to the $25,000 to $500,000 depending on the type of new service provided.
189 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
3. Insur ance Coverage
Citywide Property Policy
Effective October 1, 2022, the City obtained a new all-risk property policy. Key changes to insurance coverage for the policy period commencing October 1, 2022 include:
The minimum per occurrence deductible was increased from $100,000 to $500,000.
The base coverage for flood was reduced to $10 million across all locations Citywide. Previously, the City had $100 million in flood coverage for locations considered to be in low hazard flood zones.
The cyber coverage’s territory has been updated to exclude property located in Russia, Ukraine, Luhansk People’s Republic, and Donetsk People’s Republic. Since the change is linked to property damage in the excluded coverage territories, staff does not anticipate any adverse impact.
The Expediting Costs and Extra Expense combined limits have been reduced from $100.0 million to $10.0 million, except for $25.0 million for a loss at the Norman Y. Mineta San José International Airport (Airport).
Fidelity/Crime Coverage
Effective October 1, 2022, the City obtained a new fidelity/crime policy that increased the per occurrence deductible from $100,000 to $250,000.
Fiduciary Liability Coverage
Effective June 30, 2022, the City obtained a new fiduciary liability for the Deferred Compensation Plans and the per claim retention for Class Action Claims as defined in the policy was increased from $100,000 to $250,000.
Effective June 30, 2022, the City added fiduciary dishonesty coverage to the fiduciary liability policies that cover the Deferred Compensation Plans, the VEBA Plans, and the Defined Contribution 401(a) Plan. The fiduciary dishonesty coverage provides $500,000 in limits applicable to acts of employee dishonesty and complements the citywide government fidelity/crime coverage.
4. P ension Obligation Bonds
On October 5, 2021, the City Council adopted a resolution authorizing the issuance of bonds to refund and repay certain pension obligations, approving the form and authorizing the execution of a Trust Agreement and Bond Purchase Agreement; authorizing judicial validation proceedings relating to the issuance of such bonds and approving additional actions related thereto. The pension obligations include the unfunded liability for both the Police and Fire Department Retirement Plan and the Federated City Employees’ Retirement System Plan (“Unfunded Liability”), and the annually required retirement contribution that are due and payable within 12 months of the issuance of the bonds (“Current Obligation”). The proposed final aggregate principal amount of the bonds may not be greater than $3.5 billion or the sum of the City’s unfunded liability and current obligation as calculated by the actuary for both Retirement Plans, together with the costs of issuing the Bonds. The Trust Agreement will not constitute an obligation for which the City is obligated or permitted to levy or pledge any form of taxation or for which the City has levied or pledged or will levy or pledge any form of taxation. The validation complaint was filed on November 18, 2021. Howard Jarvis Taxpayers Association and Citizens for Fiscal Responsibility filed an answer challenging the City’s authority to issue bonds without voter approval. A hearing before the Santa Clara Superior Court occurred on August 22, 2022, and a final decision has not been issued as of the date of this report. If the City obtains a favorable judgment, the size and timing of the actual bond issuance would require the City Council’s approval of offering documents 190
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
including disclosures and would be contingent on favorable market conditions. Prior to actual issuance of the pension obligation bonds, the City Council will consider adoption of a pension funding policy.
5. Special Tax Bond Redemption
On September 1, 2022, the Special Tax Bonds, Community Facility District 6 (Great Oaks-Route 85), with an outstanding principal balance of $1.7 million, and Community Facility District 10 (Hassler-Silver Creek), with an outstanding principal balance of $1.8 million, were redeemed in full and are no longer outstanding.
6. City of San José Financing Authority Wastewater Revenue Bonds, Series 2022B On November 15, 2022, the City Council and City of San José Financing Authority Board authorized the issuance and sale of the City of San José Financing Authority Wastewater Revenue Bonds, Series 2022B in the not-to-exceed principal amount of $300,000,000 to refinance the Authority’s outstanding Subordinate Wastewater Revenue Notes, Series A. The issuance of the 2022B Bonds will establish a long-term fixed-rate debt structure with level debt service. As a result, the Credit Facility will become available for the City to draw another $300 million for eligible capital expenditures at the Regional Wastewater Facility, as needed.
The 2022B Bonds are expected to close on December 15, 2022. 191 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
NOTES TO BASIC FINANCIAL STATEMENTS J UNE 30 , 2022
E. Restatement of Net Position (in thousands)
Business-Type Activities - Statement of
Activities
Statement of Revenues, Expenses, and
Changes in Fund Net Position - Norman Y.
Mineta San Jose International Airport
Net Position as June 30, 2021, as previously reported $ 2 25,030
Restatement:
Due to implementation of GASB Statement No. 87, Leases 271 Net Position at June 30, 2021, as restated $ 2
25,301
192
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 City of San José
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended June 30, 2022
($000’s)
Budgeted Amounts
Actual Amounts
Budgetary Basis
Variance with
Final Budget
Actual
Amounts
Budgetary
Budgetary to
GAAP
Actual
Amounts
Original Final Over (Under) Basis Differences GAAP Basis
REVENUES
Taxes:
Property $ 4
32,400
519,000 2
,185
521,185 -
521,185
Utility
117,060
120,060 4
,846
124,906 -
124,906
Franchise 4
4,652 4
8,152
226 4
8,378 - 4
8,378
Business tax 7
4,500 8
3,500 1
,875 8
5,375 - 8
5,375
Other 1
0,000
9,000 1
,515 1
0,515 - 1
0,515
Sales taxes
280,200
323,200 (5
6)
323,144 -
323,144
State of California in-lieu
500
1,100 9
0 1,190 -
1,190
Licenses, permits and fines 3
0,012 3
4,261 2
,945 3
7,206 - 3
7,206
Intergovernmental
175,586
258,510 (1
05,015)
153,495 -
153,495
Charges for current services 1
4,537 1
8,827 3
,003 2
1,830 - 2
1,830
Other revenues 4
4,052 6
5,851 4
,242 7
0,093 - 7
0,093
Investment income (loss)
4,030
4,120
949
5,069 (2
0,402)
(1
5,333) (1)
Total revenues 1 ,227,529 1 ,485,581 (8 3,195) 1 ,402,386 (2 0,402) 1 ,381,984
E
XPENDITURES
Curr
ent:
Gener
al government
382,694
328,698 (5
4,291)
274,407 (3
1,355)
243,052 (2)
Public safety 822,176 791,811 (6 0,829) 730,982 (6 ,073) 724,909 (2) Community services 201,336 152,558 (1 ,361) 151,197 (8 ,070) 143,127 (2) Sanitation 4,358 4,409 (7 79) 3,630 (3 40) 3,290 (2) Capital maintenance 161,000 141,280 (2 9,025) 112,255 (2 4,287) 8 7,968 (2) Capital outlay 1 4,304 1 4,304 - 1 4,304 - 1 4,304 Debt service:
Principal
1,553
1,553 (5
5)
1,498 (2
8)
1,470
Interest
788
788
230
1,018 -
1,018
Total expenditures 1
,588,209 1
,435,401 (1
46,110)
1 ,289,291 (7 0,153) 1 ,219,138
Ex
cess (deficiency) of revenues
over expenditures (3
60,680)
5 0,180
62,915
113,095 4
9,751
162,846
O
THER FINANCING SOURCES (USES)
Pr
oceeds from sale of capital assets
600
600 (1
65)
435 -
435
Bonds issued - -
12,654 1
2,654 - 1
2,654
Bond premium - - 2
,346
2,346 -
2,346
Transfers in
434 1
2,458
425 1
2,883 - 1
2,883
Transfers out (3
2,894)
(3
2,894)
1 ,445 (3
1,449)
- (3
1,449)
Total other financing sources
(uses) (3
1,860)
(1
9,836)
16,705 (3
,131)
- (3
,131)
Net change in fund balance (3
92,540)
3 0,344
79,620
109,964 4
9,751
159,715
F
und balance - beginning
351,481
351,481
-
351,481 6
1,861
413,342
Add beginning encumbrance balance - -
- 5
7,008 (5
7,008)
-
F
und balance - ending $ (4
1,059)
381,825
79,620
518,453 5
4,604
573,057
Explanation of differences:
(1) Gain or loss in fair value of investments are not formally budgeted transactions. (2) Encumbrances of funds for which formal budgets are prepared. 193 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 City of San José
Housing Activities Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended June 30, 2022
($000’s)
Budgeted Amounts
Actual
A
mounts
Budgetary
Basis
Variance with
Final Budget
Actual
Amounts
Budgetary
Budgetary
to GAAP
Actual
Amounts
Original Final Ov
er (Under) Basis Differences GAAP Basis
RE
VENUES
T
axes:
Inter
governmental $ 1
7,214
69,569
(3
6,206)
33,363
-
33,363
Inv
estment income (loss) 1
,295
1 ,295
1 ,731
3 ,026
(3
,901)
(8
75) (1)
Other revenues 13,597 16,876 36,471 53,347 2 ,894 56,241 (2) Total revenues 32,106 87,740 1 ,996 89,736 (1 ,007) 88,729
E
XPENDITURES
Curr
ent:
Community ser
vices
89,618
1 31,471
(5
9,116)
72,355
(2
2,295)
50,060 (2)
Total expenditures 89,618 1 31,471 (5 9,116) 72,355 (2 2,295) 50,060
Ex
cess (deficiency) of revenues over
expenditures (5
7,512)
(4
3,731)
61,112
17,381
21,288
38,669
O
THER FINANCING (USES)
T
ransfers out (2
77)
(2
77)
-
(2
77)
-
(2
77)
T
otal other financing (uses) (2
77)
(2
77)
-
(2
77)
-
(2
77)
Net change in fund balance (5
7,789)
(4
4,008)
61,112
17,104
21,288
38,392
F
und balance - beginning
86,507
86,507
-
86,507
58,184
1 44,691
Add
beginning encumbrance balance
-
-
-
22,867
(2
2,867)
-
F
und balance - ending $ 2
8,718
42,499
61,112
1 26,478
56,605
1 83,083
E
xplanation of differences:
(1) Gain or loss in fair value of investments are not formally budgeted transactions. (2) Expenditures and repayments that increase and decrease certain loan receivables for which formal budgets are prepared.
194
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 City of San José
Low and Moderate Income Housing Asset Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended June 30, 2022
($000’s)
Budgeted Amounts
Actual
A
mounts
Budgetary
Basis
Variance with
Final Budget
Actual
Amounts
Budgetary
Budgetary
to GAAP
Actual
Amounts
Original Final Ov
er (Under) Basis Differences GAAP Basis
REVENUES
T
axes
Inv
estment income $ 3
,000
3,000 1
4,834 1
7,834 (4
,803)
1 3,031 (1)
Other revenues 1 4,000 3 3,099 (5 ,938) 2 7,161 (2 5,124) 2,037 (2) Total revenues 1 7,000 3 6,099 8,896 4 4,995 (2 9,926) 1 5,069
E
XPENDITURES
Curr
ent:
Community ser
vices 7
9,741
124,964 (2
4,438)
100,526 (8
5,621)
1 4,905 (2)
Capital outlay - 3,100 - 3,100 - 3,100
Total expenditures 7
9,741
128,064 (2
4,438)
103,626 (8
5,621)
1 8,005
Ex
cess (deficiency) of revenues
over expenditures (6
2,741)
(9
1,965)
3 3,334 (5
8,631)
5 5,695 (2
,936)
O
THER FINANCING (USES)
T
ransfers out 3
69 (3
69)
- (3
69)
- (3
69)
Total other financing (uses) 3
69 (3
69)
- (3
69)
- (3
69)
Net change in fund balance (6
2,373)
(9
2,334)
3 3,334 (5
9,000)
5 5,695 (3
,305)
F
und balance - beginning
155,818
155,818 -
155,818
281,983
437,801
Add beginning encumbrance balance - - - 2
2,491 (2
2,491)
-
F
und balance - ending $ 9
3,445 6
3,484 3
3,334
119,309
315,187
434,496
Explanation of differences:
(1) Gain or loss in fair value of investments are not formally budgeted transactions. (2) Expenditures and repayments that increase and decrease certain loan receivables for which formal budgets are prepared. 195 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Defined Benefit Pension Plans PFDRP Schedule of Employer Contributions
(Dollar Amounts in Thousands) 2022 2021 2020 2019 2018
Actuarially determined contribution $ 2
12,046 $ 2
01,370 $ 1
88,481 $ 1
76,618 $ 1
57,712
Contributions in relation to actuarially
determined contribution
212,046
201,370
188,481
176,618
157,712
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Co
vered payroll $ 2
51,023 $ 2
37,476 $ 2
30,401 $ 2
18,619 $ 2
03,164
Contributions
as a percentage of covered
payroll
84.47%
84.80%
81.81%
80.79%
7 7.63%
196
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Fiscal year June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Valuation date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarial cost
method Entry age Entry age Entry age Entry age Entry age Asset valuation
method 5-year smoothed market 5-year smoothed market 5-year smoothed market 5-year smoothed market 5-year smoothed market Amortization
method
Actuarial gains and losses and
plan changes are amortized over
closed 15-year periods. Method
and assumption changes are
amortized over closed 20-year
periods.
Actuarial gains and losses
and plan changes are
amortized over closed
15-year periods. Method
and assumption changes
are amortized over closed
20-year periods.
Actuarial gains and losses
and plan changes are
amortized over closed 15-
year periods. Method and
assumption
changes are
amortized over closed 20-
year periods. All
amortizations are a level
percent of payroll.
Actuarial gains and losses
and
plan changes are
amortized over closed 16-
year periods. Method and
assumption
changes are
amortized over closed 20-
year periods. All
amortizations are a level
percent of payroll.
Actuarial gains and
losses and
plan changes
are
amortized over closed 16-
year periods. Method and
assumption
changes are
amortized over closed 20-
year periods. All
amortizations are a level
percent of payroll.
Discount r
ate 6.625% 6.75% 6.75% 6.875% 6.875%
Salary increases 3.00% plus merit component
based on length of service
ranging from 6.50% for new
hires to 0.50% for members with
11 or more years of service
3.25% plus merit
component based on
length of ser
vice ranging
from 6.50% for new hires
to 0.50% for members
with 11 or more years of
service
3.25% per annum (.75%
real wage growth) plus
merit component based
on
length of service ranging
fr
om 6.00% for new hires
to 0.50% for members
with 10
or more years of service.
3.25%
plus merit
component based on
length
of service ranging
from 6.00% for new hires
to .50% for members with
10 or
more years of service.
3.25%
plus merit
component based on
length
of service ranging
from 6.00% for new hires
to .50% for members with
10 or
more years of service.
A
mortization
growth rate 2.25% 2.50% 3.25% 3.25% 3.25%
Mortality Healthy Retirees:
2010 Public Safety Above
Median
Income Mortality tables
for retirees multiplied by 1.002,
with mortality
improvements projected from
2010
using Scale MP- 2019 on a
generational basis.
Disabled retirees:
2010 Public Safety Mortality
tables for Disabled
Retirees
multiplied by 0.915, with
mortality improvements
pr
ojected from 2010 using Scale
MP-2019 on a generational
basis.
Beneficiaries: CalPERS 2009
Healthy
Annuitant Mortality tables
multiplied
by 0.948 for
males and 1.048 for females,
with
mortality improvements
projected
from 2009 using Scale MP- 2019
on
a generational basis.
Non-Annuitant:
2010 Public Safety Above
Median
Income Mortality tables
for Healthy
Employees multiplied by 0.979,
with
mortality
improvements projected
from 2010 using Scale MP- 2019
on
generational basis.
Healthy Retirees:
2010 Public Safety Above
Median
Income Mortality
tables for retirees
multiplied by 1.002, with
mortality
improvements projected
fr
om 2010 using
Scale MP- 2019 on a
generational basis.
Disabled retirees:
2010 Public Safety
Mor
tality tables for
Disabled Retirees
multiplied by 0.915, with
mortality improvements
pr
ojected from 2010
using Scale MP-2019 on a
generational basis.
Beneficiaries: CalPERS
2009
Healthy
Annuitant Mortality tables
multiplied
by 0.948 for
males and 1.048 for
f
emales, with mortality
improvements projected
from 2009 using
Scale MP- 2019
on a
generational basis.
Non-Annuitant:
2010 Public Safety Above
Median
Income Mortality
tables for Healthy
Employees multiplied by
0.979,
with mortality
improvements projected
from 2010 using Scale
MP-
2019 on generational
basis.
Healthy annuitants:
CalPERS 2009 Healthy
Annuity Mortality Tables
multiplied by 0.948 for
males and 1.048 for
females, with mortality
improvements projected
from 2009 using SOA MP-
2017
on a generational
basis.
Disabled annuitants:
CalPERS 2009
Industrial
Mortality Tables for Males
multiplied by 0.903, with
mortality improvements
projected from 2009 using
SOA MP-2017 on a
generational basis.
Healthy
annuitants:
CalPERS 2009 Healthy
Annuity Mortality Tables
multiplied by 0.948 for
males and 1.048 for
females, with mortality
improvements projected
from 2009 using SOA MP-
2017
on a generational
basis.
Disabled annuitants:
CalPERS 2009
Industrial
Mortality Tables for Males
multiplied by 0.903, with
mortality improvements
projected from 2009 using
SOA MP-2017 on a
generational basis.
Healthy
annuitants:
CalPERS 2009 Healthy
Annuity Mortality Tables
multiplied by 0.948 for
males and 1.048 for
females, with mortality
improvements projected
from 2009 using
Scale MP- 2015
on a
generational basis.
Disabled annuitants:
CalPERS 2009
Industrial
Mortality Tables for Males
multiplied by 0.903, with
mortality improvements
projected from 2009
using Scale MP-2015 on a
generational basis.
197 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Defined Benefit Pension Plans (Continued) PFDRP Schedule of Employer Contributions
(Dollar Amounts in Thousands) 2017 2016 2015 2014 2013 Actuarially determined contribution $ 1
36,957 $ 1
32,480 $ 1
29,279 $ 1
23,583 $ 1
05,234
Contributions in relation to actuarially
determined contribution 1
36,957 1
32,480 1
29,279 1
23,583 1
05,234
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 1
88,177 $ 1
86,874 $ 1
80,226 $ 1
80,083 $ 1
80,333
Contributions as a percentage of covered
payroll
72.78%
70.89%
71.73%
68.63%
58.36%
Fiscal year June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Valuation date June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 Actuarial cost
method Entry age Entry age Entry age Entry age Entry age Asset valuation
method
5-year smoothed market 5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
Amortization
method
Actuarial gains and losses and plan changes are amortized over closed 16-year periods. Method and assumption changes are amortized over closed 20-year periods. All amortizations are a level percent of payroll.
Discount rate 7.000% 7.000% 7.125% 7.25% 7.50%
Salary increases 3.25% plus merit component
based on length of service
ranging from 9.25% for new
hires to 2.00% for members
with 10 or more years of
service.
3.25% plus merit
component based
on length of service
ranging from 9.25% for
new hires to 2.00% for
members with 10 or
more years of service.
2.00% for FY 2015,
and 3.5% thereafter
plus merit component
based on length of
service ranging from
9.25% for new hires
to 2.00% for members
with 10 or more years
of service.
0.00% for FY 2013
and FY
2014, and 3.50%
ther
eafter plus merit
component based
on length of service
ranging from 8.00% for
new hires to 2.25% for
members with 10 or
more years of service.
0.00% for FY 2013
and FY
2014, and 3.50%
ther
eafter plus merit
component based
on length of service
ranging from 8.00%
for new hires to 2.25%
for members with
10 or more years of
service.
Amortization
growth
rate
3 .25% 3.25% 3.50% 3.50% 4.25%
Mortality Healthy annuitants: CalPERS
2009 Healthy Annuity
Mortality Tables multiplied
by 0.948 for males and
1.048 for females, with
mortality improvements
projected
from 2009 using Scale
MP-
2015 on a generational
basis.
Disabled annuitants:
CalPERS 2
009 Industrial
Mortality Tables for Males
multiplied by 0.903, with
mortality improvements
projected from 2009
using Scale MP-2015 on a
generational basis.
RP-2000 combined healthy mortality table with no collar adjustment projected to 2010 using scale AA. Male rates are set back three years.
198
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Defined Benefit Pension Plans
FCERS Schedule of Employer Contributions
(Dollar Amounts in Thousands) 2022 2021 2020 2019 2018
Actuarially determined contribution $ 2
07,598 $ 1
83,964 $ 1
81,327 $ 1
73,006 $ 1
56,770
Contributions in relation to actuarially
determined contribution 2
07,598 1
83,964 1
81,327 1
73,006 1
56,770
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Co
vered payroll $ 3
48,307 $ 3
35,421 $ 3
19,980 $ 2
98,824 $ 2
90,504
Contributions as a percentage of covered
payroll
59.60%
54.85%
56.67%
57.90%
53.96%
Fiscal year June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Valuation date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarial cost
method Entry age Entry age Entry age Entry age Entry age Asset valuation
method
5-year smoothed market 5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
Discount rate 6.625% 6.75% 6.75% 6.875% 6.875%
Salary increases 3.00% plus merit component
based on years of service
3.00% plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
2.85% plus merit
component based on
years of service
Amortization
growth rate 2.75% 2.75% 3.00% 3.00% 2.85%
Amortization
method
Unfunded actuarial liability
as of June 30, 2009 was
amortized over a closed
30- year period commencing
June 30, 2009. Gains,
losses and plan changes
are amortized over 20-year
periods, and assumption
changes are amortized over
25-year periods. Tier 2’s
Unfunded Actuarial Liability
as of June 30, 2017 is
amortized over a
10-year period. Tier 2
actuarial gains and losses,
assumption
changes, and
plan changes are amortized
over 10-year periods
Unfunded actuarial
liability as of June 30,
2009 was amortized
over a closed 30- year
period commencing
June 30, 2009. Gains,
losses and plan
changes are amortized
over 20-year periods,
and assumption
changes are amortized
over 25-year periods.
Tier 2’s Unfunded
Actuarial Liability as
of June 30, 2017 is
amortized over a
10-year period.
Unfunded actuarial
liability
as of June 30,
2009 was amortized
over a closed 30- year
period commencing
June 30, 2009. Gains,
losses and plan
changes are amortized
over 20-year periods,
and assumption
changes are amortized
over 25-year periods.
Tier 2’s Unfunded
Actuarial Liability as
of June 30, 2017 is
amortized over a
10-year period.
Unfunded actuarial
liability
as of June 30,
2009 was amortized
over a closed 30- year
period commencing
June 30, 2009. Gains,
losses and plan
changes are amortized
over 20-year periods,
and assumption
changes are amortized
over 25-year periods.
Tier 2’s Unfunded
Actuarial Liability as
of June 30, 2017 is
amortized over a
10-year period.
As
of June 30, 2009,
the funded actuarial
liability was amortized
over a closed 30
year period as a level
percentage of pay.
Gains and losses,
assumption changes
and plan changes are
amortized over closed
20- year periods as a
level percentage of
pay. The amortization
payment for the 2015
assumption changes
is phased-in over 3
years.
Mortality Adjusted 2010 Public
General (healthy) and
2009 CalPERS (disabled)
mortality tables projected
on a generational basis with
the SOA MP-2020 projection
scale
Adjusted 2010 Public
General (healthy)
and 2009 CalPERS
(disabled) mortality
tables projected on
a generational basis
with the SOA MP-2019
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2018
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2017
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2015
projection scale
199 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Defined Benefit Pension Plans (Continued)
FCERS Schedule of Employer Contributions
(Dollar Amounts in Thousands) 2017 2016 2015 2014 2013
Actuarially determined contribution $ 1
38,483 $ 1
29,456 $ 1
14,751 $ 1
02,811 $ 1
03,109
Contributions in relation to actuarially
determined contribution 1
38,483 1
24,723 1
14,751 1
07,544 1
03,109
Contribution deficiency (excess) $ - $ 4
,733 $ - $ (4
,733) $ -
Covered payroll $ 2
71,153 $ 2
57,771 $ 2
40,678 $ 2
19,434 $ 2
17,375
Contributions as a percentage of covered
payroll
51.07%
48.39%
47.68%
49.01%
47.43%
Fiscal year June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Valuation date June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 Actuarial cost
method Entry age Entry age Entry age Entry age Entry age Asset valuation
method
5-year smoothed market 5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
5-year smoothed
market
Discount rate 7.00% 7.00% 7.00% 7.25% 7.00%
Salary increases 2.85% plus merit component
based on years of service
2.85% plus merit
component based on
years of service
2.85% plus merit
component based on
years of service
2.00% for five years
and 2.85% thereafter
plus merit component
based on employee
classification and
years of service
3.25% plus merit
component based on
years of service
Amortization
growth rate 2.85% 2.85% 2.85% 2.43% 3.00%
Amortization
method
As of June 30, 2009, the
funded actuarial liability was
amortized over a closed
30 year period as a level
percentage of pay. Gains
and losses, assumption
changes and plan changes
are amortized over closed
20- year periods as a level
percentage of pay. The
amortization payment
for the 2015 assumption
changes is phased-in over
3 years.
