FISCAL YEAR ENDED JUNE 30, 2021
CITY OF SAN LEANDRO
CALIFORNIA
CITY OF SAN LEANDRO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
PREPARED BY:
City of San Leandro – Finance Department
CITY OF SAN LEANDRO
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents
i
INTRODUCTORY SECTION
Table of Contents ........................................................................................................................................... i Letter of Transmittal ..................................................................................................................................... v Organizational Chart ................................................................................................................................... xii Principal Officers ....................................................................................................................................... xiii Location Map ............................................................................................................................................. xiv Government Finance Officers Association (GFOA) Award ....................................................................... xv
FINANCIAL SECTION
Independent Auditors’ Report .................................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................... 5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ................................................................................................. 23 Statement of Activities and Changes in Net Position ....................................................... 24 Fund Financial Statements:
Government Funds Financial Statements:
Balance Sheet .................................................................................................................... 30 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position .................................................................................................. 31 Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 32 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ........................................................................................ 33 Proprietary Funds Financial Statements:
Statement of Net Position ................................................................................................. 36 Statement of Revenues, Expenses and Changes in Fund Net Position ............................. 37 Statement of Cash Flows .................................................................................................. 38 Fiduciary Fund Financial Statement:
Statement of Fiduciary Net Position ................................................................................. 40 Statement of Changes in Fiduciary Net Position .............................................................. 41
CITY OF SAN LEANDRO
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents
ii
FINANCIAL SECTION (Continued)
Index to Notes to Basic Financial Statements ............................................................................................. 43 Notes to Basic Financial Statements ........................................................................................................... 45 Required Supplementary Information:
Schedule of Changes in the Net Pension Liability and Related Ratios ............................. 94 Schedule of Contributions – Miscellaneous Plan ............................................................. 95 Schedule of the Plan’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date ................................................................... 96 Schedule of Contributions – Safety Plan .......................................................................... 97 Schedule of Changes in the Net OPEB Liability and Related Ratios ............................... 98 Schedule of Contributions – Multiple-Employer Plan ...................................................... 99 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund .................................................................................................. 100 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Measure BB Special Revenue Fund ............................................................... 101 Notes to Required Supplementary Information .............................................................. 102 Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Improvement Capital Projects Fund .................................................. 104 Non-Major Governmental Funds:
Combining Balance Sheet ............................................................................................... 108 Combining Statement of Revenue, Expenditures and Changes in Fund Balances ......... 112 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Non-Major Governmental Funds ................................................................... 116 Non-Major Enterprise Funds:
Combining Statement of Net Position ............................................................................ 140 Combining Statement of Revenues, Expenses, and Changes in Net Position ................ 141 Combining Statement of Cash Flows ............................................................................. 142
CITY OF SAN LEANDRO
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents
iii
FINANCIAL SECTION (Continued)
Internal Service Funds:
Combining Statement of Net Position ............................................................................ 144 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........ 145 Combining Statement of Cash Flows ............................................................................. 146
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years ............................................................................... 151 Changes in Net Position – Last Ten Fiscal Years ..................................................................................... 152 Program Revenues by Function/Program – Last Ten Fiscal Years .......................................................... 153 Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................................... 154 General Governmental Revenues by Source – Last Ten Fiscal Years ...................................................... 155 Changes in Fund Balance of Governmental Funds – Last Ten Years ...................................................... 156 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ...................................................... 159 Assessed Value of Taxable Property – Last Ten Fiscal Years .................................................................. 160 Net Assessed Value of Property by Use Code, Citywide – Last Three Fiscal Years ............................... 161 Principal Property Tax Payers – Current Fiscal Year and Nine Years Ago ............................................. 162 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................................. 163 Historical Sales Tax Amount by Benchmark Year – Last Nine Fiscal Years at Quarter 1 (Q1) .............. 164 Principal Sales Tax Produces – Last Fiscal Year and Nine Years Ago .................................................... 165 Sewer Rates – Last Ten Fiscal Years ........................................................................................................ 166 Number of Permits and Valuation of Taxable Transactions – Last Ten Calendar Years ......................... 167 Direct and Overlapping Debt – As of June 30, 2021 ................................................................................ 171 Pledged-Revenue Coverage – Last Ten Fiscal Years ............................................................................... 172 Computation of Legal Debt Margin – Last Ten Fiscal Years ................................................................... 173 Ratios of General Bonded Debt Outstanding ............................................................................................ 174 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................. 175 Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................... 179 Principals Employers – Current Year and Eight Years Ago ..................................................................... 180 Full-Time and Part-Time City Employees by Function – Last Ten Fiscal Years ..................................... 183 Operating Indicators by Function – Last Ten Fiscal Years ....................................................................... 184 Capital Asset Statistics by Function – Last Ten Fiscal Years ................................................................... 185
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December 22, 2021
Honorable Mayor and Members of the City Council
City of San Leandro
San Leandro, CA 94577
Dear Mayor and Members of the City Council:
The Comprehensive Annual Financial Report (CAFR) for the City of San Leandro is hereby submitted for the year ended June 30, 2021. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner designed to fairly present the City’s financial position and results of operations of all funds. All disclosures necessary to understand the City’s financial activities are included.
Section 555 of the City Charter requires an annual independent audit of the City’s fiscal affairs. This report is published to fulfill this requirement for the fiscal year ending June 30, 2021.
This report consists of management’s representations concerning the finances of the City. To provide a reasonable basis for making these representations, management established a comprehensive internal control framework designed to both protect the City’s assets from loss, theft, or misuse, compiled sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP), and complied with applicable laws and regulations.
The City contracted with Maze & Associates, a public accounting firm licensed to perform local government audits in California, to complete the annual audit. Maze concluded that the financial statements present fairly the respective financial position of the government activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City, and the respective changes in financial position, and where applicable, cash flows for the year ended June 30, 2021, in accordance with GAAP. This is a favorable conclusion and is commonly referred to as an unmodified opinion.
The audit involved examining on a test basis evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
In addition to the CAFR, the City prepares a mandated Single Audit designed to meet requirements related to major program expenditures of Federal funds. The standards governing Single Audit engagements require the independent auditor to report on the audited government’s internal controls and compliance with legal requirements, emphasizing administration of Federal awards. These reports are available in the City’s separately issued Single Audit Report. vi
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of the Management’s Discussion and Analysis (MD&A). The MD&A complements this transmittal letter and should be read in conjunction with it.
CITY PROFILE
The City was incorporated in 1872 and is one of the older communities in the San Francisco Bay Area. The City occupies fifteen square miles between the cities of Oakland and Hayward and is bordered on the west by the San Francisco Bay. San Leandro offers its 87,300 residents the charm and character of a community that has been established for 149 years. Once an agricultural community, the City has been successful in attracting significant residential, industrial, manufacturing, and retail development.
City Structure
The City functions under a council-manager form of government and is governed by a sevenmember council elected by City residents. Municipal services include public safety, streets and roads, recreation and cultural services, library, health services, public infrastructure improvements, planning and zoning, and general administrative services. The scope of the City Council’s power and influence includes the following:
Authority to set policy and enact legislation that facilitates those policies, Authority to establish and modify operating and capital budgets, Power to appoint voting members to other governing authorities, Power to appoint the City Manager and City Attorney, and Authority to veto, modify, and overrule decisions previously enacted.
Component Units
The City’s blended component units include operations of the San Leandro Parking Authority and the San Leandro Public Financing Authority. As of June 30, 2021, there were no discrete reportable component units.
The CAFR for the year ending June 30, 2021, provides a financial account of these units, organizational elements, and the City functions for which the City Council provides policy direction and general oversight. It presents financial information on the activities of the City itself and the component units of the City upon which the City Council is authorized to impose its will. The operating nature of the City’s component units determines how they are reported in the financial statements. The activities of component units that provide financial benefit or create financial burden for the City are blended within the City’s general financial statements.
ECONOMIC CONDITION OF THE CITY
The City has a diverse business community, which is comprised of varied businesses ranging from neighborhood coffee houses and fine restaurants, large food processing centers, regional shopping opportunities, to cutting edge technology. While the economic base has dramatically changed from its agricultural early years, San Leandro continues to expand on its sound business base with the ongoing development of such projects as a multi-family housing development, high-rise offices, and the continuing revitalization of downtown.
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Scarcely any aspect of life in San Leandro remained untouched by the Coronavirus pandemic. Every resident and business owner has been affected by COVID-19. Devastating health impacts, business and school closures, elimination of jobs, essential workers faithfully carrying-on, remote work, requirements to wear masks and socially distance, and the struggle to pay basic bills, including food and rent, all became a normal part of life and helped define this unprecedented time.
Among the impacts to the City, many projects experienced slowdowns as attention was diverted toward mitigating the effects of the pandemic and then eventually transitioning to recovery efforts.
Relevant and timely actions included an eviction moratorium, rental assistance, a grocery worker premium pay ordinance, public assistance in the forms of food distribution, mental health, domestic violence services, and small business grants.
With the rollout of vaccines and the stimulus funds provided by the Federal government, the City has begun returning to normal. Fortunately, the economic outlook for San Leandro is expected to be positive in the upcoming years. Due to low housing inventory, home prices continued to appreciate even during the pandemic. The City’s median home price was $862,000, a 24% increase from the prior year. San Leandro’s unemployment rate was 10.8%. This unemployment rate is a significant improvement since the shutdown of economic activities last year.
The City’s General Fund supports basic municipal services, such as public safety, human services, library and parks and recreation. Revenue to this critical fund, generated largely from sales and property taxes, has grown to higher levels due to recent voter-approved tax measures.
Sales tax revenue increased by 11% after declining in 2019-20 reflecting the beginning months of COVID-19. Revenues rose as the recovery occurred more quickly, businesses delaying payments caught-up more quickly, and several sales tax categories realized extraordinary growth. Real property transfer tax revenue increased by $5.8 million in 2020-21. Some of the variance stems from the voter approved tax rate increase impacting the last half of the year. In addition, an unprecedented number of high value commercial and industrial properties sold in 2020-21. The City achieved positive financial results by extraordinary growth in sales tax and property transfer tax revenues, and early imposition of strategies to control costs considering the COVID-19 pandemic.
City operations are also supported by other funds, including major and non-major enterprise (proprietary) funds. Major enterprise funds include the Water Pollution Control Plant and Shoreline Enterprise Funds. Both funds experienced higher revenues over the prior fiscal year despite the COVID-19 pandemic. The Water Pollution Control Plant Enterprise fund was established to account for the City’s sewers, which protect public health and preserve water quality through collection, treatment, and disposal of the community’s wastewater. Program revenues to this fund in 2020-21 totaled $16.4 million, a 20% increase over the prior fiscal year due largely to one time connection fees paid by high value commercial and industrial properties. The Shoreline Enterprise Fund was established by combining the Marina and the Golf Course Funds. Program revenues to this fund in 2020-21 totaled $6.7 million, a $4.9 million increase over the prior fiscal year mainly due to the increase in golf activities.
Like many other cities in California, the City faces increases in operating expenses partly due to rising pension costs. The City continues to implement strategies to control costs and identify viable revenue options. The City is also committed to funding its unfunded pension and other postemployment benefits (OPEB) liabilities. Authorized by the City Council, the City continues to set aside funds in the Prioritization Unfunded Liability Liquidation (PULL) Plan to reduce its unfunded viii
liabilities. In June 2021, the City Council authorized the establishment of a Section 115 Pension Trust to buy down the City’s unfunded pension liability. $6.5 million in contributions will be transferred to the trust account in fiscal year 2021-22. At the end of fiscal year 2020-21, the City’s OPEB plan was 89% funded – a healthy funded status.
Long-term Perspective
The City adopts a biennial budget employing long-term planning as the framework for fiscal decisions. While San Leandro’s underlying economy is viewed as positive in the long-term, today’s economic challenges, notably in the General Fund, must be dealt with now to ensure long-term fiscal sustainability. The City Council has implemented on-going cost cutting measures after staffing peaked in 2008-09, producing recurring budget savings to address its financial challenges. Passage of Measure Z in November 2010, Measure HH in 2014, and Measures OO, PP, NN in 2016, and Measure VV in 2020 have improved revenues enough to restore and maintain services. The City has also implemented strategies to control costs such as soft hiring freeze to mitigate the impact from the COVID-19 pandemic.
City Council unrestricted reserves total $66.5 million in the General Fund on June 30, 2021. The restricted reserves total $17.2 million.
MAJOR INITIATIVES AND ACCOMPLISHMENTS
The City is committed to providing innovative and responsive services to the community. In its role of providing policy direction and general oversight, the City Council establishes major goals for City service delivery. The City initiated and completed a list of major programs/projects during 2020-21 that helped achieve the City’s mission of serving the public and enhancing the quality of life in San Leandro. Certain programs were created in response to the COVID-19 pandemic, which helped to reduce the combined health, social, and economic impacts of the pandemic. Some of these major initiatives and accomplishments include:
Street Rehabilitation and Sealing – The City completed design and advertised bidding for construction of a $6.0 million street sealing project. This is the largest street sealing project that the City has undertaken in the past 25 years and will cover 28 lane miles of city roadways. The City also awarded and started construction on $12.0 million of street reconstruction and rehabilitation (7.6 miles).
Boys and Girls Club Pool Resurfacing Project & Farrelly Pool Replacement Project – The City completed a $1.4 million Boys and Girls Club Pool Resurfacing Project and the $8.6 million Farrelly Pool Replacement Project. At the Farrelly site, the City completed the construction of a new swimming pool facility to replace the aged existing complex.
Crosstown Class IV Corridors Study – The City awarded a consulting agreement with Fehr & Peers to complete the Crosstown Class IV Corridors Study. This $447,000 study funded with Caltrans Sustainable Transportation Planning Sustainable Communities Grant will seek to review and identify how to improve safety, access, and mobility for all roadway users along Bancroft Avenue and Williams Street. ix
Public Library COVID-19 Recovery – Following a thorough process ensuring health and safety, the Library Department reopened the Main Library for onsite, in-person services in May 2021. Reopening the Main Library after a fourteen-month closure due to the pandemic provided community members access to vital, free resources such as computers and printers as well as staff technical assistance. Monarch Bay Shoreline Development – The public-private partnership with the developer includes up to 500 new housing units, hotel, restaurants, small retail space, new open space and an extension of the San Francisco Bay Trail. The project is now in the entitlements phase, and the developer submitted project designs and plans in 2021. Loro Landing Apartments – The 62-unit apartment building is expected to be completed and leased by the end of 2021. The project is 100% affordable units. Bay Fair TOD Specific Plan Housing – The City approved in the second Senate Bill (SB) 35 streamlined housing approval project on the former King Parcel adjacent to the Bay Fair Mall. The development is the first housing project approved pursuant to the Bay Fair TOD Specific Plan with 497 units, 50% affordable and 50% market rate. Climate Action Plan Update – The City completed a comprehensive update of the Climate Action Plan with City Council adoption in July of 2021. Battery Storage/Energy-Efficiency Project – The City received a $420,000 grant from PG&E for constructing the battery storage/energy-efficiency project at the Water Pollution Control Plant.
Measure VV – City Council placed Measure VV on the November 2020 municipal election ballot. Voters approved the measure increasing the real property transfer tax rate to $11 per thousand dollars in valuation.
Civilian Police Oversight Board – Based on policy direction from the City Council, the City launched exploratory efforts related to the creation of a new community police oversight board and independent police auditor program. Cannabis Business Operations – The City successfully shepherded the opening of previously permitted cannabis businesses, which are now operating safely in the community and generating over $1.0 million in annual General Fund revenue. Enhancements of Network and Computer Server Security – Information Technology division implemented new software platforms ensuring protection against cyber-related threats and attacks.
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FINANCIAL INFORMATION
City Budget & Budgetary Controls
The City Council is required to adopt a final budget by passing a budget resolution no later than June 30th, following a public hearing process. This annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund, function (Public Safety), and department (Police). The legal level of budgetary control is at the fund level. The City Manager is authorized to transfer budgeted amounts between departments and line items within any fund. Any revisions that alter the total expenditures of any fund must be approved by the City Council.
Transfers between funds must be approved by the City Council. At the end of the fiscal year, encumbered appropriations are carried forward and become part of the following year’s budget while appropriations that have not been encumbered lapse, unless otherwise authorized by the City Council and the City Manager.
Accounting System
The City’s accounting records for general government operations are maintained on a modified accrual basis, with revenues recorded when measurable and available. Expenditures are recorded when the services or goods are received and the liabilities incurred. Accounting records for the City’s proprietary activities are maintained on the full accrual basis, with revenues recorded when earned and expenses when incurred.
In maintaining the City’s accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets and to ensure the reliability of financial records and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived. The evaluation of costs and benefits requires continuing estimates and judgments by City management. The City’s system of internal accounting controls continues to adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.
Risk Management
The City maintains commercial insurance combined with self-insurance for all its governmental operations. The City is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX). The City is also a member of California Joint Powers Risk Management Authority (CJPRMA), providing general liability coverage in an aggregate up to $40 million.
Additional information on the City’s risk management activity can be found in Note 11 to the basic financial statements.
OTHER INFORMATION
Certificate of Achievement
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the year ended June 30, 2020. The City received this award for 24th consecutive years - because of staffing transitions, the City did not apply for the GFOA award for the fiscal year 2018-19 CAFR. The City is planning to apply for the award for the fiscal year 2020-21 CAFR.
To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. The current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
This CAFR represents the culmination of numerous hours of hard work expended by the dedicated staff in the Finance Department. Special thanks are extended to Assistant Finance Director Karen Chang and Accountants Tyler Hammond, Sarah Gustafson, and Susan Nunes for their commitment and diligence in the preparation of this document. Furthermore, I would like to thank Maze & Associates for their professional assistance and cooperation. Finally, I want to thank the City Council for their continued interest and support in planning and conducting the City’s financial operations.
Respectfully submitted,
Susan Hsieh
Finance Director
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Library
Historical
Commission
City Council
Residents of
San Leandro
Senior
Commission
Arts
Commission
This organizational chart reflects relationships between policy-making responsibility (Mayor, City Council, and Advisory Boards and Commissions) and administrative officers and departments.
Human
Services
Commission
Recreation
and Parks
Commission
Youth
Advisory
Commission
City Manager's
Office Finance Library
Services
City Manager
Alameda County
Fire Department
Engineering
and
Transportation
City Attorney
Public Works
Recreation
and Human
Services
Police Community
Development
Board of Zoning
Adjustments/
Personnel
Relations
Board Planning
Commission
Rent Review
Board
xii
PRINCIPAL OFFICERS
CITY OF SAN LEANDRO
For Fiscal Year Ended June 30, 2021
CITY COUNCIL
Mayor Pauline Russo Cutter
Vice Mayor Victor Aguilar, Jr.
Councilmember Bryan Azevedo
Councilmember Pete Ballew
Councilmember Deborah Cox
Councilmember Corina Lopez
Councilmember Fred Simon
COUNCIL APPOINTEES
City Manager Fran Robustelli
City Attorney Richard Pio Roda
APPOINTED OFFICIALS
City Clerk Leticia Miguel
Interim Police Chief Susan Manheimer
Community Development Director Tom Liao
Finance Director Susan Hsieh
Recreation and Human Services Director Jeanette Dong
Engineering – Transportation Director Keith Cooke
Public Works Director Debbie Pollart
Interim Library Director Bill Sherwood
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SAN LEANDRO
S a n
F r a n c i s c o
B a y
Oakland
Alameda
San Jose
Berkeley
Walnut Creek
San Francisco
±
5 2.5 0 5
Miles
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Leandro
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of City Council
City of San Leandro, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Leandro (City), California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1 Emphasis of Matter
Management adopted the provisions of the following Governmental Accounting Standards Board Statement, which became effective during the fiscal year ended June 30, 2021. The adoption had an effect on the financial statements as discussed in Note 1P to the financial statements:
Statement No. 84 – Fiduciary Activities
The emphasis of this matter does not constitute a modification to our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statement. The Introductory Section, Supplementary Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements.
