CITY OF SAN JOSE
PARKS AND RECREATION
BOND PROJECTS FUND
(A Fund of the City of San José)
, Financial Statements,
Other Supplementary Information and
Report
For the Year Ended June 30, 2025
Attachment B
CITY OF SAN JOSE
PARKS AND RECREATION BOND PROJECTS FUND
(A Fund of the City of San José)
For the Year Ended June 30, 2025
Table of Contents
Page
................................................................................................................... 1 Financial Statements:
Balance Sheet ..................................................................................................................................................... 5 Statement of Revenues, Expenditures, and Change in Fund Balance ............................................................... 6 Notes to the Financial Statements ..................................................................................................................... 7 Other Supplementary Information:
Statements of Revenues, Expenditures, and Change in Fund Balance by Fiscal Year For the Period June 6, 2001 through June 30, 2025 ...................................................................................... 12 Other Reports:
Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................ 21 on Compliance with Measure P ........................................................... 23 1 City Council and
Members of the Parks and Recreation Commission
City of San José, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Parks and Recreation Bond Projects Fund (Fund), a fund of the City of San José (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund of the City of San José, as of June 30, 2025, and the change in its financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of a Matter
As discussed in Note 2, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
ies for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
2 for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements. The accompanying statements of revenues, expenditures, and change in fund balance by fiscal year for the period from June 6, 2001 through June 30, 2025 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information for the year ended June 30, 2025 has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information for the year ended June 30, 2025 is fairly stated in all material respects in relation to the financial statements as a whole. 3 We also have previously audited, in accordance with GAAS, the Fund as of and for the period from June 6, 2001 through June 30, 2008, as of and for the years ended June 30, 2009 through 2015, and as of and for the years ended June 30, 2018 through 2024 which are not presented with the accompanying financial statements. In our reports dated March 13, 2009, October 2, 2009, December 2, 2010, October 18, 2011, November 15, 2012, October 4, 2013, November 14, 2014, October 8, 2015, October 23, 2018, October 15, 2019, November 13, 2020, November 3, 2021, October 27, 2022, October 18, 2023, October 16, 2024, respectively, we expressed unmodified opinions on the financial statements. The audits were conducted for the purposes of forming opinions on the financial statements as a whole. The information for the period from June 6, 2001 through June 30, 2015, and for the years ended June 30, 2018 through 2024 been subjected to the auditing procedures applied in the audits of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information for the period from June 6, 2001 through June 30, 2008, the years ended June 30, 2009 through 2015, and the years ended June 30, 2018 through 2024 is fairly stated in all material respects in relation to the financial statements from which they have been derived.
The financial statements of the Fund as of and for the years ended June 30, 2016 and 2017 were audited by other auditors. Those auditors expressed unmodified opinions on those reports dated November 17, 2016 and October 20, 2017, respectively. Those auditors reports also stated that the Statements of Revenues, Expenditures, and Change in Fund Balance by fiscal year for the years ended June 30, 2016 and 2017 were fairly stated, in all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 7,2025 inancial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in financial reporting and compliance.
Walnut Creek, California
October 7, 2025
4 This page is intentionally left blank.
Assets
Restricted assets:
Equity in pooled cash and investments held in the City Treasury 2,618,545 $ Investments held with fiscal agents 15,709,840
Accrued interest receivable 14,874
Total assets $ 18,343,259
Liabilities and Fund Balance
Liabilities:
Accounts payable and accrued liabilities 71,424 $
Fund balance:
Restricted for Parks and Recreation Bond projects 18,271,835 Total liabilities and fund balance $ 18,343,259
(A Fund of the City of San José)
Balance Sheet
June 30, 2025
PARKS AND RECREATION BOND PROJECTS FUND
CITY OF SAN JOSE
See accompanying notes to the financial statements.
5 Revenues:
Investment income 797,885 $
Unrealized gain on investments 43,290 Total revenues 841,175 Expenditures:
Columbus Park Soccer Facility 399,495 Change in fund balance 441,680 Fund balance, beginning of year 17,830,155 Fund balance, end of year $ 18,271,835
CITY OF SAN JOSE
(A Fund of the City of San José)
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2025
PARKS AND RECREATION BOND PROJECTS FUND
See accompanying notes to the financial statements.
6 CITY OF SAN JOSE
PARKS AND RECREATION BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements
For the Year Ended June 30, 2025
7 NOTE 1 BACKGROUND
In November 2000, registered voters of the City of San José (City) approved Measure P, the San José Safe Neighborhood Parks and Recreation Bonds, authorizing the issuance and sale of general obligation bonds (Parks Bonds) not to exceed $228,030,000 to be used to fund the acquisition of property and construction of improvements to neighborhood and regional parks, community centers and other recreational amenities within the City. The Parks bond proceeds are not allowed to be expended on salaries of Park administrators.