As of June 30, 2009,
the funded actuarial
liability was amortized
over a closed 30 year
period as a level of
percentage of pay.
Gains and losses,
assumption changes
and plan changes are
amortized over closed
20 year periods as a
level percentage of
pay.
The unfunded
actuarial liability as
of June 30, 2009
was amortized over
a closed 30 year
period commencing
June 30, 2009 as a
level percentage of
Tier 1 pay. Actuarial
gains and losses,
assumption changes
and plan changes are
amortized over closed
20-year periods as a
level percentage of
Tier 1 and Tier 2 pay.
The entire unfunded
actuarial liability as
of June 30, 2009 was
amortized as a level
percentage of payroll
over a closed 30-year
period commencing
June 30, 2009.
Actuarial gains and
losses, assumption
changes and plan
changes since
June 30, 2009 are
amortized as a level
percentage of payroll
over a closed 20-year
periods beginning
with the valuation in
which they are first
recognized.
Level percent of pay,
closed, layered
Mortality Adjusted 2009 CalPERS
mortality tables projected
on a generational basis with
the SOA MP-2015 projection
scale
Sex distinct RP-2000
Combined Mortality
projected to 2015
using Scale AA and
setback two years
Sex distinct RP-2000
Combined Mortality
projected to 2015
using Scale AA and
setback two years
Sex distinct RP-2000
Combined Mortality
projected to 2015
using Scale AA and
setback two years
Sex distinct RP-2000
Combined Mortality
projected to 2015
using Scale AA and
setback two years
200
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30 – Defined Benefit Pension Plans
PFDRP
(Dollar amounts in thousands): 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability
Service cost (middle of year) $
93,
139 $
89,
470 $
87,
641 $
81,
883 $
75,
481 $
72,
760 $
74,
531 $
74,
895
Interest (includes interest on service cost) 354,
685 342,
802 329,
612 313,
565 300,
378 290,
961 274,
487 262,
738
Changes of benefit terms
-
-
- 178 5,752
-
-
Differences between expected and actual
experience 7,457 (15,
131)
37,127 (17,
011)
33,081
67,558 (8,672)
21,457
Changes of assumptions
12,390
73,525
80,852
76,425 (100,
328)
72,680
90,179
56,311
Benefit payments, including refunds of member
contributions
(259,
877) (244,
310) (231,
007) (218,
008) (206,
630) (196,
032) (186,
939) (176,
253)
Net change in total pension liability 207,
794 246,
356 304,
225 236,
854 102,
160 313,
679 243,
586 239,
148
Total pension liability - beginning 5 ,423,372 5 ,177,016 4 ,872,791 4 ,635,937 4 ,533,777 4 ,220,098 3 ,976,512 3 ,737,364 Total pension liability - ending $
5 ,631,166 $
5 ,423,372 $
5 ,177,016 $
4 ,872,791 $
4 ,635,937 $
4 ,533,777 $
4 ,220,098 $
3 ,976,512
Plan fiduciary net position
Contributions - employer $
212,
046 $
201,
370 $
188,
481 $
176,
618 $
157,
712 $
136,
957 $
132,
480 $
129,
279
Contributions - member
31,660
29,033
27,645
24,811
23,841
20,580
21,508
20,747
Net investment income (loss) (294,
549) 1
,044,290 134,
085 114,
179 233,
475 292,
734 (29,
206) (27,
690)
Benefit payments, including refunds of member
contributions (259,
876) (244,
310) (231,
008) (218,
008) (206,
630) (196,
032) (186,
939) (176,
253)
Administrative expense (6,051) (5,761) (5,605) (5,369) (5,464) (4,635) (4,254) (4,191) Net ch
ange in plan fiduciary net position (316,
770) 1
,024,622 113,
598
92,231 202,
934 249,
604 (66,
411) (58,
108)
Plan fiduciary net position - beginning 4 ,726,642 3 ,702,020 3 ,588,422 3 ,496,191 3 ,293,257 3 ,043,653 3 ,110,064 3 ,168,172 Plan fiduciary net position - ending $
4 ,409,872 $
4 ,726,642 $
3 ,702,020 $
3 ,588,422 $
3 ,496,191 $
3 ,293,257 $
3 ,043,653 $
3 ,110,064
Net pension liability - ending $ 1 ,221,294 $ 696, 730 $ 1 ,474,996 $ 1 ,284,369 $ 1 ,139,746 $ 1 ,240,520 $ 1 ,176,445 $ 866, 448
Plan fiduciary net position as a percentage of
the total pension liability 78.31% 87.15% 71.51% 73.64% 75.41% 72.64% 72.12% 78.21%
Covered payroll $ 237, 476 $ 230, 401 $ 218, 619 $ 203, 164 $ 186, 177 $ 186, 874 $ 180, 226 $ 180, 083 Net pension liability as a percentage of covered
payroll 514.28% 302.40% 674.69% 632.18% 612.18% 663.83% 652.76% 481.14%
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
201 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30 – Defined Benefit Pension Plans
(Dollar amounts in thousands): 2022 2021 2020
FCERS
2019 2018 2017 2016 2015
T
otal pension liability
Service cost (middle of year) $
67,
581 $
65,
712 $
61,
014 $
61,
808 $
59,
628 $
51,
887 $
49,
011 $
46,
795
Interest (includes interest on service cost) 295,
014 283,
610 280,
131 272,
787 264,
250 249,
388 229,
609 221,
690
Changes of benefit terms
-
-
- 1,781
12,132
-
-
Differences between expected and actual
experience
27,568
44,381 (27,
723) (11,
662)
17,461
40,853
39,720
13,005
Changes of assumptions 9,684
36,981 (2,937)
54,398 (15,
582)
60,233 205,
875 108,
674
Benefit payments, including refunds of member
contributions
(237,
273) (227,
205) (216,
728) (205,
066)
(193,
400) (183,
430) (173,
318) (164,
562)
Net change in total pension liability 162,
574 203,
479
93,757 172,
265 134,
138 231,
063 350,
897 225,
602
Total pension liability - beginning 4 ,526,849 4 ,323,370 4 ,229,613 4 ,057,348 3 ,923,210 3 ,692,147 3 ,341,250 3 ,115,648 Total pension liability - ending $
4 ,689,423 $
4 ,526,849 $
4 ,323,370 $
4 ,229,613 $
4 ,057,348 $
3 ,923,210 $
3 ,692,147 $
3 ,341,250
Plan fiduciary net position
Contributions - employer $
207,
598 $
183,
964 $
181,
327 $
173,
006 $
156,
770 $
138,
483 $
124,
723 $
114,
751
Contributions - employee
27,464
25,725
25,082
22,606
20,501
17,227
15,920
13,621
Net investment income (loss) (169,
129) 698,
606
90,909
76,855 117,
493 146,
010 (35,
010) (16,
642)
Benefit payments, including refunds of member
contributions (237,
273) (227,
205) (216,
728) (205,
066) (193,
400) (183,
430) (173,
318) (164,
562)
Administrative expense (4,978) (4,763) (4,725) (4,582) (4,823) (4,380) (3,940) (3,898) Net ch
ange in plan fiduciary net position (176,
318) 676,
327
75,865
62,819
96,541 113,
910 (71,
625) (56,
730)
Plan fiduciary net position - beginning 2 ,884,344 2 ,208,017 2 ,132,152 2 ,069,333 1 ,972,792 1 ,858,882 1 ,930,507 1 ,987,237 Plan fiduciary net position - ending $
2 ,708,026 $
2 ,884,344 $
2 ,208,017 $
2 ,132,152 $
2 ,069,333 $
1 ,972,792 $
1 ,858,882 $
1 ,930,507
Net pension liability - ending $ 1 ,981,397 $ 1 ,642,505 $ 2 ,115,353 $ 2 ,097,461 $ 1 ,988,015 $ 1 ,950,418 $ 1 ,833,265 $ 1 ,410,743
Plan fiduciary net position as a percentage of
the total pension liability 57.75% 63.72% 51.07% 50.41% 51.00% 50.29% 50.35% 57.78%
Covered payroll $ 335, 421 $ 319, 980 $ 298, 824 $ 290, 504 $ 271, 153 $ 257, 771 $ 240, 678 $ 219, 434 Net pension liability as a percentage of covered
payroll 590.72% 513.31% 707.89% 722.01% 733.17% 756.65% 761.71% 642.90%
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. 202
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Investment Returns – Defined Benefit Pension Plans
PFDRP
2022 2021 2020 2019 2018 2017 2016 2015
Annual money-weighted rate
of return, net of investment
expense -4.81% 26.43% 2.98% 4.00% 6.89% 9.68% -0.85% 0.85% FCERS
2022 2021 2020 2019 2018 2017 2016 2015
Annual money-weighted rate
of return, net of investment
expense -4.19% 29.43% 3.79% 4.17% 6.03% 7.53% -0.79% -1.07%
The rate shown above is based on the Defined Benefit and 401(h) only and does not include the 115 sub-trusts.
Schedules are intended to show information for 10 years. Additional years will be displayed as they become available. 203 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios – CalPERS
(Dollar amounts in
thousands): 2022 2021 2020 2019 2018 2017 2016
Measurement date: June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension
liability
0 .04730%
0 .03430%
0 .03490%
0 .03540%
0 .03600%
0 .03630%
0.03780%
Proportionate share of the net
pension liability $
8 97
$ 1
,448
$ 1
,395
$ 1
,334
$ 1
,419
$ 1
,262
$ 1
,038
Covered payroll $ 1
,720
$ 1
,006
$ 7
97 $ 8
22 $ 7
76 $ 7
56 $ 5
89 Proportionate share of the net
pension liability as percentage
of covered payroll
52.15%
1 43.94%
1 75.03%
1 62.29%
1 82.86%
1 66.93%
1 76.23%
Plan’s fiduciary net position
as a percentage of the total
pension liability
82.49%
75.19%
75.65%
76.39%
74.67%
74.39%
77.96%
Notes to Schedule:
Benefit changes. In 2015, benefit terms were modified to base miscellaneous employee pensions on a final three-year average salary instead of a final five- year average salary.
Schedule is intended to show information for 10 years commencing with the fiscal year ended June 30, 2015. Additional years will be displayed as they become available.
204
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – CalPERS
(Dollar amounts in thousands) 2022 2021 2020 2019 2018 2017 2016 Contractually required
contribution $ 3
25 $ 3
05 $ 2
22 $ 1
88 $ 1
84 $ 1
62 $ 1
48 Contributions in relation to
the contractually required
contributions
302
293
222
188
184
162
156
Contribution deficiency (excess)
$ 2
3 $ 1
2 $ - $ - $ - $ - $ (8
)
Co
vered payroll $ 1
,885 $ 1
,720 $ 1
,006 $ 7
97 $ 8
22 $ 7
76 $ 7
56 Contributions as a percentage
of covered payroll
16.02%
17.03%
22.07%
23.59%
22.38%
20.88%
2 0.63%
Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percentage of Payroll
Asset Valuation Method Market Value
Actuarial Assumptions:
Discount Rate
7.00% (net of
administrative
expenses)
7.00% (net of
administrative
expenses)
7.25% (net of
administrative
expenses)
7.375% (net of
administrative
expenses)
7.5% (net of
administrative
expenses)
7.5% (net of
administrative
expenses)
7.5% (net of
administrative
expenses)
Termination Liability Discount
Rate 2.31% 2.91% 2.61% 1.75% 2.75% 2.91% 3.72%
Salary Growth .40% to 8.50% 3.20% to 12.20%
3.30% to
14.20%
Depending on Age, Service and Type of Employment
Inflation 2.500% 2.500% 2.625% 2.75%
Payroll Growth 2.750% 2.750% 2.875% 3.00%
Schedule is intended to show information for 10 years commencing with the fiscal year ended June 30, 2015. 205 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30 – Postemployment Healthcare Plans (Dollar amounts in thousands): PFDRP
Total OPEB liability 2022 2021 2020 2019 2018 2017 Service cost (middle of year) $ 1
3,265
$ 1
2,991
$ 1
2,813
$ 1
5,003 $ 1
3,001 $ 1
6,112
Interest (includes interest on service cost)
45,103
45,789
44,676
48,208
45,314
46,774
Changes of benefit terms
-
-
-
- (6
9,434)
-
Differences between expected and actual
experience (5
0,193)
(3
5,106)
(9
9,319)
(3
,401)
14,877
-
Change of assumptions
36,583
48,332
8 ,567
38,843
21,243
-
Benefit payments, including refunds of member
contributions
(2
6,458)
(2
5,975)
(2
5,031)
(2
6,403)
(2
7,686)
(2
4,799)
Net change in total OPEB liability
18,300
46,031
(5
8,294)
72,250 (2
,685)
38,087
Total OPEB liability - beginning 7 71,819 7 25,788 7 84,082 7 11,832 7 14,517 6 76,430 Total OPEB liability - ending $ 7
90,119
$ 7
71,819
$ 7
25,788
$ 7
84,082 $ 7
11,832 $ 7
14,517
Plan fiduciary net position
Contributions - employer $ 3
0,763
$ 2
8,397
$ 2
7,350
$ 2
8,744 $ 2
5,382 $ 2
0,667
Contributions - employees
12,109
12,475
13,135
13,315
16,127
18,116
Net investment income (loss) (2
7,301)
52,994
7 ,243
7 ,907 7
,070
12,453
Benefit payments, including refunds of member
contributions (2
6,458)
(2
5,975)
(2
5,031)
(2
6,403)
(2
7,686)
(2
4,799)
Administrative expense (1
54)
(1
10)
(1
22)
(1
26)
(1
58)
(1
82)
VEBA transfer
-
-
-
- (7
,897)
-
Net change in plan fiduciary net position (1
1,041)
67,781
22,575
23,437
12,838
26,255
Plan fiduciary net position - beginning 2 76,313 2 08,532 1 85,957 1 62,520 1 49,682 1 23,427 Plan fiduciary net position - ending $ 2
65,272
$ 2
76,313
$
208,532
$
185,957 1
62,520 1
49,682
Net OPEB liability - ending $ 5 24,847 $ 4 95,506 $ 5 17,256 $ 5 98,125 $ 5 49,312 $ 5 64,835
Plan fiduciary net position as a percentage of
the total OPEB liability 33.57% 35.80% 28.73% 23.72% 22.83% 20.95%
Covered payroll $ 2 37,475 $ 2 30,401 $ 2 18,619 $ 2 03,164 $ 1 86,177 $ 1 86,874 Net OPEB liability as a percentage of covered
payroll 221.01% 215.06% 236.60% 294.41% 291.91% 302.25%
206
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30 – Postemployment Healthcare Plans (Dollar amounts in thousands): FCERS
Total OPEB liability 2022 2021 2020 2019 2018 2017 Service cost (middle of year) $ 7
,539
$ 7
,018
$ 7
,040
$ 7
,723 $ 7
,889 $ 1
1,109
Interest (includes interest on service cost)
39,075
39,886
41,855
43,182
42,669
49,977
Changes of benefit terms
-
-
-
- (5
7,623)
-
Differences between expected and actual
experience (2
4,961)
(3
3,945)
(2
5,639)
(1
0,418)
(9
94)
-
Change of assumptions
22,369
34,496
(1
4,804)
9 ,310 (7
7,795)
-
Benefit payments, including refunds of member
contributions
(3
1,088)
(3
1,871)
(3
0,779)
(2
8,824)
(2
9,724)
(3
1,007)
Net change in total OPEB liability
12,934
15,584
(2
2,327)
20,973 (1
15,578)
30,079
Total OPEB liability - beginning 6 65,452 6 49,868 6 72,195 6 51,222 7 66,801 7 36,721 Total OPEB liability - ending $ 6
78,386
$ 6
65,452
$
649,868
$
672,195 $ 6
51,223 $
766,800
Plan fiduciary net position
Contributions - employer $ 2
4,787
$ 2
6,236
$ 2
6,533
$ 2
6,410 $ 3
2,397 $ 3
1,905
Contributions - employees 9
,865
10,275
10,692
10,578
15,545
16,827
Net investment income (loss) (3
8,286)
77,362
3 ,077
9 ,472
12,336
17,041
Benefit payments, including refunds of member
contributions (3
1,088)
(3
1,871)
(3
0,779)
(2
8,826)
(2
9,724)
(3
1,007)
Administrative expense (7
65)
(6
97)
(6
86)
(3
84)
(1
70)
(2
42)
VEBA transfer
-
(5
)
(1
3)
(1
9)
(1
3,497)
-
Net change in plan fiduciary net position (3
5,487)
81,300
8 ,824
17,231
16,887
34,524
Plan fiduciary net position - beginning 3 84,612 3 03,312 2 94,488 2 77,257 2 60,370 2 25,846 Plan fiduciary net position - ending $ 3
49,125
$ 3
84,612
$ 3
03,312
$ 2
94,488 $ 2
77,257 $ 2
60,370
Net OPEB liability - ending $ 3 29,261 $ 2 80,840 $ 3 46,556 $ 3 77,707 $ 3 73,965 $ 5 06,431
Plan fiduciary net position as a percentage of
the total OPEB liability 51.46% 57.80% 46.67% 43.81% 42.57% 33.96%
Covered payroll $ 3 35,421 $ 3 19,980 $ 2 98,824 $ 2 90,504 $ 2 71,153 $ 2 57,771 Net OPEB liability as a percentage of covered
payroll 98.16% 87.77% 115.97% 130.02% 137.92% 196.47%
Schedule is intended to show information for 10 years commencing with the year ended June 30, 2017. Additional years will be displayed as they become available.
207 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 City of San José
Required Supplementary Information (Unaudited)
June 30, 2022
Changes in assumptions. The discount rate was changed from 6.25% (net of administrative expense) to
6.00% and from 6.25% (net of administrative expense) to 6.00%, respectively, for PFDRP and FCERS for the measurement period ended June 30, 2022. Plan enrollment assumptions were updated based on recent experience and the expected impact of added and dropped plans. The per person cost trends were moved forward one year.
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information become available. 208
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Postemployment Healthcare Plans PFDRP Schedule of Employer
Contributions
(Dollar Amounts in Thousands)
Last Ten Fiscal Years
Measurement Period Ended June 30 2022 2021 2020 2019 2018 2017 Actuarially Determined Contribution
(ADC)
$ 3
0,763
$ 28,397 $ 2 7,350 $ 2 8,744 $ 2 5,382 $ 2 0,667 Contribution in relation to the ADC (3
0,763) (2 8,397) (2 7,350) (2 8,744) (2 5,382) (2 0,667) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - Co
vered payroll $ 2
51,022 $ 237,475 $ 2 30,401 $ 2 18,619 $ 2 03,164 $ 186,177 Contribution as a percentage of
covered payroll 1
2%
1 2% 1 2% 1 3% 1 2% 1 1%
Methods and assumptions used to determine contributions:
Fiscal Year 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Timing Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarial Cost Method Individual entry age Individual entry age Individual entry age Individual entry age Individual entry age Asset Valuation
Method Market value of assets Market value of assets Market value of assets Market value of assets Market value of assets Amortization Method 25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
Discount rate 6.250% 6.500% 6.500% 6.875% 6.875%
Amortization growth
rate 3,00% 3,25% 3,25% 3,25% 3,25%
Ultimate rate of
medical inflation 3.78% 3.94% 4.25% 4.25% 4.25%
Salary increases 4.25% through FYE
2022 and 3.00%
thereafter plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
3.25% plus merit
component based on
years of service
Mortality Adjusted 2010 Public
Safety above income
mortality tables for
healthy and disabled
members and adjusted
2009 CalPERS
mortality tables for
survivors projected on
a generational basis
with the SOA MP-2019
projection scale
Adjusted 2010 Public
Safety above income
mortality tables for
healthy and disabled
members and adjusted
2009 CalPERS
mortality tables for
survivors projected on
a generational basis
with the SOA MP-2019
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2017
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2017
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2015
projection scale
A complete description of the methods and assumptions used to determine contributions for the year ended June 30, 2018 to 2022, can be found in the June 30, 2016, June 30, 2018 to 2020 actuarial valuation report, respectively. 209 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Employer Contributions – Postemployment Healthcare Plans (Continued) FCERS Schedule of Employer
Contributions
(Dollar Amounts in Thousands)
Last Ten Fiscal Years
Measur
ement Period Ended June 30 2022 2021 2020 2019 2018 2017 Actuarially Determined Contribution
(ADC) $
2 4,787 $ 2
6,236 $ 2
6,533 $ 2
6,410 $ 3
2,397 $ 3
1,905
Contribution in relation to the ADC (2
4,787) (2
6,236) (2
6,533) (2
6,410) (3
2,397) (3
1,905)
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - Co
vered payroll $ 3
48,307 $ 3
35,421 $ 3
19,980 $ 2
98,824 $ 2
90,504 $ 2
71,153
Contribution as a percentage of
covered payroll
7%
8%
8%
9%
1 1%
1 2%
Methods and assumptions used to determine contributions:
Fiscal Year 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Timing Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarially determined
contribution rates are
calculated based on
the actuarial valuation
one year prior to the
beginning of the fiscal
year
Actuarial Cost Method Individual entry age Individual entry age Individual entry age Individual entry age Individual entry age Amortization Method/
Period
20-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
20-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
20-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
25-year layered
amortization as a level
dollar amount with
3-year phase-in and
phase-out
Asset Valuation
Method Fair value of assets Fair value of assets Fair value of assets Fair value of assets Fair value of assets Amortization growth
rate 0,00% 0,00% 0,00% 0,00% 3,25%
Discount rate 6.25% 6.75% 6.75% 6.875% 6.875%
Ultimate rate of
medical inflation 3.78% 3.94% 4.25% 4.25% 4.25%
Salary increases 3.00% plus merit
component based on
years of service
3.00% based on years
of service
3.25% based on years
of service
3.25% based on years
of service
2.85% based on years
of service
Mortality Adjusted 2010
Public General
Mortality tables for
healthy members
and adjusted 2009
CalPERS mortality
tables for disabled
members projected on
a generational basis
with the SOA MP-2020
projection scale
Adjusted 2010
Public General
Mortality tables for
healthy members
and adjusted 2009
CalPERS mortality
tables for disabled
members projected on
a generational basis
with the SOA MP-2019
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2018
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2018
projection scale
Adjusted 2009
CalPERS mortality
tables projected on
a generational basis
with the SOA MP-2015
projection scale
A complete description of the methods and assumptions used to determine contributions for the year ended June 30, 2018 to 2022, can be found in the June 30, 2016, June 30, 2018 to 2020 actuarial valuation report, respectively. 210
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 Schedule of Investment Returns – Postemployment Healthcare Plans
PFDRP
2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return, net
of investment expense -9.62% 23.96% 1.95% 4.86% 3.56% 7.17%
FCERS
2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return, net
of investment expense -9.91% 24.92% 0.53% 4.33% 4.55% 7.20%
The rate shown above is based on the 115 sub-trusts only and does not include the 401(h). Schedules are intended to show information for 10 years. Additional years will be displayed as they become available.
211 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 City of San Jose
Notes to Required Supplementary Information (Unaudited) June 30, 2022
I. Budge tary Information
The adopted budget represents the financial and organizational plan by which the policies and programs approved by the City Council will be implemented. It includes: (1) the programs, projects, services and activities to be provided during the fiscal year; (2) estimated revenues available to finance the operating plan; and (3) the estimated spending requirements of the operating plan. The City Charter requires that the City establish a budgetary system for general operations and prohibits expending funds for which there is no legal appropriation.
The annual appropriation ordinance adopts the budget at the appropriation level by expenditure category (personal services, non-personal) within departments. Accordingly, the lowest level of budgetary control exercised by the City Council is the appropriation level within a department. The City’s legal level of budgetary control is so detailed that it is not practical to demonstrate compliance within the Annual Comprehensive Financial Report itself. As a result, the City prepares a separate report to demonstrate compliance with its legal level of budgetary control.
Annual budgets are prepared for the General Fund and all Special Revenue Funds. Capital project budgets are based on a project time frame rather than a fiscal year time frame. Debt Service Funds appropriations were adopted by the Council when the formal bond resolutions were approved. Therefore, Capital Project Funds and Debt Service Funds are not reported on budgetary basis.
II. Budge tary Results Reconciled to GAAP
The budgetary process is based upon accounting for certain transactions on a basis other than the accounting principles generally accepted in the United States (“GAAP”) basis. The results of operations are presented in the accompanying budget and actual comparison schedules in accordance with the budgetary process (“budgetary basis”) to provide a meaningful comparison with the budget.
The major differences between the budgetary basis actual and GAAP basis are as follows:
○ Y
ear-end encumbrances are recognized as the equivalent of expenditures in the budgetary basis financial schedules, while encumbered amounts are not recognized as expenditures on GAAP basis until the equipment, supplies or services are received. ○ Cer
tain loan transactions are recognized as expenditures for the budgetary basis but not for the GAAP basis. When these loans are made, they are recorded as receivables on a GAAP basis and as expenditures on a budgetary basis. When loan repayments are received, they are recorded as reductions to receivables on a GAAP basis, but are recognized as revenues on a budgetary basis. ○ Net
decreases were made to certain GAAP basis loans receivable to reflect carrying amounts at a discounted present value and allowances for bad debts. The discount is treated as an expenditure on a GAAP basis and is not included in the budgetary basis financial statements. In addition, the allowance for bad debts is not included in the budgetary basis financial schedules, but is an expenditure on a GAAP basis.