The Supplementary Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 22, 2021
3 Management’s Discussion and Analysis
for Fiscal Year Ended June 30, 2021
The Management’s Discussion and Analysis (MD&A) provides an overview of the City of San Leandro’s financial activities and fiscal performance for the year ended June 30, 2021. Read this discussion and analysis in conjunction with the accompanying Transmittal Letter and Basic Financial Statements to obtain a complete picture of the City’s financial condition.
FINANCIAL HIGHLIGHTS
City’s Assets and Deferred Outflows of Resources exceeded its Liabilities and Deferred Inflows of Resources by $193.1 million (Net Position), a $12.9 million increase from the prior year. Of total net position, $186.2 million was invested in capital assets, $51.6 million was restricted for other purposes, and ($44.6) million was unrestricted. While Net Investment in Capital Assets and Restricted Net Position saw a decrease of $2.8 million and $12.9 million, respectively, Unrestricted Net Position increased by $28.6 million.
Assets and Deferred Outflows of Resources increased by $43.7 million from the prior fiscal year, offset by an increase in Liabilities and Deferred Inflows of Resources of $30.7 million. The increase in Liabilities was partly due to the increase in net pension liability of $15.3 million and a new direct borrowing lease agreement of $7.6 million offset by the decrease in debt repayment of $6.0 million and decrease in net OPEB liability of $1.9 million. Unfunded pension liability as of June 30, 2021 was $204.1 million.
The City’s total net position increase of $12.9 million is comprised of a $5.9 million increase in governmental activities and a $7.1 million increase in Business-Type activities. In accordance with GASB Statement No. 54, governments are obligated to enhance the financial reporting of the fund balance categories. Fund balances reported in Note 9 detail the classifications of the City’s fund balance categories. The City’s governmental fund balance, which includes the General, Special Revenue, Debt Service, and Capital Projects funds, increased by $6.3 million for an ending fund balance of $135.3 million. Ending fund balance classifications include:
a) Nonspendable: $8.1 million of these funds are not available or spendable due to advances and loans to other funds.
b) Restricted: $54.4 million based on constraints on the use of resources or imposed by law through constitutional provisions or enabling legislation. These include capital projects and debt service payments.
c) Assigned: $9.5 million including General Fund encumbrances, the Oakland Airport Access Agreement, and a reserve funding anticipated Other Post-Employment Benefits (OPEB) costs arising from the City’s contract for Fire Services with the Alameda County Fire Department. d) Unassigned: $63.3 million is available for expenditure. Unassigned is further categorized by Compensated Absences, Major Emergencies, Economic Uncertainties, and offsets from other fund deficits.
5 OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
The MD&A serves as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other supplementary information
Government-Wide Financial Statements
The government-wide financial statements provide readers a broad overview of the City’s finances in a manner similar to statements of a private-sector business. The Statements are comprised of the Statement of Net Position and Statement of Activities and Changes in Net Position.
The Statement of Net Position presents information on the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of changes in the City’s financial reporting.
The Statement of Activities and Changes in Net Position presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
Revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes, earned but unused vacation leave, and other compensated absences).
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).
Both of the above financial statements have separate sections for two different types of programs or activities. These two types of activities are:
Governmental Activities – The activities in this section are mostly supported by taxes and charges for services. The governmental activities of the City include General Government (City Council, City Manager, City Clerk, Human Resources, Information Technology, and Finance), Public Safety (Police and Fire), Engineering & Transportation (including Public Works), Recreation and Culture (including the Library), and Community Development.
Business-Type Activities – These functions normally recover all or a significant portion of their costs through user fees and charges to external users of goods and services. The business-type activities of the City include the Water Pollution Control Plant, Environmental Services, Shoreline Enterprise, and Storm Water.
Fund Financial Statements
A fund is a grouping of related accounts maintaining control over resources segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 6 Governmental Funds – Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmentwide financial statements, governmental fund statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than the government-wide financial statements, it is useful to compare the information presented for government funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation facilitating the comparison between governmental funds and governmental activities. Reconciliations are presented on the page immediately following each governmental fund financial statement.
The City has 25 governmental funds, of which three are considered a major fund for presentation purposes. Major funds are presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The City’s three major funds are the General Fund, Measure BB Special Revenue Fund and the Capital Improvement Capital Project Fund. Individual fund for each of the non-major governmental funds are provided in the form of combining statements in this report.
The City adopts an annual appropriated budget for its General Fund and all other major and non-major funds. Budgetary comparison statements are elsewhere in this report to demonstrate compliance with the adopted budget.
Proprietary Funds – The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the Water Pollution Control Plant, Shoreline, Storm Water, and Environmental Services. Internal service funds are used to accumulate and allocate costs internally among various City functions. The City uses internal service funds to account for the vehicles fleet, building and facilities maintenance, insurance services, and information systems. Because these services primarily benefit governmental rather than business-type functions, these are included within governmental activities in the governmental-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, but in greater detail. The proprietary fund financial statements provide separate information for the City’s proprietary funds. Internal service funds are combined into a single, aggregated presentation in the proprietary financial statements. Individual fund data for the proprietary and internal service funds are provided in the form of combining statements.
Fiduciary Funds – City implemented GASB Statement No. 84, Fiduciary Activities during fiscal year 2021. As a result, it was determined that the Agency Funds should be recategorized as Custodial Funds.
As a result, the OPEB Trust fund is no longer reported as of July 1, 2020. The accounting used for these funds is much like that used for governmental funds. These funds are reported in a separate statement of fiduciary assets. Please refer to note 1(P) to the financial statement for additional detail information. 7 Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to fully understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements follow the basic financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents required supplemental information. This information includes budgetary comparison schedules, detailed information about the City’s agreement with the California Public Employees Retirement System (CalPERS) for the defined benefit pension plan, more detailed information on the City’s Other Post Employment Benefit Plan (OPEB), and a detailed description of the City’s Long-Term Debt.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position – As noted, net position may serve over time as a useful indicator of the City’s financial position. In this fiscal year, total assets exceeded liabilities by $193.1 million at the close of fiscal year 2020-21, an increase of 7.2%.
2021 2020 % change 2021 2020 % change 2021 2020 % change Current Assets $ 184,137 $ 154,497 19.2% 48,786 $ $ 30.6% 232,923 37,352 $ $ 191,849 21.4% Non-Current Assets 9,184 8,366 9.8% (5,977) (5,204) 14.9% 3,207 3,162 1.4% Capital Assets 188,650 192,496 -2.0% 81,782 77,972 4.9% 270,432 270,468 0.0% Total assets 381,971 355,359 7.5% 124,591 110,120 13.1% 506,562 465,479 8.8% Deferred Outflows of Resources 33,464 31,207 7.2% 2,147 18.6% 35,611 1,810 33,017 7.9% Current and other liabilities 36,704 87.6% 3,816 19,567 26.0% 40,520 3,029 22,596 79.3% Long-term liabilities 245,651 237,990 3.2% 57,262 50,057 14.4% 302,913 288,047 5.2% Total liabilities 282,355 257,557 9.6% 61,078 53,086 15.1% 343,433 310,643 10.6% Deferred Inflows of Resources 5,606 -24.4% - 7,416 -100.0% 5,606 261 7,677 -27.0% Net assets:
Net investment in capital assets 146,228 147,336 -0.8% 39,935 41,645 -4.1% 186,163 188,981 -1.5% Restricted 51,588 -20.0% - 64,473 - N/A 51,588 -20.0% 64,473 Unrestricted (70,342) (90,216) -22.0% 25,724 16,939 51.9% (44,618) (73,277) -39.1% Total net position $ 127,474 $ 121,593 4.8% 65,659 58,584 12.1% 193,133 $ $ 180,177 7.2% City of San Leandro
Net Assets at June 30, 2021
(in thousands)
Governmental Activities Business-Type Activities Total
The City’s $186.1 million net investment in capital assets such as infrastructure, land, buildings, machinery, and equipment are the largest portion of the City’s net position. These assets are not available for future spending because the City currently uses these capital assets to provide services to residents.
Although investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay these investments must be provided from other sources (future income) since the capital assets themselves cannot be used to liquidate these liabilities. 8 Of the City’s total net position, $51.6 million represents resources that are subject to external restrictions.
The remaining balance of ($44.6) million represents an unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors within the restrictions set forth by various funding sources.
2021 2020 % Change 2021 2020 % Change 2021 2020 % Change Revenues
Program revenues:
Charges for Services 15,588 $ 17,866 $ -12.8% 24,819 $ 17,163$ 44.6% 40,407$ $ 35,029 15.4% Operating grants and 15,532 106.2% 350 7,533 35.7% 15,882 7,791 103.9% 258 contributions
Capital grants and 17,774 7,878 -55.7% 3,645 670.6% 11,523 18,247 -36.8% 473 contributions
General revenues:
Property taxes 26,664 26,308 1.4% - - 0.0% 26,664 26,308 1.4% Sales tax 49,575 44,655 11.0% - - 0.0% 49,575 44,655 11.0% Franchise Fee 5,844 5,649 3.5% - - 0.0% 5,844 5,649 3.5% Utility users Tax 10,831 10,530 2.9% - - 0.0% 10,831 10,530 2.9% Property Transfer Tax 9,559 152.3% - 3,788 - 0.0% 9,559 3,788 152.3% 911 communication 3,255 3,123 4.2% - - 0.0% 3,255 3,123 4.2% Access Tax
Other taxes 1,813 -0.5% 441 1,822 -33.3% 2,254 2,483 -9.2% 661 Investment Earnings 1,404 4,484 -68.7% 161 1,215 -86.7% 1,565 5,699 -72.5% Gain or loss on sale of assets 1,221 2 60950.0% - 0.0% 1,221 2 60950.0% Miscellaneous 770 -12.3% 878 - 0.0% 770 878 -12.3%
Total Revenues 149,934 144,412 3.8% 29,416 19,770 48.8% 179,350 164,182 9.2% Expenses
General Government 10,695 13,980 -23.5% - - 0.0% 10,695 13,980 -23.5% Public safety 78,812 73,022 7.9% - - 0.0% 78,812 73,022 7.9% Engineering & Transportatio 32,594 23,380 -28.3% - - 0.0% 23,380 32,594 -28.3% Recreation and Culture 11,114 13,337 -16.7% - - 0.0% 11,114 13,337 -16.7% Community Development 17,850 15,377 16.1% - - 0.0% 17,850 15,377 16.1% Interest on Long-Term Debt 1,828 2,202 20.5% - - 0.0% 2,202 1,828 20.5% Water Pollution Control - - 0.0% 14,588 15,234 -4.2% 14,588 15,234 -4.2% Shoreline - 0.0% 5,393 - 157.5% 5,393 2,094 157.5% 2,094 Storm Water Utility - 0.0% 1,552 - 1,417 9.5% 1,552 1,417 9.5% Environmental Services - 0.0% 808 1,082 - -25.3% 808 1,082 -25.3% Total Expenses 144,053 150,138 -4.1% 22,341 19,827 12.7% 166,394 169,965 -2.1% Excess(deficiency)of revenues
over expenses before transfe 5,881 (5,726) -202.7% 7,075 (57) -12512.3% 12,956 (5,783) -324.0% Transfer - 112 100.0% - (112) -100.0% 0 0 0.0%
Increase in net position 5,881 (5,614) -204.8% 7,075 (169) -4286.4% 12,956 (5,783) -324.0% Beginning net position 121,594 127,208 -4.4% 58,584 58,753 -0.3% 180,177 185,961 -3.1% Ending net position $ 127,474 $ 121,594 4.8% 65,659 $ $ 58,584 12.1% 193,133 $ $ 180,178 7.2% Changes in Net Activities
Year Ended June 30, 2021
(in thousands)
Governmental Activities Business-Type Activities Total
9 Revenue – Total revenue for fiscal year 2020-21 amounted to $179.4 million, a $15.2 million increase from the prior fiscal year. Of this amount, revenue from governmental activities increased by $5.5 million or 3.8% and revenue from business-type activities increased by $9.6 million or 48.8%. The net change in revenue was due to the following:
Charges for services in Governmental activities are primarily fees for recreation, building, fire, planning, and engineering services. Revenue from these charges decreased by $2.3 million. BusinessType Activities increased by $7.7 million most of which is attributed to the Water Pollution Control Plant and Shoreline.
Operating grants, capital grants, and contributions include Federal and State grants and other government and private contributions, including impact fees. Operating grants, capital grants and contributions increased by a net $1.4 million in fiscal year 2020-21. Property taxes increased by1.4% or $0.4 million when compared to fiscal year 2019-20. This is consistent with an increase in property taxes levied and assessed valuations provided through the County Assessor’s Office.
Sales tax revenue increased by 11.0% or $4.9 million when compared to fiscal year 2019-20. The City’s five largest sales tax producing sectors were General Retail, Business to Business, Construction, Transportation and Food Services.
Property Transfer Tax increased significantly by 152.3% or $5.8 million when compared to fiscal year 2019-20. The increase is primarily due 1) to the sale of commercial and industrial properties valued more than $8 million, resulting in additional tax revenue of $1.6 million and 2) a voter approved Measure VV, which increase the tax from $6 to $11 per $1000. Gain or loss on sale of assets increased by $0.8 million due to the sale of real property. 10 Expenses – Total expenses for both governmental and business-type activities decreased by $3.6 million compared to the prior fiscal year. Program expenses for governmental activities decreased by $6.1 million while program expenses for business-type activities increased by $2.5 million. For each governmental and business-type activity, the total costs are expenses associated with that activity. 2021 2020 % Change
General Government 10,695 13,980 $ -23.5%
Public safety 78,812 73,022 7.9%
Engineering & Transportation 23,380 32,594 -28.3%
Recreation and Culture 11,114 13,337 -16.7%
Community Development 17,850 15,377 16.1%
Interest on Long-Term Debt 2,202 1,828 20.5%
Governmental Activities 144,053 150,138 -4.1%
Water Pollution Control Plant 14,588 15,234 -4.2%
Shoreline 5,393 2,094 157.5%
Storm Water 1,552 1,417 9.5%
Environmental Services 808 1,082 -25.3%
Business-Type Activities 22,341 19,827 12.7%
Total Expenses $ 166,394 $ 169,965 -2.1%
Change in expense
(in thousands)
Within governmental activities, Public Safety has the largest increase in program expenses at $5.8 million greater than the prior fiscal year, a 7.9% increase. The increase was mainly due to an increase in Safety pension expenses of $4.8 million. Community Development followed with a $2.5 million increase representing a 16.1% increase over the prior fiscal year. In fiscal year 2020-21, the City completed the Boys and Girls Club and Farrelly Pool projects. These major expenditures were $1.3 million higher than the capital outlay expenditures incurred in fiscal year 2020-21. In addition, the City provided rental assistance to impacted residents totaling $0.9 million. Engineering & Transportation Department’s expenditures decreased by $9.2 million representing a 28.3% decrease from the prior fiscal year. In fiscal year 2020-21, the City incurred approximately $6.0 million for rehabilitation and overlay projects compared to $11.0 million in the prior fiscal year. The capitalization of capital projects and related depreciation costs also partly attributed to the overall decrease. In fiscal year 2020-21, the City saw a reduction in allocated pension expenses of about $2.0 million due to higher than expected yield in the pension assets. Business-type activities saw increases in expenses totaling $2.5 million mainly due to the increase in golf course activities.
11 Business-Type Activities – The City’s business-type activities include the Water Pollution Control Plant, Shoreline, Storm Water, and Environmental Services. Business-Type activities net position increased by $7.1 million when compared to prior fiscal year. The Water Pollution Control Plant Fund’s net position increased from $54.6 to $60.1 million.
Expenses by Function – Business-Type Activities Revenues by Source – Business-Type Activities
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial conditions. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. It should be noted that most of the unassigned amounts are designated by the City Council for specific uses.
At the end of fiscal year 2020-21, the City’s governmental funds reported combined ending fund balances of $135.3 million, an increase of $6.3 million compared to prior year. Approximately 6.0% or $8.1 million of the fund balance represents Nonspendable; 40.2% or $54.4 million represents Restricted, 7.0% or $9.5 million represents Assigned, and 46.8% or $63.3 million is Unassigned and available for spending at the City Council’s discretion.
General Fund
The General Fund is a major governmental fund and represents all funds not required to be accounted for in another fund. The General Fund accounted for 87.6% of the total governmental revenues and 79.0% of the total expenditures. A number of primary City services are accounted for in the General Fund including general government, public safety, development services, library and community services, and maintenance services. At the end of fiscal year 2020-21, the unassigned fund balance of the General Fund was $66.5 million, while the total fund balance was $83.7 million. As a measure of the General Fund’s liquidity, it is useful to compare the Unassigned Fund Balance to total of fund expenditures. 12 The Unassigned Fund Balance of $66.5 million has been designated for the following purposes:
$0.9 million for Compensated Absences
$5.0 million for Major Emergencies
$24.6 million for Economic Uncertainty
$36.0 million for remaining Unassigned (for liquidity and other purposes) At the end of fiscal year 2020-21, the General Fund ending balance increased by $19.2 million compared to the prior fiscal year. General Fund revenues increased by $8.3 million primarily due to a $11.8 million increase in sales taxes and property transfer tax, offset by a decrease of $2.7 million in use of money and property. General Fund expenditures (not including Transfers Out) increased by $2.5 million from the prior fiscal year. The overall increase is largely due to increases in general government and public safety expenditures for $1.6 million and $0.7 million. The increase for public safety is primarily attributed to the increase in pension costs.
Measure BB Special Revenue Fund
The Measure BB Special Revenue Fund is a major governmental fund and accounted for 1.6% of the total governmental revenues and 4.2% of the total expenditures. The fund accounts for the City’s share of revenues earned and expenditure incurred under the City paratransit, streets and roads, and bike and pedestrian programs. As of June 30, 2021, the Measure BB Special Revenue Fund had a total fund balance of ($3.2) million.
Capital Improvement Capital Projects Fund
The Capital Improvement Capital Projects Fund is a major governmental fund and accounted for less than
0.1% of the total governmental revenues and 7.1% of the total expenditures (not including other financing sources such as issuance of debt or interfund transfers). The fund accounts for monies for major capital improvement projects not provided for in the other special revenue funds such as the Measure B and F Funds. As of June 30, 2021, the Capital Improvement Capital Projects Fund had a total fund balance of $33.1 million, a decrease of 25.4%. The fund balance including the proceeds from 2018 Lease Revenue Bonds anticipated to include improvements to the Police and South Office Buildings, the Mulford-Marina Branch Library, Manor Park Competition Pool, Farrelly Pool, Casa Peralta, and the Boat Harbor.
Non-major Governmental Funds
The City’s non-major funds are presented in the basic financial statements in the aggregate. As of June 30, 2021, non-major funds had a total fund balance of $21.7 million of which all are legally restricted for specific purposes by external funding. More information about these aggregate non-major funds can be found in the combining statements immediately following the required supplementary information.
Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in greater detail.
The total net position of the Enterprise Funds was $65.6 million at the end on June 30, 2021, an increase of $7.1 million from the prior fiscal year. The total net position of the Internal Service Funds was $17.1 million at the end on June 30, 2021, an increase of $1.1 million from the prior fiscal year. 13 Water Pollution Control Plant Enterprise Fund
The Water Pollution Control Plant Enterprise Fund was established to account for the City’s sewer system, which protects public health and preserves water quality through collection, treatment, and disposal of wastewater and wastewater solids. As of June 30, 2021, the Fund’s net position totaled $60.1 million, an increase of $5.5 million primarily due to the increase in operating revenues and decrease in operating expenses.
Shoreline Enterprise Fund
The Shoreline Enterprise Fund was established in 2002-03 by combining the Marina Enterprise and the Golf Course Enterprise Funds. The Fund accounts for the operation of recreational boat berthing, food service facilities, and the public golf course. As of June 30, 2021, the Fund’s net position totaled $5.0 million, an increase of $1.8 million or 56.8%. Net position for the prior year was $3.2 million.
Non-major Enterprise Funds
The City’s non-major enterprise funds include Storm Water and Environmental Services. As of June 30, 2021, net position for non-major enterprise funds decreased by 33.5%, or $0.2 million, due to decrease in the Storm Water Fund of $0.5 million and an increase of $0.1 million in the Environment Services Fund.