Therefore, the City did not use bond proceeds to pay for administrative salaries within the Parks and Recreation Department. The capital project management services provided by the Parks and Recreation Department are considered allowable expenditures and reported in the project administration costs.
The table below sets forth the amount of Parks Bonds authorized and issued pursuant to Measure P:
As of June 30, 2025, outstanding projects approved by the City Council to be funded by the remaining bond proceeds include Columbus Park Soccer Facility. See Note 4 for the related outstanding project construction commitments.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements present only the financial position and the change in financial position of the Parks and Recreation Bond Projects Fund (Fund) and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, the change in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
d
Projects activities. Capital projects funds are used to account for financial resources (e.g., bond proceeds and investment income) that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition of land or acquisition and construction of major governmental facilities.
CITY OF SAN JOSE
PARKS AND RECREATION BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements
For the Year Ended June 30, 2025
8 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Fund considers revenues to be available if collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, expenditures related to vacation, sick leave, claims and judgments are recorded only when payment is due.
Restricted Cash and Investments
Cash and investments that are restricted for specified uses by bond covenants or other requirements are classified as restricted. d cash and investments are held in the City Treasury and in fiscal agent accounts to be spent only on authorized capital projects. ndentures.
The fair value of investments is based on quoted market information obtained from fiscal agents or other sources.
Fund Balance
Under Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the balance sheets of governmental funds classify fund balances based primarily on the extent to which the Fund is bound to honor constraints on the specific purposes for which those funds can be spent. The Fund only has restricted fund balance at June 30, 2025. Restricted fund balance represents amounts when constraints placed on use of resources are either (1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation.
Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results may differ from those estimates.
CITY OF SAN JOSE
PARKS AND RECREATION BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements
For the Year Ended June 30, 2025
9 NOTE 3 RESTRICTED CASH AND INVESTMENTS
and investments at June 30, 2025 are as follows:
The Fund has investments subject to provisions of the bond indentures of its various bond issues.
According to the bond indentures, the Fund pool,
the State of California Local Agency Investment Fund (LAIF), obligations of the U.S. Treasury or U.S. government agencies, time deposits, money market mutual funds invested in U.S. government securities, along with various other investments.
The Fund maintains part of its investments in the Ci The amounts held in pool can be withdrawn upon demand. Income and losses arising from the investment activity of pooled cash are allocated to the participating funds on a monthly basis, based on their proportionate shares of the average daily cash balance.
Information regarding the characteristics of the entire investment pool can be found in the for the year ended June 30, 2025. A copy of that report may be obtained th Floor, San José, CA,
site at http://www.sanjoseca.gov.
Government Code Section 16429.1 authorizes each local government agency to invest funds in the LAIF administered by the California State Treasurer. The total amount recorded by all public agencies in LAIF at June 30, 2025 was approximately $24.5 billion. LAI nt Account (PMIA). The total amount recorded by all public agencies in PMIA at June 30, 2025 was approximately $178.1 billion and of that amount, 96.2% was invested in non-derivative financial products and 3.8% in structured notes and asset backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State statute.
The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by nationally recognized statistical rating organizations. The City has mitigated credit risk by limiting investments to the safest types of securities, by prequalifying financial institutions, by diversifying the portfolio, and by establishing monitoring procedures.
CITY OF SAN JOSE
PARKS AND RECREATION BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements
For the Year Ended June 30, 2025
10 NOTE 3 RESTRICTED CASH AND INVESTMENTS (Continued)
Concentration Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on the Fund. Investments issued by or explicitly guaranteed by the U.S. government and investments in mutual funds and other pooled investments are exempt from this requirement, as they are normally diversified themselves.
Interest Rate Risk
Interest rate risk is the risk that changes in market rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market rates. The City has mitigated interest rate risk by establishing policies over liquidity, including maturity limits by investment classification. These limits, for investments other than external investment pools and money market mutual funds, range from 10 days to 5 years depending on the investment classification.
Fair Value Measurement Categorization
The Fund categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The inputs and techniques used for valuing securities are not necessarily an indication of risk associated with investing in those securities. ilmington Trust Money Market LAIF are not subject to fair value hierarchy.