212
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) J UNE 30 , 2022 ○ Certain accounts such as the change in fair value of investments included in the City’s GAAP basis amounts, for which no formal budgets are prepared, are excluded from the budgetary basis financial schedules.
○ Cer
tain line of credit transactions are recognized as expenditures in the budgetary basis financial schedules but are recorded as an asset in the GAAP basis financial statements. When the outside agency draws down on the line of credit, the City records an asset, advances to other agencies, in the GAAP basis financial statements and an expenditure on the budgetary basis financial schedules.
When the outside agency pays down the line of credit, the City records a reduction to its assets in the GAAP basis financial statements and revenues on the budgetary basis financial schedules. ○ Certain grant revenues received in advance are recognized on the budgetary basis financial schedules, but are deferred and not recognized as revenue on the GAAP basis financial statements.
This process normally creates a variance in recognized revenue from the prior year to the current year.
III. Budge t Revisions
On October 18, 2022 the City Council approved certain fiscal year 2022 budget revisions that increased appropriations for various expenditure categories. The budget amounts presented in the accompanying schedules of revenues, expenditures and changes in fund balances - budget and actual reflect such budget revisions.
FOR THE YEAR ENDED J UNE 30, 2022213
Combining
Nonmajor
Governmental
Funds
215 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
($000’s)
Special Revenue
Funds
Debt Service
Funds
Capital Project
Funds
Total Nonmajor
Governmental
Funds
ASSETS
Equity in pooled cash and investments held in City Treasury $ 5 16,694 - 1 26,569 6 43,263 Receivables (net of allowance for uncollectibles)
45,686
308
24,648
70,642
Due from other funds 7
,791
-
-
7 ,791
Loans receivable (net of allowance for uncollectibles) 2 ,426
-
-
2 ,426
Advances and deposits 1
77 -
3 8
2 15
Restricted assets:
Equity in pooled cash and investments held in City Treasury - 44,250 701 44,951 Cash and investments held with fiscal agents
-
8 ,234
3 08,792
3 17,026
Other cash and investments
14,909
-
-
14,909
Leases receivable 6
97 -
-
6 97
Other assets 1
,924
-
-
1 ,924
Total assets $ 5
90,304
52,792
4 60,748
1,103,844
LIABILITIES
Accounts payable $ 2 0,810 2 29,438 50,250
Accrued salaries, wages, and payroll taxes 6
,238
-
1 ,239
7 ,477
Due to other funds
11,377
-
-
11,377
Unearned revenue
14,324
-
-
14,324
Advances, deposits, and reimbursable credits 6
,171
-
-
6 ,171
Other liabilities 4
,464
-
-
4 ,464
Total liabilities
63,384
2 30,677
94,063
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 4 ,827 - 5 ,357 10,184
Leases 6
65 -
-
6 65
Total deferred inflows of resources 5
,492
-
5 ,357
10,849
FUND BALANCES
Restricted 4 12,583 52,786 3 37,202 8 02,571
Committed 1
02,155
4 -
1 02,159
Assigned 6
,710
-
87,512
94,222
Unassigned (2
0)
-
-
(2
0)
Total fund balances 5
21,428
52,790
4 24,714
9 98,932
Total liabilities, deferred inflows of resources and fund balances $ 5
90,304
52,792
4 60,748
1,103,844
216
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
($000’s)
Special Revenue
Funds
Debt Service
Funds
Capital Project
Funds
Total Nonmajor
Governmental
Funds
REVENUES
Taxes and special assessments $ 1 24,806 50,617 16,220 1 91,643 Intergovernmental
50,018
-
61,502 1
11,520
Charges for current services 2
70,805
-
51 2
70,856
Rent
31,508
-
-
31,508
Investment income (loss) (9
,507) (3
57) (2
,172) (1
2,036)
Other revenues
46,056
- 4
,222
50,278
Total revenues 5
13,686
50,260
79,823 6
43,769
EXPENDITURES
Current:
General government 1
05 -
- 1
05 Public safety 2
,348
-
- 2
,348
Community services 1
47,305
-
- 1
47,305
Sanitation 2
04,498
-
- 2
04,498
Capital maintenance 1
04,422
- 1
81,275 2
85,697
Capital outlay
19,642
-
21,442
41,084
Debt service:
Principal
-
64,880
-
64,880
Interest and fiscal charges
-
23,666
-
23,666
Total expenditures 4
78,320
88,546 2
02,717 7
69,583
Excess (deficiency) of revenues over (under) expenditures 35,366 (3
8,286) (1
22,894) (1
25,814)
OTHER FINANCIAL SOURCES (USES)
Bonds issued 6
,411
- 2
00,530 2
06,941
Bond premium 1
,189
50,124
-
51,313
Proceeds from sale of capital assets 3
,817
-
- 3
,817
Transfers in
17,121
24,103 2
,331
43,555
Transfers out (2
1,129) (2
5,224) (2
,558) (4
8,911)
Total other financing sources (uses) 7
,409
49,003 2
00,303 2
56,715
Net change in fund balances
42,775
10,717
77,409 1
30,901
Fund balances - beginning 4
78,653
42,073 3
47,305 8
68,031
Fund balances - ending $ 5
21,428
52,790 4
24,714 9
98,932
FOR THE YEAR ENDED J UNE 30, 2022217
Nonmajor Special
Revenue Funds
219 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Nonmajor Special Revenue Funds
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
The Special Revenue Funds of the City of San José include the following:
Prusch Memorial Park Fund – Established to account for the development, construction, and improvement of the Emma Prusch Memorial Park.
Gift Trust Fund – Established to receive gifts, donations, and bequests.
Building Development Fee Program Fund – Established to account for the fees collected from developers for all new development and tenant improvements in the City.
Planning Development Fee Program Fund – Established to account for the fees collected from developers for all new development and projects in the City.
Citywide Planning Fee Program Fund – Established to account for the fees collected from developers for all new development and tenant improvements in the City.
Fire Development Fee Program Fund – Established to account for the fees collected from developers for all new development and tenant improvements in the City.
Public Works Development Fee Program Fund – Established to account for the fees collected from developers for all new development and tenant improvements in the City.
Public Works Small Cell Permitting Fee Program Fund – Established to account for the fees collected from telecommunication companies to install small cells and fiber on city’s property, such as streetlights, traffic lights, and rooftops.
Workforce Investment Act Funds – Established to account for federal funds for training and placement of dislocated and economically disadvantaged workers.
Special Assessment Maintenance Districts Funds – Established to account for assessments involving Maintenance District activities.
Ng Shing Gung Capital Maintenance Fund – Established to account for capital maintenance needs of the Ng Shing Gung Exhibit and Museum.
Subdivision Park Trust Fund – Established to account for the payment of fees and/or the dedication of land for parks and recreational purposes in residential subdivisions.
Construction and Property Conveyance Tax Funds – Established to account for the collection of taxes from construction and property transfers for capital maintenance of libraries, parks, recreational, public works, and communication facilities.
1943 and 1964 Gas Tax Maintenance and Construction Funds – Established to account for gas taxes collected for capital maintenance of public streets subject to provisions of the Streets and Highway Code of the State of California under Sections 2105, 2106, and 2107.
Storm Drainage Fee Funds – Established to account for fees collected from developers as a result of connections to the storm drainage sewer system which may be used for capital maintenance of storm drainage systems and for land acquisition for such systems.
Supplemental Local Law Enforcement Fund – Established to account for revenues received from the State of California (AB 3229) to be used for front line municipal police service. 220
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
STATISTICAL
SECTION
Underground Utility Fund – Established to account for fees collected from developers in lieu of the developers placing certain utility facilities underground to be used for minimizing the piecemeal undergrounding of utility facilities throughout the City.
State Drug Forfeiture Fund – Established to account for State drug forfeiture monies received pursuant to California Health and Safety Code Section 11489.
Library Parcel Tax Funds – Established to account for the annual parcel tax used for enhancing the City’s library services and facilities.
Federal Drug Forfeiture Funds – Established to account for federal drug forfeiture monies received pursuant to the drug abuse prevention and control provisions of Title 21, Chapter 13 of the United States Code.
Residential Construction Tax Contribution Fund – Established to account for the accumulation of residential construction tax monies for eligible street maintenance and improvements.
Arterial and Major Collectors Fund – Established to account for funds repaid by abutting landowners for the City’s capital maintenance costs of existing and proposed arterial and major collector streets.
Community Facility Revenue Funds – Established to account for the rental revenues received from the Hayes Mansion and the Ice Centre operations, and to provide for the accumulation and transfer of base rental income to the appropriate debt service funds for repayment of the facilities-related debts.
Integrated Waste Management Fund – Established to account for activities related to the Integrated Waste Management Program which includes garbage collection, recycling services, and related billing operations.
Building and Structures Construction Tax Fund – Established to account for revenues received from the issuance of building permits and capital maintenance expenditures for existing and proposed City streets.
Development Enhancement Fund – Established to account for loans and loan guarantees to assist small business development.
Community Development Block Grant Fund s – Established to account for federal grant funds received from the U.S. Department of Housing and Urban Development under Title II of the Housing and Community Development Act of 1974.
Economic Development Administration Loans Fund – Established to account for federal funds received for the Economic Development Administration Loan program for eligible administrative expenses and loans to small businesses.
Storm Drainage Service Use Charge Funds – Established to account for revenues collected from owners of properties benefited by the storm drainage service which may be used for capital maintenance and operation of the storm drainage system.
Transient Occupancy Tax Fund – Established to account for transient occupancy tax revenues and to provide for the funding of fine arts and cultural grant programs, the San José Convention and Visitors Bureau and the conventions and cultural facilities operation.
Lake Cunningham Fund – Established to account for the parking fees and lease payment revenues used for maintenance and operations at Lake Cunningham Park.
Edward Byrne Memorial Justice Funds – Established to account for federal funding in support of the Edward G. Byrne Memorial Justice Assistance grant.
Municipal Golf Courses Fund – Established in 1969 to manage and operate the public golf courses.
Convention and Cultural Facilities Funds – Established to fund the costs of managing and operating the San José McEnery Convention Center, the Center for the Performing Arts, Civic Auditorium, California Theatre, Montgomery Theater, Parkside Hall, South Hall, and their related facilities and grounds. 221 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
($000’s)
Prusch Memorial
Park
(Fund 131)
Gift T
rust
(Fund 139)
Building
Development
Fee Program
(Fund 237)
ASSE
TS
E
quity in pooled cash and investments held in City Treasury $ 5 07 4
,624
34,961
Receivables (net of allowance for uncollectibles) 1
109
94 Due from other funds
-
-
-
Loans receivable (net of allowance for uncollectibles)
-
-
-
Advances and deposits
-
-
-
Restricted assets:
Other cash and investments
-
-
-
Leases receivable
-
-
-
Other assets
-
-
-
Total assets $ 5
08 4
,733
35,055
LIABILITIES
Accounts pa
yable $ 1 4
10 Accrued salaries, wages and payroll taxes
- 5 1
,375
Due to other funds
-
-
-
Unearned revenue
-
-
-
Advances, deposits, and reimbursable credits
-
-
-
Other liabilities
-
-
-
Total liabilities 1 9 1
,385
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
-
Leases
-
-
-
Total deferred inflows of resources
-
-
-
FUND BALANCES
Restricted
-
-
-
Committed
507
-
33,670
Assigned
- 4
,724
-
Unassigned
-
-
-
Total fund balances
507 4
,724
33,670
Total liabilities, deferred inflows of resources and fund balances $ 5 08 4
,733
35,055
222
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Planning
Development
Fee Program
(Fund 238)
Citywide
Planning Fee
Program
(Fund 239)
Fir
e
Development
Fee Program
(Fund 240)
Public W
orks
Development
Fee Program
(Fund 241)
Public W
orks
Small Cell
Permitting Fee
Program
(Fund 242)
W
orkforce
Investment Act
(Funds 290-
299)
4 ,477 4
,973 3
,560 5
,844
-
-
13 13 9 1
,258 4
04 3
,169
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4 ,490 4
,986 3
,569 7
,102 4
04 3
,169
-
20 6 3
- 4
15 2
71 91 3
54 4
59 86 1
39 -
-
-
-
59 1
,305
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2 71 1
11 3
60 4
62 1
45 1
,859
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 1
,310
4 ,219 4
,875 3
,209 6
,640 2
59 -
-
-
-
-
-
-
-
-
-
- - -
4 ,219 4
,875 3
,209 6
,640 2
59 1
,310
4 ,490 4
,986 3
,569 7
,102 4
04 3
,169
(Continued)
223 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
($000’s)
Special Assessment
Maintenance
Districts
(Funds 302, 310, 344-
345, 351-374, 376,
379, 496)
Ng Shing Gu ng Capital
Maintenance
(Fund 303)
Subdivision
Park Trust
(Fund 375)
ASSE
TS
Equity in pooled cash and investments held in City Treasury $ 1 5,370 9 6 9 8,115 Receivables (net of allowance for uncollectibles)
792
-
6 ,384
Due from other funds -
-
-
Loans receivable (net of allowance for uncollectibles) -
-
-
Adv
ances and deposits -
-
-
Restricted assets:
Other cash and investments - - -
Leases receivable -
-
-
Other assets -
-
-
Total assets $ 1
6,162
9 6
1 04,499
LIABILITIES
Accounts payable
347 -
1 ,225
Accrued salaries, wages and payroll taxes 9
4 -
9 4
Due to other funds -
-
-
Unearned revenue 7
7 -
-
Advances, deposits, and reimbursable credits -
-
-
Other liabilities -
-
-
Total liabilities
518
-
1 ,319
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 1 ,000
Leases -
-
-
Total deferred inflows of resources -
-
1 ,000
FUND BALANCES
Restricted 1 5,644 - 1 02,180
Committed -
-
-
Assigned -
9 6
-
Unassigned -
-
-
Total fund balances 1
5,644
9 6
1 02,180
Total liabilities, deferred inflows of resources and fund balances $ 1 6,162 9 6 1 04,499
224
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Construction
and
Property
Conveyance
Tax (Funds 377-378,
380-398)
1943
Gas Tax
Maintenance and
Construction
(Fund 409)
1964
Gas Tax
Maintenance and
Construction
(Funds 410-411)
St
orm Drainage
Fee
(Funds 413, 427)
Supple
mental
Local Law
Enforcement
(Fund 414)
Under
ground
Utility
(Fund 416)
1 24,261 -
-
591
3,425 1
0,205
7 ,782
1,315
1,500
2 9
348
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 ,841
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 33,884
1,315
1,500
593
3,434 1
0,553
8 30 -
-
1 6 1
9 8
0 6
99 -
-
-
-
1 1
5 66
1,315
1,500 -
-
-
1 ,832 -
-
-
3,305 -
- -
-
-
-
-
- -
-
-
-
-
3 ,927
1,315
1,500 1
6 3,324 9
1 7
92 -
-
-
-
-
- -
-
-
-
-
7 92 -
-
-
-
-
1 29,165 -
-
577
110 1
0,462
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
1 29,165 -
-
577
110 1
0,462
1 33,884
1,315
1,500
593
3,434 1
0,553
(Continued)
225 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
($000’s)
State Drug
Forfeiture
(Fund 417)
L
ibrary
Parcel Tax
(Funds 418, 483)
F
ederal
Drug
Forfeiture
(Fund 419, 487-
488)
ASSE
TS
Equity in pooled cash and investments held in City Treasury $ 2 5 ,809
-
Receivables (net of allowance for uncollectibles)
- 6
-
Due from other funds
-
-
-
Loans receivable (net of allowance for uncollectibles)
-
-
-
Advances and deposits
-
-
-
Restricted assets:
Other cash and investments 1
,193
- 8
Leases r
eceivable
-
-
-
Other assets
-
-
-
Total assets $ 1
,195 5
,815 8
L
IABILITIES
Accounts payable
- 7
9 -
Accrued salaries, wages and payroll taxes
-
397
-
Due to other funds
146
-
-
Unearned revenue
-
-
-
Advances, deposits, and reimbursable credits
-
-
-
Other liabilities
-
-
-
Total liabilities
146
476
-
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
-
Leases
-
-
-
Total deferred inflows of resources
-
-
-
FUND BALANCES
Restricted 1
,049 5
,339 8
Committed
-
-
-
Assigned
-
-
-
Unassigned
-
-
-
Total fund balances 1
,049 5
,339 8
T
otal liabilities, deferred inflows of resources and fund balances $ 1 ,195 5
,815 8
226
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Residential
Construction
Tax
Contribution
(Fund 420)
Ar
terial
and Major
Collectors
(Fund 421)
Commu
nity
Facility
Revenues
(Funds
422,432,438)
I
ntegrated
Waste
Management
(Fund 423)
Building and
Stru
ctures
Construction
Tax
(Fund 429)
De
velopment
Enhancement
(Fund 439)
2 ,815 1
,424 1
,765
44,709
94,317
-
8 5 1
05 7
,093 9
57 -
-
-
-
- 7
,791
-
-
-
-
-
-
-
-
-
-
- 3
-
-
-
-
-
-
-
-
-
- 6
97 -
-
-
-
-
-
-
20 2
,823 1
,429 1
,870
52,499 1
03,068
20 -
-
-
13,466 1
,645
-
-
-
- 4
85 6
65 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 6
,171
-
-
-
-
- 5
-
-
-
-
-
20,127 2
,310
-
-
-
- 3
66 -
-
-
-
- 6
65 -
-
-
-
- 1
,031
-
-
-
-
-
- 1
00,758
-
2 ,823 1
,429
-
31,341
-
-
-
- 1
,870
-
-
20 -
-
-
- - -
2 ,823 1
,429 1
,870
31,341 1
00,758
20 2
,823 1
,429 1
,870
52,499 1
03,068
20 (Continued)
227 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
($000’s)
Community
Development
Block Grant
(Funds 441, 304)
E
conomic
Development
Administration
Loans
(Fund 444)
St
orm Drainage
Service Use
Charge
(Funds 446, 469)
ASSE
TS
Equity in pooled cash and investments held in City Treasury $ -
7 4
5,148
Receivables (net of allowance for uncollectibles)
8,490
-
465
Due from other funds -
- -
Loans r
eceivable (net of allowance for uncollectibles)
2,426
- -
Adv
ances and deposits -
- -
Restricted
assets:
Other cash and investments 5
- -
Leases r
eceivable -
- -
O
ther assets
1,904
- -
T
otal assets $ 1
2,825
7 4
5,613
LIABILITIES
Accounts payable
1,908
-
663
Accrued salaries, wages and payroll taxes 7
5 -
837
Due to other funds
6,486
- -
Unearned r
evenue -
- -
Adv
ances, deposits, and reimbursable credits -
- -
O
ther liabilities -
- -
T
otal liabilities
8,469
-
1,500
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
2,669
- -
Leases -
- -
T
otal deferred inflows of resources
2,669
- -
FUND BAL
ANCES
Restricted
1,687
7 4
4,113
Committed -
- -
Assigned -
- -
Unassigned -
- -
T
otal fund balances
1,687
7 4
4,113
Total liabilities, deferred inflows of resources and fund balances $ 1 2,825
7 4
5,613
228
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Transient
Occupancy Tax
(Fund 461)
L
ake
Cunningham
(Fund 462)
E
dward Byrne
Memorial
Justice
(Funds 474,
477)
Mu
nicipal Golf
Courses
(Fund 518)
Conv
ention
and Cultural
Facilities
(Funds 536,
481, 560, 489) T
otal
3 ,507 1
,412
45 2
,535 2
,190
516,694
2 ,599
93 2 1
95 2
,466 4
5,686
-
- -
-
-
7,791
-
- -
-
-
2,426
-
- -
- 1
74 1
77 -
- -
-
11,862 1
4,909
-
- -
-
- 6
97 -
- -
-
-
1,924
6 ,106 1
,505
47 2
,730
16,692
590,304
7 8
16 42 1 2
0,811
98 1 1
-
-
6,237
-
- -
-
- 1
1,377
-
-
50 - 9
,060 1
4,324
-
- -
-
-
6,171
-
- -
- 4
,459
4,464
1 05 9
67 42
13,520 6
3,384
-
- -
-
-
4,827
-
- -
-
- 6
65 -
- -
-
-
5,492
-
- -
- 1
74 412,583
6 ,001 1
,496 - 2
,688 2
,998
102,155
-
- -
-
-
6,710
-
- (2
0)
-
- (2
0)
6 ,001 1
,496 (2
0) 2 ,688 3 ,172 521,428
6 ,106 1
,505
47 2
,730
16,692
590,304
229 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Prusch Memorial
Park
(Fund 131)
Gift T
rust
(Fund 139)
Building
Development
Fee Program
(Fund 237)
RE
VENUES
Taxes and special assessments $ - - -
Intergovernmental
-
-
-
Charges for current services
-
-
-
Rent
98 -
-
Investment income (loss) (1
0)
(8
9)
(7
51)
Other revenues
-
1 ,023
36,306
Total revenues
88 9
34 35,555
EXPENDITURES
Current:
General government - - -
Public safety
-
-
-
Community services
35 4
71 33,936
Sanitation
-
-
-
Capital maintenance
-
-
-
Capital outlay
35 -
-
Total expenditures
70 4
71 33,936
Excess (deficiency) of revenues over (under) expenditures 18 4 63 1 ,619
OTHER FINANCING SOURCES (USES)
Bonds issued - - -
Bond premium
-
-
-
Proceeds from sale of capital assets
-
-
-
Transfers in
-
-
-
Transfers out
-
-
(1
,057)
Total other financing sources (uses)
-
-
(1
,057)
Net change in fund balances 18 4 63 5 62
Fund balances - beginning 4 89 4 ,261 33,108
Fund balances - ending $ 5
07 4
,724
33,670
230
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Planning
Development
Fee Program
(Fund 238)
Citywide
Planning Fee
Program (Fund
239)
Fire
Development
Fee Program
(Fund 240)
Public W
orks
Development
Fee Program
(Fund 241)
Public W
orks
Small Cell
Permitting Fee
Program
(Fund 242)
W
orkforce
Investment Act
(Funds 290-
299)
-
-
-
-
-
-
2 -
-
-
-
7 ,355
8,195
3,403
-
1 4,436
2,887
-
-
-
-
-
-
-
(1
10)
(9
9)
(8
8)
(1
42)
(1
0)
-
1 8
-
6,943
-
-
-
8,105
3,304
6,855
1 4,294
2,877
7 ,355
-
-
-
-
-
-
-
-
-
-
-
-
7,074
2,614
9,500
1 4,657
4,047
7 ,330
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6 -
-
7,074
2,614
9,500
1 4,663
4,047
7 ,330
1,031
6 90
(2
,645)
(3
69)
(1
,170)
25 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2
27)
(9
9)
(2
5)
(1
95)
(5
8)
-
(2
27)
(9
9)
(2
5)
(1
95)
(5
8)
-
804
5 91
(2
,670)
(5
64)
(1
,228)
25 3,415
4,284
5,879
7,204
1,487
1 ,285
4,219
4,875
3,209
6,640
2 59
1 ,310
(Continued)
231 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Special
Assessment
Maintenance
Districts
(Funds 302, 310,
344-345, 351-
374, 376, 379,
496)
Ng Shing
Gu
ng Capital
Maintenance
(Fund 303)
Su
bdivision Park
Trust
(Fund 375)
RE
VENUES
Taxes and special assessments $ 1 3,075 - -
Inter
governmental
- - 1 ,114
Charges for current services
- - 22,359
Rent
- - -
Inv
estment income (loss) (2
29) (2 ) (1 ,969)