More information about these aggregate non-major enterprise funds can be found in the combining statements following the required supplementary information.
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund ended the fiscal year with revenues above final budget projections by 7.3% or $8.6 million. The increase was largely due to improved sales tax and real property transfer tax revenues.
Contrary to the conservative budget projections based on the COVID-19, these revenues reached historically favorable levels. Expenditures were 6.4% or $7.4 million below final budget projections. A portion of the unspent budget balance represents open purchase orders and deferred purchases that will incur in future fiscal years. As shelter-in-place orders were extended, City programs and activities remained closed, and some programs were deferred.
14 Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
REVENUES:
Property taxes and other taxes $ 97,106 96,348 $ 107,278 $ 10,172 $ Licenses and permits 10,348 10,613 9,449 (899)
Fines and forfeitures 1,596 1,347 1,229 (118)
Services charges 3,156 1,296 1,294 (2)
Intergovernmental 774 1,899 2,356 457
Use of money and property 1,532 2,818 1,441 (1,377)
Interdepartmental charges 2,000 2,000 2,001 1
Other 2,026 339 662 323
Total revenues 118,045 117,153 125,710 8,557
EXPENDITURES:
Current:
General government 17,255 13,445 14,745 1,300
Public safety 68,516 68,119 65,237 (2,882)
Engineering and transportation 11,234 11,558 10,216 (1,342) Recreation and culture 11,442 11,800 9,751 (2,049)
Community development 6,552 8,302 6,417 (1,885)
Debt service:
Principal 2,697 2,697 2,162 (535)
Interest and fees 606 606 606 -
Total expenditures 118,302 116,527 109,134 (7,393)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (257) 626 16,576 15,950
OTHER FINANCING SOURCES (USES):
Transfers (in) - 4,918 4,918 -
Transfers (out) (5,350) (3,510) (3,510) -
Proceeds from the sale of property - - 1,221 1,221
Total other financing sources (uses) (5,350) 1,408 2,629 1,221 NET CHANGE IN FUND BALANCE $ (5,607) $ 2,034 $ 19,205 $ 17,171 FUND BALANCES:
Beginning of year 64,514
End of year $ 83,719
CITY OF SAN LEANDRO
Summary Analysis of General Fund Budget, Fiscal Year 2020-21 (in thousands)
Budgeted Amounts
15 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its governmental and business-type activities as of June 30, 2021 amount to $270.4 million, net of accumulated depreciation. This represents a decrease of $40 thousand due to the annual depreciation expense of $17.8 million offset by expenditures for Water Pollution Control Plant and Sewer Infrastructure, Police Building & South Office Expansion, Farrelly Pool Replacement, and Boys and Girls Club Pool Resurface projects.
Investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar infrastructure.
The following is a summary of the City’s capital assets:
City of San Leandro
Capital Assets (net of depreciation)
Year Ended June 30, 2021
(in thousands)
2021 2020 2021 2020 2021 2020
Land 16,471 $ 16,550 $ 5,234 $ 5,234 $ 21,705 $ 21,784 $ Construction in progress 22,486 12,945 2,647 1,148 25,133 14,093 Total non-depreciable assets 38,957 29,495 7,881 6,382 46,838 35,877 Depreciable asets (net of depreciation)
Buildings 51,328 52,853 55,470 55,753 106,798 108,606
Improvements other than buildings 5,101 5,037 - - 5,101 5,037 Machinery and equipment 3,253 3,482 4,828 4,926 8,081 8,408 Licensed Vehicles 6,010 6,312 55 49 6,065 6,361
Infrastructure 84,002 95,317 13,548 10,862 97,550 106,179 Total depreciable assets 149,694 163,001 73,901 71,590 223,595 234,591 Total capital assets $ 188,651 $ 192,496 $ 81,782 $ 77,972 $ 270,433 $ 270,468 Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 5 of the notes to the financial statements.
16 Debt Administration
At the end of the current fiscal year, the City’s total outstanding long-term debt is $91.3 million, an increase of $1.4 million from the prior fiscal year due to the direct borrowing lease agreement in the business-type activities.
At the end of the current fiscal year, the City’s total long-term debt outstanding for governmental activities is $49.4million, a decrease of $4.1 million from the prior fiscal year. The decrease was due to principal payments during the year as seen in Note 6 of the notes to the financial statements.
At the end of the current fiscal year, the City’s total long-term debt outstanding for business-type activities is $41.8 million, an increase of $5.5 million from the prior fiscal year. The increase primarily reflects the direct borrowing lease agreement ($7.6 million) the City entered with the Banc of America Public Capital Corporation, decreased by principal payments ($2.1 million) for the State Water Resources Control Board Loan and Marina Cal Boating Loan.
Additional information on the City’s long-term debt obligations can be found in Note 6 of the notes to the financial statements.
The following is a summary of the City’s outstanding debt:
City of San Leandro
Outstanding Debt
Year Ended June 30, 2021
(in thousands)
2021 2020 2021 2020 2021 2020
Revenue bonds and notes 43,941 $ 47,585 $ - $ - $ $ 43,941 $ 47,585 (backed by specific tax and fee revenues)
Certificates of participation - - - - - -
Other loans 5,482 5,941 41,847 36,327 47,329 42,268
Total $ 49,423 $ 53,526 41,847$ 36,327$ $ 91,270 $ 89,853 Governmental Activities Business-Type Activities Total
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The economy of the City and major initiative are discussed in the Transmittal Letter located in the Introductory Section of the CAFR.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all citizens, taxpayers, customers, investors, and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of San Leandro, Finance Department, 835 East 14th Street, San Leandro, CA 94577. 17 BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
City of San Leandro
Statement of Net Position
June 30, 2021
Governmental Business - Type
Activities Activities Total
Current assets:
Cash and investments (Note 2) $ 38,646,451 155,072,177 $ 193,718,628 $ Cash and investments with fiscal agent (Note 2) 94,837 7,624,924 7,719,761 Receivables:
Accounts 28,279,462 2,271,057 30,550,519
Interest 331,255 90,506 421,761
Special assessments 49,632 - 49,632
Inventory and prepaid items 310,118 152,734 462,852
Total current assets 184,137,481 48,785,672 232,923,153 Noncurrent assets:
Loans receivable (Note 3) - 1,996,953 1,996,953
Internal balances (Note 4D) 5,977,285 (5,977,285) -
Land held for resale (Note 1O) 382,668 - 382,668
Other assets 827,061 - 827,061
Capital assets (Note 5):
Non-depreciable 38,957,575 7,881,087 46,838,662
Depreciable 507,952,463 92,880,807 600,833,270
Less accumulated depreciation (358,259,932) (18,980,202) (377,240,134) Capital assets, net 188,650,106 81,781,692 270,431,798
Total noncurrent assets 197,834,073 75,804,407 273,638,480 Total Assets 381,971,554 124,590,079 506,561,633
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 13) 2,146,732 31,678,232 33,824,964 Related to OPEB (Note 14) - 1,785,992 1,785,992
Total Deferred Outflows of Resources 33,464,224 2,146,732 35,610,956 Current liabilities:
Accounts payable and accruals 12,985,815 1,242,053 14,227,868 Interest payable 341,694 9,383 351,077
Other liabilities 1,029,609 6,884 1,036,493
Unearned revenue (Note 8) - 13,169,170 13,169,170
Compensated absences - Due within one year (Note 7) 610,638 140,673 751,311 Claims and judgments payable - Due within one year (Note 11) - 4,233,746 4,233,746 Long- term debt - Due within one year (Note 6) 2,416,542 4,334,083 6,750,625 Total current liabilities 36,704,755 3,815,535 40,520,290 Noncurrent liabilities:
Deposits 43,584 4,696,463 4,740,047
Compensated absences payable - Due in more than one year (Note 7) 562,693 3,460,279 4,022,972 Claims and judgments payable - Due in more than one year (Note 11) - 2,817,888 2,817,888 Net pension liability (Note 13) 17,225,544 186,834,266 204,059,810 Net OPEB liability (Note 14) - 2,752,343 2,752,343
Long- term debt - Due in more than one year (Note 6) 39,430,491 45,089,419 84,519,910 Total noncurrent liabilities 245,650,658 57,262,312 302,912,970 Total Liabilities 282,355,413 61,077,847 343,433,260
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 13) - 4,315,497 4,315,497
Related to OPEB (Note 14) - 1,290,507 1,290,507
Total Deferred Inflows of Resources 5,606,004 - 5,606,004 Net investment in capital assets 146,227,950 39,934,659 186,162,609 Restricted for:
Capital projects 33,119,632 - 33,119,632
Debt service 423,727 - 423,727
Engineering and transportation 10,463,046 - 10,463,046
Recreation and culture 673,534 - 673,534
Community Development - 5,803,900 5,803,900
Public Safety - 1,104,192 1,104,192
Total restricted 51,588,031 - 51,588,031
Unrestricted (70,341,620) 25,724,305 (44,617,315)
Total Net Position $ 127,474,361 $ 65,658,964 $ 193,133,325 See Accompanying Notes to Basic Financial Statements
ASSETS
LIABILITIES
NET POSITION (Note 9)
23 City of San Leandro
Statement of Activities and Changes in Net Position
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:
Governmental Activities:
General government $ 8,151,081 10,695,242 $ 1,171,787 $ 883,944 $ 10,206,812 $ Public safety 78,812,214 2,770,129 394,454 - 3,164,583
Engineering and transportation 655,211 23,380,477 10,056,695 4,690,273 15,402,179 Recreation and culture 11,113,653 283,313 693,096 2,304,025 3,280,434 Community development 3,728,568 17,849,902 3,216,018 - 6,944,586 Interest on long-term debt 2,201,522 - - - -
Total Governmental Activities 144,053,010 15,588,302 15,532,050 7,878,242 38,998,594 Business-type activities:
Water Pollution Control Plant 16,410,274 14,588,118 - 3,644,686 20,054,960 Shoreline 5,393,167 6,679,050 99,605 - 6,778,655
Storm Water Utility 1,551,666 1,071,874 - - 1,071,874
Environmental Services 807,630 657,670 250,199 - 907,869 Total business-type Activities 22,340,581 24,818,868 349,804 3,644,686 28,813,358 Total primary government $ 166,393,591 $ 40,407,170 $ 15,881,854 $ 11,522,928 $ 67,811,952 General revenues:
Taxes:
Property taxes
Sales tax
Franchise fees
Utility users tax
Property transfer tax
911 communication access tax
Other taxes
Total Taxes
Investment earnings
Miscellaneous
Gain on sale of assets
Total general revenues
Change in net position
Net position - Beginning of year
Net position - End of year
See Accompanying Notes to Basic Financial Statements
Program Revenues
24 Governmental Business- Type
Activities Activities Total
$ - (488,430) $ $ (488,430)
(75,647,631) - (75,647,631)
(7,978,298) - (7,978,298)
(7,833,219) - (7,833,219)
(10,905,316) - (10,905,316)
(2,201,522) - (2,201,522)
(105,054,416) (105,054,416)
- 5,466,842 5,466,842
- 1,385,488 1,385,488
- (479,792) (479,792)
- 100,239 100,239
- 6,472,777 6,472,777
(105,054,416) 6,472,777 (98,581,639)
26,664,153 - 26,664,153
49,574,497 - 49,574,497
5,844,069 - 5,844,069
10,830,889 - 10,830,889
9,558,694 - 9,558,694
3,255,178 - 3,255,178
1,813,395 441,445 2,254,840
107,540,875 441,445 107,982,320
1,403,560 160,834 1,564,394
769,949 - 769,949
1,221,097 - 1,221,097
110,935,481 602,279 111,537,760
5,881,065 7,075,056 12,956,121
121,593,296 58,583,908 180,177,204
$ 127,474,361 $ 65,658,964 $ 193,133,325
Changes in Net Position
Net (Expense) Revenue and
25 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The General Fund – Accounts for all general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in other funds.
Measure BB Special Revenue Fund– This fund accounts for the City's share of revenues earned and expenditure incurred under the City paratransit, streets and roads, and bike and pedestrian programs.
Capital Improvement Projects Capital Projects Fund – This fund accounts monies for major capital improvement projects not provided for in the other capital improvement projects fund. 29 City of San Leandro
Governmental Funds
Balance Sheet
June 30, 2021
Capital
Measure BB Improvement Non-Major
Special Revenue Capital Projects Governmental
General Fund Fund Fund Funds Total
Cash and investments (Note 2) $ 81,819,642 $ 47,982 $ 34,037,096 $ 20,001,493 $ 135,906,213 Cash and investments with fiscal agent (Note 2) - - 94,837 - 94,837 Receivables:
Property taxes - - - - -
Accounts 18,018,132 5,075,216 - 1,218,564 24,311,912
Federal, State, and local grants 59,586 - - 3,418,330 3,477,916 Interest 241,977 - - 43,446 285,423
Special Assessment 49,536 - - 96 49,632
Loans (Note 3) 1,349,968 - - 646,985 1,996,953
Due from other funds (Note 4A) 1,995,077 - - - 1,995,077 Advances to other funds (Note 4B) 6,276,736 - - - 6,276,736 Prepaids - - - 48,000 48,000
Property held for resale (Note 1O) - - - 382,668 382,668 Other assets 827,061 - - - 827,061
Total Assets $ 110,637,715 $ 5,123,198 $ 34,131,933 $ 25,759,582 $ 175,652,428 Liabilities:
Accounts payable and accruals $ 7,348,197 $ 3,580,919 $ 1,025,923 $ 602,919 $ 12,557,958 Due to other funds (Note 4A) - - - 589,519 589,519
Advances from other funds (Note 4B) 1,705,009 - - - 1,705,009 Deposits payable 4,696,463 - - - 4,696,463
Unearned revenue (Note 8) 13,169,170 - - - 13,169,170
Total Liabilities 26,918,839 3,580,919 1,025,923 1,192,438 32,718,119 Unavailable revenue - grants receivable - 4,711,270 - 2,916,132 7,627,402 Total Deferred Inflow of Resources - 4,711,270 - 2,916,132 7,627,402 Fund Balances: (Note 9)
Nonspendable 7,626,704 - - 430,668 8,057,372
Restricted - 50,000 33,106,010 21,252,736 54,408,746
Assigned - 9,505,953 - - 9,505,953
Unassigned 66,536,219 (3,168,991) - (32,392) 63,334,836 Total Fund Balances 83,718,876 (3,168,991) 33,106,010 21,651,012 135,306,907 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $ 110,637,715 $ 5,123,198 $ 34,131,933 $ 25,759,582 $ 175,652,428 See Accompanying Notes to Basic Financial Statements
ASSETS
DEFERRED INFLOW OF RESOURCES
LIABILITIES
Major Funds
30 City of San Leandro
Reconciliation of the Governmental Funds Balance Sheet
with the Statement of Net Position
June 30, 2021
Total fund balances reported on the governmental funds balance sheet $ 135,306,907 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 182,796,468
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Statement of Activities. 17,087,845
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Net OPEB liability, related deferred outflows and inflows of resources (2,256,858) Net pension liability, related deferred outflows and inflows of resources (159,471,531) Long-term debt (49,423,502)
Interest payable (341,694)
Compensated absences (3,850,676)
Recognition of grants revenue 7,627,402
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 127,474,361
See Accompanying Notes to Basic Financial Statements
31 City of San Leandro
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2021
Capital
Measure BB Improvement Non-Major
Special Revenue Capital Projects Governmental
General Fund Fund Funds Total
REVENUES
Property and other taxes $ 107,278,144 $ - $ - $ 494,301 $ 107,772,445 Licenses and permits 9,448,803 - - 613,314 10,062,117
Fines and forfeitures 1,229,094 - - 109,367 1,338,461
Service charges 1,293,520 - 14,641 118,212 1,426,373
Intergovernmental 2,356,438 2,204,491 - 10,040,498 14,601,427 Use of money and property 1,441,002 43,435 6 3,793,156 5,277,599 Interdepartmental charges 2,001,068 - - - 2,001,068
Other 661,881 83,600 - 330,368 1,075,849
Total Revenues 125,709,950 2,331,526 14,647 15,499,216 143,555,339
EXPENDITURES
Current:
General Government 14,745,469 - - - 14,745,469
Public safety 65,236,510 - - 412,999 65,649,509
Engineering and transportation 10,216,409 5,874,380 1,304,167 6,511,620 23,906,576 Recreation and culture 9,751,091 - - 318,288 10,069,379 Community development 6,417,240 - 8,517,038 2,832,966 17,767,244 Debt service:
Principal 2,161,915 - - 1,723,000 3,884,915
Interest and fees 605,712 - - 1,651,256 2,256,968
Total Expenditures 109,134,346 5,874,380 9,821,205 13,450,129 138,280,060 REVENUES OVER (UNDER) EXPENDITURES 16,575,604 (3,542,854) (9,806,558) 2,049,087 5,275,279
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C) 4,917,823 - 3,460,000 50,000 8,427,823 Transfers (out) (Note 4C) (3,510,000) - (4,917,823) (176,512) (8,604,335) Proceeds from the sale of property 1,221,097 - - - 1,221,097 Total Other Financing Sources (Uses) 2,628,920 - (1,457,823) (126,512) 1,044,585 NET CHANGE IN FUND BALANCES 19,204,524 (3,542,854) (11,264,381) 1,922,575 6,319,864
FUND BALANCES
Beginning of year 64,514,352 373,863 44,370,391 19,728,437 128,987,043 End of year $ (3,168,991) 83,718,876 $ 33,106,010 $ 21,651,012 $ 135,306,907 $ See Accompanying Notes to Basic Financial Statements
Major Fund
32 City of San Leandro
Reconciliation of the Net Change in Fund Balances - Total Government Funds with the Statement of Activities
For the year ended June 30, 2021
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 6,319,864 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital expenditures are therefore added back to fund balance 11,897,602 Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of $1,222,030, which is reported in the Internal Service Funds. (15,692,588) Loss on disposal of capital assets is deducted from fund balance (88,334)
LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 3,884,915 Amortization of bond discount is deducted from fund balance (10,119) Amortization of bond premium is added back to fund balance 227,386
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Unearned revenue 5,157,639
Interest payable 17,753
Compensated absences 498,690
Net pension liabilities, related deferred outflows and inflows of resources (7,311,281) Net OPEB liabilities, related deferred outflows and inflows of resources (156,885)
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, 'such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds 1,136,423 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 5,881,065 See Accompanying Notes to Basic Financial Statements
33 PROPRIETARY FUND FINANCIAL STATEMENTS
Water Pollution Control Plant - This fund accounts for the City’s sewers which protect public health and preserve water quality through the collection, treatment and disposal of the community’s wastewater and wastewater solids.
Shoreline - The City operates various recreational facilities which include golf and marina berthing as well as providing food service facilities for the general public in an area connected to the San Francisco Bay.