NOTE 4 COMMITMENTS
At June 30, 2025, the Fund has outstanding project construction encumbrances as follows:
Project Amount
Columbus Park Soccer Facility $ 776,683
11 This page intentionally left blank.
- - - - -
- - - - -
- - 37,820 - 11,426
1,695,340 233,266 3,275,552 16,887 1,734,199
munity Center/Library 58,681 - 682,929 1,084,999 7,791,470 - - 146,556 648,088 783,633
t 27,040 - 251,373 92,765 -
21,082 - 441,765 50,890 -
reet Park Phase II - - - - -
estroom 64,605 - 558,866 15,823 -
- - 11,142 88,827 851,399
estrooms - - 101,159 525,515 -
28,318 - 141,599 9,923 -
n 33,398 - 197,862 3,333 -
Playlot Renovation 73,900 - 367,926 11,992 -
600,052 30,997 1,769 - -
30,585 - 242,335 18,181 -
r 636,697 - 989,279 2,900,625 4,343,202
ion 91,633 1,918 245,743 20,998 -
t 118,039 4,868 252,519 20,998 -
35,296 - 162,130 2,194 -
novation 24,014 - 225,966 14,748 -
y - - - - -
os Golf Course - - 85,569 184,944 107,981
/All Inclusive Playground 23,815 - 254,498 90,568 56,587 - LeFevre House 3,949 164,062 204,928 1,165,301 64,871
150,069 1,393 85,557 4,998 -
396,147 3,338 81,113 9,776 - 2,256 104,581 67,663 5,144 - 5,898 - 603,491 40,970 -
33,606 - 191,244 47,669 -
vation 2,076 - 216,688 46,672 -
107,304 - 912,800 3,217,600 530,681
458,420 22,263 - 18,748 -
208,156 20,837 24,850 148 -
om - - 17,729 113,517 -
- - 113,015 292,977 108,670
acility - - - - -
m 81,176 3,994 453,066 - -
58,983 - 33,772 - -
964,516 - 195,051 - -
- - - 469,521 1,522,832
troom 58,818 3,517 389,825 564 - 2,181 51,069 450,089 5,881 - troom 498,826 1,597 20,302 - -
Renovation 165,592 3,508 175,404 4,998 -
- - - - -
2,908 - 310,160 44,635 -
enovation - - - - -
ayground - - - - -
vation 57,530 3,477 134,898 15,998 -
ion 92 - 76,955 195,255 -
Multi-Service - - - 2,583,000 -
36,653 - 261,204 1,571,390 1,540
novation 72,724 2,793 147,732 1,980 -
ation - 24 17,793 146,028 79,227
18,338 - 415,812 39,751 -
- - 63,325 258,710 3
4,262 - 118,064 144,909 -
305,740 23,990 121,868 - -
- - 19,092 256,286 -
- - 51,653 217,977 -
a/Shade Structure 221,156 20,151 3,000 - -
52,870 - 12,617 313,208 192,365
8,628 - 113,753 313,984 -
vation 9,818 - 65,887 360,511 -
rovements 392,339 5,036 36,995 230,724 -
- Multi-Service - - - 20,716 1,433,573
vation 23,646 - 231,688 7,997 -
oom 99,368 3,520 502,646 19,967 -
45,623 - 664,597 23,734 -
- - 123,886 482,086 1
7,470 5,170 308,672 175,851 1,150,914
148,236 - 33,109 5,001 -
139,398 6,220 267,899 4,720 -
4,484 - 87,277 168,687 -
512,062 12,515 168,077 308,704 18,441
53,191 - 387,976 73,823 309,175
ements 1,315 40,641 231,543 19,986 -
ty Center - - - - -
- - 20,539 314,230 912,231
Lot 20,864 - 413,971 53,304 -
destrian Bridge - - - - -
- - 49,280 234,383 -
15,661 - 213,212 19,101 -
- - 42,931 225,026 -
Lot 6,143 - 352,813 75,635 -
37,406 - 195,706 4,998 -
tion 36,817 - 152,879 9,960 -
tion 37,977 24,968 47,884 9,998 -
- - 34,836 399,275 3
s - - - - -
vation 23,829 - 244,378 67,908 -
ation/Improvements 11,759 - 200,093 26,208 -
ma Olinder Park) - - 6,287 11,574 209,252
303,522 - 537,372 873,676 1,064,156 - - - - -
293,000 - - - - 224,951 9,787,962 17,843,425 22,119,420 21,779,731 venues
res (8,092,622) 8,315 (14,567,873) (22,102,533) (20,045,532) - - 426 964,000 1,420,112
- - - - -
21,792 17,363 71,406 54,580 -
2,471,246 4,174,082 740,123 1,219,898 1,562,843
munity Center/Library 7,019 145,237 - - -
455 1,098,191 - - -
t - - - - -
- - - - -
reet Park Phase II - - - - -
estroom - - - - -
3,195,549 471,551 5,684,973 1,295,996 1,000
estrooms - - - - -
- - - - -
n - - - - -
Playlot Renovation - - - - -
- - - - -
- - - - -
r - 890,805 - - -
ion - - - - -
t - - - - -
- - - - -
novation - - - - -
y - - - - -
os Golf Course 859,733 438,794 111,539 - -
/All Inclusive Playground - - 34,200 3,800 -
- LeFevre House 12,909 33,733 21,170 8,602 -
- - - - -
- - - - - - - - - -
- - - - -
- - - - -
vation - - - - -
- - - - -
- - - - -
- - - - -
om - - - - -