Other revenues 1
13 2 3
T
otal revenues
12,959 - 21,507
EXPENDITURES
Current:
General government - - -
Public saf
ety
- - -
Community ser
vices
- - -
Sanitation
- - -
Capital maintenance
14,725 - 4 ,816
Capital outlay
- - 4 ,825
Total expenditures
14,725 - 9 ,641
Excess (deficiency) of revenues over (under) expenditures (1 ,766) - 11,866
OTHER FINANCING SOURCES (USES)
Bonds issued - - -
Bond
premium
- - -
Pr
oceeds from sale of capital assets
- - -
T
ransfers in 1
,176 3 -
T
ransfers out (2
0) - (2 40)
Total other financing sources (uses) 1
,156 3 (2 40)
Net change in fund balances (6 10) 3 11,626
Fund balances - beginning 16,254 93 90,554
F
und balances - ending $ 1
5,644 96 1 02,180
232
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Construction
and
Property
Conveyance
Tax
(Funds 377-
378,
380-398)
1943
Gas Tax
Maintenance
and
Construction
(Fund 409)
1964
Gas Tax
Maintenance
and
Construction
(Funds 410-
411)
St
orm Drainage
Fee
(Funds 413,
427)
Suppleme
ntal
Local Law
Enforcement
(Fund 414)
Under
ground
Utility
(Fund 416)
6 4,457 - - - - -
1,877 6 ,800 9 ,003 4 2,038 1,165
257 - - 1 07 - -
- - - - - -
(2 ,455) - - (1 3) (6 9) (2 03)
639 - - - - -
6 4,775 6 ,800 9 ,003 98 1,969 9 62
- - - - - -
- - - - 2,031 -
- - - - - -
- - - - - -
3 7,186 6 ,800 9 ,003 2 29 - 4 12
8,956 - - - 4 -
4 6,142 6 ,800 9 ,003 2 29 2,035 4 12
1 8,633 - - (1 31) (6 6) 5 50
6,411 - - - - -
1,189 - - - - -
- - - - - -
6,950 - - - - -
(1 0,173) - - (7 ) - (1 0)
4,377 - - (7 ) - (1 0)
2 3,010 - - (1 38) (6 6) 5 40
106,155 - - 7 15 1 76 9,922
129,165 - - 5 77 1 10 1 0,462
(Continued)
233 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
State Drug
Forfeiture
(Fund 417)
L
ibrary Parcel
Tax
(Funds 418, 483)
F
ederal
Drug
Forfeiture
(Fund 419, 487-
488)
RE
VENUES
T
axes and special assessments $ -
10,075
-
Intergovernmental
-
-
-
Charges for current services
-
-
-
Rent
-
-
-
Investment income (loss) 2 (3
1) (1
)
Other revenues
641
-
-
Total revenues
643
10,044 (1
)
EXPENDITURES
Curr
ent:
General government
-
-
-
Public safety
150
-
-
Community services
- 9
,661
-
Sanitation
-
-
-
Capital maintenance
- 1
,747
-
Capital outlay
-
-
-
Total expenditures
150
11,408
-
Excess (deficiency) of revenues over (under) expenditures 493 (1
,364) (1
)
OTHER FINANCING SOURCES (USES)
Bonds issued
-
-
-
Bond premium
-
-
-
Proceeds from sale of capital assets
-
-
-
Transfers in
-
-
-
Transfers out
- (4
6)
-
Total other financing sources (uses)
- (4
6)
-
Net change in fund balances
493 (1
,410) (1
)
Fund balances - beginning
556 6
,749 9
F
und balances - ending $ 1
,049 5
,339 8
234
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Residential
Construction
Tax
Contribution
(Fund 420)
Ar
terial
and Major
Collectors
(Fund 421)
Commu
nity
Facility Revenue
(Funds
422,432,438)
I
ntegrated
Waste
Management
(Fund 423)
Building and
Stru
ctures
Construction
Tax
(Fund 429)
De
velopment
Enhancement
(Fund 439)
204 - - - 2
1,226
-
- - -
1,452
4,216
-
- 7 -
181,650 -
-
- -
1,819 4
59 -
-
(5
7) (4
0) (2
0) 1
00 (2
,084)
-
- - -
37 1
64 -
147 (3
3)
1,799
183,698 2
3,522
-
- - 1
05 - -
-
- - - - -
-
- - - - -
-
- - -
179,093 -
-
3 9 - - - 2
1,752
-
- 3
50 - -
3,311
-
3 9 3
50 1
05 179,093 2
5,063
-
108 (3
83)
1,694
4,605 (1
,541)
-
- - - - -
-
- - - - -
-
- - -
3,817 -
-
- - - 1
02 -
-
(2
6) - (1
2) (4
47) (4
29)
-
(2
6) - (1
2)
3,472 (4
29)
-
8 2 (3
83)
1,682
8,077 (1
,970)
-
2,741
1,812 1
88 2
3,264
102,728
20 2,823
1,429
1,870 3
1,341
100,758
20 (Continued)
235 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Community
Development
Block Grant
(Funds 441, 304)
Economic
Development
Administration
Loans
(Fund 444)
Storm Drainage
Service Use
Charge
(Funds 446, 469)
RE
VENUES
Taxes and special assessments $ - - -
Inter
governmental
14,561 - 2 63
Charges for current services
- - 33,853
Rent
- - -
Inv
estment income (loss)
- - (5 98)
Other revenues
- - 1 00
Total revenues
14,561 - 33,618
EXPENDITURES
Current:
General government - - -
Public saf
ety
- - -
Community ser
vices
13,485 - -
Sanitation
- - 25,405
Capital maintenance 1
,294 - 4 ,717
Capital outlay
- - 2 ,133
Total expenditures
14,779 - 32,255
Excess (deficiency) of revenues over (under) expenditures (2 18) - 1 ,363
OTHER FINANCING SOURCES (USES)
Bonds issued - - -
Bond
premium
- - -
Pr
oceeds from sale of capital assets
- - -
T
ransfers in
- - -
T
ransfers out
- - (4 92)
Total other financing sources (uses)
- - (4 92)
Net change in fund balances (2 18) - 8 71
Fund balances - beginning 1 ,905 7 43,242
F
und balances - ending $ 1
,687 7 44,113
236
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Transient
Occupancy Tax
(Fund 461)
Lake
Cunningham
(Fund 462)
Edward Byrne
Memorial
Justice
(Funds 474,
477)
Municipal Golf
Courses
(Fund 518)
Convention
and Cultural
Facilities
(Funds 536,
481, 560, 489) Total
1 5,769 - - - - 124,806
- - 1 68 - - 5 0,018
- 5 92 - 1,022 2,037 270,805
- - - - 2 9,132 3 1,508
(4 8) (2 8) (1 ) (9 0) (3 72) (9 ,507)
1 7 - - - 50 4 6,056
1 5,738 5 64 1 67 9 32 3 0,847 513,686
- - - - - 1 05
- - 1 67 - - 2,348
6,327 - - - 3 8,168 147,305
- - - - - 204,498
- 5 19 - 2 63 9 20 104,422
- - - - 22 1 9,642
6,327 5 19 1 67 2 63 3 9,110 478,320
9,411 45 - 6 69 (8 ,263) 3 5,366
- - - - - 6,411
- - - - - 1,189
- - - - - 3,817
- - - - 8,890 1 7,121
(6 ,433) (2 26) - - (9 07) (2 1,129)
(6 ,433) (2 26) - - 7,983 7,409
2,978 (1 81) - 6 69 (2 80) 4 2,775
3,023 1,677 (2 0) 2,019 3,452 478,653
6,001 1,496 (2 0) 2,688 3,172 521,428
237 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Prusch Memorial Park
(Fund 131)
Gift T
rust
(Fund 139)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance
Over (Under)
REVENUES
Taxes and special assessments $ -
-
-
-
-
-
Inter
governmental -
-
-
-
-
-
Char
ges for current services -
-
-
-
-
-
Rent 9
9 99
-
-
-
-
Inv
estment income
8 5
(3
)
299
4 2
(2
57)
Other revenues -
-
-
-
1,024
1,024
Total revenues
107
1 04
(3
)
299
1,066
767
E
XPENDITURES
Curr
ent:
Gener
al government -
-
-
-
-
-
Public saf
ety -
-
-
-
-
-
Community ser
vices
360
36 (3
24)
4,897
901
(3
,996)
Sanitation -
-
-
-
-
-
Capital maintenance -
-
-
-
-
-
Capital outla
y 3
5 35
-
-
-
-
T
otal expenditures
395
71 (3
24)
4,897
901
(3
,996)
Excess (deficiency) of revenues over (under)
expenditur
es (2
88)
33 321
(4
,598)
165
4,763
O
THER FINANCING SOURCES (USES)
Bonds issued -
-
-
-
-
-
Bond pr
emium -
-
-
-
-
-
T
ransfers in -
-
-
-
-
-
T
ransfers out -
-
-
-
-
-
T
otal other financing sources (uses) -
-
-
-
-
-
Net change in fund balances $ (2
88)
33 321
(4
,598)
165
4,763
F
und balances - beginning
4 87
4,204
F
und balance adjustment
-
(6
6)
Prior y
ear encumbrances
-
103
F
und balances - ending
$ 5
20 $ 4
,406
238
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Building Development Fee Program
(Fund 237)
Planning De
velopment Fee Program
(Fund 238)
Citywide
Planning Fee Program
(Fund 239)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - - - - - - - -
- - -
1 2
1 - - -
- - -
7,706
8,195
489
3,283
3,402
119
- - - - - - - - -
340
269 (7
1)
3 1 3
3 2 3
1 3
8 7
3 4,178 3
6,306
2,128
1 1
8 1
7 - - -
3 4,518 3
6,575
2,057
7,739
8,248
509
3,314
3,440
126
- - - - - - - - -
- - - - - - - - -
3 8,439 3
4,414 (4
,025)
7,527
7,082 (4
45)
4,538
2,821 (1
,717)
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
3 8,439 3
4,414 (4
,025)
7,527
7,082 (4
45)
4,538
2,821 (1
,717)
(3
,921)
2,161
6,082
212
1,166
954 (1
,224)
619
1,843
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
(1
,057)
(1
,057)
- (2
27)
(2
27)
- (9
9)
(9
9)
-
(1
,057)
(1
,057)
- (2
27)
(2
27)
- (9
9)
(9
9)
-
(4
,978)
1,104
6,082 (1
5)
939
954 (1
,323)
520
1,843
3 2,539
3,373
4,044
- - -
384 2
4 218
$ 3
4,027 $ 4
,336 $ 4
,782
(Continued)
239 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Fire Development
Fee Program
(Fund 240)
Public W
orks
Development Fee Program
(Fund 241)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance
Over (Under)
REVENUES
Taxes and special assessments $ - - - - - -
Inter
governmental - - - - - -
Char
ges for current services - - - 1
3,000 1
4,436
1,436
Rent - - - - - -
Inv
estment income
144 3
2 (1
12)
125 4
7 (7
8)
Other revenues
7,536
6,943 (5
93) - - -
T
otal revenues
7,680
6,975 (7
05) 1
3,125 1
4,483
1,358
EXPENDITURES
Current:
General government -
- - -
- -
Public saf
ety -
- - -
- -
Community ser
vices 1
0,207
9,903 (3
04) 1
5,121
1 4,717 (4
04)
Sanitation - - - - - -
Capital maintenance - - - - - -
Capital outla
y - - -
6 6 -
T
otal expenditures 1
0,207
9,903 (3
04) 1
5,127 1
4,723 (4
04)
Excess (deficiency) of revenues over (under)
expenditur
es (2
,527) (2
,928) (4
01) (2
,002) (2
40)
1,762
OTHER FINANCING SOURCES (USES)
Bonds issued - - - - - -
Bond
premium - - - - - -
T
ransfers in - - - - - -
T
ransfers out (2
5) (2
5) - (1
95) (1
95) -
T
otal other financing sources (uses) (2
5) (2
5) - (1
95) (1
95) -
Net change in fund balances $ (2
,552) (2
,953) (4
01) (2
,197) (4
35)
1,762
F
und balances - beginning
5,434
7,093
Fund balance adjustment - -
Prior y
ear encumbrances
406 6
6 Fund balances - ending $ 2
,887 $ 6
,724
240
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Public Works Small Cell
Permitting Fee Program
(Fund 242)
W
orkforce
Investment Act
(Funds 290-299)
Special Assessme
nt Maintenance Districts
(Funds 302, 310, 344-345, 351-374, 376, 379,
496)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - - - - -
9,860 1
3,075
3,215
- - - 2
2,666
7,355 (1
5,311) - - -
4,169
2,887 (1
,282) - - - - - -
- - - - - - - - -
1 0
1 (9
) - - -
186
112 (7
4)
- - - (7
7) - 7
7 2,644
112 (2
,532)
4,179
2,888 (1
,291) 2
2,589
7,355 (1
5,234) 1
2,690 1
3,299
609
- - - - - - - - -
- - - - - - - - -
4,469
4,046 (4
23) 1
2,174
7,376 (4
,798) - - -
- - - - - - - - -
- - - - - - 1
7,183 1
4,919 (2
,264)
- - - - - - - - -
4,469
4,046 (4
23) 1
2,174
7,376 (4
,798) 1
7,183 1
4,919 (2
,264)
(2
90) (1
,158) (8
68) 1
0,415 (2
1) (1
0,436) (4
,493) (1
,620) 2,873
- - - - - - - - -
- - - - - - - - -
- - - - - -
1,176
1,176 -
(5
8) (5
8) - - - - (2
0) (2
0) -
(5
8) (5
8) - - - -
1,156
1,156 -
(3
48) (1
,216) (8
68) 1
0,415 (2
1) (1
0,436) (3
,337) (4
64)
2,873
1,476
1,072 1
5,930
- - -
-
213
278
$ 2
60 $ 1
,264 $ 1
5,744
(Continued)
241 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Ng Shing Gung Capital Maintenance
(Fund 303)
Subdivision
Park Trust
(Fund 375)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance
Over (Under)
REVENUES
Taxes and special assessments $ -
-
-
- - -
Inter
governmental -
-
-
-
1,114
1,114
Charges for current services -
-
-
- 2
2,359 2
2,359
Rent -
-
-
- - -
Inv
estment income -
1 1 -
837
837
Other revenues -
2 2 -
3 3
Total revenues -
3 3 - 2
4,313 2
4,313
EXPENDITURES
Current:
General government -
-
-
-
- -
Public saf
ety -
-
-
-
- -
Community ser
vices -
-
-
-
- -
Sanitation -
-
-
- - -
Capital maintenance -
-
-
3 5,485 1
0,417 (2
5,068)
Capital outlay -
-
-
4,825
4,825 -
T
otal expenditures -
-
-
4 0,310 1
5,242 (2
5,068)
Excess (deficiency) of revenues over (under)
expenditur
es -
3 3 (4
0,310)
9,071 4
9,381
OTHER FINANCING RESOURCES (USES)
Bonds issued -
-
-
- - -
Bond
premium -
-
-
- - -
T
ransfers in -
3 3
- - -
T
ransfers out -
-
-
(2
40) (4
80) (2
40)
Total other financing sources (uses) -
3 3 (2
40) (4
80) (2
40)
Net change in fund balances $ -
6 6 (4
0,550)
8,591 4
9,141
F
und balances - beginning
93 8
5,949
Fund balance adjustment -
-
Prior y
ear encumbrances -
4,179
Fund balances - ending $ 9
9 $ 9
8,719
242
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Construction and Property Conveyance Tax
(Funds 377-378, 380-398)
1943 Gas
Tax Maintenance and Construction
(Fund 409)
1964 Gas
Tax Maintenance and Construction
(Funds 410-411)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
6 0,000 6
4,458
4,458
-
- -
-
- -
6,184
1,877 (4
,307) 7
,200 6
,800 (4
00) 8
,800 9
,003 2
03 275
257 (1
8)
-
- -
-
- -
- - -
-
- -
-
- -
1,400
995 (4
05)
-
- -
-
- -
1,032
639 (3
93)
-
- -
-
- -
6 8,891 6
8,226 (6
65) 7
,200 6
,800 (4
00) 8
,800 9
,003 2
03 - - -
-
- -
-
- -
- - -
-
- -
-
- -
- - -
-
- -
-
- -
- - -
-
- -
-
- -
105,338 4
7,054 (5
8,284) 7
,200 6
,800 (4
00) 8
,800 9
,003 2
03 8,956
8,956 -
-
- -
-
- -
114,294 5
6,010 (5
8,284) 7
,200 6
,800 (4
00) 8
,800 9
,003 2
03 (4
5,403) 1
2,216 5
7,619
-
- -
-
- -
1 4,014
6,411 (7
,603)
-
- -
-
- -
-
1,189
1,189
-
- -
-
- -
4,549
6,950
2,401
-
- -
-
- -
(5
,219) (1
0,173) (4
,954)
-
- -
-
- -
1 3,344
4,377 (8
,967)
-
- -
-
- -
(3
2,059) 1
6,593 4
8,652
-
- -
-
- -
9 7,893
-
-
-
-
-
7,770
-
-
$ 1
22,256 $ -
$ -
(Continued)
243 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Storm Drainage Fee
(Funds 413, 427)
Suppleme
ntal Local Law Enforcement
(Fund 414)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
REVENUES
Taxes and special assessments $ - - - - - -
Inter
governmental
4 4 -
4,623
2,555 (2
,068)
Charges for current services 2
00 1
07 (9
3) - - -
Rent - - - - - -
Inv
estment income 2
1 6 (1
5) - 3
0 3
0 Other revenues - - - - - -
T
otal revenues 2
25 1
17 (1
08)
4,623
2,585 (2
,038)
EXPENDITURES
Current:
General government - - - - - -
Public saf
ety - - -
4,637
2,903 (1
,734)
Community services - - - - - -
Sanitation - - - - - -
Capital maintenance 4
33 2
96 (1
37) - - -
Capital outla
y - - -
4 4 -
T
otal expenditures 4
33 2
96 (1
37)
4,641
2,907 (1
,734)
Excess (deficiency) of revenues over
(under) expenditur
es (2
08) (1
79) 2
9 (1
8) (3
22) (3
04)
OTHER FINANCING SOURCES (USES)
Bonds issued - - - - - -
Bond pr
emium - - - - - -
T
ransfers in - - - - - -
T
ransfers out (1
1) (8
)
3 - - -
T
otal other financing sources (uses) (1
1) (8
)
3 - - -
Net change in fund balances $ (2
19) (1
87) 3
2 $ (1
8) (3
22) (3
04)
F
und balances - beginning 5
39 2,747
Fund balance adjustment - -
Prior y
ear encumbrances 1
73 2
02 Fund balances - ending $ 5
25 $ 2
,627
244
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Underground Utility
(Fund 416)
State
Drug Forfeiture
(Fund 417)
L
ibrary Parcel Tax
(Fund 418, 483)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - - -
-
- 1
0,035 1
0,075 4
0 846
1,165
319 -
-
- - - -
- - - -
-
- - - -
- - - -
-
- - - -
8 5 9
0 5 - 2 2
100 3
6 (6
4)
- - - - 6
41 6
41 - - -
931
1,255
324 - 6
43 6
43 1
0,135 1
0,111 (2
4)
- - - -
-
- - - -
- - -
150 1
50 - - - -
- - - -
-
- 1
0,287
9,866 (4
21)
- - - -
-
- - - -
2,132
442 (1
,690) -
-
-
2,353
1,918 (4
35)
- - - -
-
- - - -
2,132
442 (1
,690)
150 1
50 - 1
2,640 1
1,784 (8
56)
(1
,201)
813
2,014 (1
50) 4
93 6
43 (2
,505) (1
,673)
832
- - - -
-
- - - -
- - - -
-
- - - -
- - - -
-
- - - -
(1
0) (1
0) - -
-
- (4
6) (4
6) -
(1
0) (1
0) - -
-
- (4
6) (4
6) -
(1
,211)
803
2,014 (1
50) 4
93 6
43 (2
,551) (1
,719)
832
9,744 5
56 6,214
-
- -
131
-
519
$ 1
0,678 $ 1
,049 $ 5
,014
(Continued)
245 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Federal Drug Forfeiture
(Fund 419, 487, 488)
Re
sidential Construction Tax Contribution
(Fund 420)
Budget
Budgetar
y Basis
Actual
Variance Over
(Under) Budget
Budgetary Basis
Actual
Variance Over
(Under)
REVENUES
Taxes and special
assessments $ - - - 200 204 4
Intergovernmental -
- - - - -
Char
ges for current services -
- - - - -
Rent -
- - - - -
Inv
estment income -
(1
) (1
) 4
0 2
4 (1
6)
Other revenues -
- - - - -
T
otal revenues -
(1
) (1
)
240
228 (1
2)
EXPENDITURES
Current:
General government -
(1
00) (1
00) - - -
Public saf
ety -
- - - - -
Community ser
vices -
- - - - -
Sanitation -
- - - - -
Capital maintenance -
- -
391 3
9 (3
52)
Capital outlay -
- - - - -
T
otal expenditures -
(1
00) (1
00)
391 3
9 (3
52)
Excess (deficiency) of
revenues over (under)
expenditures - 9 9 9 9 (1 51) 189 340
OTHER FINANCING
SOURCES (USES)
Bonds issued -
- - - - -
Bond pr
emium -
- - - - -
T
ransfers in -
- - - - -
T
ransfers out -
(1
00) (1
00) (4
2) (2
6) 1
6 Total other financing
sources (uses) - (1 00) (1 00) (4 2) (2 6) 1 6
Net change in fund
balances $ - (1 ) (1 ) (1 93) 163 356
Fund balances - beginning
9 2,728
Fund balance adjustment - -
Prior y
ear encumbrances - -
F
und balances - ending $ 8 $ 2
,891
246
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Arterial and Major Collectors
(Fund 421)
Commu
nity Facility Revenue
(Funds 422, 432, 438)
I
ntegrated Waste Management
(Fund 423)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - - - - - - - -
- - - - - - -
1,452
1,452
-
7 7 - - -
202,222
181,650 (2
0,572)
- - -
865
1,818
953
505
459 (4
6)
3 2 1
8 (1
4) 8
0 4 (7
6)
403
193 (2
10)
- - - - - - - 3
7 3
7 3
2 2
5 (7
)
945
1,822
877
203,130
183,791 (1
9,339)
- - -
205
205 - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - -
190,370
186,248 (4
,122)
- - - - - - - - -
350
350 - - - - - - -
350
350 -
205
205 -
190,370
186,248 (4
,122)
(3
18) (3
25) (7
)
740
1,617
877 1
2,760 (2
,457) (1
5,217)
- - - - - - - - -
- - - - - - - - -
- - - - - - -
102
102
- - - (1
2) (1
2) - (4
47) (4
47) -
- - - (1
2) (1
2) - (4
47) (3
45)
102
(3
18) (3
25) (7
)
728
1,605
877 1
2,313 (2
,802) (1
5,115)
1,802 7
9 2
3,264
- - -
-
100
2,885
$ 1
,477 $ 1
,784 $ 2
3,347
(Continued)
247 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Building and Structures Construction Tax
(Fund 429)
De
velopment Enhancement
(Fund 439)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
REVENUES
Taxes and special assessments $ 2
8,062 2
1,225 (6
,837)
-
- -
Inter
governmental 4
6,259
4,216 (4
2,043)
-
- -
Char
ges for current services - - -
-
- -
Rent - - -
-
- -
Inv
estment income
1,236 8
91 (3
45)
-
- -
O
ther revenues - 1
64 1
64 -
- -
T
otal revenues 7
5,557 2
6,496 (4
9,061)
-
- -
E
XPENDITURES
Current:
General government - - -
-
- -
Public saf
ety - - -
-
- -
Community ser
vices - - -
-
- -
Sanitation - - -
-
- -
Capital maintenance
109,275 2
5,626 (8
3,649)
-
- -
Capital outla
y
3,311
3,311 -
-
- -
T
otal expenditures
112,586 2
8,937 (8
3,649)
-
- -
Ex
cess (deficiency) of revenues over
(under) expenditures (3 7,029) (2 ,441) 3 4,588 - - -
O
THER FINANCING SOURCES (USES)
Bonds issued - - -
-
- -
Bond pr
emium - - -
-
- -
T
ransfers in - - -
-
- -
T
ransfers out (4
29) (4
29) -
-
- -
T
otal other financing sources (uses) (4
29) (4
29) -
-
- -
Net change in fund balances $ (3
7,458) (2
,870) 3
4,588
-
- -
F
und balances - beginning 9
7,458
20 Fund balance adjustment -
-
Prior year encumbrances
4,757
-
Fund balances - ending $ 9
9,345 $ 2
0 248
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Community Development Block Grant
(Funds 441, 304)
E
conomic Development Administration Loans
(Fund 444)
St
orm Drainage Service Use Charge
(Funds 446, 469)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - -
-
-
- - - -
2 0,780 1
4,743 (6
,037)
-
-
-
3,404
263 (3
,141)
- - -
-
-
- 3
4,148 3
3,853 (2
95)
- - -
-
-
- - - -
- - -
-
-
-
553
300 (2
53)
- - -
-
-
- -
100
100
2 0,780 1
4,743 (6
,037)
-
-
- 3
8,105 3
4,516 (3
,589)
- - -
-
-
- - - -
- - -
-
-
- - - -
2 5,917 1
8,456 (7
,461)
-
-
- - - -
- - -
-
-
- 2
8,454 2
6,513 (1
,941)
1,917
1,293 (6
24)
-
-
- 2
4,351
7,528 (1
6,823)
- - -
-
-
-
2,133
2,133 -
2 7,834 1
9,749 (8
,085)
-
-
- 5
4,938 3
6,174 (1
8,764)
(7
,054) (5
,006)
2,048
-
-
- (1
6,833) (1
,658) 1
5,175
- - -
-
-
- - - -
- - -
-
-
- - - -
- - -
-
-
- - - -
- - -
-
-
- (4
92) (4
92) -
- - -
-
-
- (4
92) (4
92) -
(7
,054) (5
,006)
2,048
-
-
- (1
7,325) (2
,150) 1
5,175
3,911 7 4
0,603
-
- -
4,979
-
2,533
$ 3
,884 $ 7 $ 4
0,986
(Continued)
249 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
($000’s)
Transient Occupancy Tax
(Fund 461)
L
ake Cunningham
(Fund 462)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
REVENUES
Taxes and special assessments $ 1
3,500 1
5,769
2,269 - - -
Inter
governmental - - - - - -
Char
ges for current services - - - 1
15 5
91 4
76 Rent - - - - - -
Inv
estment income 2
5 6 (1
9) 3
3 (1
9) (5
2)
Other revenues 3
0 1
8 (1
2) - - -
T
otal revenues 1
3,555 1
5,793
2,238 1
48 5
72 4
24 EXPENDITURES
Current:
General government - - - - - -
Public saf
ety - - - - - -
Community ser
vices
8,313
7,003 (1
,310) - - -
Sanitation - - - - - -
Capital maintenance - - -
1,095 5
54 (5
41)
Capital outlay - - - - - -
T
otal expenditures
8,313
7,003 (1
,310)
1,095 5
54 (5
41)
Excess (deficiency) of revenues over
(under) expenditur
es
5,242
8,790
3,548 (9
47) 1
8 9
65 OTHER FINANCING SOURCES (USES)
Bonds issued - - - - - -
Bond
premium - - - - - -
T
ransfers in - - - - - -
T
ransfers out (6
,390) (6
,433) (4
3) (2
26) (2
26) -
T
otal other financing sources (uses) (6
,390) (6
,433) (4
3) (2
26) (2
26) -
Net change in fund balances $ (1
,148)
2,357
3,505 (1
,173) (2
08) 9
65 F
und balances - beginning
2,068
1,447
Fund balance adjustment - -
Prior y
ear encumbrances 9
50 2
22 Fund balances - ending $ 5
,375 $ 1
,461
250
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Edward Byrne Memorial Justice
(Funds 474, 477)
Mu
nicipal Golf Courses
(Fund 518)
Conv
ention and Cultural Facilities
(Funds 536, 481, 560, 489)
Budget
Budgetar
y
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under) Budget
Budgetary
Basis Actual
Variance Over
(Under)
- - - -
- - - - -
1,251 9
7 (1
,154) -
- - - - -
- - -
800 1
,021
221 -
2,037
2,037
- - - -
- - - 2
9,132 2
9,132
- - - 5
0 20 (3
0)
175
184
9 - - - -
- - - 5
0 5
0 1,251 9
7 (1
,154)
850 1
,041
191
175 3
1,403 3
1,228
- - - -
- - - - -
1,351
397 (9
54) -
- - - - -
- - - -
- - 4
4,121 3
8,820 (5
,301)
- - - -
- - - - -
- - -
959 2
62 (6
97)
1,691
924 (7
67)
- - - -
- - 2
2 2
2 -
1,351
397 (9
54)
959 2
62 (6
97) 4
5,834 3
9,766 (6
,068)
(1
00) (3
00) (2
00) (1
09) 7
79 888 (4
5,659) (8
,363) 3
7,296
- - - -
- - - - -
- - - -
- - - - -
- - - -
- -
8,890
8,890 -
- - - -
- - (9
07) (9
07) -
- - - -
- -
7,983
7,983 -
(1
00) (3
00) (2
00) (1
09) 7
79 888 (3
7,676) (3
80) 3
7,296
5 0 1
,970
3,169
-
- -
5 0
-
180
$ (2
00) $ 2
,749 $ 2
,969
FOR THE YEAR ENDED J UNE 30, 2022251
Nonmajor Debt
Service Funds
253 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Nonmajor Debt Service Funds
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
GO Bonds Parks, Libraries & Public Safety Fund – Established to account for debt issued for construction of various libraries, parks and public safety projects. Debt repayments are funded by ad valorem property taxes.