Internal Service Funds - These funds are used to account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. 35 City of San Leandro
Statement of Net Position
Proprietary Funds
June 30, 2021
Major Enterprise Funds Governmental
Water Non- Major ActivitiesPollution Enterprise Internal Service Control Plant Shoreline Funds Total Funds
Current Assets:
Cash and investments (Note 2) $ 31,317,551 $ 5,400,130 $ 1,928,770 $ 38,646,451 $ 19,165,964 Cash and investments with fiscal agent (Note 2) 7,624,924 - - 7,624,924 - Receivables:
Accounts 1,563,416 561,185 146,456 2,271,057 489,634
Interest 73,302 12,633 4,571 90,506 45,832
Inventory and prepaids - 152,734 - 152,734 262,118
Total current assets 40,579,193 6,126,682 2,079,797 48,785,672 19,963,548 Noncurrent assets:
Advance to other fund (Note 4B) 1,705,009 - - 1,705,009 - Capital assets (Note 5)
Non-Depreciable 4,303,277 3,577,810 - 7,881,087 -
Depreciable 86,930,874 5,929,364 20,569 92,880,807 18,612,034 Less accumulated depreciation (15,071,598) (3,888,292) (20,312) (18,980,202) (12,758,396) Total capital assets, net 5,618,882 76,162,553 257 81,781,692 5,853,638 Total noncurrent assets 77,867,562 5,618,882 257 83,486,701 5,853,638 Total Assets 118,446,755 11,745,564 2,080,054 132,272,373 25,817,186
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 13) 2,146,732 - - 2,146,732 -
Current Liabilities:
Accounts payable 1,132,155 92,307 17,591 1,242,053 427,857 Interest payable - 9,383 - 9,383 -
Due to other funds (Note 4A) - - 1,405,558 1,405,558 -
Other liabilities - 6,884 - 6,884 1,029,609
Unearned revenue - - - - -
Clams and judgments - due in 1 year (Note 11) - - - - 4,233,746 Compensated absences - due in 1 year (Note 7) 100,799 4,400 35,474 140,673 33,037 Long-term debt - due in 1 year (Note 6) 2,323,269 93,273 - 2,416,542 - Total current liabilities 3,556,223 206,247 1,458,623 5,221,093 5,724,249 Non-current Liabilities:
Deposits payable 3,000 40,584 - 43,584 -
Advances from other funds (Note 4B) - 6,276,736 - 6,276,736 - Claims and judgments - due in more than 1 year (Note 11) - - - - 2,817,888 Compensated absences - due in more than 1 year (Note 7) 403,195 17,599 141,899 562,693 187,204 Net pension liability (Note 13) 17,225,544 - - 17,225,544 - Long-term debt - due in more than 1 year (Note 6) 39,296,297 134,194 - 39,430,491 - Total noncurrent liabilities 56,928,036 6,469,113 141,899 63,539,048 3,005,092 Total liabilities 60,484,259 6,675,360 1,600,522 68,760,141 8,729,341
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 13) - - - - -
Net investment in capital asset 5,391,415 34,542,987 257 39,934,659 5,853,638 Unrestricted (321,211) 25,566,241 479,275 25,724,305 11,234,207 Total Net Position $ 60,109,228 $ 5,070,204 $ 479,532 $ 65,658,964 $ 17,087,845 See Accompanying Notes to Basic Financial Statements
NET POSITION (Note 9)
ASSETS
LIABILITIES
36 City of San Leandro
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Governmental
Water Non- Major ActivitiesPollution Enterprise Internal Service Control Plant Shoreline Funds Total Funds
OPERATING REVENUES:
Charges for services $ 14,366,510 $ 6,314,689 $ 1,327,637 $ 22,008,836 $ 16,200,410 Licenses and permits 1,615,034 - 373,949 1,988,983 -
Rents and concessions - 307,717 - 307,717 -
Other operating revenues 428,730 56,644 27,958 513,332 930,149 Total Operating Revenues 6,679,050 16,410,274 1,729,544 24,818,868 17,130,559 OPERATING EXPENSES:
Salaries and benefits 7,219,667 508,418 1,279,026 9,007,111 3,755,740 Contractual and other services 1,125,855 4,033,952 384,139 5,543,946 8,910,024 Materials and supplies 941,542 126,657 59,092 1,127,291 777,133 Depreciation 1,727,168 115,397 - 1,842,565 1,222,030
Other operating costs 2,642,333 273,022 637,039 3,552,394 1,543,414 Total Operating Expenses 5,057,446 13,656,565 2,359,296 21,073,307 16,208,341 OPERATING INCOME (LOSS) 1,621,604 2,753,709 (629,752) 3,745,561 922,218 NONOPERATING REVENUES (EXPENSES):
Property and other taxes - 441,445 - 441,445 -
Intergovernmental - 99,605 250,199 349,804 -
Investment income 146,539 9,172 5,123 160,834 37,693
Interest expense (931,553) (335,721) - (1,267,274) -
Total Nonoperating Revenues (Expenses) 214,501 (785,014) 255,322 (315,191) 37,693 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,968,695 1,836,105 (374,430) 3,430,370 959,911 CONTRIBUTIONS AND TRANSFERS:
Capital contributions 3,644,686 - - 3,644,686 -
Transfers in (Note 4C) - - 132,782 132,782 176,512
Transfers out (Note 4C) (132,782) - - (132,782) -
Total capital contributions and transfers 3,511,904 - 132,782 3,644,686 176,512 Change in net position 1,836,105 5,480,599 (241,648) 7,075,056 1,136,423 NET POSITION:
Net Position-Beginning of year 54,628,629 3,234,099 721,180 58,583,908 15,951,422 Net Position-Ending of year $ 5,070,204 60,109,228 $ 479,532 $ 65,658,964 $ 17,087,845 $ See Accompanying Notes to Basic Financial Statements
Major Enterprise Funds
37 City of San Leandro
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Major Enterprise Funds Governmental
Water Non- Major ActivitiesPollution Enterprise Internal Service Control Plant Shoreline Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 15,712,405 $ 6,438,417 $ 1,699,177 $ 23,849,999 $ 440,515 Cash received from other funds - - 461,558 461,558 -
Receipts from interfund charges - - - - 16,173,923
Cash payments to suppliers and service providers (2,981,337) (4,510,836) (1,083,418) (8,575,591) (11,629,450) Cash payments to employees for services (7,136,503) (503,194) (1,276,380) (8,916,077) (3,720,832) Net cash provided (used) by operating activities 5,594,565 1,424,387 (199,063) 6,819,889 1,264,156
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Property and other taxes received - 441,445 - 441,445 - Intergovernmental revenue received - 99,605 250,199 349,804 - Interfund loan 535,556 (223,374) - 312,182 -
Transfers in from other funds - - 132,782 132,782 176,512 Transfer out to other funds (132,782) - (132,782) -
Net cash provided (used) by noncapital financing activities 317,676 402,774 382,981 1,103,431 176,512
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Principal paid on capital debt (1,834,312) (270,587) - (2,104,899) - Lease proceeds 7,624,924 - - 7,624,924 -
Acquisition of capital assets (5,510,779) (141,112) (257) (5,652,148) (1,259,153) Capital contributions 3,644,686 - - 3,644,686 -
Interest payments on bonds and notes payable (931,553) (358,033) - (1,289,586) - Net cash provided (used) by capital and
related financing activities (769,732) 2,992,966 (257) 2,222,977 (1,259,153) CASH FLOWS FROM INVESTING ACTIVITIES:
Change in market values of investments (377,011) (69,144) (23,253) (469,408) (235,399) Interest income (expense) 538,297 80,858 29,296 648,451 282,312 Net cash provided (used) by investing activities 11,714 161,286 6,043 179,043 46,913 Net increase (decrease) in cash and cash equivalents 9,151,591 984,045 189,704 10,325,340 228,428 CASH AND CASH EQUIVALENTS:
Cash and investments at beginning of year 4,416,085 29,790,884 1,739,066 35,946,035 18,937,536 Cash and investments at end of year $ 5,400,130 38,942,475 $ 1,928,770 $ 46,271,375 $ 19,165,964 $
RECONCILIATION OF OPERATING INCOME/ (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss) 2,753,709 $ 1,621,604 $ (629,752) $ 3,745,561 $ 922,218 $ Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 1,727,168 115,397 - 1,842,565 1,222,030
Change in assets and liabilities:
(Increase) decrease in accounts receivable (697,869) (245,177) (30,367) (973,413) (489,634) (Increase) decrease in inventories - (152,734) - (152,734) (24,810) (Decrease) increase in accounts payable 403,597 75,529 (3,148) 475,978 (277,854) (Decrease) increase in other liabilities - 6,884 - 6,884 488,911 (Decrease) increase due to other funds - - 461,558 461,558 - (Decrease) increase in deposits payable - (2,340) - (2,340) - (Decrease) increase claims and judgments payable (1,059) - - (1,059) (611,613) (Decrease) increase in compensated absences 83,164 5,224 2,646 91,034 34,908 (Decrease) increase in unearned revenue - - - - -
(Decrease) increase in deferred outflow (337,040) - - (337,040) - (Decrease) increase in deferred inflow (261,369) - - (261,369) - (Decrease) increase in net pension liability 1,924,264 - - 1,924,264 - Total adjustments 2,840,856 (197,217) 430,689 3,074,328 341,938 Net cash provided (used) by operating activities $ 5,594,565 $ 1,424,387 $ (199,063) $ 6,819,889 $ 1,264,156 See Accompanying Notes to Basic Financial Statements
38 FIDUCIARY FUND FINANCIAL STATEMENTS
Private Purpose Trust Funds are fiduciary fund types used to report all trust arrangements, other than those properly reported in pension trust funds or investment trust funds, under which principal and income benefit individuals, private organizations, or other governments.
Custodial Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's programs.
Cherrywood – Accounts for monies accumulated for payments of special assessment bonds which are financed by assessments placed on the Alameda County tax roll for the Cherrywood housing development.
39 City of San Leandro
Statement of Fiduciary Net Position
June 30, 2021
Private-Purpose Cherrywood
Trust Fund Custodial Fund
Current assets:
Cash and cash equivalents (Notes 2 and 16A) 3,244,064 $ $ 1,129,593 Investments (Notes 2 and 16A):
Mutual funds - -
Cash and investments with fiscal agents (Notes 2 and 16A) 21 448,989 Accounts receivable 23 -
Interest receivable 28,712 1,090
Total Current Assets 3,272,820 1,579,672
Noncurrent assets:
Capital assets (Note 16B)
Land 706,376 -
Depreciable assets, net 401,126 -
Total non-current assets 1,107,502 -
Total assets 4,380,322 1,579,672
Current liabilities:
Accounts payable 9,400 1,579
Deposits payable - -
Interest payable 418,682 -
Long-term debt - due in less than one year (Note 16C) 1,755,394 - Due to bondholders - -
Total current liabilities 2,183,476 1,579
Noncurrent Liabilities:
Long-term debt - due in more than one year (Note 16C) 31,004,490 - Total non current liabilities 31,004,490 -
Total liabilities 33,187,966 1,579
Restricted for bondholders - 1,578,093
Held in trust for private purposes (28,807,644) -
Total net position $ 1,578,093 (28,807,644) $
See Accompanying Notes to Basic Financial Statements
LIABILITIES
NET POSITION
ASSETS
40 City of San Leandro
For the year ended June 30, 2021
Successor Agency
to the Redevelopment
Agency
Private-Purpose Cherrywood
Trust Fund Custodial Fund
Additions:
Property taxes $ 3,098,078 $ -
Special assessment - 468,110
Use of money and property (97,632) -
Investment income - 2,107
Total additions 3,000,446 470,217
Deductions:
Community development 409,353 -
Depreciation (Note16B) 11,678 -
Payment to bondholders - 435,488
Debt service interest and fiscal agent fees 1,235,123 17,998 Total deductions 1,656,154 453,486
Change in net position 1,344,292 16,731
NET POSITION HELD IN TRUST
Net position - beginning, as restated (Note 1P) (30,151,936) 1,561,362 Net position - end $ 1,578,093 (28,807,644) $
See Accompanying Notes to Basic Financial Statements
Statement of Changes in Fiduciary Net Position
41 City of San Leandro
Index to Notes to Basic Financial Statements
For the year ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES ...................................................................... 45 A. Financial Reporting Entity ........................................................................................................ 45 B. Government-Wide Financial Statements .................................................................................. 45 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation .................. 46 D. Recognition of Interest Liability .............................................................................................. 48 E. Use of Restricted and Unrestricted Net Position ...................................................................... 48 F. Cash, Cash Equivalents and Investments ................................................................................. 48 G. Inventory .................................................................................................................................. 48 H. Capital Assets ........................................................................................................................... 49 I. Long-Term Debt ........................................................................................................................ 49 J. Compensated Absences ............................................................................................................. 50 K. Property Taxes ......................................................................................................................... 50 L. Deferred Inflows/Outflows of Resources .................................................................................. 50 M. Use of Estimates ...................................................................................................................... 50 N. Fair Value Measurements ......................................................................................................... 51 O. Property Held for Resale .......................................................................................................... 51 P. Implementation of New Governmental Accounting Standards Board (GASB) Pronouncements ....................................................................................................... 51 NOTE 2 – CASH AND INVESTMENTS .............................................................................................. 52 A. Cash Deposits ............................................................................................................................ 52 B. Investments .............................................................................................................................. 53 NOTE 3 – LOANS RECEIVABLE ........................................................................................................ 57 NOTE 4 – INTERFUND TRANSACTIONS ......................................................................................... 58 A. Fund Financial Statements – Interfund Receivables and Payables .......................................... 58 B. Fund Financial Statements – Long-Term Advances ................................................................ 59 C. Fund Financial Statements – Transfers .................................................................................... 59 D. Fund Financial Statements – Internal Balances ....................................................................... 60 NOTE 5 – CAPITAL ASSETS ............................................................................................................... 61 A. Government-Wide Financial Statements .................................................................................. 61 B. Funds Financial Statements ...................................................................................................... 63 NOTE 6 – LONG-TERM DEBT ............................................................................................................. 64 A. Governmental Activities Long-Term Debt .............................................................................. 64 B. Long-Term Debt of Business-Type and Proprietary Funds ..................................................... 69 C. Debt Covenants and Restrictions ............................................................................................. 70 NOTE 7 – COMPENSATED ABSENCES ............................................................................................. 71 NOTE 8 – UNEARNED REVENUE ....................................................................................................... 71 A. Government-Wide Financial Statements ................................................................................. 71 43 City of San Leandro
Index to Notes to Basic Financial Statements
For the year ended June 30, 2021 (Continued)
NOTE 9 – NET POSITION AND FUND BALANCES ........................................................................ 71 A. Net Position .............................................................................................................................. 71 B. Fund Balances .......................................................................................................................... 72 C. Encumbrances .......................................................................................................................... 73 D. Contingency Arrangements ...................................................................................................... 73 NOTE 10 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY ................................... 75 A. Fund Deficits ............................................................................................................................ 75 B. Expenditures in Excess of Appropriations ............................................................................... 75 NOTE 11 – INSURANCE ....................................................................................................................... 75 NOTE 12 – COMMITMENTS AND CONTINGENCIES .................................................................... 76 A. Sales Tax Reimbursement Agreement ...................................................................................... 76 NOTE 13 – PENSION PLAN ................................................................................................................... 76 A. Plan Descriptions and Summary of Balances by Plan ............................................................. 77 B. Information Common to the Miscellaneous and Safety Plans ................................................. 79 C. Miscellaneous (All Other) Agents Multiple-Employer Plan .................................................... 81 D. Safety Cost-Sharing Multiple-Employer Plan .......................................................................... 81 E. Other Information ...................................................................................................................... 82 NOTE 14 – OTHER POST EMPLOYMENT BENEFITS .................................................................. 83 A. Plan Description ....................................................................................................................... 83 B. Net OPEB Liability .................................................................................................................. 84 C. Changes in Net OPEB Liability ............................................................................................... 85 D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates ................................................................................................ 85 E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ..................... 86 NOTE 15 – JOINTLY GOVERNED ORGANIZATIONS .................................................................. 86 NOTE 16 – SUCCESSOR AGENCY ACTIVITIES ............................................................................. 87 A. Cash and Investments ............................................................................................................... 87 B. Capital Assets ........................................................................................................................... 87 C. Long-Term Debt Obligations ................................................................................................... 88 NOTE 17 – SUBSEQUENT EVENT ...................................................................................................... 92 44 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of San Leandro, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies in the United States. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A. Financial Reporting Entity
The City of San Leandro, California (City) was incorporated in 1872 and is situated between the cities of Oakland and Hayward in the East Bay of the San Francisco Bay Area. The City operates under the Mayor-Council-Manager form of government and provides the following services: public safety (police, fire, disaster preparedness and hazardous waste disposal), highways and streets, sanitation, health services, public improvements, planning and zoning and general administration services.
The City is governed by a seven-member council elected by City residents. The City is legally separate and fiscally independent, which means it can issue debt, set and modify budgets and fees and sue or be sued. As required by generally accepted accounting principles, the financial statements include the financial activities of the City, the primary government, and its component units.
Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
The component units below are included in the City’s basic financial statements using the blended method since the governing body of these component units are substantially the same as the governing body of the City and these component units provide services entirely to the City.
The City of San Leandro Parking Authority (Parking Authority) was established to issue debt for downtown parking structures and lots. There are no financial activities to be accounted for in the Parking Authority Debt Service Fund in this fiscal year.
The San Leandro Public Financing Authority (Financing Authority) was formed to assist in the financing and refinancing of capital projects and other community related financing programs. The financial activities are accounted for in the San Leandro Public Financing Authority Debt Service Fund in the accompanying basic financial statements.
B. Government–Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its components units. For the most part, the effect of interfund activity has been removed from these statements except in the case of interfund services provided and used, which are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
45 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Our policy is to allocate indirect costs to a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements or a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government–wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified 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. For this purpose, the City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. The City considers sales taxes and property taxes as available if they are collected within 60 days after year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Sales taxes, property taxes, licenses, and interest associated within the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 46 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Measure BB Special Revenue Fund – This fund accounts for the City's share of revenues earned and expenditure incurred under the City paratransit, streets and roads, and bike and pedestrian programs.
Capital Improvement Projects Capital Projects Fund accounts monies for major capital improvements projects not provided for in the other capital projects fund.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City also reports the following major proprietary funds:
Water Pollution Control Plant Fund accounts for the City’s sewers which protect public health and preserve water quality.
Shoreline Fund accounts for various recreational facilities which include golf and marina berthing as well as providing food service facilities for the general public in an area connected to the San Francisco Bay.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements. The City’s Internal Service Funds account for Building Maintenance, Information Management Systems, Self-Insurance, and Equipment Maintenance which provides service to other departments of the City on a cost reimbursement basis.
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
The Fiduciary fund financial statements normally include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent a private purpose trust fund and a custodial fund. The City’s Funds includes the Cherrywood Fund accounts for monies accumulated for payments of special assessment bonds.
47 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Recognition of Interest Liability
In the government-wide financial statements, interest payable of long-term debt is recognized as the liability is incurred for governmental fund types as wells as proprietary fund types.
In the fund financial statements, the Governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statement when payment is made. Proprietary fund types recognize the interest payable when the liability is incurred.
E. Use of Restricted and Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net positions are available, the City’s policy is to apply restricted net position first.
F. Cash, Cash Equivalents and Investments
The City pools cash and investments from all sources, except the fiscal agent cash and investments, for the purpose of increasing income through investment activities. Interest income on investments is allocated on the basis of average month-end cash and investment balances in each fund. Cash and cash equivalents represent cash and investments and restricted cash and investments with an original maturity term of three months or less. Pooled cash and investments allocated to proprietary fund types are considered cash and cash equivalents since specific investments held in the City’s pooled cash and investments are not allocated to each fund.
The City invests in the California Local Agency Investment Fund (LAIF), which is part of the Pooled Money Investment Account operated by the California State Treasurer. LAIF funds are invested in high quality money market securities and are managed to insure the safety of the portfolio. A portion of LAIF’s investments are in structured notes and asset-backed securities. The remainder of the City’s investment portfolio is managed by Chandler Asset Management.
In accordance with GASB Statement No. 31, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost.
G. Inventory
Inventory is held for consumption and is valued at average cost. Internal service fund supplies consist of materials and supplies for the various City vehicles (tires, batteries, etc.) and building maintenance, which are used for replacement parts for vehicle service and to maintain City buildings. Information management service inventory consists of postage for department use and a monthly count is performed to adjust this account to actual at the appropriate month-end. 48 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Capital Assets
Contributed capital assets are valued at their estimated fair market value on the date contributed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. City policy has set the capitalization threshold for reporting capital assets at $7,500. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 50 years
Improvements other than buildings 20 years
Machinery and equipment 5-15 years
Licensed Vehicles 3-15 years
Infrastructure 20-50 years
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewer, and park lands. Each major infrastructure system can be divided into subsystems.
For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost.
For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, un-recovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.
I. Long-Term Debt
In Government-Wide Financial Statements, long-term debt and other financed obligations are reported as liabilities in the appropriate activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds Payable are reported net of the applicable premium or discount.