461,777 277,905 872,004 406,430 6,993
acility - - - - -
m - - - - -
- - - - -
60,017 47,263 12,949 - 4,454
29,502,794 1,940,909 15,772,108 2,240,045 999,705
troom - - - - - - - - - -
troom - - - - -
Renovation - - - - -
- - - - -
- - - - -
enovation - - - - -
ayground - - - - -
vation - - - - -
ion - - - - -
Multi-Service - - - - -
- - - - -
novation - - - - -
ation - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
a/Shade Structure - - - - -
951,544 446,901 610,753 294,290 46,074
- - - - -
vation - - - - -
rovements - - - - -
- Multi-Service 1,173,482 11,944,700 63,034 - -
vation - - - - -
oom - - - - -
- - - - -
- - - - -
- 5,782 - - -
- - - - -
- - - - -
- - - - -
- - 167,400 401,526 225,943
- - - 17,526 401
ements - - - - -
ty Center 9,418,481 1,394,917 8,003,063 836,607 137,936 - - - - -
Lot - - - - -
destrian Bridge - - - - -
- - - - -
- - - - -
- - - - -
Lot - - - - -
- - - - -
tion - - - - -
tion - - - - -
- - - - -
s - - - - -
vation - - - - -
ation/Neighborhood Center Improvements - - - - -
ma Olinder Park) - - - - -
742,893 665,643 720,803 476,282 306,224 - - - - -
- 274,000 - - - 28,973,645 48,149,930 32,135,949 6,018,337 1,728,730 venues
res (45,678,684) (24,799,563) (31,395,826) (4,798,439) (165,887) - - - - -
- - - - -
- - - - -
120,539 79,660 185,756 384,242 546,397
munity Center/Library - - - - -
- - - - -
t - - - - -
- - - - -
reet Park Phase II - - - - 871,089
estroom - - - - -
- - - - -
estrooms - - - - -
- - - - -
n - - - - -
Playlot Renovation - - - - 35,201
- - - - -
- - - - -
r - - - - -
ion - - - - -
t - - - - -
- - - - -
novation - - - - -
y - - - - -
os Golf Course - - - - -
/All Inclusive Playground - - - - 4,139
- LeFevre House - - - - -
- - - - -
- - - - - - - - - -
- - - - -
- - - - -
vation - - - - -
- - - - -
- - - - -
- - - - -
om - - - - -
- - - - -
acility - - - 20,733 -
m - - - - -
- - - - -
- - - - -
- 19,582 - - -
troom - - - - 4,198 - - - - -
troom - - - - -
Renovation - - - - -
- - - - 548,971
- - - - -
enovation - - - - -
ayground - - - - -
vation - - - - -
ion - - - - -
Multi-Service - - - - -
- - - - -
novation - - - - -
ation - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
a/Shade Structure - - - - -
12,108 82,436 69,416 - -
- - - - -
vation - - - - -
rovements - - - - 11,384
- Multi-Service - - - - -
vation - - - - -
oom - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
189,231 918,202 223,175 24,550 -
472,254 5,368 161,912 3,989,068 7,122,304
ements - - - - -
ty Center - (38,370) - - 150,000
- - - - -
Lot - - - - -
destrian Bridge - - - - 8,523
- - - - -
- - - - -
- - - - -
Lot - - - - -
- - - - -
tion - - - - -
tion - - - - -
- - - - -
s - - - - 100,000
vation - - - - -
ation/Neighborhood Center Improvements - - - - 3,326
ma Olinder Park) - - - - -
182,196 293,610 149,638 124,049 - - - - - -
- - - - - 1,280,828 855,789 604,141 4,158,400 8,859,135 venues
res (735,250) (1,201,168) (418,385) (3,774,158) (8,312,738) - - - - 2,384,
m State - - - - 651,
- - - - 220,
355,737 (20,310) 735,270 841,175 29,749,
ty - Community Center/Library - - - - 16,407,
- - - - 3,013,
Youth Lot - - - - 371,
& Tot Lot - - - - 513,
and 31 Street Park Phase II - - - - 1,000,
ot Lot/ Restroom - - - - 639,2
Center - - - - 11,771,
Lots & Restrooms - - - - 626,
oom - - - - 179,
Renovation - - - - 234,
Tot Lot/Playlot Renovation - - - - 753,
ot - - - - 632,
room - - - - 291,
ce Center - - - - 9,896,
Renovation - - - - 360,2
& Tot Lot - - - - 396,4
bow - - - - 199,
Area Renovation - - - - 264,
cer Facility 319,197 334,781 307,285 399,495 1,603,
Los Lagos Golf Course - - - - 2,149,
orial Park/All Inclusive Playground - - - - 2,374,
orial Park - LeFevre House - - - - 1,899,2
Area - - - - 242,
Area - - - - 490,
rea - - - - 179,
t Lot - - - - 650,
ks Youth - - - - 272,
Lot Renovation - - - - 265,4
Center - - - - 4,834,
Lot - - - - 499,4
Lot - - - - 253,
ve Restroom - - - - 131,2