City Hall Fund – Established to account for payments of debt service related to the construction of City Hall. 254
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2022
($000’s)
GO Bonds Parks,
Libraries &
Public Safety
(Fund 209)
City H
all
(Fund 210) T otal
ASSETS
Receiv
ables (net of allowances for uncollectibles) $ 3
07 1 3 08
Restricted assets:
Equity in pooled cash and investments held in City Treasury 44,035 215 44,250 Cash and
investments held with fiscal agent 8
,234 - 8 ,234
Total assets $ 5
2,576 216 52,792
LIABILITIES
Accounts payable - 2 2
T
otal liabilities $ - 2 2
FUND BALANCES
Restricted for debt service 52,576 210 52,786
Committed
- 4 4
T
otal fund balances
52,576 214 52,790
T
otal liabilities and fund balances $ 5
2,576 216 52,792
255 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds
For the Year Ended June 30, 2022
($000’s)
GO Bonds Parks,
Libraries & Public
Safety
(Fund 209)
City H
all
(Fund 210) T otal
REVENUES
Taxes and special assessments $ 5 0,617 - 50,617
Investment income (loss) (4
59) 1
02 (3
57)
Total revenues
50,158 1
02 50,260
EXPENDITURES
Debt service:
Principal
64,880
-
64,880
Interest and fiscal charges
23,661 5
23,666
Total expenditures
88,541 5
88,546
Excess (deficiency) of revenues over (under) expenditures (3 8,383)
97 (3
8,286)
OTHER FINANCING SOURCES (USES)
Bond premium
50,124
-
50,124
Transfers in
-
24,103
24,103
Transfers out (3
2) (2
5,192) (2
5,224)
Total other financing sources (uses)
50,092 (1
,089)
49,003
Net change in fund balances
11,709 (9
92)
10,717
Fund balances - beginning
40,867 1
,206
42,073
Fund balances - ending $ 5
2,576 2
14 52,790
Nonmajor Capital
Project Funds
FOR THE YEAR ENDED J UNE 30, 2022257
258
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Nonmajor Capital Project Funds
Capital Project Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Capital Project Funds established by the City of San José are as follows:
Capital Improvements Funds – Established to account for assessment charges for the construction of the Alviso Ring Levee.
Construction Excise Tax Funds – Established to account for revenues and expenditures related to traffic maintenance and improvements.
Parks Bond Projects Fund – Established to account for general obligation bond proceeds for various parks construction projects.
Branch Libraries Bond Projects Fund – Established to account for general obligation bond proceeds for various library construction projects.
Neighborhood Security Bond Projects Fund – Established to account for general obligation bond proceeds to improve various libraries, parks and public safety facilities.
Ice Center Expansion Bond Fund – Established to account for lease revenue bond proceeds to fund costs related to the expansion of the Solar4America Ice Rink.
Public Safety and Infrastructure Bond Fund – Established to account for general obligation bond proceeds to improve infrastructure and public safety facilities. 259 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Balance Sheet
Nonmajor Capital Project Funds
June 30, 2022
($000’s)
Capital
Improvements
(Funds 408, 424,
476)
Construction
Excise Tax
(Funds 309, 311,
348-349, 464-465,
470, 478-480, 486)
ASSE
TS
Equity in pooled cash and investments held in City Treasury $ 4 41 1 23,598 Receivables (net of allowance for uncollectibles)
1 24,638
Advances and deposits
4 3
4 Restricted assets:
Equity in pooled cash and investments held in City Treasury - 116 Cash and investments held with fiscal agents -
-
Total assets $ 4
46 1
48,386
LIABILITIES
Accounts payable $ - 13,009
Accrued salaries, wages and payroll taxes -
1 ,047
Total liabilities - 14,056
DEFERRED INFLOWS OF RESOURCES - Unavailable revenue - 5 ,357
FUND BALANCES
Restricted 446 41,461
Assigned -
87,512
Total fund balances
446 1
28,973
Total liabilities, deferred inflows of resources and fund balances $ 4 46 1 48,386 260
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Parks Bond
Projects (Fund
471)
Branch Libraries
Bond Projects
(Fund 472)
Neighborhood
Security Bond
Projects
(Fund 475)
I
ce Center
Expansion Bond
(Fund 490)
Public
Safety and
I
nfrastructure
Bond
(Fund 498) T otal
2 ,530
-
-
-
-
1 26,569
7 -
-
-
2 24,648
- - - - - 3 8
-
-
-
-
585
701
14,832
6 ,613
-
21,058
2 66,289
3 08,792
17,369 6 ,613 - 21,058 2 66,876 4 60,748
-
254
-
-
16,175
29,438
3 - - - 189 1 ,239
3 254 - - 16,364 30,677
- - - - - 5 ,357
17,366
6 ,359
-
21,058
2 50,512
3 37,202
- - - - - 87,512
17,366 6 ,359 - 21,058 2 50,512 4 24,714
17,369 6 ,613 - 21,058 2 66,876 4 60,748
261 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Project Funds
For the Year Ended June 30, 2022
($000’s)
Capital
I
mprovements
(Funds 408, 424,
476)
Construction
Excise Tax
(Funds 309, 311,
348-349,
464-465, 470, 478-
480, 486)
RE
VENUES
Taxes $ - 16,220
Intergovernmental
-
61,502
Charges for current services
-
51 Investment income and other revenues:
Investment income (loss) (9 ) (2 ,739)
Other revenues
-
1 ,422
Total revenues (9
)
76,456
EXPENDITURES
Current:
Capital maintenance - 72,806
Capital outlay
-
1 ,704
Total expenditures
-
74,510
Excess (deficiency) of revenues over (under) expenditures (9 ) 1 ,946
OTHER FINANCING SOURCES (USES)
Bonds issued - -
Transfers in
-
-
Transfers out (4
)
(2
,292)
Total other financing sources (uses) (4
)
(2
,292)
Net change in fund balances (1 3) (3 46)
Fund balances - beginning 4 59 1 29,319
Fund balances - ending $ 4
46 1
28,973
262
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
Parks Bond
Projects
(Fund 471)
Branch
Libraries
Bond Projects
(Fund 472)
Neighborhood
Security
Bond Projects
(Fund 475)
Ice Center
Expansion Bond
(Fund 490)
Public
Safety
and
Infrastructure
Bond
(Fund 498)
Total
- - - - - 16,220
-
-
-
-
-
61,502
-
-
-
-
-
51 (2 0) 14 4 1 31 4 47 (2 ,172)
-
-
-
-
2 ,800
4 ,222
(2
0)
14 4
1 31
3 ,247
79,823
3 35 2 86 3 ,460 51,328 53,060 1 81,275
-
-
62 -
19,676
21,442
3 35
2 86
3 ,522
51,328
72,736
2 02,717
(3 55) (2 72) (3 ,518) (5 1,197) (6 9,489) (1 22,894)
- - - - 2 00,530 2 00,530
-
-
-
-
2 ,331
2 ,331
-
-
-
(2
62)
-
(2
,558)
-
-
-
(2
62)
2 02,861
2 00,303
(3 55) (2 72) (3 ,518) (5 1,459) 1 33,372 77,409
17,721 6 ,631 3 ,518 72,517 1 17,140 3 47,305
17,366
6 ,359
-
21,058
2 50,512
4 24,714
FOR THE YEAR ENDED J UNE 30, 2022263
Internal Service
Funds
265 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Internal Service Funds
Internal Service Funds are used to account for the exchange of benefits within the City’s funds or departments on a cost reimbursement basis.
Public Works Programs Support Fund – Established to account for Public Works Department administrative services provided to City-wide capital programs and certain other Public Works operating divisions.
Employee Benefits Funds – Established to account for the cost of funding the City’s portion of employee fringe benefits.
Vehicle Maintenance and Operations Fund – Established to account for the purchase and maintenance of City vehicles and the cost of operating a maintenance facility for equipment used by other City departments for repairs, demolition, or other abatement of dangerous buildings. 266
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Fund Net Position
Internal Service Funds
June 30, 2022
($000’s)
Public Works
Programs
Support
(Fund 150)
E
mployee
Benefits (Funds
155-158, 160-
161)
Vehicle
Maintenance and
Operations
(Fund 552) T otal
ASSETS
Curr
ent assets:
Equity in pooled cash and investments
held in City Treasury $ 5 ,900 8 ,800 5 ,022 19,722
Other cash and investments
-
- 7 7
Receiv
ables (net of allowance for uncollectibles) 5
7 339 1
4 4
10 Inventories
-
- 1
,682 1
,682
Total unrestricted current assets 5 ,957 9 ,139 6 ,725 21,821
Restricted assets:
Other cash and investments
-
515
- 5
15 Total restricted current assets
-
515
- 5
15 Total current assets 5
,957 9
,654 6
,725
22,336
Capital assets (net of accumulated depreciation):
Depreciable
227
- 2
,664 2
,891
Total assets 6
,184 9
,654 9
,389
25,227
LIABILITIES
Curr
ent liabilities:
Accounts payable
-
248
161 4
09 Accrued salaries, wages, and payroll taxes
937 8
3 443 1
,463
Total current liabilities
937
331
604 1
,872
Noncurrent liabilities:
Accrued vacation, sick leave and compensatory time 3
,549 8
0 401 4
,030
Total liabilities 4
,486
411 1
,005 5
,902
NET POSITION
Net inv
estment in capital assets
227
- 2
,664 2
,891
Unrestricted 1
,471 9
,243 5
,720
16,434
Total net position $ 1
,698 9
,243 8
,384
19,325
267 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2022
($000’s)
Public Works
Programs
Support
(Fund 150)
E
mployee
Benefits
(Fund 155-158,
160-161)
V
ehicle
Maintenance and
Operations
(Fund 552) T otal
OPERATING REVENUES
Charges for services $ 1
9,818 1
05,678
25,161 1
50,657
Total operating revenues
19,818 1
05,678
25,161 1
50,657
OPERATING EXPENSES
Operations and maintenance
20,635 1
06,650
24,338 1
51,623
Depreciation
-
- 1
,354 1
,354
Total operating expenses
20,635 1
06,650
25,692 1
52,977
Operating loss (8
17) (9
72) (5
31) (2
,320)
NONOPERATING REVENUES (EXPENSES)
Investment income (loss) (1
11) (2
8) (1
16) (2
55)
Gain on disposal of capital assets
-
-
49 49
Net nonoperating revenues (expenses) (1
11) (2
8) (6
7) (2
06)
Loss before transfers (9
28) (1
,000) (5
98) (2
,526)
Transfers in
-
- 1
,000 1
,000
Transfers out (2
29) (5
26) (1
02) (8
57)
Changes in net position (1
,157) (1
,526) 3
00 (2
,383)
Net position - beginning 2
,855
10,769 8
,084
21,708
Net position - ending $ 1
,698 9
,243 8
,384
19,325
268
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
($000’s)
Public Works
Programs
Su
pport
(Fund 150)
Employee
Benefits
(Funds 155-158,
160-161)
Vehicle
Maintenance
and Operations
(Fund 552)
Total
CASH
FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services provided $ 1 9,830 1 06,113 25,161 1 51,104 Cash payment to suppliers of goods and services (2
,241)
(1
05,135)
(1
5,930)
(1
23,306)
Cash payment to employees for services (1
7,992)
(1
,193)
(8
,745)
(2
7,930)
Net cash provided by (used in) operating activities (4 03)
(2
15)
4 86
(1
32)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds - - 1 ,000 1 ,000
Transfer to other funds (2
29)
(5
26)
(1
02)
(8
57)
Net cash provided by (used in) noncapital
financing activities (2 29) (5 26) 8 98 1 43
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets - - (6 76) (6 76) Net cash used in capital
and related financing activities - - (6 76) (6 76)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss on investments (1 11) (2 8) (1 16) (2 55) Net change in cash and cash equivalents (7
43)
(7
69)
5 92
(9
20)
Cash and cash equivalents - beginning 6 ,643 10,084 4 ,437 21,164 Cash and cash equivalents - ending $ 5
,900
9 ,315
5 ,029
20,244
Reconciliation of operating loss to net cash provided by (used in) operating activities:
Operating loss $ (8 17) (9 72) (5 31) (2 ,320) Adjustments to reconcile operating
loss to net cash provided by (used in)
operating activities:
Depreciation - - 1 ,354 1 ,354
(Increase) decrease in:
Accounts receivable 13 (3 ) - 10
Inventories
-
-
(1
92)
(1
92)
Prepaid expenses, advances and deposits
-
4 38
-
4 38
Increase (decrease) in:
Accounts payable and accrued liabilities 3 09 3 18 (1 53) 4 74 Accrued vacation, sick leave
and compensatory time
92 4 8 1 04
Total adjustments 4
14 7
57 1
,017
2 ,188
Net cash provided by (used in) operating activities $ (4 03)
(2
15)
4 86
(1
32)
Reconciliation of cash and cash equivalents
to the statement of net position:
Equity in pooled cash and investments
held in City Treasury
Unrestricted $ 5 ,900 8 ,800 5 ,029 19,729
Restricted
-
5 15
- 5 15
Cash and cash equivalents $ 5
,900
9 ,315
5 ,029
20,244
FOR THE YEAR ENDED J UNE 30, 2022269
Trust and
Custodial Funds
271 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Trust and Custodial Funds
Trust and Custodial Funds are used to account for assets held by a governmental unit in a trustee capacity and/or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include pension trust funds, private purpose trust funds, and custodial funds.
Federated City Employees’ Retirement System Funds – Established to account for the accumulation of resources to be used for retirement annuity and postemployment healthcare payments to all full-time and some eligible part-time City of San José employees, except members of the Police and Fire Department Retirement Plan.
Police and Fire Plan Funds – Established to account for the accumulation of resources to be used for retirement annuity and postemployment healthcare payments to all sworn members of the City of San José’s Police and Fire departments.
James Lick Private-Purpose Trust Fund – Established to account for resources legally held in the trust for use towards the support of the Eastfield Ming Quong (EMQ) Families First Agency. All resources of the fund, including any earnings on invested resources, are used to support the organization’s activities.
Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund – Established to make payments on the former Redevelopment Agency of the City of San José’s “enforceable obligations” and to wind down the activities of the former Agency through the sale and disposition of assets and properties.
Arena Capital Reserve Fund – Established to account for Arena Facilities monies that will be used to budget and defray Arena Facilities expenditures relating to capital maintenance repairs and replacement for the San José Arena (SAP Center at San José). Financial statements are presented on pages 44-45. 272
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Fiduciary Net Position
Pension Trust Funds
June 30, 2022
($000’s)
Federated City
Employees’
Retirement
System
Police and Fire
Plan T otal
ASSETS
Investments $ 3 ,009,179 4 ,617,102 7 ,626,281
Receivables:
Accrued investment income 3
,691 6
,324
10,015
Employee contributions 1
,947 2
,257 4
,204
Employer contributions
13,317
11,257
24,574
Brokers and others
57,712
90,006 1
47,718
Other assets, net 3
,362 3
,362 6
,724
Total assets 3
,089,208 4
,730,308 7
,819,516
LIABILITIES
Due t
o brokers
25,845
41,969
67,814
Other liabilities 6
,215
13,197
19,412
Total liabilities
32,060
55,166
87,226
NET POSITION RESTRICTED FOR:
Emplo
yees’ pension benefits 2
,708,027 4
,409,869 7
,117,896
Employees’ postemployment healthcare benefits 3
49,121 2
65,273 6
14,394
Net position restricted for pension and postemployment healthcare benefits $ 3 ,057,148 4
,675,142 7
,732,290
273 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds
For the Year Ended June 30, 2022
($000’s)
Federated City
Employees’
Retirement
System
Police and Fire
Plan Total
ADDITIONS
Investment income:
Interest $ 1
1,714
40,517
52,231
Dividends
13,500
18,366
31,866
Net depreciation in fair value of plan investments (2
22,361) (3
65,493) (5
87,854)
Investment expenses (1
0,268) (1
5,240) (2
5,508)
Contributions:
Employer 2
32,385 2
42,809 4
75,194
Employees
37,329
43,769
81,098
Total additions
62,299 (3
5,272)
27,027
DEDUCTIONS
General and administrative 5
,743 6
,205
11,948
Health insurance premiums
31,088
26,458
57,546
Refund of contributions 1
,403 1
,374 2
,777
Retirement and other benefits:
Death benefits
16,373
16,938
33,311
Retirement benefits 2
19,497 2
41,564 4
61,061
Total deductions 2
74,104 2
92,539 5
66,643
Change in net position (2
11,805) (3
27,811) (5
39,616)
Net position restricted for pension and postemployment healthcare benefits Beginning of year
3,268,953
5,002,953
8,271,906
End of year $ 3
,057,148
4,675,142
7,732,290
274
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Fiduciary Net Position
Federated City Employees’ Retirement System
June 30, 2022
($000’s)
Defined Benefit
Pension Plan
P
ostemployment
Healthcare Plan
Retirement Cost of Living
IRS Code Section
115 Trust Total
ASSETS
Investments $ 1 ,681,504 9 90,413 3 37,262 3,009,179 Receivables:
Accrued investment income 3 ,238 1 03 3 50 3 ,691 Employee contributions 1
,154
2 97
4 96
1 ,947
Employer contributions 6
,996
5 ,345
9 76
13,317
Brokers and others
34,390
10,406
12,916
57,712
Other assets, net 2
,221
9 65
1 76
3 ,362
Total assets 1
,729,503
1 ,007,529
3 52,176
3,089,208
LIABILITIES
Due to brokers 22,324 3 ,183 3 38 25,845
Other liabilities 2
,589
9 09
2 ,717
6 ,215
Total liabilities
24,913
4 ,092
3 ,055
32,060
NET POSITION RESTRICTED FOR:
Employees’ pension benefits 1 ,704,590 1 ,003,437 - 2,708,027 Employees’ postemployment healthcare benefits
-
-
3 49,121
3 49,121
Net position restricted for pension and
postemployment healthcare benefits $ 1 ,704,590 1 ,003,437 3 49,121 3,057,148 275 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of
Changes in Fiduciary Net Position
Federated City Employees’ Retirement System
For the Year Ended in June 30, 2022
($000’s)
Defined Benefit
Pension Plan
P
ostemployment
Healthcare Plan
Retirement Cost of Living
IRS Code Section 115
Trust Total
ADDITIONS
Investment income:
Interest $ 6
,394 3
,625 1
,695
11,714
Dividends 5
,248 2
,977 5
,275
13,500
Net depreciation in fair value
of plan investments (1 12,672) (6 5,005) (4 4,684) (2 22,361) Investment expenses (6
,186) (3
,510) (5
72) (1
0,268)
Contributions:
Employer 1
19,079
88,519
24,787 2
32,385
Employees
21,761 5
,703 9
,865
37,329
Total additions
33,624
32,309 (3
,634)
62,299
DEDUCTIONS
Gener
al and administrative 3
,182 1
,796 7
65 5
,743
Health insurance premiums
-
-
31,088
31,088
Refund of contributions 1
,187 2
16 - 1
,403
Retirement and other benefits:
Death benefits 9
,232 7
,141
-
16,373
Retirement benefits 1
55,989
63,508
- 2
19,497
Total deductions 1
69,590
72,661
31,853 2
74,104
Change in net position (1
35,966) (4
0,352) (3
5,487) (2
11,805)
Net position restricted for pension and
postemployment healthcare benefits
Beginning of year 1
,840,556 1
,043,789 3
84,608 3
,268,953
End of year $ 1
,704,590 1
,003,437 3
49,121 3
,057,148
276
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Fiduciary Net Position
Police and Fire Plan
June 30, 2022
($000’s)
Defined Benefit Pension Plan Postemployment Healthcare Plan Retirement Cost of Living 401(h) Plan
IRS Code
Section 115
Trust - Police
IRS Code
Section 115
Trust - Fire Total
ASSETS
Investments $ 2
,516,924
1,841,034
17,618 1
51,130
90,396
4,617,102
Receivables:
Accrued investment income 4
,189 1
,808
44 1
77 1
06 6,324
Employee contributions 1
,202 4
51 6
04 -
-
2,257
Employer contributions 5
,948 3
,871
- 8
58 5
80 1
1,257
Brokers and others
51,681
26,014 5
,122 3
,739 3
,450 9
0,006
Other assets, net 2
,067 1
,244
51 -
-
3,362
Total assets
2,582,011
1,874,422
23,439 1
55,904
94,532
4,730,308
LIABILITIES
Due to brokers
30,559 9
,074 1
,487 6
90 1
59 4
1,969
Other liabilities 4
,157 2
,774 4
,499 1
77 1
,590 1
3,197
Total liabilities
34,716
11,848 5
,986 8
67 1
,749 5
5,166
NET POSITION RESTRICTED FOR:
Employees’ pension benefits
2,547,295 1,862,574 - - - 4,409,869
Employees’ postemployment healthcare
benefits
-
-
17,453 1
55,037
92,783
265,273
Net position restricted for pension and
postemployment healthcare benefits $ 2 ,547,295 1,862,574 17,453 1 55,037 92,783 4,675,142 277 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of
Changes in Fiduciary Net Position
Police and Fire Plan
For the Year Ended June 30, 2022
($000’s)
Defined Benefit Pension Plan Postemployment Healthcare Plan Retirement Cost of Living 401(h) Plan
IRS Code
Section 115
Trust - Police
IRS
Code
Section 115
Trust - Fire T otal
ADDITIONS
Investment income:
Interest $ 2
2,784 16,320 2 13 7 39 4 61 40,517
Dividends 8
,173 5
,854
76 2
,625 1
,638
18,366
Net depreciation in fair value
of plan investments (1 93,166) (1 39,586) (1 ,940) (1 9,128) (1 1,673) (3 65,493) Investment expenses (8
,696) (6
,232) (8
1) (1
42) (8
9) (1
5,240)
Contributions:
Employer 1
19,814
92,232 3
,261
16,735
10,767 2
42,809
Employees
22,938 8
,722
12,109
-
-
43,769
Total additions (2
8,153) (2
2,690)
13,638 8
29 1
,104 (3
5,272)
DEDUCTIONS
General and administrative 3
,531 2
,520
44 68
42 6
,205
Health insurance premiums
-
-
23,066
- 3
,392
26,458
Refund of contributions 1
,104 2
70 -
-
- 1
,374
Retirement and other benefits:
Death benefits 8
,562 8
,376
-
-
-
16,938
Retirement benefits 1
65,300
76,264
-
-
- 2
41,564
Total deductions 1
78,497
87,430
23,110
68 3
,434 2
92,539
Change in net position (2
06,650) (1
10,120) (9
,472) 7
61 (2
,330) (3
27,811)
Net position restricted for pension and
postemployment healthcare benefits
Beginning of year 2
,753,945 1
,972,694
25,746 1
54,276
96,292 5
,002,953
Transfer
-
- 1
,179
- (1
,179)
-
End of year $ 2
,547,295 1
,862,574
17,453 1
55,037
92,783 4
,675,142
278
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL
SECTION
City of San José
Combining Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2022
($000’s)
James Lick
Successor Agency
to the
Redevelopment
Agency T otal
ASSETS
Current assets:
Equity in pooled cash and investments held
in City Treasury $ 2 01 - 2 01
Cash and investments 3
53 2 ,154 2 ,507
Receivables (net of allowance for uncollectibles):
Other 1 73 74
Restricted cash and
investments
- 1
21,843 1
21,843
Total current assets 5
55 1
24,070 1
24,625
Noncurrent assets:
Advances to the City of San José
- 7
33 7
33 Accrued interest, net
- 1
,285 1
,285
Loans receivable, net
- 3
,986 3
,986
Advances and deposits
- 5 5
Pr
epaid bond insurance
- 1
,407 1
,407
Capital assets:
Nondepreciable
- 2
,078 2
,078
Depreciable, net
- 6
42 6
42 Total noncurrent assets
- 1
0,136 1
0,136
Total assets 5
55 1
34,206 1
34,761
DEFERRED OUTFLOWS OF RESOURCES
Loss on refundings of debt
- 2
6,654 2
6,654
LIABILITIES
Current liabilities:
Accounts payable
- 1 54 1 54
Accrued interest payable
- 1 8,925 1 8,925
Total current liabilities
- 1 9,079 1 9,079
Long-term liabilities:
Due within one year - 1 03,084 1 03,084
Due in more than one year
- 1,216,752 1,216,752
T
otal noncurrent liabilities
- 1,319,836 1,319,836
T
otal liabilities
- 1,338,915 1,338,915
NET POSITION (DEFICIT)
Held in trust for:
Redevelopment dissolution and other purposes 5
55 (1
,178,055) (1
,177,500)
Total net position (deficit) $ 5
55 (1 ,178,055) (1 ,177,500)
279 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of San José
Combining Statement of Changes in Fiduciary Net Position Private-Purpose Trust Funds
For the Year Ended June 30, 2022
($000’s)
James Lick
Successor Agency
to the
Redevelopment
Agency T otal
ADDITIONS
Redevelopment property tax revenues $ - 1 89,786 1 89,786 Investment income (loss) (8
3) 2
30 1
47 Development fees and other -
44 44
Gain on sale of revenue participation - 1
36 1
36 Total additions (8
3) 1
90,196 1
90,113
DEDUCTIONS
General and administrative - 2
29 2
29 Project expenses -
72 72
Pass through amounts to the County of Santa Clara - 4 7,944 4
7,944
Depreciation -
27 27
Allowance for loan losses -
56 56
Interest on debt - 4
5,237 4
5,237
Total deductions - 9
3,565 9
3,565
Change in net position (8
3) 9
6,631 9
6,548
NET POSITION HELD IN TRUST
Beginning of year 6
38 (1
,274,686) (1
,274,048)
End of year $ 5
55 (1
,178,055) (1
,177,500)
Introductory
Section
Statistical
section
(unaudited)
TABLE OF
CONTENTS
FOR THE YEAR ENDED J UNE 30, 2022
This section of the annual comprehensive financial report for the City of San José presents detailed information as a context to the information presented in the financial statements, note disclosures, and required supplementary information and to provide a framework to assess the economic condition affecting the City of San José.