In Fund Financial Statements long-term debt is not presented but is instead shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. 49 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Compensated Absences
Vested vacation, sick leave, compensatory time, and related benefits are accrued as appropriate. For governmental funds, compensated absence obligations are recorded in the appropriate governmental funds when due. The portion not currently due is recorded in the government-wide financial statements. For enterprise funds, compensated absences are expensed when earned by employees. At year-end, the accrued but unpaid compensated absence obligations are recorded as current and non-current liabilities in the appropriate enterprise funds.
K. Property Taxes
Property taxes are placed on lien January 1 for the following fiscal year. Taxes are payable in two installments, due on November 1 and February 1, becoming delinquent on December 10 (for November) and April 10 (for February), respectively. The Alameda County Tax Collector bills and collects property taxes and allocates a portion to the City. Property tax revenues are recognized in the fiscal year, for which the taxes have been levied, provided they become available. In January 1994, the City elected to continue collection of interest and penalties on delinquent taxes and recognizes these revenues when available. Available means when due or past due and collected within the current period, or expected to be collected soon thereafter, and to be used to pay liabilities of the current period.
L. Deferred Inflows/Outflows of Resources
In addition to assets, the statement of financial position or balance sheets reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
M. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires City management to make estimates and assumptions that affect certain amounts and disclosures.
Accordingly, actual results could differ from those estimates.
50 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
O. Property Held for Resale
The City purchased property with the intent to resell the property to an income eligible first-time home buyer. The carrying value of the property as of June 30, 2021 is $382,668.
P. Implementation of New Governmental Accounting Standards Board (GASB) Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statements which became effective during the year ended June 30, 2021.
In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The provisions of this Statement were implemented during fiscal year 2021. As part of the implementation of the Statement, it was determined that the Cherrywood Fund previously reported on the City’s financial statements as Agency Funds should be reported as a Custodial Funds. In addition, it was determined that the Deposit Fund should be recategorized as part of the General Fund, previously reports as an Agency Fund. Furthermore the PARS OPEB Trust fund is no longer reported as of July 1, 2020. Beginning net position of the Cherrywood Custodial Fund was restated and increased by $1,561,632.
In August 2018, GASB issued GASB Statement No. 90, Majority Equity Interests – (an Amendment of GASB Statements No. 14 and No. 61). The objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The City does not have any Majority Equity Interests that are within the scope of GASB Statement No. 90. 51 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 2 – CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the Finance Director invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average daily cash and investment balance in these funds.
A. Cash Deposits
The carrying amount of the City’s cash deposits is $12,549,082 at June 30, 2021. Bank balances before reconciling items were $14,230,982, at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
52 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the City’s Cash and investments as of June 30, 2021, are classified as follows:
Statement of net position:
Cash and investments 188,988,955 $
Cash and investments - restricted 4,729,673
Cash and investments held by fiscal agents 7,719,761
Fiduciary Funds:
Cash and investments 4,373,657
Cash and investments with fiscal agents 449,010
Total cash and investments $ 206,261,056
Cash and investments as of June 30, 2021, are classified as follows:
Deposits with financial institutions $ 12,714,356
Investments 193,546,700
Total cash and investments $ 206,261,056
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flow from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide cash flow and liquidity needed for operations. In accordance with the Policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to 5 years or less. The City is in compliance with this provision of the Policy.
Information about the sensitivity of the fair values of the City’s Investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investment by maturity:
Investment Type Fair Value
12 Months or
Less 13 to 24 Months 25 to 60 Months
$ 44,399,562 $ 9,159,397 $ 9,016,368 $ 26,223,797
Money Market Fund 88,694 88,694 - -
U.S. Treasury Notes 37,668,393 11,314,203 10,472,452 15,881,738 Local Agency Investment Fund (LAIF) 74,557,857 74,557,857 - - Medium-Term Notes 20,593,467 4,956,347 7,015,739 8,621,381 Asset Backed Securities 1,055,080 - - 1,055,080
Supranationals 2,816,956 808,496 2,008,460 -
Commercial Paper 4,197,870 4,197,870 - -
Held by fiscal agent:
U.S. Treasury Money Market Funds 8,168,821 8,168,821 - - Total $ 193,546,700 $ 113,251,685 $ 28,513,019 $ 51,781,996 Federal Agency Securities
53 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 2 – CASH AND INVESTMENTS (Continued)
Investments Authorized by the City’s Investment Policy and California Government Code The table below identifies the investment types that are authorized for the City by the City’s Investment Policy. The table also identifies certain provisions of the California Government Code that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of the related bond documents.
Investment Type Maximum Maturity Maximum Percentage of *Portfolio U.S. Treasury Obligations 5 years None
U.S. Agency Securities 5 years None
Bankers Acceptances 180 days 40%
Commercial Paper 270 days 25%
Negotiable Certificate of Deposit 5 years 30%
Repurchase Agreements 1 year 20%
Reverse Repurchase Agreements 92 days 20%
Medium-Term Notes 5 years 30%
Mutual Funds N/A 20%
Money Market Mutual Funds N/A 20%
Local Agency Investment Fund (LAIF) N/A $75 million per account Passbook Accounts 5 years None
City Issued Securities N/A None
Supranational Securities 5 years 30%
Asset Backed Securities 5 years 20%
Mortgage Backed/Pass-Through Securities 5 years 20%
Collateralized Mortgage Obligations 5 years 20%
Other investment pools N/A None
*excluding amounts held by bond trustee that are not subject to California Government Code restrictions.
Investments in Local Agency Investment Fund
The City invests in the Local Agency Investment Fund (LAIF), a State of California external investment pool.
The fair value is calculated by multiplying the account balance with LAIF times a fair value factor of
1.00008297 which is determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value.
The City’s investments with Local Agency Investment Funds (LAIF) at June 30, 2021, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend on one or more indices and/or that have embedded forwards or options.
54 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 2 – CASH AND INVESTMENTS (Continued)
Asset-backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMOs) or credit card receivables.
Concentration of Credit Risk
The City’s Policy states that the investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristic of the portfolio. Purchases of mutual funds must not exceed 20% of the value of the portfolio. Investments in U.S. agencies exceed 5% of total portfolio, and Federal agency investments exhibited below exceeded 5% percent or more of the total investments in any one issuer:
US Government Agency Securities Amount Invested
Percentage of
Investments
Federal agency securities:
Federal Home Loan Mortgage Corporation (FHLMC) 14,260,930 $ 19.52% Federal Home Loan Bank (FHLB) 13,442,875 18.40%
Federal National Mortgage Association (FNMA) 8,348,048 11.43% Fannie Mae 6,355,349 8.70%
Federal Farm Credit Bank (FFCB) 1,992,360 2.73%
Total $ 44,399,562 60.77%
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Entity’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
The City’s policy requires that mutual funds must have the highest rating provided by not less than two of the three largest nationally recognized rating organizations.
Fair
Minimum
Legal Exempt From
Investment Type Value Rating Disclosure Not Rated A-1 AAA AA+ Federal Agency Securities $ 44,399,562 N/A $ - $ - $ - $ - $ 44,399,562 Money Market Fund 88,694 N/A 88,694
U.S. Treasury Notes 37,668,393 N/A 37,668,393
Local Agency Investment Fund 74,557,857 N/A 74,557,857
Medium-Term Notes 20,593,467 A 505,905 1,439,902
Asset Backed Securities 1,055,080 AAA 564,277 490,803
Supranationals 2,816,956 AA 808,496 2,008,460
Commercial Paper 4,197,870 A-1+ 4,197,870
Held by fiscal agent:
U.S. Treasury Money Market 8,168,821 A 8,168,821
Total $ 193,546,700 $ 37,668,393 $ 76,019,324 $ 4,197,870 $ 11,173,989 $ 45,839,464 AA AA- A+ A AMedium-Term Notes $ 1,682,068 $ 2,114,340 $ 1,921,295 $ 6,161,549 $ 6,768,408 55 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 2 – CASH AND INVESTMENTS (Continued)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:
Level 1 Level 2 Total
Investments By Fair Value Level:
$ 44,399,562 - $ 44,399,562 $
U.S. Treasury Notes 37,668,393 37,668,393
Medium-Term Notes 20,593,467 20,593,467
Asset Backed Securities 1,055,080 1,055,080
Supranationals 2,816,956 2,816,956
Commercial Paper 4,197,870 4,197,870
Total Investments - $ 110,731,328 $ 110,731,328
Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund (LAIF) 74,557,857
Investments Measured at Amortized Cost:
Held by fiscal agent:
U.S. Treasury Money Market Funds 8,168,821
Money Market Fund 88,694
Total $ 193,546,700
Federal Agency Securities
Investments classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The California Local Agency Investment Fund (LAIF) is valued based on the fair value factor provided by the Treasurer of the State of California, which is calculated as fair value divided by the amortization cost of the investment pool and is exempt from the Fair Value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank. 56 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 3 – LOANS RECEIVABLE
At June 30, 2021, the City had loans receivable in the following funds:
Governmental Funds:
General Fund 1,349,968 $
Non Major Special Revenue Funds:
Affordable Housing Asset Special Revenue Fund 18,273,614 Community Development Block Grant (CDBG) 239,161
HOME Fund 4,536,036
Housing In-Lieu 737,000
Less allowance for uncollectible loans (23,138,826)
Total net loans receivable 1,996,953 $
At June 30, 2021, the City was owed in the General Fund, $506,441 for a loan made by the City to Alameda County Industries Inc. (ACI). The loan is to refurbish ACI's Materials Recovery Facility in order to expand operations to take in more solid waste, recyclable, and green waste tonnage. The loan is evidenced by a promissory note with a term of 10 years and is to be repaid in full on July 1, 2025. The interest rate is 2.5% per annum.
At June 30, 2021, the City was owed in the General Fund, $19,242 for loans made by the City to employees as part of the Employee Computer Purchase Loan Program. The loans are to assist regular full-time employees after completion of the one-year probationary period, “permanent” part-time employees as defined in the relevant MOU and City Council Members with the purchase of a home computer or laptop. The loans range from $500 to $3,000, are repaid over a 1 or 2 year period, and are interest free. Payments on the loans are handled as standard payroll deduction.
At June 30, 2021, the City was owed in the General Fund, $70,139 for a loan made by the City to San Leandro Improvement Agency. The loan is to fund Downtown San Leandro capital improvements. The loan is evidenced by a promissory note with a term of 10 years. The interest rate is 3% per annum.
At June 30, 2021, the City was owed in the General Fund, $382,987 for a loan made by the City to the Historic BAL Theatre. The loan is to promote the performing arts, music, and City's culture, which is vital to the public health and economic vitality of the City. The loan is evidenced by a promissory note with a term of 30 years. The interest rate is 3% per annum.
At June 30, 2021, the City was owed in the General Fund, $371,159 for a loan made by the City to MTLG, LLC. The loan is for litigation costs between the City of San Leandro and MTLG, LLC for a proposed wind energy conversion project. The loan is evidenced by a promissory note in the amount of the loan and a deed of trust with a term of 10 years. The interest rate is 2% per annum.
57 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 3 – LOANS RECEIVABLE (Continued)
During fiscal year 2021, the City was owed in its Affordable Housing Asset Fund, $18,273,614 which includes (1) loans made to the City property owners who meet the HUD requirements for financial assistance for property improvements and first time home buyer loans; (2) a loan made to Ruth Rogers and Sara Bagwell; (3) a loan made to Eden Housing, Inc.; (4) a loan made to San Leandro Senior Housing; (5) a loan made to Citizens’ Housing Corporation for property improvements; and (6) a loan made to Mercy Housing for the construction of the Casa Verde. The total loan receivable amount was reduced by an allowance for uncollectible loans in the amount of $17,626,629 leaving a balance of $646,985 as of June 30, 2021.
At June 30, 2021, the City was owed in its Community Development Block Grant (CDBG) Special Revenue Fund, $239,161 for various housing assistance loans made by the City. The terms of repayment vary. All of the loans receivable was reduced by allowance for uncollectible loans.
At June 30, 2021, the City was owed in its HOME Special Revenue Fund, $4,536,036 which includes (1) two housing assistance loans made by the City to Citizens’ Housing Corporation; (2) a loan made to Estabrook Senior Housing for construction of senior housing facility; (3) a loan made to Hello Housing for the rehabilitation of a single family home; (4) a housing assistance loan made to Allied Housing. The terms of repayment vary. All of the loans receivable were reduced by allowance for uncollectible loans.
At June 30, 2021, the City was owed in its Housing In-Lieu Special Revenue Fund, $737,000 for a housing assistance loan made by the City to the Estabrook Senior Housing for low-moderate housing construction. The terms of repayment vary. The entire loan receivable was reduced by allowance for uncollectible loans.
NOTE 4 – INTERFUND TRANSACTIONS
A. Interfund Receivables and Payables
At June 30, 2021, the City had the following short-term receivables and payables:
Receivable Fund Payable Fund Amount
General Fund Non-Major Governmental Funds $ 589,519
Storm Water Utility Fund 1,405,558
Total $ 1,995,077
The City has recorded due to/due from all funds requiring cash at the end of June 30, 2021. The funds that had deficit year-end balances will be repaid back to the General Fund during the 2021-22 fiscal year. 58 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Long-Term Advances
Long-term advances to be repaid out of future earnings or charges at June 30, 2021, consisted of:
Receivable Fund Amount
General Fund Shoreline Enterprise Fund $ 6,276,736
Water Pollution Control Plant
Enterprise Fund General Fund 1,705,009
Total $ 7,981,745
Payable Fund
The City Council authorized General Fund loans to the Shoreline Enterprise Fund for capital improvements at the Marina and Golf Course. The loans are to be paid over 30 years with an annual interest accrual rate of 5%. Principal payments are made annually provided the fund has sufficient resources. The balance as of June 30, 2021, was $2,806,676 and $3,470,060 for the Marina and the Golf Course, respectively, for a total of $6,276,736.
The City Council authorized a loan to the General Fund from the Water Pollution Control Plant in 2011 for the partial payment of the Public Safety Side Fund Obligation. The $6,000,000 loan was to pay-down the CalPERS Public Safety Side Fund with a long-term adjustable rate of 4% or less annually for 13 years. As of June 30, 2021, the outstanding amount was $1,705,009.
C. Transfers
Transfers during the fiscal year ended June 30, 2021, comprised the following:
Capital Improvement Water Pollution
General Capital Projects Non-Major Control Plan
Fund Fund Governmental Funds Enterprise Fund Total
General Fund $ - $ 4,917,823 $ - $ 4,917,823 - $
Capital Improvements
Capital Projects Fund 3,460,000 - - 3,460,000 -
Non-major
Governmental Funds 50,000 - - - 50,000
Non-major
Enterprise Funds - - - 132,782 132,782
Internal Service Funds - - 176,512 - 176,512
Total $ 3,510,000 $ 4,917,823 $ 176,512 $ 132,782 $ 8,737,117 Transfers Out:
Transfers In
59 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
The City Council authorized transfers from various funds for fiscal year 2020-21 to the following accounts and projects:
Capital Improvement Fund $ 2,450,000 Street Improvement Projects Capital Improvement Fund 300,000 Financial Software System Capital Improvement Fund 475,000 Parks Improvement Projects Capital Improvement Fund 235,000 Police Headquarters and others Non-major Governmental Funds 50,000 Shuttle Improvements General Fund 4,917,823 Capital Improvements
Environmental Services Fund 132,782 Sewer Inspections
Equipment Maintenance Fund 176,512 Vehicle Purchase
Total $ 8,737,117
D. Internal Balances
Internal balances are presented only in the government-wide financial statements. They represent the net interfund receivables and payables remaining after the elimination of all such balances within government and business-type activities.
60 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 5 – CAPITAL ASSETS
A. Government-Wide Financial Statements
At June 30, 2021, the City’s capital assets consisted of the following:
Governmental Business-Type
Activities Activities Total
Non-depreciable assets:
Land $ 16,471,405 $ 5,234,310 $ 21,705,715
Construction in Progress 22,486,170 2,646,777 25,132,947 Total non-depreciable assets 38,957,575 7,881,087 46,838,662 Depreciable assets:
Buildings 82,705,552 68,496,577 151,202,129
Improvements 10,704,873 113,416 10,818,289
Machinery and Equipment 12,902,859 8,589,825 21,492,684 Licensed Vehicles 16,089,801 152,989 16,242,790
Infrastructure:
Park Irrigation Systems 4,668,420 - 4,668,420
Medians Irrigation 10,145,502 - 10,145,502
Park Structures 2,861,454 - 2,861,454
Roadway 255,287,912 - 255,287,912
Sidewalk 74,895,578 - 74,895,578
Curb and Gutter 37,447,790 - 37,447,790
Underground Piping and Storm Drain 242,722 10,059,007 10,301,729 Water Pollution Plant - 5,468,993 5,468,993
Total depreciable assets 507,952,463 92,880,807 600,833,270 Less accumulated depreciation (358,259,932) (18,980,202) (377,240,134) Total depreciable assets, net 149,692,531 73,900,605 223,593,136 Total capital assets $ 188,650,106 $ 81,781,692 $ 270,431,798 61 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 5 – CAPITAL ASSETS (Continued)
The following is a summary of capital assets for governmental activities:
Balance Balance
July 1, 2020 Additions Retirements Transfers June 30, 2021 Non-Depreciable Assets:
Land $ 16,550,305 $ - $ (78,900) $ 16,471,405 - $
Construction in progress 12,944,919 11,794,138 (2,252,887) 22,486,170 - Total Non-Depreciable Assets 29,495,224 11,794,138 (78,900) (2,252,887) 38,957,575 Depreciable Assets:
Buildings 82,705,552 - - 82,705,552 -
Improvements 10,438,268 - - 266,605 10,704,873
Machinery and equipment 12,890,027 221,169 (208,337) 12,902,859 - Licensed vehicles 15,609,224 1,126,006 (645,429) 16,089,801 - Infrastructure 383,577,664 15,442 (30,010) 1,986,282 385,549,378 Total Depreciable Assets 505,220,735 1,362,617 (883,776) 2,252,887 507,952,463 Accumulated Depreciation:
Buildings (29,852,783) (1,525,608) - (31,378,391) -
Improvements (5,401,104) (203,146) - (5,604,250) -
Machinery and equipment (9,408,024) (440,772) 198,900 (9,649,896) - Licensed vehicles (9,297,015) (1,428,652) 645,431 (10,080,236) - Infrastructure (288,260,730) (13,316,440) 30,011 (301,547,159) - Total Accumulated Depreciation (342,219,656) (16,914,618) 874,342 (358,259,932) - Depreciable Assets, Net 163,001,079 (15,552,001) (9,434) 2,252,887 149,692,531 Total Governmental Activities
Capital Assets, Net $ 192,496,303 $ (3,757,863) $ (88,334) $ 188,650,106 - $ Governmental activities depreciation expenses for capital assets for the year ended June 30, 2021, are as follows:
General Government $ 470,777
Public Safety 627,704
Engineering and Transportation 12,554,070
Recreation and Human services 1,569,259
Community Development 470,778
Subtotal 15,692,588
Capital assets held by the City's Internal Service Funds 1,222,030 Total Depreciation Expense $ 16,914,618
62 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 5 – CAPITAL ASSETS (Continued)
The following is a summary of capital assets for business-type activities:
Balance Balance
July 1, 2020 Additions Retirements Transfers June 30, 2021 Non-Depreciable Assets:
Land $ 5,234,310 $ - $ - $ - $ 5,234,310
Construction in progress 1,148,155 2,522,852 - (1,024,230) 2,646,777 Total Non-Depreciable Assets 6,382,465 2,522,852 - (1,024,230) 7,881,087 Depreciable Assets:
Buildings 67,353,755 118,592 - 1,024,230 68,496,577
Improvements 113,416 - - - 113,416
Machinery and equipment 8,574,732 53,079 (37,986) - 8,589,825 Licensed vehicles 143,975 9,014 - - 152,989
Infrastructure 12,578,705 2,957,136 (7,841) - 15,528,000 Total Depreciable Assets 88,764,583 3,137,821 (45,827) 1,024,230 92,880,807 Accumulated Depreciation:
Buildings (11,600,439) (1,426,399) - - (13,026,838)
Improvements (113,416) - - - (113,416)
Machinery and equipment (3,649,293) (149,858) 37,302 - (3,761,849) Licensed vehicles (94,898) (3,120) - - (98,018)
Infrastructure (1,716,893) (263,188) - - (1,980,081)
Total Accumulated Depreciation (17,174,939) (1,842,565) 37,302 - (18,980,202) Total Business-Type Activities
Capital Assets, Net $ 77,972,109 $ 3,818,108 $ (8,525) $ - $ 81,781,692 B. Funds Financial Statements
The Funds Financial Statements do not present General Government Capital Assets but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
63 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT
A. Governmental Activities Long-Term Debt
Summary of changes in governmental activities long-term debt for the year ended June 30, 2021, follows:
Balance Balance Due within Due in more
Governmental Activity Debt: June 30, 2020 Retirements June 30, 2021 one year than one year Pension Obligation Bonds:
2012 Taxable Pension Obligation Bonds 8,405,000 $ (1,835,000) $ 6,570,000 $ 2,000,000 $ 4,570,000 $ Lease Revenue Bonds:
2013 Refunding Lease Revenue Bonds
City portion 6,013,000 (661,000) 5,352,000 681,000 4,671,000 2016 Refunding Lease Revenue Bonds 11,450,000 (930,000) 10,520,000 970,000 9,550,000 2018 Lease Revenue Bonds 18,905,000 18,905,000 - 18,905,000 - Total Governmental Activity Debt 44,773,000 (3,426,000) 41,347,000 3,651,000 37,696,000 Direct Borrowings:
Capital Leases:
2016 Bank of America Equipment Lease 4,621,022 (326,915) 4,294,107 333,816 3,960,291 Total Capital Leases 4,621,022 (326,915) 4,294,107 333,816 3,960,291 Other Debt
HUD 108 Loan - Guarantee Loan -
Senior Center 1,320,000 (132,000) 1,188,000 132,000 1,056,000 Total Other Debt 1,320,000 (132,000) 1,188,000 132,000 1,056,000 Total Government Activity Debt 50,714,022 (3,884,915) 46,829,107 4,116,816 42,712,291 Plus unamortized:
Discount (2012 POB) (39,206) 10,119 (29,087) (10,119) (18,968) Premium (2013 RLRB) 154,127 (19,888) 134,239 19,888 114,351 Premium (2016 RLRB) 1,474,680 (163,853) 1,310,827 163,853 1,146,974 Premium (2018 LRB) 1,222,061 (43,645) 1,178,416 43,645 1,134,771 Total General Long-term Obligations $ 53,525,684 $ (4,102,182) $ 49,423,502 $ 4,334,083 $ 45,089,419
64 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
2012 Taxable Pension Obligation Bonds
In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012 POB). The purpose of the 2012 POB is to refinance the “side fund” obligations of the City to CalPERS with respect solely to the Public Safety Plan. Side funds with CalPERS are retired over a fixed term with a fixed amortization schedule based on CalPERS actuarial earnings assumption rate (7.65%). 2012 POB principal is due annually on December 1 and interest is due semi-annually on June 1 and December 1 through June 2024. Debt service is payable from available City resources.