ail - - - - 2,878,
Soccer Facility - - - - 20,
Restroom - - - - 538,2
-Strategy - - - - 92,
Strategy - - - - 1,709,
and Zoo - - - - 58,578,
ot & Restroom - - - - 1,302,
Area - - - - 509,2
ea & Restroom - - - - 520,
& Tot Lot Renovation - - - - 349,
elopment - - - - 728,
Tot Lot - - - - 357,
ground Renovation - - - - 300,
lusive Playground - - - - 65,
Lot Renovation - - - - 211,
Renovation - - - - 272,
Center- Multi-Service - - - - 4,100,
den - - - - 1,870,
h Lot Renovation - - - - 225,2
a Renovation - - - - 243,
Tot Lot - - - - 473,
ea - - - - 322,
y Area - - - - 267,2
& Tot Lot - - - - 451,
stroom - - - - 275,
lay Area - - - - 269,
Play Area/Shade Structure - - - - 344,
- - - - 3,909,2
Area - - - - 436,
rea Renovation - - - - 436,2
Park Improvements - - - - 800,4
ty Center - Multi-Service - - - - 20,244,
ea Renovation - - - - 263,
& Restroom - - - - 625,
- - - - 733,
- - - - 605,
- - - - 2,221,2
ay Area - - - - 186,
y Area - - - - 418,2
lay Area - - - - 260,4
- - - - 4,551,4
- - - - 14,105,
a/Improvements - - - - 444,
Community Center - - - - 20,681,
ty Center - - - - 1,811,4
h & Tot Lot - - - - 488,
Creek Pedestrian Bridge - - - - 143,
ea - - - - 283,
Area - - - - 247,
Area - - - - 267,
th & Tot Lot - - - - 434,
ay Area - - - - 238,
a Renovation - - - - 199,
t Renovation - - - - 120,
y Area - - - - 434,
rovements - - - - 100,
Lot Renovation - - - - 336,
m Renovation/Neighborhood Center Improvements - - - - 438, oom (Selma Olinder Park) - - - - 227,
on - - - - 8,826,
- - - - 1,339,
ment - - - - 567,
res 334,781 319,197 307,285 399,495 244,236,
cy) of revenues
xpenditures 36,540 (355,091) 427,985 441,680 (214,487,
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21 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards City Council and
Members of the Parks and Recreation Commission
City of San José, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Parks and Recreation Bond Projects Fund (Fund), a fund of the City of San José (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated October 7, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the C over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of internal control.
Accordingly, we do not express an opinion on the effectiveness of the City internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity , on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
22 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of th control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards Accordingly,
this communication is not suitable for any other purpose.
Walnut Creek, California
October 7, 2025
23 City Council and
Members of the Parks and Recreation Commission
City of San José, California
We have examined the City of San José (City) compliance with certain provisions of Measure P for the year ended June 30, 2025 as follows:
Bond proceeds were used for installing lighting, reconstructing deteriorating playgrounds and restrooms; preserving open space; constructing trails; constructing new recreational sports facilities; improving Community and Senior Centers; and constructing improvements to regional parks, such as Happy Hollow.
Bond proceeds were not used for parks admini
Annual audits were performed.
Management is responsible for the compliance with those requirements. Our responsibility is to express an opinion on the compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied with the specified requirements, in all material respects, with the specified requirements referenced above. An examination requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance with the specified requirements, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.
Our examination
requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended June 30, 2025.
Walnut Creek, California
October 7, 2025
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