GASB issued Statement No. 44, Economic Condition Reporting; The Statistical Section – an amendment of NCGA Statement 1 . This statement amends the portions of NCGA Statement 1, Governmental Accounting and Financial Reporting Principles, that guide the preparation of the statistical section. The statistical section presents detailed information, typically in ten-year trends, that assists users in utilizing the basic financial statements, notes to basic financial statements, and required supplementary information to assess the economic condition affecting a government.
Statistical Section
ScheduleContents
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. ●
Financial Trends I - IV
These schedules present trend information to help the reader understand the City’s financial performance and condition.
●
Revenue Capacity V - VIII
These schedules contain information regarding property tax, the City’s most significant local revenue source.
●
Debt Capacity I X - XIII
These schedules present information regarding the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. ●
Demographic and Economic Information XIV - X VI
These schedules illustrate demographic and economic indicators to provide a context for understanding and assessing the City’s financial activities.
●
Operating Information X VII - XIX
These schedules contain service and infrastructure data related to services the City provides and the activities it performs.
282
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE I
City of San José
Net Position By Component
Last Ten Fiscal Years
(Accrual Basis Of Accounting)
($000’S)
2013 (1) 2014 2015 (2) 2016 2017
Governmental activities
Net investment in capital assets $ 5 ,012,359 $ 4 ,769,632 $ 4 ,566,716 $ 4 ,478,760 $ 4 ,391,069 Restricted
864,808
889,631
927,190
930,553
982,168
Unrestricted (2
17,340) (2
06,396) (1
,734,224) (1
,723,260) (1
,935,456)
Total governmental activities net position $ 5
,659,827 $ 5
,452,867 $ 3
,759,682 $ 3
,686,053 $ 3
,437,781
Business-type activities
Net investment in capital assets $ 8 17,594 $ 7 79,015 $ 7 69,516 $ 7 66,107 $ 8 14,473 Restricted
124,753
125,345
113,459 7
6,709 7
5,945
Unrestricted
359,035
406,663
247,428
339,422
351,101
Total business-type activities net position $ 1
,301,382 $ 1
,311,023 $ 1
,130,403 $ 1
,182,238 $ 1
,241,519
Primary government
Net investment in capital assets $ 5 ,829,953 $ 5 ,548,647 $ 5 ,336,232 $ 5 ,244,867 $ 5 ,205,542 Restricted
989,561 1
,014,976 1
,040,649 1
,007,262 1
,058,113
Unrestricted
141,695
200,267 (1
,486,796) (1
,383,838) (1
,584,355)
Total primary government net position $ 6
,961,209 $ 6
,763,890 $ 4
,890,085 $ 4
,868,291 $ 4
,679,300
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $ 4 ,349,559 $ 4 ,330,279 $ 4 ,262,597 $ 4 ,089,937 $ 3 ,777,037 Restricted 1
,000,459 1
,036,765 1
,088,593 (4) 1 ,116,441 1 ,178,965
Unrestricted (2
,667,125) (2
,657,523) (2
,860,084) (2
,978,383) (2
,586,680)
Total governmental activities net position $ 2
,682,893 $ 2
,709,521 $ 2
,491,106 $ 2
,227,995 $ 2
,369,322
Business-type activities
Net investment in capital assets $ 9 30,631 $ 9 82,045 $ 1 ,090,408 $ 1 ,209,961 $ 1 ,232,173 Restricted 7
2,750 7
2,890 7
6,104 4
9,785 7
1,173
Unrestricted
252,928
290,071
290,590
222,411
307,825
Total business-type activities net position $ 1
,256,309 $ 1
,345,006 $ 1
,457,102 $ 1
,482,157 $ 1
,611,171
Primary government
Net investment in capital assets $ 5 ,280,190 $ 5 ,312,324 $ 5 ,353,005 $ 5 ,299,898 $ 5 ,009,210 Restricted 1
,073,209 1
,109,655 1
,164,697 1
,166,226 1
,250,138
Unrestricted (2
,414,197) (2
,367,452) (2
,569,494) (2
,755,972) (2
,278,855)
Total primary government net position $ 3
,939,202 (3) $ 4 ,054,527 $ 3 ,948,208 $ 3 ,710,152 $ 3 ,980,493
(1) Due to the GASB Statement No. 65 implementation during the year ended June 30, 2013, net position is the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources as of June 30, 2013. Prior to July 1, 2012, net position represents the difference between assets and liabilities. The City did not retroactively restate the net position related to the implementation of GASB Statement No. 65. (2) The decrease in net position as of June 30, 2015, was primarily due to the recording of the City’s net pension liability in accordance with the GASB Statement Nos. 68 and 71.
(3) The decrease in net position as of June 30, 2018, was primarily due to the recording of the City’s net OPEB liability in accordance with the GASB Statement Nos. 74 and 75.
(4) FY 2020 total has been restated due to prior period adjustments increasing unearned revenue by $12,408,000, and therefore reducing net position by $12,408,000.
283 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE II
City of San José
Change in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
($000’S)
2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government $ 1
33,330 $ 1
19,299 $ 1
27,480 $ 1
22,363 $ 1
27,090
Public safety 4
89,572 4
93,544 4
66,519 5
55,072
694,557
Community services 2
14,770 2
07,967 2
36,840 2
74,838
310,470
Sanitation 1
60,860 1
46,058 1
41,244 1
45,516
156,299
Capital maintenance 4
75,995 4
84,260 5
07,523 3
95,393
444,867
Interest and fiscal charges
64,467
60,852
60,266
56,768 5
4,844
Total governmental activities expenses 1
,538,994 1
,511,980 1
,539,872 1
,549,950
1,788,126
Business-type activities:
Norman Y. Mineta San José International Airport 1
99,681 1
99,987 1
97,786 2
01,017
204,774
Wastewater Treatment System 1
47,994 1
69,622 1
58,385 1
63,985
192,302
Municipal Water System
31,523
33,187
33,885
36,246 4
2,647
Parking System
10,231
10,751
12,714
13,607 1
4,269
San José Clean Energy
-
-
-
- -
T
otal business-type activities expenses 3
89,429 4
13,547 4
02,770 4
14,855
453,992
Total primary government expenses $ 1
,928,423 $ 1
,925,527 $ 1
,942,642 $ 1
,964,805 $ 2
,242,118
Program Revenues
Governmental activities:
Charges for services:
General government
49,213
41,168
44,044
46,952 4
8,358
Public safety
21,868
19,228
20,300
23,046 2
3,164
Community services 1
09,291 1
16,522 1
17,006 1
29,905
177,436
Sanitation 1
48,270 1
51,056 1
50,546 1
57,477
143,062
Capital maintenance
70,519
40,024
67,098
66,440 7
0,842
Operating grants and contributions 1
08,858 1
03,844
97,467 1
07,583 8
6,779
Capital grants and contributions
36,365
29,873 1
29,901
69,848 6
3,647
Total governmental program revenues 5
44,384 5
01,715 6
26,362 6
01,251
613,288
Business-type activities:
Charges for services
Norman Y. Mineta San José International Airport 1
54,246 1
59,978 1
63,962 1
82,445
194,057
Wastewater Treatment System 1
71,689 1
95,891 1
92,715 2
09,056
222,654
Municipal Water System
32,371
35,427
37,295
37,368 4
4,680
Parking System
12,093
13,621
15,614
16,503 1
7,612
San José Clean Energy - - - - -
O
perating grants and contributions 5
65 1
,651 1
,266 8
64 1,233
Capital grants and contributions
16,246
14,507 6
,225
15,437 1
3,258
Total business-type activities program revenues 3
87,210 4
21,075 4
17,077 4
61,673
493,494
Total primary government revenues $ 9
31,594 $ 9
22,790 $ 1
,043,439 $ 1
,062,924 $ 1
,106,782
284
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE II
(Continued)
City of San José
Change in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
($000’S)
2018 2019 2020 2021 2022
Expenses
Governmental activities:
General government $ 1 32,157 $ 1 42,531 $ 2 96,294 $ 3 51,491 $ 2 30,695 Public safety 7
69,305 7
09,532 8
13,126 7
83,928
614,802
Community services 3
29,222 3
08,345 3
01,697 3
45,762
375,192
Sanitation 1
64,890 1
64,677 1
83,197 1
84,816
202,142
Capital maintenance 4
94,007 4
22,170 4
76,251 4
87,239
531,355
Interest and fiscal charges
57,002
46,720
44,771
38,021 4
3,808
Total governmental activities expenses 1
,946,583 1
,793,975 2
,115,336 2
,191,257
1,997,994
Business-type activities:
Norman Y. Mineta San José International Airport 2 07,675 2 24,387 2 32,002 2 05,378 221,613 Wastewater Treatment System 2
03,272 1
99,350 2
52,033 2
11,098
197,430
Municipal Water System
49,156
47,917
51,574
51,936 5
3,627
Parking System
14,503
16,151
22,559
12,581 1
3,143
San José Clean Energy 1
,116
98,909 3
01,115 2
92,670
332,925
Total business-type activities expenses 4
75,722 5
86,714 8
59,283 7
73,663
818,738
Total primary government expenses $ 2
,422,305 $ 2
,380,689 $ 2
,974,619 $ 2
,964,920 $ 2
,816,732
Program Revenues
Governmental activities:
Charges for services:
General government 29,565 26,656 19,151 5 ,534 8,168 Public safety
78,700
88,391
80,077
22,931 3
8,900
Community services
88,895 1
06,836
94,080 1
20,506
166,966
Sanitation 1
55,772 1
54,094 1
71,280 1
87,319
208,824
Capital maintenance
66,257
59,441
33,924
30,098 3
6,426
Operating grants and contributions 1
13,938 1
08,361 1
76,843(1) 2 50,875 263,444
Capital grants and contributions
97,441 1
11,278 1
49,459
99,684 7
9,426
Total governmental program revenues 6
30,568 6
55,057 7
24,814 7
16,947
802,154
Business-type activities:
Charges for services
Norman Y. Mineta San José International Airport 2 13,993 2 23,267 2 11,141 1 47,078 205,381 Wastewater Treatment System 2
52,722 2
48,830 3
22,391 2
37,593
295,728
Municipal Water System
48,615
51,181
52,020
56,123 5
5,531
Parking System
17,645
19,185
14,763 7
,062 1
2,993
San José Clean Energy
- 1
02,855 3
36,951 2
80,388
351,099
Operating grants and contributions 8
94 7
20 4
86 55,804 3
7,956
Capital grants and contributions
16,362
24,655 6
,334
14,412
7,115
Total business-type activities program revenues 5
50,231 6
70,693 9
44,086 7
98,460
965,803
Total primary government revenues $ 1
,180,799 $ 1
,325,750 $ 1
,668,900 $ 1
,515,407 $ 1
,767,957
285 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE II
(Continued)
City of San José
Change In Net Position
Last Ten Fiscal Years
(Accrual Basis Of Accounting)
($000’S)
2013 2014 2015 2016 2017
Ne
t (Expenses) Revenues
Go
vernmental activities $ (9
94,610) $ (1
,010,265) $ (9
13,510) $ (9
48,699) $ (1
,174,838)
Business-type activities (2
,219)
7,528 1
4,307 4
6,818 3
9,502
Total primary government (9
96,829) (1
,002,737) (8
99,203) (9
01,881) (1
,135,336)
Ge
neral Revenues and Other Changes in Net Position
Go
vernmental activities:
T
axes:
Pr
operty and other taxes
329,591
368,233
384,523
404,878
431,138
Utility
111,750
114,486
112,645
113,474
121,046
Franchise 4
3,741 4
5,749 4
6,909 4
8,949 4
9,642
Transient occupancy 2
5,258 2
9,685 3
6,980 4
1,125 4
5,511
Business license 4
5,140 4
5,500 4
7,431 5
0,864 5
4,159
Sales taxes
163,751
173,412
180,407
201,797
207,695
State of California in-lieu 5
24 4
34 4
19 4
10 4
67 Unrestricted interest and investment income (loss)
2,019
5,060
4,125
7,790
9,062
Other revenue 2
0,678 1
8,278 1
7,753
2,103
4,459
Gain on sale of capital assets - - - - -
T
ransfers 8
29 2,468
3,501
3,680
3,387
Extraordinary gain/(loss) on dissolution of RDA (1
67,244) - - - -
T
otal governmental activities
576,037
803,305
834,693
875,070
926,566
Business-type activities:
Unr
estricted interest and investment income (loss) (1
,612)
4,581
3,252
6,383
3,955
Other revenue - -
1,747
2,314 1
9,211
Transfers (8
29) (2
,468) (3
,501) (3
,680) (3
,387)
Special item - rate stabilization fund and ten-year
lookback distribution - - - - -
T
otal business-type activities (2
,441)
2,113
1,498
5,017 1
9,779
Total primary government $ 5
73,596 $ 8
05,418 $ 8
36,191 $ 8
80,087 $ 9
46,345
Change
In Net Position
Go
vernmental activities $ (4
18,573) $ (2
06,960) $ (7
8,817) $ (7
3,629) $ (2
48,272)
Business-type activities (4
,660)
9,641 1
5,805 5
1,835 5
9,281
Total primary government $ (4
23,233) $ (1
97,319) $ (6
3,012) $ (2
1,794) $ (1
88,991)
286
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE II
(Concluded)
City of San José
Change In Net Position
Last Ten Fiscal Years
(Accrual Basis Of Accounting)
($000’S)
2018 2019 2020 2021 2022
Net (E
xpenses) Revenues
Go
vernmental activities $ (1
,316,015) $ (1
,138,918) $ (1
,390,522) $ (1
,474,310) $ (1
,195,840)
Business-type activities 7
4,509 8
3,979 8
4,803 2
4,797
147,065
Total primary government (1
,241,506) (1
,054,939) (1
,305,719) (1
,449,513) (1
,048,775)
Gener
al Revenues and Other Changes in Net Position
Go
vernmental activities:
T
axes:
Pr
operty and other taxes
461,964
497,317
531,075
593,878
697,059
Utility
120,234
120,846
120,213
127,844
124,906
Franchise 5
1,180 4
8,397 4
4,436 4
5,628 4
8,378
Transient occupancy 4
8,854 5
1,399 3
5,329 1
3,479 2
6,284
Business license 7
0,673 7
7,011 7
1,978 7
1,169 8
5,375
Sales taxes
226,337
263,530
260,558
284,020
323,144
State of California in-lieu 5
51 5
05 8
26 7
70 1,190
Unrestricted interest and investment income (loss)
6,688 2
4,165 3
9,635 1
4,438 (2
7,844)
Other revenue 3
6,485 3
4,707 5
6,435 4
9,798 5
2,649
Gain on sale of capital assets - 4
4,528
5,231
6,913
1,766
Transfers
5,769
3,141
6,391
3,262
4,260
Total governmental activities
1,028,735
1,165,546
1,172,107
1,211,199
1,337,167
Business-type activities:
Unr
estricted interest and investment income (loss)
6,322 2
3,498 3
3,030
1,808 (1
5,369)
Other revenue
4,961 6
27 6
54 1,712
1,307
Transfers (5
,769) (3
,141) (6
,391) (3
,262) (4
,260)
Special item - rate stabilization fund and ten-year
lookback
distribution - (1
6,266) - - -
T
otal business-type activities
5,514
4,718 2
7,293 2
58 (1
8,322)
Total primary government $ 1
,034,249 $ 1
,170,264 $ 1
,199,400 $ 1
,211,457 $ 1
,318,845
Change
In Net Position
Go
vernmental activities $ (2
87,280) $ 2
6,628 $ (2
18,415) $ (2
63,111) $ 1
41,327
Business-type activities 8
0,023 8
8,697
112,096 2
5,055
128,743
Total primary government $ (2
07,257) $ 1
15,325 $ (1
06,319) $ (2
38,056) $ 2
70,070
(1) FY 2020 total has been restated due to prior period adjustments increasing unearned revenue by $12,408,000, and therefore reducing revenue by $12,408,000 287 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE III
City of San José
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($000’S)
2013 2014 2015 2016 2017
General Fund
Nonspendable $ 1
3 $ 2
19 $ 2
03 $ 1
86 $ 1
70 Restricted 3
30 19,629
10,599 1
,265 6
90 Committed
89,114 1
21,991
94,748
84,998 9
6,026
Assigned
73,237 1
11,587 1
43,398 1
67,239 1
36,093
Unassigned
64,200
50,638
67,006
65,351 7
9,853
Total General Fund $ 2
26,894 $ 3
04,064 $ 3
15,954 $ 3
19,039 $ 3
12,832
Other Governmental Funds
Nonspendable $ 8
98 $ 7
7 $ 1
44 $ 2
43 $ 3
40 Restricted 8
51,869 8
76,041 8
97,253 9
09,733 9
60,159
Committed
29,110
31,779
39,425
55,435 5
9,319
Assigned
48,229
59,243
70,715
82,785 8
2,584
Unassigned
-
-
-
- -
T
otal Other Governmental Funds $ 9
30,106 $ 9
67,140 $ 1
,007,537 $ 1
,048,196 $ 1
,102,402
2018 2019 2020 2021 2022
General Fund
Nonspendable $ 1 53 $ 1 53 $ 1 21 $ 1 04 $ 8 8
Restricted 1
,057
1,370
2,007 3
07 3
03 Committed
97,809
100,147 9
5,414 7
3,580 6
7,343
Assigned 1
11,509
168,961
283,322
331,310
279,356
Unassigned
82,494
143,868 7
9,368
8,041
225,967
Total General Fund $ 2
93,022 $ 4
14,499 $ 4
60,232 $ 4
13,342 $ 5
73,057
Other Governmental Funds
Nonspendable $ - $ - $ - $ 4 $ -
Restricted 9
78,565
1,014,467
1,276,750 (1) 1,298,955 1,452,020
Committed
57,892 6
9,451 5
1,460 9
3,721
102,159
Assigned
94,797 9
3,500 9
6,038 9
9,068 9
4,222
Unassigned
- (3
2,668) (2
7,705) (4
4,395) (2
0)
Total Other Governmental Funds $ 1
,131,254 $ 1
,144,750 $ 1
,396,543 $ 1
,447,353 $ 1
,648,381
(1) FY 2021 total has been restated due to prior period adjustments increasing unearned revenue by $12,408,000, and therefore reducing fund balance by $12,408,000
FOR THE YEAR ENDED J UNE 30, 2022 288
289 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE IV
City of San José
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($000’S)
2013 2014 2015 2016 2017
REVENUES
Taxes and special assessments $
572,
715 $
622,
138 $
648,
907 $
653,
663 $
721,
419
Sales taxes
163,751
173,412
180,407
228,317
207,695
Licenses, permits, and fines 61,
137 66,
826 62,
000 69,
856 75,
173
Intergovernmental
106,091 96,
396 90,
119 81,
133 87,
622
Charges for current services
248,636
236,865
249,659
257,212
251,447
Rent 24,
020 28,
683 36,
997 43,
284 50,
838
Investment income and other revenues
110,720 99,
216
104,171
118,903
131,895
Total revenues 1,287,
070
1,323,
536
1,372,
260
1,452,
368
1,526,
089
EXPENDITURES
General government
100,483 90,
395 90,
031
108,505
110,853
Public safety
440,231
464,672
486,770
516,614
537,287
Community services
183,193
178,189
214,788
241,644
258,167
Sanitation
160,881
142,766
143,406
145,008
151,310
Capital maintenance
165,377
169,689
200,523
231,467
259,199
Capital outlay
106,387 73,
037 75,
903 60,
049 68,
197
Debt service:
Principal 51,
042 51,
085 86,
370 53,
405 56,
139
Interest and fiscal charges 64,
287 62,
954 62,
464 59,
007 57,
103
Bond issuance costs
1,762 - - - -
P
ayment to refunded bond escrow agent 31,
985 - - - -
T
otal expenditures 1,305,
628
1,232,
787
1,360,
255
1,415,
699
1,498,
255
Excess (deficiency) of revenues over
(under) expenditures (18, 558) 90, 749 12, 005 36, 669 27, 834
OTHER FINANCING SOURCES (USES)
Proceeds from SARA refunding - - - - -
Bonds issued - - - - -
Bond pr
emium - - - - -
Pr
oceeds from capital lease financing - 19,
286 - - -
Refunding bonds
issued
335,980 - - - -
Pr
emium / (discount) on bonds 45,
506 - - - -
P
ayment to refunded bond escrow agent (348,
750) - - - -
Pr
oceeds from sale of capital assets
6,198
2,221 37,
482
3,848 17,
602
Transfers in 83,
670
104,097
114,998 96,
561 128,089
Transfers out (83,
036) (102,
149) (112,
198) (93,
334) (125,
526)
Escrow payment to the County of Santa Clara - - - - - T
otal other financing sources (uses) 39,
568 23,
455 40,
282
7,075 20,
165
Extraordinary gain (loss) from dissolution of RDA (50, 139) - - - -
Net change in fund balances $ (29, 129) $ 114, 204 $ 52, 287 $ 43, 744 $ 47, 999
Debt service as a percentage of noncapital
expenditures(1) 9.62% 9.83% 11. 59% 8.29% 7.92%
290
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE IV
(Concluded)
City of San José
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($000’S)
2018 2019 2020 2021 2022
REVENUES
T
axes and special assessments $
778,
815 $
819,
139 $
820,
215 $
866,
088 $
993,
637
Sales taxes
226,337
263,530
260,558
284,020
323,144
Licenses, permits, and fines 74,
859 80,
725 77,
747 28,
344 37,
206
Intergovernmental 94,
202
102,328
217,546 (2) 261,451 298,378
Charges for current services
279,045
269,807
243,745
252,441
292,686
Rent 53,
415 60,
974 49,
387 13,
331 31,
508
Investment income and other revenues
122,980
135,047
187,121
188,433
164,493
Total revenues 1,629,
653
1,731,
550
1,856,
319
1,894,
108
2,141,
052
EXPENDITURES
Gener
al government
115,276
151,295
229,369
294,300
243,157
Public safety
594,768
623,853
642,840
678,689
727,257
Community services
266,818
255,471
262,653
330,076
355,397
Sanitation
158,025
163,271
182,625
190,402
207,788
Capital maintenance
293,096
235,456
298,232
321,876
374,102
Capital outlay 81,
311
138,176 90,
167
104,823 58,
488
Debt service:
Principal
185,982 73,
022 99,
034 63,
236 93,
245
Interest and fiscal charges 57,
557 49,
129 49,
852 42,
762 45,
313
Bond issuance costs - - - - -
P
ayment to refunded bond escrow agent - - - 31,
750 12,
194
Total expenditures 1,752,
833
1,689,
673
1,854,
772 2,057,
914
2,116,
941
Excess (deficiency) of revenues over
(under) expenditures (123, 180) 41, 877 1,547 (163, 806) 24, 111
OTHER FINANCING SOURCES (USES)
Pr
oceeds from SARA refunding 92,
620 - - - -
Bonds issued - -
502,020
155,012
273,980
Bond premium - - - - 54,
331
Proceeds from capital lease financing - - - - - Refunding bonds
issued - - -
347,143
115,190
Premium / (discount) on bonds - - 80,
821 - -
P
ayment to refunded bond escrow agent (1,705) - (297, 366) (344,
516) (115,
238)
Proceeds from sale of capital assets 38,
187
160,943
5,352
7,020
4,252
Transfers in
129,801 196,800 135,966 138,958 86, 318
Transfers out (126,
681) (197,
647) (130,
814) (135,
891) (82,
201)
Escrow payment to the County of Santa Clara - (67,
000) - - -
T
otal other financing sources (uses)
132,222 93,
096
295,979
167,726
336,632
Extraordinary gain (loss) from dissolution of RDA - - - - -
Net change in fund balances $ 9,042 $ 134, 973 $ 297, 526 $ 3,920 $ 360, 743
Debt service as a percentage of noncapital
expenditures(1)(3) 14. 57% 7.87% 8.44% 5.43% 6.73%
(1) Debt ratio was calculated by dividing principal and interest components by total government expenditures excluding capital outlay. Accordingly, the prior years’ debt ratio is recalculated.