The 2012 POB are general obligations of the City, payable solely from any legally available moneys or funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events during the fiscal year ending June 30, 2021.
At June 30, 2021, future debt service requirements for the City’s portion of the 2012 POB follows:
For The Year
Ending June 30 Principal Interest Total
2022 2,000,000 $ 350,516 $ 2,350,516 $
2023 2,185,000 247,716 2,432,716
2024 2,385,000 132,127 2,517,127
$ 6,570,000 $ 730,359 $ 7,300,359
2013 Refunding Lease Revenue Bonds
In April 2013, the City issued $8,883,000 principal amount of 2013 Refunding Lease Revenue Bonds (2013 RLRB). The purpose of the 2013 RLRBs was to refund and retire the City’s 2003 COPs and 2001 COPs. The 2013 RLRBs bear interest rates ranging from 2.00% to 5.00% and are payable semiannually on each June 1 and December 1. Principal payments are payable annually on December 1.
The Refunding Bonds are general obligations of the City, payable solely from and secured by Revenues and certain funds and accounts held under the Indenture. The bond covenants contain events of default that may result in the termination of the lease, collection of rent due and other monetary charges but do not terminate the City’s right to possession of the leased property as applied by the Trustee and specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred during the fiscal year ending June 30, 2021.
65 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
At June 30, 2021, future debt service requirements for the City’s portion of the 2013 RLRB follows:
For The Year
Ending June 30 Principal Interest Total
2022 681,000 $ 191,816 $ 872,816 $
2023 710,000 163,996 873,996
2024 736,000 137,836 873,836
2025 762,000 113,017 875,017
2026 789,000 86,351 875,351
2027 - 2028 1,674,000 75,588 1,749,588
$ 768,604 5,352,000 $ 6,120,604 $
2016 Refunding Lease Revenue Bonds
In fiscal year 2016-17, the San Leandro Public Financing Authority issued $14,125,000 principal amount of 2016 Refunding Lease Revenue Bonds (2016 RLRB). The purpose of the 2016 RLRBs was to refinance the City’s 2007 COPs. The 2016 RLRBs bear interest rates ranging from 2.0% to 5.0% and are payable semiannually on each May 1 and November 1. Principal payments are payable annually on November 1.
The Refunding Bonds are general obligations of the City, payable solely from and secured by Revenues and certain funds and accounts held under the Indenture. The bond covenants contain events of default that may result in the termination of the lease or may retain the lease and hold the City liable for all payments on an annual basis and still have the right to re-enter the leased property without effecting a surrender of the lease. These may be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred during the fiscal year ending June 30, 2021.
At June 30, 2021, future debt service requirements for the 2016 RLRBs follows:
For The Year
Ending June 30 Principal Interest Total
2022 970,000 $ 459,600 $ 1,429,600 $
2023 1,015,000 409,975 1,424,975
2024 1,070,000 357,850 1,427,850
2025 1,120,000 303,100 1,423,100
2026 1,180,000 260,350 1,440,350
2027 - 2030 5,165,000 511,900 5,676,900
$ 2,302,775 10,520,000 $ 12,822,775 $
66 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
2018 Lease Revenue Bonds
In fiscal year 2018-19, the San Leandro Public Financing Authority issued $18,905,000 principal amount of 2018 Lease Revenue Bonds (2018 LRB). The purpose of the 2018 LRBs was to finance the acquisition and construction of certain capital improvement projects of the City, anticipated to consist of improvements to the Police Headquarters and South Office Building, the Mulford-Marina Branch Library, Manor Park Competition Pool, Farrelly Pool, and Casa Peralta. The 2018 LRBs bear interest rates ranging from 3.5% to
5.0% and are payable semiannually on each May 1 and November 1. Principal payments are payable annually on November 1, beginning in 2030.
The 2018 Bonds are special obligations of the authority payable solely from and secured by a pledge of Revenues and certain funds and accounts held under the indenture on a parity with the 2016 Bonds. The bond covenants contain events of default that may result in the termination of the lease or may retain the lease and hold the City liable for all payments on an annual basis and still have the right to re-enter the leased property without effecting a surrender of the lease. These may be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred during the fiscal year ending June 30, 2021.
At June 30, 2021, future debt service requirements for the 2018 LRBs are as follow:
For The Year
Ending June 30 Principal Interest Total
2022 $ - $ 871,575 $ 871,575
2023 - 871,575 871,575
2024 - 871,575 871,575
2025 - 871,575 871,575
2026 - 871,575 871,575
2027 - 2031 630,000 4,342,126 4,972,126
2032 - 2036 3,635,000 3,773,712 7,408,712
2037 - 2041 4,610,000 2,772,750 7,382,750
2042 - 2046 5,870,000 1,492,100 7,362,100
2047 - 2049 4,160,000 253,800 4,413,800
$ 18,905,000 $ 16,992,363 $ 35,897,363
67 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
2016 Bank of America Equipment Lease
On July 21, 2016, the City entered into a direct borrowing Lease/Purchase Agreement with Bank of America, LLC to Lease/Purchase Equipment in the amount of $5,409,045. The Equipment was for the installation of energy efficiency improvements on various City-owned facilities. The interest is 2.10% payable over 16 years.
At June 30, 2021, future debt service requirements for the 2016 equipment lease follows:
For The Year
Ending June 30 Principal Interest Total
2022 333,816 $ 88,433 $ 422,249 $
2023 340,864 81,389 422,253
2024 348,059 74,190 422,249
2025 355,407 66,842 422,249
2026 362,909 59,340 422,249
2027 - 2031 1,932,752 178,499 2,111,251
2032 - 2033 620,300 13,067 633,367
$ 4,294,107 $ 561,760 $ 4,855,867
HUD 108 Guarantee Loan – Senior Center
In 2011, the City received a direct borrowing $2,500,000 20-year federal loan from HUD, at an interest rate of 3% to finance the acquisition and construction of senior center facility within the City of San Leandro.
The loan is secured and payable from the Community Development Block Grant Fund.
The loan covenants contain events of default which include collection of any funds pledged under the contract, withholding the guarantee of any or all obligations not yet disbursed to the City or the Loanee may direct the City’s financial institution to refuse to release any loan funds held in loan accounts, repayment accounts and investment accounts to the City. These events may be applied by the Loanee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred during the fiscal year ending June 30, 2021.
At June 30, 2021 future debt service requirements for the HUD 108 Guarantee loan follows:
For The Year
Ending June 30 Principal Interest Total
2022 132,000 $ 46,246 $ 178,246 $
2023 132,000 41,256 173,256
2024 132,000 36,135 168,135
2025 132,000 30,882 162,882
2026 132,000 25,496 157,496
2027 - 2030 528,000 45,983 573,983
$ 1,188,000 $ 225,998 $ 1,413,998
68 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
B. Long-Term Debt of Business-Type and Proprietary Funds Summary of changes in long-term debt of business-type and proprietary funds for the year ended June 30, 2021:
Due Due in
Balance Balance Within more than
Direct Borrowings June 30, 2020 Additions Retirements June 30, 2021 one year one year State Water Resources
Control Board $ 35,828,954 $ - $ (1,834,312) $ 33,994,642 $ 1,882,004 $ 32,112,638 Marina Note 498,054 - (270,587) 227,467 93,273 134,194
Climatec Lease - 7,624,924 - 7,624,924 441,265 7,183,659 Total 36,327,008 $ $ 7,624,924 $ (2,104,899) $ 41,847,033 $ 2,416,542 $ 39,430,491 State Water Resources Control Board
On August 4, 2011, the City entered into a direct borrowing Finance Agreement with the State Water Resources Control Board in the total principal amount of $43,000,000, for the purpose of financing the Wastewater System Expansion and Improvement Project. The loan bears an interest rate of 2.6%.
Principal and interest payments are payable annually on July 1. The debt is secured by the WPCP Enterprise Fund operating revenues. The project was completed in fiscal year 2016-17.
Pursuant to the agreement, the City is expected to obtain net revenues of the Water system to be equal to at least 1.20 times the total annual debt service in such fiscal year. In fiscal year 2020-21, net revenues amounted to $6,336,849 which represented coverage of 229% under the $2,765,865 in debt service.
Future debt service is expected to average $3 million per year through fiscal year 2035-36 for a total of $41.5 million. The City is authorized under prop 218 to increase up to 9.5% and in fiscal year 2021, we requested a 7% increase. The City will evaluate its current financial situation and might propose another hike to meet the coverage expectation. Cash and investments are sufficient to meet any debt service requirement, until rates increased.
At June 30, 2021, future debt service requirements for the State Water Resources Control Board loan are as follows:
For The Year
Ending June 30 Principal Interest Total
2022 1,882,004 $ 883,861 $ $ 2,765,865
2023 1,930,936 834,929 2,765,865
2024 1,981,140 784,724 2,765,864
2025 2,032,650 733,215 2,765,865
2026 2,085,499 680,366 2,765,865
2027 - 2031 11,269,590 2,559,733 13,829,323
2032 - 2036 12,812,823 1,016,496 13,829,319
$ 7,493,324 33,994,642 $ $ 41,487,966
69 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 6 – LONG-TERM DEBT (Continued)
Marina Cal Boating Notes Payable
The City entered into various direct borrowing construction loan agreements with the California Department of Boating and Waterways in the total principal amount of $5,331,032. The loans bear an average interest rate of 4.50%. Principal and interest payments are payable annually on each August 1.
The debt is secured by Shoreline Enterprise Fund operating revenues.
At June 30, 2021, future debt service requirements for the Marina Cal Boating Notes Payable are as follows:
For The Year
Ending Principal Interest Total
2022 $ 93,273 $ 10,236 $ 103,509
2023 45,334 6,039 51,373
2024 20,770 3,999 24,769
2025 21,705 3,064 24,769
2026 22,682 2,087 24,769
2027 23,703 1,067 24,770
$ 227,467 $ 26,492 $ 253,959
2020 Bank of America Equipment Lease
On January 22, 2021, the City entered into a direct borrowing Lease/Purchase Agreement with the Bank of America, LLC to Lease/Purchase Equipment in the amount of $7,624,924. The Equipment was for the installation of energy efficiency equipment. The loans bears an interest rate of 1.989% per annum.
Principal and interest payments are payable annually on each January 22. The debt is secured by Water Pollution Control Plant Enterprise Fund’s operating revenues.
At June 30, 2021, future debt service requirements for the 2020 equipment lease as follows:
For The Year
Ending June 30 Principal Interest Total
2022 441,265 $ $ 151,660 $ 592,925
2023 450,042 142,883 592,925
2024 458,993 133,932 592,925
2025 468,123 124,802 592,925
2026 477,434 115,491 592,925
2027 - 2031 2,533,446 431,179 2,964,625
2032 - 2036 2,795,621 169,005 2,964,626
$ 7,624,924 $ 1,268,952 $ 8,893,876
C. Debt Covenants and Restrictions
For fiscal year 2020-21, the City complied with all general and specific covenants regarding debt proceeds usage and debt repayment. In accordance with bond official statements, the City also maintained adequate reserves for all debt issues.
70 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 7 – COMPENSATED ABSENCES
The City’s compensated absences consist of accrued vacation pay, sick leave, and accrued compensatory time. The total amount of the accrued liability is recorded in the Government-wide Financial Statements and charges for compensated absences expense is charged to the various program activities in the Governmental funds, primarily General fund and Internal Service funds, and all Proprietary funds.
Summary of changes in compensated absences for the year ended June 30, 2021, follows:
Balance Balance Due within Due in more
July 1, 2020 Additions Retirements June 30, 2021 one year than one year Governmental Activities $ 4,534,699 $ 1,107,319 $ 1,571,101 $ 4,070,917 $ 610,638 $ 3,460,279 Business-type Activities 612,332 151,914 60,880 703,366 140,673 562,693 Total $ 5,147,031 $ 1,259,233 $ 1,631,981 $ 4,774,283 $ 751,311 $ 4,022,972 NOTE 8 – UNEARNED REVENUE
A. Governmental-Wide Financial Statements
Unearned revenue in the Government-Wide Financial Statements represents amounts for which revenues have not been earned. At June 30, 2021, unearned revenue in the Government-Wide Financial Statements was $13,169,170.
NOTE 9 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities, and deferred inflows of resources regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:
Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted net position describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include capital projects, debt service requirements, and special revenue programs restricted to special revenue purposes such as Measure B, Measure BB, Measure F, special Gas Tax, Grant funds, and other special revenue funds.
Unrestricted describes the portion of Net Position which is not restricted to use. 71 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.
The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaid, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City’s highest level decisionmaking authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to end if the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken to remove or revise the limitation. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources. As of June 30, 2021, the City does not have committed fund balance.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed through City Council resolution and/or budget document or its designee (City Manager) and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; Nonspendable, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
72 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are automatically reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end.
As of June 30, 2021, the General Fund had outstanding encumbrances of $1,787,750.
D. Contingency Arrangements
The City’s annual budget requires the City to implement and maintain fund balance to handle any unforeseen contingencies in the future, rather than continued reliance on the City’s operating General Fund reserves. These unforeseen contingencies include Economic Uncertainty, major Emergencies and Contingencies. As of June 30, 2021, the following are reported within the unassigned fund balance of the General Fund:
Compensated Absences $ 869,569
Major Emergencies 5,000,000
Economic Uncertainty 24,640,460
Other Remaining Unassigned 36,026,190
Total $ 66,536,219
73 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2021, are below:
Capital
Measure BB Improvement Non-Major
General Special Revenue Capital Project Governmental
Fund Fund Fund Funds Total
Nonspendables:
Advances to Other Funds $ - 6,276,736 $ $ - $ - $ 6,276,736 Loans receivable 1,349,968 - - - 1,349,968
Prepaids - - - 48,000 48,000
Property held for resale - - - 382,668 382,668
Total Nonspendable Fund Balances 7,626,704 430,668 8,057,372 Restricted for:
Internship 50,000 - - - 50,000
Capital Projects
Capital Improvement Projects - - 33,106,010 - 33,106,010 Subtotal 50,000 - 33,106,010 - 33,156,010
Non-Major Governmental Funds
Special Assessment District Debt Service - - - 121 121
San Leandro Public Financing Authority - - - 423,606 423,606 GHAD - - - 13,622 13,622
Affordable Housing - - - 2,602,345 2,602,345
Street/ Traffic Improvements - - - 1,939,661 1,939,661
Park Development Fees - - - 1,400,210 1,400,210
Underground Utility - - - 3,123,931 3,123,931
Parking - - - - -
Special Gas Tax - - - 1,588,588 1,588,588
Cherrywood Maintenance - - - 491,338 491,338
Measure B - Paratransit - - - 548,826 548,826
Asset Seizure - - - 1,104,192 1,104,192
Heron Bay - - - 454,777 454,777
Proposition 1B - Local Streets & Roads - - - 14,130 14,130 Special Grants - - - 703,921 703,921
Measure B - - - 2,709,773 2,709,773
Measure F - - - 1,587,389 1,587,389
CDBG - - - 166,592 166,592
HOME - - - 924,565 924,565
Housing In- Lieu - - - 263,508 263,508
Business Improvement District - - - 518,107 518,107
Public Education and Government - - - 673,534 673,534
Subtotal - - - 21,252,736 21,252,736
Total Restricted Fund Balances 50,000 - 33,106,010 21,252,736 54,408,746 Assigned to:
Departmental projects 1,787,750 - - - 1,787,750
Oakland Airport Access Agreement 500,000 - - - 500,000
ACFD OPEB 7,218,203 - - - 7,218,203
Total Assigned Fund Balances 9,505,953 - - - 9,505,953
Unassigned:
General fund - Compensated Absences 869,569 - - - 869,569 General fund - Major Emergencies 5,000,000 - - - 5,000,000 General fund - Economic Uncertainty 24,640,460 - - - 24,640,460 General fund - Other 36,026,190 - - - 36,026,190
Deficit balance:
Measure BB - (3,168,991) - (32,392) (3,201,383)
Total Unassigned Fund Balances 66,536,219 (3,168,991) - (32,392) 63,334,836 Total Fund Balances $ 83,718,876 $ (3,168,991) $ 33,106,010 $ 21,651,012 $ 135,306,907 74 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 10 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Fund Deficits
At June 30, 2021, the Measure BB Special Revenue Fund, the Parking Special Revenue Fund, and the Storm Water Utility Enterprise Fund had a net position deficits of $3,168,991, $32,392, and $1,452,398, respectively.
B. Expenditures in Excess of Appropriations
Excess of expenditures over appropriations approved by the City Council occurred in individual funds during the fiscal year 2020-21 as follows:
Fund/Department Expenditure Appropriation Excess
Special Revenue Funds
Cherrywood Maintenance District $ 452 $ - $ (452)
HOME 13,986 13,664 (322)
San Leandro Public Financing Authority
Debt Service Fund 3,187,884 3,184,859 (3,025)
NOTE 11 – INSURANCE
The City provides workers’ compensation benefits under self-insurance programs. Claims outstanding, including claims incurred but not reported, are estimated and recorded as liabilities in the Self Insurance Internal Service Fund. The City’s self-insured retention limit for workers’ compensation is $250,000 per claim. The City is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX). This coverage includes a limit of $45 million for excess workers compensation, $5 million for employer’s liability, and a statutory excess layer of $50 million.
The City is a member of California Joint Powers Risk Management Authority (CJPRMA), which provides annual general liability coverage in an aggregate up to $40 million. The City is self-insured for the first $500,000 for liability losses. The City has had no settlements that exceed the self-insured retention coverage in the last five fiscal years.
The City’s deposits in the CJPRMA equal the ratio of the City’s payroll to the total payrolls of all entities participating in the same layer of each program in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Estimated claims liabilities, as shown below, are presented on a basis of actuarial value as determined by the City’s actuary, who determines the expected value of the overall claim based upon certain criteria of the claim.
The following provides a reconciliation of claims and judgments:
Current Year Claims for
Liability Claims and Payments in Liability Liability
Balance Changes in Current and Prior Balance Due in
July 1 Estimates Fiscal Years June 30 One Year
2018-2019 6,598,344 $ 2,256,449 $ (2,029,097) $ 6,825,696 $ 1,170,645 $ 2019-2020 6,825,696 3,302,409 (2,464,858) 7,663,247 1,170,645 2020-2021 7,663,247 1,304,621 (1,916,234) 7,051,634 4,233,746 75 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 12 – COMMITMENTS AND CONTINGENCIES
The City participates in several Federal and State grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time.
The City expects such amounts, if any, to be immaterial.
The City is a defendant in a number of lawsuits which have arisen in the normal course of business.
While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. As discussed in Note 11 to the Financial Statements, the City maintains a Self-Insurance Fund which has reserves of $3,941,870 at the end of June 30, 2021. These reserves are available to satisfy any future liability.
A. Sales Tax Reimbursement Agreement
The City has entered into a sales tax reimbursement agreement in order to encourage construction and improvement of property sites within the City. In return, the City is expected to make annual reimbursement payments until the full amount of assistance has been remitted or over a twenty (20) year period, whichever comes sooner. The annual cost of each reimbursement payment commitment is equal to 50% of the net sales tax generated and received by the City above a base amount of $277,000 as stipulated in the approved agreements.
For financial reporting purposes, GASB Statement No. 77 defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to GASB Statement No. 77, the substance of this sales-tax reimbursement agreement meets the definition of “tax abatements.”
Pursuant to the Sales and Use Tax law (chapter 8 – Article 1 – section 7056), in order to protect the confidential information of the sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year.
NOTE 13 – PENSIONS PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 76 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSIONS PLAN (Continued)
A. Plan Descriptions and Summary of Balances by Plan
All qualified permanent employees are eligible to participate in the City’s defined benefit pension plans:
Miscellaneous (all other) agent multiple-employer plan Safety cost-sharing multiple-employer plan
These plans are administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Below is a summary of the deferred outflows of resources, net pension liabilities, and deferred inflows of resources by Plan for the year ended June 30, 2021:
Deferred Deferred
Outflows Net Pension Inflows
of Resources Liability of Resources
Miscellaneous $ 12,983,754 $ 104,182,640 $ -
Safety 20,841,210 99,877,170 4,315,497
Total $ 33,824,964 $ 204,059,810 $ 4,315,497
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.
During the fiscal year 2019, the City adopted amendments with CalPERS that allows sharing of additional employer costs passed to the employees. The City implemented a cost sharing within the pension plans among San Leandro Police Officers' Association (SLPOA). This included SLPOA staff picking up the employers CalPERS share of 3%. These are the maximum under CalPERS law for the passing on of costs of the employer’s share. These were amendment changes to the contract between the Board of Administration California Public Employees’ Retirement System and the City as proposed changes in Section 20516 (Employees Sharing Additional Costs). Increase in employee contribution rates result in a respective decrease in employer contribution rates.
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
77 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSIONS PLAN (Continued)
Miscellaneous
Hire date
Prior to
May 6, 2010
On or after May 6,
2010 to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 to 55 50 to 55 52 to 62
Monthly benefits, as a % of eligible compensation 2.000% - 2.500% 1.426% - 2.418% 1.000% - 2.500% Required employee contribution rates 8.000% 7.000% 6.750% Required employer contribution rates, (blended) 10.967% 10.967% 10.967% Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 to 57
Monthly benefits, as a % of eligible compensation 3.000% 2.000% - 2.700% Required employee contribution rates 9.000% 13.750%
Required employer contribution rates 25.540% 13.884%
Safety
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded accrued liability (UAL). The dollar amounts are billed on a monthly basis. The City’s required contribution for the UAL in the Miscellaneous and Safety Plans were for the fiscal year ended June 30, 2021, $7,226,133 and $6,423,608 respectively.
Employees Covered – The following employees were covered by the benefit terms for the Miscellaneous Plan as of the most recent actuarial valuation date of June 30, 2019 and measurement date of June 30, 2020:
Miscellaneous
Active employees 254
Inactive employees entitled
but not yet receiving benefits 336
Inactive employees or beneficiaries
currently receiving benefits 652
Total 1,242
* All Tiers of the Miscellaneous plan were combined together on GASB 68 report by CalPERS
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. 78 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSIONS PLAN (Continued)
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2021, the contributions recognized as part of pension expense for the Plan were as follows:
Miscellaneous Safety Total
Contributions - employer $ 9,717,634 $ 9,219,375 $ 18,937,009 B. Information Common to the Miscellaneous and Safety Plans The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
All Plans
Valuation Date 6/30/2019
Measurement Date 6/30/2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth (1)
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15% (2)
Mortality Derived using CalPERS Membership Data for all Funds (3) Post Retirement Benefit Increase
Purchasing Power
Protection Allowance floor on purchasing
power applies, 2.5% thereafter
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, includes inflation (3) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 79 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSIONS PLAN (Continued)
Discount Rate – The discount rate used to measure the total pension liability for each Plan was 7.15%.
The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound geometric returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class.
New Strategic Real Return Real Return
Asset Class (a) Allocation Years 1-10 (b) Years 11+ (c) Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) In the CalPERS Comprehensive Annual Financial Report, Fixed Income is include in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% used for this period
(c) An expected inflation of 2.92% used for this period 80 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSION PLAN (Continued)
C. Miscellaneous (All Other) Agents Multiple-Employer Plan The changes in the Net Pension Liability for the City’s Miscellaneous Plan are as follows:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 $ 212,824,426 309,423,413 $ 96,598,987 $ Changes in the year:
Service cost 3,874,755 - 3,874,755
Interest on the total pension liability 21,804,805 - 21,804,805 Changes of benefit terms
Changes of assumptions
Differences between expected and actual 2,724,076 - 2,724,076 experience
Plan to plan resource movement
Contributions - employer - 8,774,417 (8,774,417)
Contributions - employees - 1,750,192 (1,750,192)
Net investment income - 10,595,404 (10,595,404)
Benefit payments, including refunds of employee
contributions (18,245,091) (18,245,091) -
Administrative expense - (300,030) 300,030
Other Miscellaneous Income/(Expense) - - -
Net changes 10,158,545 2,574,892 7,583,653
Balance at June 30, 2021 $ 319,581,958 $ 215,399,318 $ 104,182,640 D. Safety Cost-Sharing Multiple-Employer Plan
As of June 30, 2021, the Safety cost-sharing plan reported net pension liabilities for its proportionate shares of the net pension liability at $99,877,170.
The Safety Plan net pension liability is measured as the proportionate share of the net pension liability in the State-wide pool. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Safety Plan as of June 30, 2019 and 2020 was as follows:
Safety
Proportion - June 30, 2019 0.899285%
Proportion - June 30, 2020 0.917952%
Change - Increase (Decrease) 0.018667%
81 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSION PLAN (Continued)
E. Other Information
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $ 143,430,554 $ 142,947,853
Current Discount Rate 7.15% 7.15%
Net Pension Liability $ 104,182,640 $ 99,877,170
1% Increase 8.15% 8.15%
Net Pension Liability $ 71,567,822 $ 64,533,599
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the year ended June 30, 2021, the City recognized total pension expense of $14,119,300 and $13,481,844 for Miscellaneous and Safety, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Agent-Multiple Deferred Outflows Deferred Inflows
Miscellaneous of Resources of Resources
Pension contributions subsequent to measurement date $ 9,717,634 $ - Differences between actual and expected experience 1,932,094 - Changes in assumptions - -
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions - -
Net differences between projected and actual earnings
on plan investments 1,334,026 -
Total $ 12,983,754 $ -
Cost-Sharing Deferred Outflows Deferred Inflows
Safety of Resources of Resources
Pension contributions subsequent to measurement date $ 9,219,375 $ - Differences between actual and expected experience 7,744,969 - Changes in assumptions - (332,693)
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 1,706,115 (3,982,804) Net differences between projected and actual earnings
on plan investments 2,170,751 -
Total $ 20,841,210 $ (4,315,497)
82 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 13 – PENSION PLAN (Continued)
The $9,717,634 and $9,219,375 for Miscellaneous and Safety, respectively, will be reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety
Plan Plan Total
Year Ended Annual Annual Annual
June 30 Amortization Amortization Amortization
2022 641,334 $ 1,140,764 $ 1,782,098 $
2023 715,341 2,883,541 3,598,882
2024 1,045,101 2,194,365 3,239,466
2025 864,344 1,087,668 1,952,012
$ 7,306,338 3,266,120 $ 10,572,458 $
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS
OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB - For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by PARS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
A. Plan Description
The City administers a multiple-employer defined-benefit post-employment healthcare plan. Dependents are eligible to enroll, and benefits continue to surviving spouses. The plan was established by City Council in fiscal year 2009-10 and provides reimbursements to retirees for qualified expenses. Retirees who have between five and fifteen years of service and meet certain criterion based upon retirement date, household income in the most recent calendar year, and age are entitled to reimbursements for qualified expenses.
Benefits Provided - Eligibility for retiree health benefits requires retirement from the City. Retirees may receive up to $360 monthly medical and $115.74 monthly dental reimbursement prior to age 65. Some retirees may receive $200 monthly medical reimbursement from age 65 to age 70. With the exception of certain retirees who are eligible for the $200 payment as discussed, after age 65, the retirees receive the PEMHCA minimum amount only.
Amendments to benefit provisions are negotiated by various bargaining units at the City and must be approved by Council. In fiscal year 2008-09, the City established an irrevocable exclusive agent multiemployer benefit trust which is administered by Public Agency Retirement Services (PARS). The trust will be used to accumulate and invest assets necessary to reimburse retirees. No separate financial reports are issued by PARS for the OPEB plan.
83 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (Continued)
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2021:
Active employees 318
Inactives currently receiving benefit payments 293
Inactive entitled to but not yet
receiving benefit payments 208
Total 819
B. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined on actuarial valuation date that was rolled forward using standard update procedures to determine the total OPEB liability as of the measurement date, based on the following actuarial methods and assumptions:
Actuarial Assumptions June 30, 2021 Measurement Date
Valuation Date • June 30, 2019
Actuarial Cost Method • Entry Age Normal Level Percentage of Payroll Funding Policy • City contributes full Actuarial Determined Contribution Discount Rate • 5.25 %
General Inflation • 2.75% annually
Mortality, Retirement, Disability,
Termination • MCERA 1997-2015 Experience Study
Salary Increases • 3.0%
• Additional merit-based on CallPERS merit 1997 - 2015 Experience Study Healthcare Cost Trend • Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 • Medicare - 6.30% for 2021, decreasing to an ultimate rate of 4.0% in 2076 The long-term expected rate of return on OPEB plan investments (comprised of capital appreciation and reinvestment of dividends, interest, and other distributions) is determined through a combination of historical rates of returns, valuation projections, and economic expectations. The expected return is then calculated by weighting the returns for each asset class according to the exposure as determined by HighMark’s current strategic allocation. Expected returns are developed and annually reviewed. The target allocation and best estimates of real rates of return for each major asset class are summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 29.00% 4.82%
Fixed Income 65.00% 1.47%
REITs 1.00% 3.76%
Cash 5.00% 0.06%
Total 100.0%
84 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (Continued)
Discount Rate – The discount rate used to measure the total OPEB liability is 5.25%. This is the expected long-term rate of return on City assets using a Moderately Conservative Highmark PLUS fund within the Public Agency Retirement Services (PARS). The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.
C. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 Measurement Date $ 23,752,824 $ 19,149,376 $ 4,603,448 Changes Recognized for the Measurement Period:
Service Cost 868,358 - 868,358
Interest on the total OPEB liability 1,257,969 - 1,257,969 Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Employer contributions - City - 1,319,716 (1,319,716)
Employer contributions - Implicit subsidy
Net investment income - 2,700,965 (2,700,965)
Benefit payments (1,319,716) (1,319,716) -
Implicit rate subsidy fulfilled
Administrative expenses - (43,249) 43,249
Net changes 806,611 2,657,716 (1,851,105)
Balance at June 20, 2021 Measurement Date $ 24,559,435 $ 21,807,092 $ 2,752,343 Plan fiduciary net position as percentage of the total OPEB liability 88.79% D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1% (4.25%) (5.25%) (6.25%)
$ 5,970,773 $ 2,752,343 $ 97,034
85 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (Continued)
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates (6.3% in 2021, trending down to 4.0% in 2076):
Net OPEB Liability/(Asset)
1% Decrease Current Healthcare Cost 1% Increase
Trend Rates
$ (512,329) $ 2,752,343 $ 6,848,414
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $1,476,601. At June 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 1,140,543 $ - $
Differences between expected and actual experience 645,449 - Net differences between projected and actual earnings on plan investments - (1,290,507)
Total $ 1,785,992 $ (1,290,507)
The deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2022 $ 311,234
2023 247,757
2024 222,637
2025 (286,143)
Total $ 495,485
NOTE 15 – JOINTLY GOVERNED ORGANIZATIONS
The City of San Leandro participates in the East Bay Dischargers Authority established on February 15, 1974. The Agency Members of the Joint Powers are the City of Hayward, City of San Leandro, Oro Loma Sanitary District, Castro Valley Sanitary District, and Union Sanity District. The authority has the powers to plan for, acquire, construct, manage, maintain, operate, and control facilities for the collection, transmission, treatment, reclamation, sale and disposal of waste water. No debt, liability, or obligation of the Authority shall constitute a debt, liability or obligation of any Agency. 86 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 15 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
The Authority is governed by the East Bay Dischargers Commission (Commission). The Commission consists of five members, one from each Agency. The ownership of the Joint Facilities is as follows:
13.74%, City of San Leandro; 29.44% Oro Loma/Castro Valley; 14.72% City of Hayward; and 42.10% Union Sanitary District. The City’s share of the expenses are recorded as expenses of the Water Pollution Control Fund.
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES
A. Cash and Investments
Cash and Investments at June 30, 2021, consisted of the following:
Statement of net position:
Cash and Investments $ 3,244,064
Cash and Investments held by fiscal agents 21
Total cash and investments $ 3,244,085
The Successor Agency pools its cash and investment with the City in order to achieve a higher return on investment. Certain restricted funds, which are held and invested by independent custodians through contractual agreements, are not pooled. These restricted funds include cash with fiscal agents.
B. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets.
The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.
87 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued)
Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the balance sheet as a reduction in the book value of capital assets.
Balance Balance
June 30, 2020 Additions June 30, 2021
Non-depreciable Assets:
Land $ 706,376 $ - $ 706,376
Depreciable Assets:
Buildings and Improvements 711,792 - 711,792
Total Depreciable Assets 711,792 - 711,792
Accumulated Depreciation:
Buildings and Improvements (298,988) (11,678) (310,666) Total Accumulated Depreciation (298,988) (11,678) (310,666) Depreciable Assets, Net 412,804 (11,678) 401,126
Total Private Purpose
Trust Fund Activity
Capital Assets, Net $ 1,119,180 $ (11,678) $ 1,107,502
C. Long-Term Debt Obligations
At June 30, 2021, future debt service requirements for the Successor Agency were as follows:
Balance Balance Current Long-Term
June 30, 2020 Retirements June 30, 2021 Portion Portion 2013 Refunding Lease Revenue Bonds
Successor Agency Portion $ 1,747,000 $ (224,000) $ 1,523,000 $ 234,000 $ 1,289,000 2014 Tax Allocation Refunding Bonds
Successor Agency Portion 10,830,000 (485,000) 10,345,000 675,000 9,670,000 2018 Tax Allocation Refunding Bonds, Series A
Successor Agency Portion 16,845,000 - 16,845,000 - 16,845,000 2018 Tax Allocation Refunding Bonds, Series B
Successor Agency Portion 1,580,000 (650,000) 930,000 670,000 260,000 Direct Borrowings:
Owner Participation Agreements 533,530 (119,360) 414,170 - 414,170 Total 31,535,530 (1,478,360) 30,057,170 1,579,000 28,478,170 Plus (Less) unamortized:
Premium (2013 LRB) 57,800 (8,562) 49,238 8,562 40,676
Premium (2014 TARB) 1,184,125 (81,664) 1,102,461 81,664 1,020,797 Premium (2018 TARB) 1,637,183 (86,168) 1,551,015 86,168 1,464,847 Total Debt $ 34,414,638 $ (1,654,754) $ 32,759,884 $ 1,755,394 $ 31,004,490 88 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued)
2013 Refunding Lease Revenue Bonds
In 2013, the City issued $11,995,000 principal amount of 2013 Refunding Lease Revenue Bonds (2013 RLRB) was issued. The purpose of the 2013 RLRBs was to refund the 2003 COPs and 2001 COPs. The 2013 RLRBs bear interest rates ranging from 2.0% to 5.00% and are payable semiannually on each June 1 and December 1. Principal payments are payable annually on December 1.
At June 30, 2021, future debt service requirements for the Successor Agency’s portion of the 2013 Refunding Lease Revenue Bonds were as follows:
For The Year
Ending June 30 Principal Interest Total
2022 234,000 $ 54,190 $ 288,190 $
2023 240,000 44,710 284,710
2024 249,000 35,864 284,864
2025 258,000 27,464 285,464
2026 266,000 18,455 284,455
2027 276,000 6,900 282,900
$ 187,583 1,523,000 $ $ 1,710,583
2014 Tax Allocation Refunding Bonds
On September 30, 2014, the Successor Agency issued $11,235,000 of Tax Allocation Bonds (2014 TABs) to prepay the 2002 and 2004 Tax Allocation Bonds and to pay issuance costs. The 2014 TABs are payable and secured by a pledge of tax revenues from tax increment generated in the Plaza Project Area and the West San Leandro/MacArthur Boulevard Project Area. The 2014 TABs bear interest rates ranging from
3.5% to 5.00% and are payable semiannually on each Marsh 1st and September 1st. Principal payments are payable on September 1st.
Proceeds were deposited in an irrevocable trust with an escrow agent to provide funds to fully redeem, on October 30, 2014, the principal and accrued interest of the 2002 and 2004 Tax Allocation Bonds. As a result, the 2002 and 2004 Tax Allocation Bonds are considered redeemed (current refunding) and the liability for those bonds has been removed from the statement of fiduciary net position.
89 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued)
At June 30, 2021, future debt service requirements for the 2014 Tax Allocation Refunding Bonds are as follows:
For The Year
Ending June 30 Principal Interest Total
2022 $ 675,000 $ 476,450 $ 1,151,450
2023 720,000 441,575 1,161,575
2024 740,000 405,075 1,145,075
2025 765,000 367,450 1,132,450
2026 785,000 328,700 1,113,700
2027 - 2031 4,235,000 1,026,750 5,261,750
2032 - 2035 2,425,000 144,038 2,569,038
$ 10,345,000 $ 3,190,038 $ 13,535,038
2018 Tax Allocation Refunding Bonds Series A
On May 8, 2018, the Successor Agency issued Tax Allocation Refunding Bonds (2018A TABs) in the amount of $16,845,000. The proceeds of the bonds will be used to refund the 2008 Tax Allocation Bonds, Series 2008. Principal payments of the 2018A TABs are due annually on September from 2023 to 2039 in amounts ranging from $430,000 to $1,370,000 and bear interest at rates ranging from 3.375% to 5.000%.