(2) FY 2020 total has been restated due to prior period adjustments increasing unearned revenue by $12,408,000, and therefore reducing revenue by $12,408,000.
(3) FY 2022 and the prior years’ debt ratio was recalculated to exclude payments to refunded bond escrow agent.
FOR THE YEAR ENDED J UNE 30, 2022291
292
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE V
City of San José
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
($000’S)
City Former Agency / SARA
Fiscal
Year Secured Unsecured
Less:
Exemptions
Net Taxable
Assessed
Value Secured Unsecured
Less:
Exemptions
Net Taxable
Assessed
Value
Total
Direct
Rate
2013 $ 1
02,910,953 $ 4
,740,429 $ 4
,452,573 $ 1
03,198,809 $ 1
4,920,273 $ 3
,674,268 $ -
$ 1
8,594,541
0.184
2014 1
11,660,402 4
,584,810 4
,561,937 1
11,683,275
16,739,547 4
,027,543 -
20,767,090
0.184
2015 1
19,264,034 4
,282,669 4
,761,308 1
18,785,395
18,904,511 3
,788,295 -
22,692,806
0.181
2016 1
27,846,046 4
,240,467 5
,067,884 1
27,018,629
19,976,466 3
,879,443 -
23,855,909
0.178
2017 1
35,539,046 4
,363,681 5
,113,275 1
34,789,452
22,520,225 4
,097,930 -
26,618,155
0.177
2018 1
43,343,719 4
,654,231 5
,768,938 1
42,229,012
24,820,811 4
,223,132 -
29,043,943
0.175
2019 1
47,901,467 3
,386,453 5
,943,435 1
45,244,486
31,666,615 5
,662,780 -
37,329,394
0.173
2020 1
59,210,811 3
,861,480 6
,073,328 1
56,998,964
33,114,555 5
,956,381 -
39,070,936
0.178
2021 1
72,319,398 5
,197,726 6
,511,229 1
71,005,896
31,724,871 4
,683,814 -
36,408,685
0.173
2022 1
79,688,813 5
,058,233 6
,483,972 1
78,263,074
33,236,762 4
,732,371 -
37,969,133
0.177
Note:
Proposition 13 limits property taxes to a maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the value of the property is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: Department of Finance, County of Santa Clara
293 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE VI
City of San José
Property Tax Rates - All Overlapping Governments
Last Ten Fiscal Years
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City of San José:
General purpose 0
.156 0
.156 0
.156 0
.156 0
.156 0
.156 0
.156 0
.156 0
.156
0.156
Debt service 0
.028 0
.028 0
.025 0
.022 0
.021 0
.019 0
.017 0
.022 0
.017
0.021
Total Direct Rate 0
.184 0
.184 0
.181 0
.178 0
.177 0
.175 0
.173 0
.178 0
.173
0.177
Santa Clara County 0
.292 0
.292 0
.292 0
.292 0
.292 0
.292 0
.292 0
.292 0
.292
0.292
School districts 0
.726
0 .726
0 .731
0 .717 0
.703 0
.679 0
.670 0
.650 0
.664
0.657
Special districts 0
.031 0
.031 0
.030 0
.029 0
.032 0
.030 0
.028 0
.028 0
.028
0.029
Total direct and overlapping rates 1
.233 1
.233 1
.234 1
.216 1
.204 1
.176 1
.162 1
.148 1
.157
1.155
Note: The above tax rates are applied per $100 of assessed valuation.
Source: Department of Finance, County of Santa Clara
294
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE VII
City of San José
Principal Property Taxpayers
Current Year and Nine Years Ago
($000’S)
2022 2013
Taxpayer
Taxable
Assessed
Value
Percent of
Total City
Taxable
Assessed
Value Taxpayer
Taxable
Assessed
Value
Percent of
Total City
Taxable
Assessed
Value
Essex Portfolio LP $ 1 ,150,231 0.53% Cisco Technology Inc. $ 1 ,094,613 0.90% Cisco Technology Inc. 1 ,033,463 0.48% Blackhawk Parent LLC 760,661 0.62% Google LLC 965,655 0 .45% The Irvine Company LLC 683,410 0 .56% FRIT San José Town & Country Village LLC 936,797 0 .43% VF Mall LLC 500,885 0 .41% VF Mall LLC 891,697 0 .41% FRIT San Jose Town & Country Village LLC 419,025 0 .34% Sobrato Interests 739,751 0.34% Hitachi Global Storage Techs, Inc. 406,839 0.33% San José Water Works 728,626 0 .34% Legacy Partners 397,159 0 .33% River View Apartments 685,420 0.32% Carr NP Properties LLC 369,440 0.30% Adobe Systems Inc. 630,714 0 .29% Brocade Communications Systems Inc. 332,255 0 .27% Apple Inc. 518,164 0.24% Sobrato Interests 327,093 0.27% Total assessed property valuation, local
secured net $ 8 ,280,518 3.83% $ 5 ,291,380 4.33%
T
otal City of San José net assessed property valuation (including the former Redevelopment Agency):
FY 2012-2013 $ 121,793,350
FY 2021-2022 $ 216,232,207
Source: California Municipal Statistics, Inc.
Finance Department, County of Santa Clara
295 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE VIII
City of San José
Property Tax Levies and Collections
Last Ten Fiscal Years
($000’S)
Collected within the Fiscal Year of Levy Total Collections to Date Fiscal Year
Tax Levied for the
Fiscal Year Amount Percent of Levy
Collections in
Subsequent Years Amount Percent of Levy
2013 $ 1
33,522 $ 1
33,522
100.0
0 $ 1
33,522 1
00.0 2014
146,783
146,783
100.0
0 146,783 1
00.0 2015
159,047
159,047
100.0
0 159,047 1
00.0 2016
168,813
168,813
100.0
0 168,813 1
00.0 2017
178,527
178,527
100.0
0 178,527 1
00.0 2018
187,179
187,029 9
9.9 0
187,029
99.9 2019
200,994
200,978
100.0
0 200,978 1
00.0 2020
211,117
212,087
100.5
0 212,087 1
00.5 2021
223,549
224,449
100.4
0 224,449 1
00.4 2022
231,874
232,521
100.3
0 232,521 1
00.3 Note:
The tax levied for the current year is based on estimates provided by the County of Santa Clara. The tax levied for prior years are adjusted to reflect actual tax collections.
Sources: Finance Department, County of Santa Clara
Finance Department, City of San José
296
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE IX
City of San José
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
($000’S)
Governmental Activities
Fiscal
Year
General
Obligation
Bonds (1) Notes & Loans
Lease
Revenue
Bonds
Dir ect
Placements
Special
Assessment
Bonds
Revenue
Bonds Leases
Total
Governmental
Activities
2 013 $ 4
47,180
$ 1
5,906
$ 6
49,577
$ - $ 1
54,676
$ 1
53,305
$ 1
8,069 $ 1
,438,713
2014
427,256
1 5,906
631,899
-
150,533
141,995
3 9,370 1
,406,959
2015
407,332
2,396
595,742
-
144,159
130,140
3 8,850 1
,318,619
2016
387,403
2,157
579,326
-
139,434
117,715
3 7,209 1
,263,244
2017
367,469
1,917
561,102
-
134,467
104,685
3 5,495 1
,205,135
2018
347,530
1,200
505,519
-
129,228
-
3 3,704 1
,017,181
2019
327,591
-
445,731
1 3,090
123,714
-
1 3,891 9
24,017
2020
545,984
-
421,585
1 1,175
109,332
-
1 2,431 1
,100,507
2021
519,304
-
540,773
-
103,631
-
- 1
,163,708
2022
699,184
-
684,411
-
3,524
-
4,893 1
,392,012
Business-type Activities
Fiscal
Year
Airport
Revenue
Bonds
Clean Water
Revenue
Bonds
Wastewater
Revolving
Fund Loans
Wastewater
Notes
Payable
(Direct
Borrowings) Leases
Total
Business-
type
Activitie
s
Total
Primary
Government
Percentage
of Property
Value
Debt Per
Capita
(not in 000’s)
2 013 $ 1
,398,333 $ 4
4,481 $ 2
2,769 $ -
$ - $ 1
,465,583 $ 2
,904,296 2
.38%
$ 2
,950.62
2014
1,376,038 3
8,925 1
8,720 -
-
1,433,683
2,840,642 2
.14%
2,837.80
2015
1,349,266 3
3,169 1
4,597 -
-
1,397,032
2,715,651 1
.92%
2,671.63
2016
1,325,579 2
7,138 1
0,399 -
-
1,363,116
2,626,360 1
.74%
2,520.27
2017
1,310,332 2
1,116
6,125 -
-
1,337,573
2,542,708 1
.58%
2,430.70
2018
1,261,909 1
5,846
1,772 1
8,490 -
1,298,017
2,315,198 1
.34%
2,202.19
2019
1,229,409 1
0,756 -
8 9,076 -
1,329,241
2,253,258 1
.23%
2,160.24
2020
1,194,784
5,456 -
106,920 -
1,307,160
2,407,667 1
.23%
2,294.79
2021
1,146,872 -
-
150,368 -
1,297,240
2,460,948 1
.19%
2,389.31
2022
1,138,859 -
-
236,870
363
1,376,092
2,768,104 1
.28%
2,834.77
Note: Prior to FY 2016, “Total Governmental Activities Debt” was restated to include “Leases”. Accordingly, the percentage of property value and debt per capita are recalculated.
(1) Total general obligation bonds includes the net premium/(discount)
Sources: Finance Department, City of San José
Finance Department, County of Santa Clara
297 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Outstanding General Debt (1) (2) (2) (2)
Fiscal Year
General Obligation
Bonds
Premium/
(Discount)
Net
T
otal Net
General Bonded
Debt
Net Assessed
Value Population
Ratio of Net
General Bonded
Debt to Net
Assessed Value
Net General
Bonded Debt
Per Capita
(not in 000’s)
2 013 $ 4
41,025 $ 6
,155
$ 4
47,180 $ 1
21,793,350 9
84,299 0.003672 $ 4
54.31 2014 4
21,380
5,876
427,256
132,450,365 1
,001,000 0.003226
426.83
2015 4
01,735
5,597
407,332
141,478,201 1
,016,479 0.002879
400.73
2016 3
82,085
5,318
387,403
150,874,538 1
,042,094 0.002568
371.75
2017 3
62,430
5,039
367,469
161,407,607 1
,046,079 0.002277
351.28
2018 3
42,770
4,760
347,530
171,272,955 1
,051,316 0.002029
330.57
2019 3
23,110
4,481
327,591
182,673,880 1
,043,058 0.001793
314.07
2020 4
68,980 7
7,004
545,984
196,069,900 1
,049,187 0.002785
520.38
2021 4
46,460 7
2,844
519,304
207,414,581 1
,029,782 0.002504
504.29
2022 5
82,110
117,074
699,184
216,232,207 9
76,482 0.003233
716.02
Note: Total Outstanding General Debt excludes special assessment, special tax bonds, capital leases, and notes and loans payable.
(1) Prior to FY 2016, the Total Outstanding General Debt was restated to exclude “Lease Revenue bonds” and “Revenue bonds”. “Revenue bonds” were excluded because they were not secured by property taxes. (2) Effective 2017, Net General Bonded Debt is used to calculate ratio. Prior to FY 2016, the ratio of Net General Bonded Debt to Net Assessed Value and Net General Bonded Debt per Capita were restated.
Source: Finance Department, City of San José
State of California, Department of Finance, Population Estimates for California Cities Population
Debt Per Capita ($)
Population vs Dollar Per Capita
Population Debt Per Capita
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
1,050,000
1,100,000
0.0 100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
SCHEDULE X
City of San José
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
($000’S)
298
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
STATISTICAL
SECTION
SCHEDULE XI
City of San José
Schedule of Direct and Overlapping Bonded Debt
June 30, 2022
City Net Taxable Assessed Valuation (in thousands) $ 216 ,232,207 % Applicable
Outstanding Debt
as of 06/30/22
Estimated Share of
Overlapping Debt
City Direct Debt 100.
00%
$
1 ,392,012
$
1 ,392,012
Direct Tax and Assessment Debt:
City of San José Community Facilities Districts 100.
00%
$
3,525
$
3,525
City of
San José Special Assessment Bonds 100.
00%
0 3,525
3,525
Overlapping Tax and Assessment Debt:
Alum Rock Union School District
77.28%
90,225
69,725
Berryessa Union School District
93.83%
117,
645
110,
392
Cambrian School District
64.11%
60,970
39,086
Campbell Union High School District
59.54%
371,
390
221,
129
Campbell Union School District
47.30%
223,
499
105,
711
Cupertino Union School District
15.56%
271,
768
42,279
East Side Union High School District
95.87%
907,
686
870,
162
Evergreen School District
99.42%
159,
420
158,
499
Foothill-DeAnza Community College District 3.81%
657,
878
25,092
Franklin-McKinley School District
99.43%
151,
997
151,
135
Fremont Union High School District 8.53%
582,
770
49,687
Gavilan Joint Community College District 4.95%
206,
905
10,234
Los Gatos Union School District 1.71%
67,035
1,146
Los Gat
os-Saratoga Joint Union High School District 0.84%
84,030
704
L
uther Burbank School District
17.75%
17,507
3,108
Midpeninsula Regional
Open Space District 0.01%
84,575
9 Mor
eland School District
74.62%
118,
647
88,535
Morgan Hill Unified School District
11.51%
109,
290
12,575
Mount Pleasant School District
88.55%
31,785
28,146
Oak Grove School District
99.92%
225,
160
224,
987
Orchard School District 100.
00%
32,700
32,700
San José Unified School District
98.49%
504,
234
496,
630
San José-Evergreen Community College District
85.17%
834,
060
710,
394
Santa Clara County
37.36%
1 ,130,850
422,
474
Santa Clara Unified School District
21.83%
956,
350
208,
809
Santa Clara Valley Water District Benefit Assessment District
37.36%
48,150
17,988
Union School District
72.77%
105,
359
76,673
West Valley Community College District
31.75%
732,
500
232,
569
Subtotal Overlapping Tax and Assessment Debt
8 ,884,385
4 ,410,578
Total Direct and Overlapping Tax and Assessment Debt
8 ,887,910
4 ,414,103
Overlapping Other Debt:
Alum Rock Union School District Certificates of Participation
77.29%
11,375
8,791
Be
rryessa Union School District Certificates of Participation
93.84%
2,948
2,766
Campbell
Union High School District General Fund Obligations
59.54%
15,500
9,229
Campbell
Union School District General Fund Obligations
47.30%
1,890
894
East
Side Union High School District Post Employment Obligations
95.87%
25,760
24,695
Foothill-DeAnza Community College District General Fund Obligations 3.81%
21,380
815
F
ranklin-McKinley School District Certificates of Participation 0.00%
0 0
Ga
vilan Joint Community College District General Fund Obligations 4.95% 6,405
317
Los Gat
os-Saratoga Joint Union High School District Certificates of Participation 0.84%
755
6 Midpeninsula Regional
Open Space Park District General Fund Obligations 0.01%
99,706
11 Mor
gan Hill Unified School District Certificates of Participation
11.51%
13,505
1,554
San
José Unified School District Certificates of Participation
98.49%
6,450
6,353
San
José-Evergreen Community College District Benefit Obligations
85.17%
47,450
40,415
Santa Clara County Board of Education Certificates of Participation
37.36%
1,820
680
Santa
Clara County General Fund Obligations
37.36%
1 ,210,694
452,
303
Santa Clara County Pension Obligation Bonds
37.36%
335,
638
125,
391
Santa Clara County Vector Control District Certificates of Participation
37.36%
1,505
562
Santa
Clara Unified School District Certificates of Participation
21.83%
13,325
2,909
W
est Valley-Mission Community College District General Fund Obligations
31.75%
12,000
3,810
T
otal Gross Direct and Overlapping General Fund Debt
1 ,828,106
681,
501
Total Overlapping Debt
$
10 ,716,016
Total Direct and Overlapping Debt
$
5 ,095,604
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses in the City. This process recognizes that, when considering the City’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore, responsible for repaying the debt, of each overlapping government. The City direct debt in this schedule includes bonds, notes, certificate of participation, loans, and capital leases.
Source: California Municipal Statistics, Inc.
Finance Department, County of Santa Clara
299 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XII
City of San José
Legal Debt Margin Information
Last Ten Fiscal Years
($000’S)
2013 2014 2015 2016 2017
Calculation of Debt Limit
Gross assessed value for fiscal year $ 1
26,245,923 $ 1
37,012,302 $ 1
46,239,509 $ 1
55,942,422 $ 1
66,520,882
Debt limit at 15% of assessed value (1) x .15 x .15 x .15 x .15 x .15 Debt limit applicable to fiscal year $ 1
8,936,888 $ 2
0,551,845 $ 2
1,935,926 $ 2
3,391,363 $ 2
4,978,132
Calculation of Legal Debt Margin
Debt limit applicable to fiscal year $ 1
8,936,888 $ 2
0,551,845 $ 2
1,935,926 $ 2
3,391,363 $ 2
4,978,132
Total general obligation bonds (2) 447,180 427,256 407,332 387,403 367,469 Legal debt margin $ 1
8,489,708 $ 2
0,124,589 $ 2
1,528,594 $ 2
3,003,960 $ 2
4,610,663
Percentage of outstanding debt subject to legal debt limit 2 .4% 2
.1% 1
.9% 1
.7% 1
.5%
300
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
2018 2019 2020 2021 2022
Calculation of Debt Limit
Gross assessed value for fiscal year $ 1
77,041,893 $ 1
88,617,315 $ 2
02,143,227 $ 2
13,925,810 $ 2
22,716,179
Debt limit at 15% of assessed value (1) x .15 x .15 x .15 x .15 x .15 Debt limit applicable to fiscal year $ 2
6,556,284 $ 2
8,292,597 $ 3
0,321,484 $ 3
2,088,872 $ 3
3,407,427
Calculation of Legal Debt Margin
Debt limit applicable to fiscal year $ 2
6,556,284 $ 2
8,292,597 $ 3
0,321,484 $ 3
2,088,872 $ 3
3,407,427
Total general obligation bonds (2) 347,530 327,591 545,984 519,304 699,184 Legal debt margin $ 2
6,208,754 $ 2
7,965,006 $ 2
9,775,500 $ 3
1,569,568 $ 3
2,708,243
Percentage of outstanding debt subject to legal debt limit 1 .3% 1
.2% 1
.8% 1
.6% 2
.1%
Note: The prior years’ debts applicable to the limit were restated to be offset by the amounts that the applicable law expressly allows. Accordingly, the legal debt margin is recalculated.
(1) Section 1216 of the San José City Charter limits the general obligation bonds of the City to 15% of the total assessed value of all real and personal property within the City limits.
(2) Total general obligation bonds includes the net premium/(discount)
Source: Finance Department, County of Santa Clara
Finance Department, City of San José
301 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XIII
City of San José
Revenue Bond Coverage
Last Ten Fiscal Years
($000’S)
Norman Y. Mineta San José International Airport
Gross
Revenues
and Other
Available
Funds (1), (7)
Operating
Expenses (2)
Net Revenue
Available for
Debt Service
Available
Passenger
Facility
Charges (4)
Net Bond
Debt Service
Payable
from
Revenues
Coverage
(3)(4)(5)
Debt Service Requirements
Year Principal Interest Total
2 013 $ 1
90,857 $ 6
4,974 $ 1
25,883 $ 1
3,440 $ 7
2,885 $ 8
6,325 $ 2
2,100 $ 6
4,225 1.96
2014 2
02,874 6
6,319
136,555 2
2,275 7
2,793 9
5,068 2
5,747 6
9,321 1.97
2015 2
06,064(8) 7 0,054 136,010 2 3,475 7 2,608 9 6,083 2 5,202 7 0,881 1.92 2016 2
17,275(8) 7 3,118 (6) 144,157 2 3,660 7 1,792 9 5,452 2 4,829 7 0,623 2.04 2017 2
34,154 7
7,577
156,577 2
4,700 7
0,960 9
5,660 2
4,789 7
0,871 2.21
2018 2
52,019 8
5,584
166,435 4
1,900 6
1,866
103,766 2
4,792 7
8,974 2.11
2019 2
43,941 9
2,572
151,369 2
8,915 6
3,586 9
2,501 2
7,026 6
5,475 2.31
2020 2
34,289 9
7,122
137,167 3
1,040 6
2,218 9
3,258 2
7,479 6
5,779 2.09
2021 2
32,737(9) 8 9,924 (9) 142,812 3 3,205 5 9,513 9 2,718 1 4,339 7 8,379 1.82 2022 2
45,556 9
6,936
148,620
1,900 4
3,805 4
5,705 1
2,420 3
3,285 4.47
(1) Includes operating and other revenues and prior year’s surplus, excludes Passenger Facility Charges and other items as defined in the Master Trust Agreement.
(2) Includes operating expenses less depreciation and expenses paid from sources other than General Airport Revenues. (3) Debt coverage is calculated by dividing net revenue available for debt service by total debt service requirements. (4) Under the Master Trust Agreement, the City may designate Passenger Facility Charges as “Available Passenger Facility Charges” for payment of eligible debt services. The amount of Debt Service is reduced by the amount Available Passenger Facility Charges designated by the City and deposited with Trustee to pay Debt Service. Beginning 2009 - 2010, debt service requirements calculation excludes Passenger Facility Charges. (5) The City has covenanted in the Master Trust Agreement that net revenues available to pay debt service will be at least 125% of annual debt service for each fiscal year.
(6) Fiscal year 2015 Operating Expenses were revised to exclude expenses related to GASB Statement No. 68. (7) Other Available Funds includes Rolling Coverage Amount, uncommitted monies in the General Revenue Fund from the prior fiscal year, unspent bond proceeds in FY12 through FY17, and CFC Revenues, in an amount not to exceed the amount of eligible debt service and transportation costs. (8) Other Available Funds was restated to include CFC revenues available for debt service not to exceed the amount of CFC eligible debt service and transportation costs.
(9) FY2021 revised amounts to reflect restated revenues and expenses related to GASB Statement No. 87.
302
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE XIII
(Concluded)
City of San José
Revenue Bond Coverage
Last Ten Fiscal Years
($000’S)
Wastewater Treatment System
Net Revenue
Gross Operating Available for Debt Service Requirements Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage (3)(4)
2 013 $ 1
51,025 $ 8
4,818 $ 6
6,207 $ 5
,125 $ 1
,799 $ 6
,924 $ 9
.56
2014
159,084 9
3,797 6
5,287
5,320
1,608
6,928
9.42 2015
159,187 8
8,168 7
1,019
5,520
1,360
6,880 1
0.32 2016
168,436 9
5,200 7
3,236
5,795
1,121
6,916 1
0.59 2017
173,796
108,657 6
5,139
5,855
906
6,761
9.63 2018
185,816
125,384 6
0,432
5,145
713
5,858 1
0.32 2019
186,185
104,159 8
2,026
4,965
537
5,502 1
4.91 2020
191,816
136,437 5
5,379
5,175
322
5,497 1
0.07 2021
191,906
105,547 8
6,359
5,410 8
7 5,497 1
5.71 2022 (5) NA NA NA NA NA NA NA
(1) Includes operating revenues, operating grants/contributions, and other revenues. (2) Includes operating expenses less depreciation and amortization. (3)
The City has covenanted in the Improvement Agreement that net system revenues will be at least 115% of its allocable percentage of annual debt service.
(4) Debt Coverage Ratio is calculated based on San José revenues only. (5) Data currently unavailable since 2009A bond matured in November 2021.
Note:
(a) The methodology used in previous years was changed and reflected in FY 2019. Prior to FY 2019, revenues from San José and other Agencies were included in the calculation.
(b) Effective FY 2019, the calculation was based on San José revenues only
Source: Environmental Services Department, City of San José 303 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XIV
City of San José
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Population(1)
Net Taxable
Assessed Values(2)
($000’s)
Per Capita Taxable Property
Values
Unemployment
Rate(3) (%)
2013 9
84,299 $ 1
21,793,350 $ 1
23,736 6.9
2014 1
,001,000 1
32,450,365 1
32,318 5.5
2015 1
,016,479 1
41,487,201 1
39,193 4.3
2016 1
,042,094 1
50,874,538 1
44,780 4.1
2017 1
,046,079 1
61,407,607 1
54,298 3.6
2018 1
,051,316 1
71,272,955 1
62,913 3.0
2019 1
,043,058 1
82,673,880 1
75,133 2.9
2020 1
,049,187 1
96,069,900 1
86,878 10.8
2021 1
,029,782 2
07,414,581 2
01,416 5.0
2022 9
76,482 2
16,232,207 2
21,440 2.3
Note:
(a) Data pertaining to personal income is not readily available, thus the City used taxable assessed values to calculate per capita taxable property values. (b) Population count only reflects preliminary numbers per the State’s press release
Sources:
(1) State of California, Department of Finance, Population Estimates for California Cities (2) Finance Department, County of Santa Clara
(3) State of California, Employment Development Department, Labor Market Information Division; Unemployment in San José MSA 304
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE XV
City of San José
Principal Employers
Current Year and Nine Years Ago
2022 2013
Company or Organization
Number of
Employees Rank
Percent of Total
Employment
Number of
Employees Rank
Percent of Total
Employment
County of Santa Clara 1
9,900 1 3
.79% 1
5,360 1 3
.25%
Cisco Systems
7,500 2 1
.43% 1
3,600 2 2
.88%
City of San José
7,413 (1) 3 1 .41% 6,869 (1) 3 1 .45%
San José State University
4,512 4 0
.86%
3,119 7 0
.66%
Paypal Inc.
4,250 5 0
.81% n/a n/a n/a
Adobe Systems Inc.
3,825 6 0
.73%
2,000
10 0
.42%
Kaiser Permanente
3,673 7 0
.70%
1,940
12 0
.41%
Western Digital
2,892 8 0
.55% n/a n/a n/a
Broadcom
2,753 9 0
.52% n/a n/a n/a
eBay Inc.
2,700
10 0
.51%
4,700 4 0
.99%
Target Stores
2,437
11 0
.46% n/a n/a n/a
Super Micro Computer
2,180
12 0
.42% n/a n/a n/a
IBM
2,070
13 0
.39%
4,200 5 0
.89%
Cadence Design Systems
1,956
14 0
.37%
1,800
13 0
.38%
Good Samaritan Health System
1,850
15 0
.35%
1,950
11 0
.41%
(1) Full-time and Part-time employees.
(n/a) Company or Organization not included in top 15 principal employers in 2013.
Source: California Employment Development Department, Labor Market Information Division City of San José FY 2022-2023 Proposed Operating Budget FY 2012-2013 ACFR
305 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XVI
City of San José
Full-Time and Part-Time City Employees
Last Ten Fiscal Years
Full-Time and Part-Time Employees as of June 30th (1)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Airport 1 69 1 65 1 72 1 64 1 80 2 04 2 06 2 09 1 99 1 90 City Attorney’s Office
73 72
72 79
76 79
86 82
83 8
2 City Auditor’s Office
15 14
14 14
15 14
11 15
13 1
3 City Clerk’s Office
11 16
14 14
13 14
12 14
14 1
4 City Council & Mayor
85 78
89 90
95 1
04 1
02 1
20 1
13 1
09 City Manager’s Office
61 59
60 65
65 70
81 87
83 9
1 Community Energy 0 0 0 0 0 5
21 25
30 3
2 Environmental Services 4
27 4
52 4
66 4
60 4
89 4
92 4
85 4
88 4
92 4
87 Finance 1
12 1
12 1
25 1
24 1
11 1
13 1
23 1
20 1
19 1
28 Fire 7
83 7
62 7
58 7
79 7
81 7
71 7
98 7
94 7
95 7
94 Housing
50 49
54 51
55 61
64 70
83 9
9 Human Resources
60 39
46 46
46 48
44 50 1
90 (2 ) 4 8
Independent Police Auditor 6 6 6 6 5 6 5 6 6
6 Information Technology
76 70
63 68
76 66
82 85
86 9
6 Library 5
75 5
25 5
76 6
43 5
74 5
54 5
57 5
52 5
11 5
45 Office of Economic Development 1
12 54
58 59
66 60
58 70
64 6
6 Parks, Recreation & Neighborhood
Services 1
,425 1
,018 1
,104 1
,160 1
,178 1 ,698 1 ,783 1 ,539 1 ,481 1,434
Planning, Building & Code
Enforcement
3 24 2
94 3
17 2
89 2
84 2
99 2
92 2
89 2
73 2
47 Police 1
,580 1
,524 1
,422 1
,569 1
,682 1
,807 1
,836 1
,872 1
,877
1,831
Public Works 5
03 5
16 5
19 5
35 5
57 5
75 5
92 5
98 6
02 5
96 Retirement Services
26 32
35 36
35 34
38 39
38 4
2 Transportation 3
96 4
06 4
18 4
28 4
22 4
53 4
52 4
51 4
75 4
63 Total 6 ,869 6 ,263 6 ,388 6 ,679 6 ,805 7 ,527 7 ,728 7 ,575 7 ,627 7,413
(1) Total employees (full-time and part-time) reported in this schedule are based on the City’s payroll system and may not match Full-Time-Equivalents (FTEs) employees presented in the Proposed Budget Document. (2) City hired a large number of temporary unbenefited employees to support COVID-19 vaccination sites in 2021 through a program managed by the Human Resources Department.
Source: Finance Department, Payroll Division, City of San José FOR THE YEAR ENDED J UNE 30, 2022 306
307 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Schedule XVII
City of San José
Operating Indicators
Last Ten Fiscal Years
2013 2014 2015 2016 2017
AIRPORT:
Takeoffs Per Year:
Commercial Airline Operations
71,000
74,088
73,835
76,050 1
04,377 (3)
Cargo Commercial Airlines Operations 1 ,500 1 ,504 1 ,497 1 ,570 1 ,654 Taxi / Commuter Commercial
16,000
16,843
18,326
19,055 NA (3)
General Aviation 31,000 31,246 31,950 34,670 34,105 Military Flights 2
30 2
28 2
00 2
41 2
79 Landings Per Day:
Commercial 1
20 1
25 1
28 1
32 1
43 General Aviation
40 43
44 47
47 Number of Passengers Per Year 8
,489,000 9
,063,000 9
,555,000
10,000,000
11,200,000
ENVIRONMENT AND UTILITIES:
Water:
Wastewater Treated Per Day (in mil. gal.) 1
11 1
09 1
01 92 1
01 Muni Water Consumption Per Year (in bil.
gal.) 8
.1 8
.1 8
.2 6
.4 6
.5
Recycled Materials:
Tons of Recyclables 1
01,102 1
03,000
82,000
85,239
96,363
Tons of Yard Trimmings 1
32,979 1
29,000 1
25,000 1
15,682 1
29,136
Gallons of Used Motor Oil
81,127
77,999
84,000
65,428
64,571
FIRE:
Fires Per Year 1
,988 2
,000 2
,000 1
,950 2
,300
Hazardous Materials Incidents Per Year 8
80 NA (2) NA (2) NA (2) NA (2)
Fire Safety Code Inspections Per Year 13,615 13,000 13,700 15,000 17,000 Emergency Medical Calls Per Year
52,210
48,000
51,000
54,000
55,000
LIBRARIES:
Circulation
10,702,251
10,700,000 9
,840,912 9
,705,777 9
,228,155
Reference Questions 5
63,753 5
50,000 4
38,450 5
50,000 4
50,000
PARKS, RECREATION AND NEIGHBORHOOD
SERVICES:
Total Participation in Recreation Programs 2
78,481 5
75,000 6 11,316 6 83,913 7 79,077
POLICE:
911 Calls Per Year 4
54,919 5
49,000 5
78,000 5
63,000 5
65,000
311 Calls Per Year 3
85,189 3
68,000 3
70,000 3
85,000 3
82,000
Cases Investigated Per Year NA (1) 22,300 27,000 22,000 23,000
BUILDING PERMITS:
Number issued:
New Buildings 9
47 1
,191 9
01 7
42 8
85 Building Alterations 4
,812 6
,085 6
,116 4
,998 6
,474
Value:
New Buildings (in $) 5
47,633,219
1,398,057,690 8
52,554,975 8
66,643,670
1,002,500,194
Building Alterations (in $) 4
68,400,699 7
46,751,604
1,384,326,525 7
70,315,772 9
67,071,695
308
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
STATISTICAL
SECTION
Schedule XVII
(Concluded)
City of San José
Operating Indicators
Last Ten Fiscal Years
2018 2019 2020 2021 2022
AIRPORT:
Takeoffs Per Year:
Commercial Airline Operations 1
28,242 1
41,454 1
19,018
54,558 (4) 87,824
Car
go Commercial Airlines Operations 1
,596 1
,562 1
,494 1
,534 1
,147
Taxi / Commuter Commercial NA (3) NA (3) NA (3) NA (3) NA (3) General Aviation 35,664 48,762 47,724 36,389 49,653 Military Flights 2
49 2
30 1
48 1
18 2
93 Landings Per Day:
Commercial 1
76 1
94 1
65 77 1
20 General Aviation
49 67
65 50
68 Number of Passengers Per Year
13,500,000
14,900,000
11,300,000 4
,000,000 (4) 9 ,000,000
ENVIRONMENT AND UTILITIES:
Water:
Wastewater Treated Per Day (in mil. gal.) 1
05 1
09 1
04 1
09 91
Muni Water Consumption Per Year (in bil.
gal.) 6
.6 6
.5 6
.6 8
.2 6
.5
Recycled Materials:
Tons of Recyclables
78,606
84,344
87,084 1
04,627
95,371
Tons of Yard Trimmings 1
22,375 1
26,491 1
27,899 1
34,194 1
25,177
Gallons of Used Motor Oil
49,714
56,857
46,571
59,429
56,286
FIRE:
Fires Per Year 3
,284 3
,076 3
,675 4
,000 4
,271
Hazardous Materials Incidents Per Year NA (2) NA (2) NA (2) NA (2) NA (2) Fire Safety Code Inspections Per Year 19,585 19,573 18,672 18,304 15,828 Emergency Medical Calls Per Year
57,715
57,509
56,454
57,000
54,945
LIBRARIES:
Circulation 8
,372,753 8
,613,193 6
,992,895 3
,613,471 (4) 6 ,799,400
Reference Questions 5
00,000 6
00,000 3
60,000 1
60,000 (4) 2 00,000
PARKS, RECREATION AND NEIGHBORHOOD
SERVICES:
T
otal Participation in Recreation Programs 7
85,581 8
28,233 7
09,764 1
00,811 (4) 5 16,597
POLICE:
911 Calls Per Year 6
10,000 6
08,000 6
39,000 6
40,000 6
60,552
311 Calls Per Year 4
26,800 4
41,000 5
23,000 5
25,000 4
88,298
Cases Investigated Per Year
30,200
34,000
35,500
30,000
30,000
BUILDING PERMITS:
Number issued:
New Buildings 8
58 1
,325 1
,240 1
,310 1
,363
Building Alterations 6
,049 5
,626 4
,665 5
,011 5
,513
Value:
New Buildings (in $)
1,131,512,740 9
38,617,645
1,160,972,661
1,282,313,750 4
99,255,860
Building Alterations (in $) 6
30,571,262 8
96,629,696 7
25,204,828 7
59,736,823
1,165,845,019
(1) Data currently unavailable due to the Police Department’s transition to a new Records Management System. (2) Data currently unavailable due to staffing resources. Efforts are underway to enhance and automate the process. (3) Effective FY 2017, Airport Department no longer tracks the Taxi/Commuter Commerical separately. It is now included in Commercial Airline Operations. (4) FY 2021, significant reductions in certain operating indicators due to COVID-19
Source: FY 2022-2023 Proposed Operating Budget City Manager’s Office, City of San José 309 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XVIII
City of San José
Capital Asset Statistics
By Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Airport:
Terminals 2 2 2 2 2 2 2 2 2 2
Runwa
ys 3 3 3 3 3 3 3 3 3 2
Public P
arking Spaces:
Short-Term Parking 2
,500 2
,500 2
,500 2
,500 2
,130 1
,980 1
,620 1
,620 1
,443 3
,023(2)
Long-Term Parking 3 ,100 3 ,030 3 ,030 3 ,030 3 ,030 3 ,030 2 ,920 2 ,920 3 ,720 2 ,509(2)
Environment And Utilities:
Wastewater:
Miles of Municipal Sewer Mains 2
,271 2
,294 2
,302 2
,308 2
,030 2
,315 2
,320 2
,322 2
,327 2
,030
Maximum Daily Capacity (millions of
gallons) 1
67 1
67 1
67 1
67 1
67 1
67 1
67 1
67 1
67 1
67 Water:
Meters in Municipal Service Water Area
26,700
26,700
26,700
26,700
26,700
26,894
26,671
27,356
26,839
26,980
Miles of Water Mains 3
45 3
45 3
45 3
45 3
45 3
45 3
45 3
45 3
45 3
44 Fire:
Stations
33 33 33 33 33 33 33 33 33 34
Libraries:
Main Library 1 1 1 1 1 1 1 1 1 1
Br
anches
22 22
22 23
23 23
24 24
24 24
Parks, Recreation And Neighborhood Services:
Park Sites 1
93 1
94 1
99 2
00 2
00 2
03 2
06 2
09 2
09 2
12 Community Centers
12 12
12 12
12 11
11 16
16 12
Police:
Stations 1 1 1 1 1 1 1 1 1 1
V
ehicles and Motorcycles 4
30 3
69 3
69 3
80 3
52 3
03 3
16 3
67 3
67 3
67 Horses and K-9’s
18 18
16 15
15 15
13(1) 15 15 15
Air
craft 2 2 2 2 2 2 2 1 1 1
(1) Decrease due to the disbanding of the SJPD Mounted Unit (2) Effective FY 2022, the hourly/daily parking spaces are no longer tracked separately. They are now included in short-term parking.
Source: FY 2022-2023 Proposed Capital Budget
City Manager’s Office, City of San José
FOR THE YEAR ENDED J UNE 30, 2022 310
311 FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
SCHEDULE XIX
City of San José
Conduit Issuer of Multifamily Housing Revenue Bonds Outstanding (1) As of June 30, 2022
Project Name Series Date Issued Issue Amount
6/30/2022
Balance
Maturity /
Redemption A nnual Fees(2)
Helz
er Court Apartments 1999A 06/02/99 $ 1
6,948,000 $ 1
3,413,000
1 2/01/41 $ 2
6,123
Almaden Lake Village Apartments 2000A 03/29/00
2,000,000
2,000,000 0
3/01/32 n/a (3)
El Parador Apartments 2000A 12/07/00 6,130,000 4,865,000 0 1/01/41 1 4,413 San Jose Lutheran Seniors Apartments 2001A-1 07/11/01 3,850,000
2,322,560 0
2/15/34
6,250
Pollard Plaza Apartments 2002D 08/06/02 1
4,000,000
5,195,000 0
8/01/35 1
7,500
Hacienda Villa Creek Senior Apartments 2002G-1 10/10/02 4,453,000
2,562,000 1
2/01/34
8,750
Kennedy Apartment Homes 2002K 12/11/02 1
4,000,000
6,675,000 1
2/15/35 1
7,500
Fallen Leaves Apartments 2002J-1 12/18/02 1
3,360,000
8,490,000 0
6/01/36 2
3,500
Fallen Leaves Apartments 2002J-2 (Sub.) 12/18/02
3,340,000
2,190,000 0
5/01/36 n/a (3)
The Oaks of Almaden Apartments 2003B-1 07/29/03 4,365,000 2,765,385 0 2/15/36 1 0,438 Cinnabar Commons 2003C 08/07/03 2
5,900,000 2
1,100,000 0
2/01/37 3
2,375
Delmas Park 2004C-1 10/15/04 1
3,780,000 1
1,417,437 0
1/01/47 2
4,224
Paseo Senter I 2005B-1 12/21/05
6,142,200
3,831,614 1
2/01/38
7,500
Paseo Senter II 2005C-1 12/21/05
4,903,000
2,929,382 0
6/01/38
7,500
Curtner Studios 2007C-1 12/19/07
5,520,000
4,165,972 0
7/31/07
7,500
Fairgrounds Senior Housing Apartments 2008B 05/08/08 2 6,000,000 1
0,030,000 0
2/15/36 3
2,500
Las Ventanas Apartments 2008B 07/15/08 2
5,900,000 2
5,900,000 1
0/04/05 3
8,750
Brookwood Terrace Family Apts 2009B-1 12/23/09
7,780,000
6,620,000 0
2/01/37 1
7,000
Fourth Street Apts 2010A-1 06/04/10
5,620,000
4,577,022 0
5/01/43
7,500
Orvieto Family Apartments 2010B-1 07/20/10
7,760,000
7,010,000 0
8/01/29 1
7,750
Kings Crossing Apartments 2010C 09/17/10 2
4,125,000
2,054,291 0
9/01/45
7,500
Taylor Oaks Apartments 2011A-1 10/21/11
3,950,000
3,585,000 1
0/01/28
7,875
1st and Rosemary Family Apartments 2012C 04/19/12 3 5,500,000 2
4,404,466 1
0/01/44 3
3,900
1st and Rosemary Senior Apartments 2012D 04/19/12 1 5,500,000
8,868,216 1
0/01/44 1
2,319
Mayfair Court Apartments 2012B-1 04/20/12
5,220,000
4,347,894 1
0/01/44 2
7,500
La Moraga Apartments 2012E 09/07/12 5
2,440,000 4 7,662,163 0 3/01/26 6 5,550
3rd Street Residential Apartments 2013A 06/27/13
6,630,000
3,638,802 0
7/01/33
8,288
Cambrian Center 2014A-1 10/17/14 1
9,034,500 1
1,913,037 0
5/01/47 3
2,048
Cambrian Center 2014A-2 10/17/14 1
9,034,500 1
1,913,037 0
5/01/47 n/a (3)
Poco Way Apartments 2015A-1 02/01/15 2 1,833,000 1 0,312,933 0 9/01/47 1 4,406 Canoas Terrace Apartments 2015B 10/30/15 2
2,700,000 2
0,501,316 0
5/01/48 2
8,375
Town Park Towers Apartments 2015C 10/14/15 4
5,250,000 2
1,569,952 0
4/01/48 2
8,281
Don de Dios Apartments 2016A 12/22/16 1
7,376,102
6,371,202 0
6/01/34
8,353
Villa De Guadalupe 2017A1 & A2 05/23/17 3
7,700,000 2
8,980,000 0
3/01/52 4
1,995
Villa De Guadalupe Junior 2017B 05/23/17
4,615,712
4,615,712 0
3/01/52 n/a (3)
Catalonia Apartments 2017C 10/17/17 1 6,264,154 6,062,569 0 4/01/39 7,905 El Rancho Verde 2018A 08/28/18
277,700,000
271,904,325 0
9/01/48 5
2,500
El Rancho Verde 2018B 08/28/18 4
0,300,000 4
0,300,000 0
9/01/20 n/a (3)
Lenzen Square 2019A-1 08/22/19 1 8,500,000 1 6,250,000 0 8/01/59 2 8,750 Lenzen Square 2019A-2 08/22/19
3,000,000
3,000,000 0
8/01/59 n/a (3)
Vista Park I 2019C 10/11/19 1 3,245,397 5,578,293 0 6/01/38 1 6,557 Palm Court Sr 2019D 10/11/19 1
2,247,056
4,393,953 0
6/01/38 1
5,309
Quetzal Gardens 2019E 12/20/19 3
2,207,500 2
8,829,195 0
7/01/37 4
0,259
Page Street 2020B-1 10/01/20
6,000,000
5,925,616 0
5/05/53 3
3,437
312
INTRODUCTORY
SECTION
FOR THE YEAR ENDED J UNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
STATISTICAL
SECTION
SCHEDULE XIX
City of San José
Conduit Issuer of Multifamily Housing Revenue Bonds Outstanding (1) As of June 30, 2022
Project Name Series Date Issued Issue Amount
6/30/2022
Balance
Maturity /
Redemption A nnual Fees(2)
Alum Rock 2020 11/01/20 $ 3
2,895,768 $ 2
3,479,529
1 2/01/39 $ 9
,503
Arya 2021 03/01/21 3
4,314,000
4,595,629 0
3/01/46 4
2,893
Markham Plaza II C-1 2021 05/01/21 1
9,000,000 1
5,176,990
0 5/01/66 3
1,250
Immanual Sobrato 2021D 06/01/21 3
4,980,000 5
6,697 0
5/01/41 4
3,725
Blossom Hill 2021 06/01/21 3
9,362,559
4,728,034 0
8/01/45 4
9,203
Mariposa Place 2021E-1 01/28/22 3
1,341,010 5
5,666 0
1/01/40 3
9,176
Vitalia 2021F-1 01/28/22 2
5,172,716
1,678,834 0
1/01/41 4
4,591
Grand Total $
1,179,190,174
$
790,812,723
$
1,088,521
(1) California Government Code Chapter 10.7 ‘Conduit Financing Transparency and Accountability’ requires additional reporting and public disclosures by public agencies that issue certain revenue bonds, including conduit revenue bonds. This table provides the information required by section 5872 of Chapter
10.7 which includes disclosure of fees imposed on borrowers by conduit financing provider, expenditures related to fees, dollar amount and nature of fees and expenses, amount of any authorized, but unsold bonds at end of June 30, 2022, and amount of debt issued and outstanding at end of reporting period. As of June 30, 2022, the City has served as a conduit issuer for only multifamily housing revenue bonds. (2) Annual monitoring fees and upfront fees are collected pursuant to City Council Policy No. 1-16, Policy for the Issuance of Multifamily Housing Revenue Bonds. The annual monitoring fee is charged to reimburse the City for monitoring the restricted units and the reimbursement agreement and to ensure compliance with tax law. The annual monitoring fees are deposited in the Housing Activities Fund. (3) Bonds are connected to the senior bonds. Those with second tranche are simply connected the senior since the regulatory agreements do not split fees. (4) Bonds were issued in the reporting period. The fees will be due in the next reporting period.
Source: Housing Department, City of San José