Interest is payable semiannually March 1 and September 1. The Bonds are payable solely from tax increment revenue generated in the Alameda County – City of San Leandro Redevelopment Project Area.
Total principal and interest remaining to be paid on the Bonds was $24,560,636 as of June 30, 2021.
The bonds were issued at a premium of $1,809,519 which is being amortized over the 21-year life of the bonds resulting in an annual amortization of $86,168.
On the date of issuance of the 2018A TABs, the Successor Agency deposited into the reserve account for the 2018A TABs a municipal bond debt service insurance policy in the amount of $1,431,438, which is equal to the “Reserve Requirement” for the 2018A TABs.
Proceeds from the 2018A TABs were deposited in an irrevocable trust with an escrow agent to provide funds to fully redeem, on June 5, 2018, the outstanding principal and accrued interest of the 2008 Tax Allocation Bonds.
90 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued)
At June 30, 2021, future debt service requirements for the 2018 Tax Allocation Refunding Bonds Series A are as follows:
For The Year
Ending June 30 Principal Interest Total
2022 - $ $ 718,888 $ 718,888
2023 430,000 710,288 1,140,288
2024 710,000 687,488 1,397,488
2025 740,000 654,788 1,394,788
2026 775,000 616,912 1,391,912
2027 - 2031 4,510,000 2,446,438 6,956,438
2032 - 2036 5,700,000 1,308,589 7,008,589
2037 - 2039 3,980,000 212,806 4,192,806
$ 16,845,000 $ 7,356,197 $ 24,201,197
2018 Tax Allocation Refunding Bonds Series B
On May 8, 2018, the Successor Agency issued Tax Allocation Refunding Bonds (2018B TABs) in the amount of $2,215,000. The proceeds of the bonds will be used to refund the 2008 Tax Allocation Bonds, Series 2008. The bonds mature annually each March and September from 2019 to 2022 in amounts ranging from $260,000 to $670,000 and bear interest at rates ranging from 2.700% to 3.210%. Interest is payable semiannually March 1 and September 1. The Bonds are payable solely from tax increment revenue generated in the Alameda County – City of San Leandro Redevelopment Project Area. Total principal and interest remaining to be paid on the Bonds was $952,904 as of June 30, 2021.
Proceeds from the 2018B TABs were deposited in an irrevocable trust with an escrow agent to provide funds to fully redeem, on June 5, 2018, the principal and accrued interest of the 2008 Tax Allocation Bonds.
At June 30, 2021, future debt service requirements for the 2018 Tax Allocation Refunding Bonds Series B are as follows:
For The Year
Ending June 30 Principal Interest Total
2022 $ 670,000 $ 18,731 $ 688,731
2023 260,000 4,173 264,173
$ 930,000 $ 22,904 $ 952,904
91 CITY OF SAN LEANDRO
NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued)
Direct Borrowings
The Agency entered into the following agreements which represent contingency liabilities for the Agency:
Ford Motor Company Owner Participation Agreement
The agreement required the Agency to make annual payment equivalent to 50% of the sales tax generated above a base of $277,000 by the sale of vehicles as part of the Ford Store San Leandro development. The amount due is paid over several years depending on the volume of auto sales at no interest.
NOTE 17 – SUBSEQUENT EVENT
Reduction of CalPERS Discount Rate
In July 2021, CalPERS reported a preliminary 21.3% net return on investments for the 12-month period that ended June 30, 2021. Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of Administration in 2015, the 21.3% net return will trigger a reduction in the discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA) member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS funding risk over time, in which CalPERS investment performance that significantly outperforms the discount rate will trigger adjustments to the discount rate, expected investment return, and strategic asset allocation targets. This is the first time it has been triggered. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%.
Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of the overall Public Employees Retirement Fund (PERF) is an estimated 82%. This estimate is based on a 7% discount rate. Under the new 6.8% discount rate, however, CalPERS indicated the funded status of the overall PERF drops to 80%. This is because existing assets are assumed to grow at a slightly slower rate annually into the future. As intended under the Funding Risk Mitigation Policy, the lower discount rate increases the likelihood that CalPERS can reach its target over the longer term. The CalPERS Board of Administration will continue to review the discount rate through its Asset Liability Management process during the rest of the calendar year.
92 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
City of San Leandro
Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan As of June 30,
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last 10 Years*
Measurement Date 2014 2015 2016 2017 2018 2019 2020
Total Pension Liability
Service Cost $ 3,921,445 $ 3,570,669 $ 3,522,248 $ 4,044,169 $ 4,095,987 $ 4,005,467 $ 3,874,755 Differences between expected and actual
experience - (8,034,544) 593,697 (1,248,019) (596,425) 4,908,580 2,724,076 Changes in assumptions - (4,335,946) - 15,476,760 (1,768,314) - - Interest 18,796,998 18,867,111 19,495,753 19,808,061 20,204,782 21,089,806 21,804,805 Benefit payments, including refunds of
employee contributions (13,777,288) (14,563,306) (15,016,152) (15,620,511) (16,309,242) (17,262,935) (18,245,091) Net change in total pension liability 8,941,155 (4,496,016) 8,595,546 22,460,460 5,626,788 12,740,918 10,158,545 Total pension liability - beginning 255,554,562 264,495,717 259,999,701 268,595,247 291,055,707 296,682,495 309,423,413 Total pension liability - ending (a) $ 259,999,701 264,495,717 $ 268,595,247 $ $ 291,055,707 $ 296,682,495 $ 309,423,413 $ 319,581,958 Plan fiduciary net position
Contributions - employer $ 4,594,523 $ 5,043,060 $ 5,638,865 $ 6,399,288 $ 6,873,684 $ 7,676,172 $ 8,774,417 Contributions - employee 2,010,061 1,672,356 1,618,186 1,695,139 1,762,858 1,826,595 1,750,192 Net investment income 29,807,971 4,385,312 994,580 20,564,284 16,783,894 13,606,328 10,595,404 Benefit payments, including refunds of
employee contributions (13,777,288) (14,563,306) (15,016,152) (15,620,511) (16,309,242) (17,262,935) (18,245,091) Plan to Plan Resource Movement - (572) - - (1,934) - -
Administrative Expense - (217,263) (117,644) (274,840) (309,964) (147,809) (300,030) Other Miscellaneous Income/(Expense) - - - - (588,627) 483 - Net change in plan fiduciary net position 22,635,267 (3,680,413) (6,882,165) 12,763,360 8,210,669 5,698,834 2,574,892 Plan fiduciary net position - beginning 174,078,874 196,714,141 193,033,728 186,151,563 198,914,923 207,125,592 212,824,426 Plan fiduciary net position - ending (b) $ 196,714,141 $ 193,033,728 $ 186,151,563 $ 198,914,923 $ 207,125,592 $ 212,824,426 $ 215,399,318 Net pension liability - ending (a)-(b) $ 67,781,576 $ 66,965,973 $ 82,443,684 $ 92,140,784 $ 89,556,903 $ 96,598,987 $ 104,182,640 Plan fiduciary net position as a percentage of
the total pension liability 25.63% 25.76% 30.69% 31.66% 30.19% 31.22% 32.60% Covered payroll $ 20,167,441 $ 19,979,507 $ 21,037,041 $ 21,903,698 $ 22,864,060 $ 22,638,587 $ 23,100,009 Plan fiduciary net position as a percentage of covered
payroll 336.09% 335.17% 391.90% 420.66% 391.69% 426.70% 451.01% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.
Changes in assumptions - Changes in assumptions - In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, 2018, 2019, and 2020, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Benefit changes - The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 94 CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
City of San Leandro
Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan As of fiscal year ending June 30,
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Fiscal Year 2015 2016 2017 2018 2019 2020 2021
Actuarially determined contribution $ 5,043,060 $ 5,638,865 $ 6,387,063 $ 6,873,205 $ 7,688,583 $ 8,747,418 $ 9,717,634 Contributions in relation to the actuarially
determined contributions (5,043,060) (5,638,865) (6,387,063) (6,873,205) (7,688,583) (8,747,418) (9,717,634) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 19,979,507 $ 21,037,041 $ 21,903,698 $ 22,864,060 $ 22,638,587 $ 23,100,009 $ 22,919,363 Contributions as a percentage of covered payroll 25.24% 26.80% 29.16% 30.06% 33.96% 37.87% 42.40% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assumptions used to determine contribution rates:
Entry age normal
Level percentage of payroll
Market Value of Assets
2.75% for 2015 to 2019, 2.625% for 2020, and 2.50% for 2021.
Varies by entry age and service
2.75%
Mortality
Salary increases
Payroll growth
Investment rate of return
Inflation
Actuarial cost method
Amortization method
Retirement age
Asset valuation method
The probabilities of retirement are based on the CalPERS Experience Study.
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00% for 2021, net of pension plan investment expense and administrative expenses, includes inflation The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Postretirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, and 2021, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
95 CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
City of San Leandro
Cost-Sharing Multiple-Employer Defined Pension Plan - Safety Plan
SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AND RELATED RATIOS AS OF THE MEASUREMENT DATE
Last 10 Years*
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Plan's proportion of the Net Pension Liability (Asset) 0.77754% 0.84138% 0.85648% 0.85168% 0.88976% 0.89929% 0.91795% Plan's proportion share of the Net Pension Liability
(Asset) $ 57,751,630 48,381,880 $ 74,111,802 $ 84,462,824 $ 85,739,175 $ 92,150,076 $ 99,870,170 $ Plan's Covered Payroll $ 10,794,582 10,789,007 $ 11,439,904 $ 11,316,753 $ 12,841,859 $ 13,169,196 $ 13,692,447 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered Payroll 450.15% 535.01% 647.84% 746.35% 667.65% 699.74% 729.38% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 79.82% 78.40% 74.06% 73.31% 75.26% 75.26% 75.10% * - Fiscal year 2015 was the 1st year of implementation. 96 CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
City of San Leandro
Cost-Sharing Multiple Employer Defined Pension Plan - Safety Plan For the Fiscal Year Ended June 30,
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Fiscal Year 2015 2016 2017 2018 2019 2020 2021
Actuarially determined contribution $ 5,482,854 2,992,821 $ $ 5,233,646 $ 6,062,560 $ 7,027,678 $ 8,187,368 $ 9,219,375 Contributions in relation to the actuarially
determined contributions (2,992,821) (5,482,854) (5,233,646) (6,062,560) (7,027,678) (8,187,368) (9,219,375) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 10,794,582 $ 11,439,904 $ 11,316,753 $ 12,841,859 $ 13,169,196 $ 13,692,447 $ 13,470,710 Contributions as a percentage of covered
payroll 27.73% 47.93% 46.25% 47.21% 53.36% 59.79% 68.44% * - Fiscal year 2015 was the 1st year of implementation. 97 CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
City of San Leandro
Other Postemployment Benefits Plan - Multiple Employer Plan Schedule of Changes in the
Net OPEB Liability and Related Ratios
Last Ten Fiscal Years (1)
For the Measurement Period Ended June 30 2017 2018 2019 2020 2021 Total OPEB Liability
Service Cost $ 673,551 709,979 $ 692,916 $ 843,066 $ 868,358 $ Interest 1,027,370 1,054,962 1,067,353 1,216,539 1,257,969 Changes of benefit terms - - - - -
Differences between expected and actual experience - - - 1,270,076.00 - Changes of assumptions - 440,394 1,975,353 - -
Implicit rate subsidy fulfilled - (733,837) - - -
Benefit Payments (802,834) (1,508,460) (1,271,770) (1,319,716) (1,538,260) Net change in Total OPEB Liability 199,089 632,236 3,497,238 787,835 806,611 Total OPEB Liability at beginning of year 18,835,515 18,636,426 19,467,751 22,964,989 23,752,824 Total OPEB Liability at end of year $ 19,467,751 18,835,515 $ 22,964,989 $ 23,752,824 $ 24,559,435 $ Plan Fiduciary Net Position
Contributions - employer $ 8,488,260 $ 1,552,834 $2,508,460 2,771,770 $ $ 1,319,716 Contributions - employer for implicit subsidy - 733,837 - - - Contributions - member - - - - -
Net investment income 640,483 528,900 1,047,583 801,925 2,700,965 Benefit payments (802,834) (1,508,460) (1,271,770) (1,319,716) (1,538,260) Implicit subsidy fulfilled - (733,837) - - -
Administrative expenses (67,811) (36,472) (40,057) (43,249) (40,605) Net change in Plan Fiduciary Net Position 7,549,878 1,211,089 2,011,111 2,261,868 2,657,716 Plan Fiduciary Net Position at beginning of year 6,115,430 13,665,308 14,876,397 16,887,508 19,149,376 Plan Fiduciary Net Position at end of year $ 14,876,397 13,665,308 $ 16,887,508 $ 19,149,376 $ 21,807,092 $ Authority's Net OPEB Liability (Asset) at end of year $ 5,170,207 $ 4,591,354 $ 6,077,481 $ 4,603,448 $ 2,752,343 Plan's Fiduciary Net Position as percentage of Total OPEB Liability 72.6% 76.4% 73.5% 80.6% 88.8%
Covered employee payroll $34,267,955 $33,357,709 $42,275,248 $41,120,591 $41,613,491 Net OPEB Liability as percentage of covered payroll 15.09% 13.76% 14.38% 11.19% 6.61% Notes:
(1) Fiscal year 2018 was the first year of implementation for GASB 75 98 CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
Other Postemployment Benefits - Multiple-Employer Plan
Schedule of Contributions
Last Ten Fiscal Years (1)
Fiscal Year Ended June 30, 2017 2018 2019 2020 2021
Actuarially determined contribution $ 1,121,087 892,618 $ 1,027,403 $ 1,359,000 $ 1,405,000 $ Contributions in relation to the
actuarially determined contribution (7,788,327) (2,286,671) (2,508,460) (2,771,770) (1,319,716) Contribution deficiency (excess) $ (6,895,709) $ (1,165,584) $ (1,481,057) $ (1,412,770) $ 85,284 Covered-employee payroll $ 34,267,955 $ 33,357,709 $ 42,275,248 $ 41,120,591 $ 41,613,491 Contributions as a percentage of
covered-employee payroll 22.73% 6.86% 5.93% 6.74% 3.17% Notes:
(1) Fiscal year 2018 was the first year of implementation for GASB 75 99 City of San Leandro
Required Supplementary Information
For the year ended June 30, 2021
BUDGETS AND BUDGETARY ACCOUNTING
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
Variance with
Budgeted Amounts Final Budget
Positive
Adopted Final Actual (Negative)
REVENUES:
Property taxes and other taxes $ 96,348,209 $ 97,105,704 $ 107,278,144 $ 10,172,440 Licenses and permits 10,612,800 10,348,144 9,448,803 (899,341) Fines and forfeitures 1,596,457 1,346,883 1,229,094 (117,789) Services charges 3,156,463 1,296,500 1,293,520 (2,980)
Intergovernmental 774,025 1,899,025 2,356,438 457,413
Use of money and property 1,531,506 2,817,600 1,441,002 (1,376,598) Interdepartmental charges 2,000,000 2,000,000 2,001,068 1,068 Other 2,026,000 661,881 339,000 322,881
Total revenues 117,152,856 118,045,460 125,709,950 8,557,094 EXPENDITURES:
Current:
General government 17,255,580 14,745,469 13,444,406 (1,301,063) Public safety 68,515,900 65,236,510 68,119,126 2,882,616 Engineering and transportation 11,233,785 10,216,409 11,558,113 1,341,704 Recreation and culture 11,441,961 9,751,091 11,799,757 2,048,666 Community development 6,552,189 6,417,240 8,302,244 1,885,004 Debt service:
Principal 2,697,471 2,161,915 2,697,471 535,556
Interest and fees 605,712 605,712 605,712 -
Total expenditures 116,526,829 118,302,598 109,134,346 7,392,483
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 626,027 (257,138) 16,575,604 15,949,577 OTHER FINANCING SOURCES (USES):
Transfers in - 4,917,823 4,917,823 -
Transfers (out) (5,350,000) (3,510,000) (3,510,000) -
Proceeds from the sale of property - - 1,221,097 1,221,097 Total other financing sources (uses) (5,350,000) 1,407,823 2,628,920 1,221,097 NET CHANGE IN FUND BALANCE $ (5,607,138) $ 2,033,850 19,204,524 $ 17,170,674 FUND BALANCES:
Beginning of year 64,514,352
End of year $ 83,718,876
100
City of San Leandro
Required Supplementary Information
For the year ended June 30, 2021
BUDGETS AND BUDGETARY ACCOUNTING
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure BB Special Revenue Fund
Variance with
Budgeted Amounts Final Budget
Positive
Adopted Budget Actual (Negative)
REVENUES:
Intergovernmental 8,684,000 $ 6,535,379 $ 2,204,491 $ (4,330,888) $ Use of money and property - 5,000 43,435 38,435
Other - - 83,600 83,600
Total revenues 8,684,000 6,540,379 2,331,526 (4,208,853) EXPENDITURES:
Current:
Engineering and transportation 8,520,000 22,348,109 5,874,380 16,473,729 Total expenditures 8,520,000 22,348,109 5,874,380 16,473,729 NET CHANGE IN FUND BALANCES $ 164,000 $ (15,807,730) (3,542,854) 12,264,876 $ FUND BALANCES:
Beginning of year 373,863
End of year $ (3,168,991)
101
CITY OF SAN LEANDRO
Notes to Required Supplementary Information
For the year ended June 30, 2021
Budgets and Budgetary Accounting
The City adopts a biennial budget annually for all governmental fund types. This budget is effective July 1 through June 30 for each of the ensuing fiscal years. The second year of the biennial budget is amended during the mid-biennial budget cycle process. From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts between departments and line items within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Transfers between funds must be approved by the City Council. All appropriations lapse at year-end, unless otherwise authorized by the City Council and the City Manager, except for capital improvement funds for which appropriations may be carried over for not more than five (5) fiscal years as per the City of San Leandro Charter, Section 520. The City did not budget Proposition 1B – Local Streets and Roads Fund and Housing In Lieu Fund.
Annual budgets are adopted on a basis consistent with generally accepted accounting principles except for capital projects funds, which are adopted on a project length basis, which means budgets, are used until the project’s completion, not to exceed five fiscal years, for the entire project amount.
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end are carried over to the next fiscal year as part of that year’s budget resolution.
GAAP serves as the budgetary basis of accounting.
102
SUPPLEMENTARY INFORMATION
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Major Governmental Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Service charges $ 70,500 $ 14,641 $ (55,859)
Use of money and property 100 6 (94)
Total revenues 70,600 14,647 (55,953)
EXPENDITURES:
Current:
Engineering and transportation 13,936,286 1,304,167 12,632,119 Recreation and culture 2,500,000 - 2,500,000
Community development 26,884,145 8,517,038 18,367,107
Total expenditures 43,320,431 9,821,205 33,499,226
REVENUES OVER (UNDER) EXPENDITURES (43,249,831) (9,806,558) 33,443,273 OTHER FINANCING SOURCES (USES):
Transfer in 3,460,000 3,460,000 -
Transfer out (4,917,823) (4,917,823) -
NET CHANGE IN FUND BALANCES $ (44,707,654) (11,264,381) $ 33,443,273 FUND BALANCES:
Beginning of year 44,370,391
End of year $ 33,106,010
Capital Improvement Capital Projects Fund
104
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Affordable Housing Asset Fund – This fund accounts for assets received from affordable housing activities from the former Redevelopment Agency’s Low/Moderate Housing Fund and acts as its Successor Agency.
Street/Traffic Improvements – This fund accounts for development fee assessments levied to provide for partial funding of street and traffic improvements associated with commercial and residential growth.
Park Development Fee – This fund accounts for park development fee assessments levied to provide for partial funding for park development needs associated with residential growth.
Underground Utilities Fees – This fund accounts for utility conversion project assessments levied to provide for the placement of overhead facilities underground. Assessment shall be expended only for expansion of, maintenance of or construction of Underground Utility Districts and facilities.
Parking – This fund accounts for parking meter and parking lot collections for maintenance of downtown parking facilities and other public parking locations.
Special Gas Tax – This fund accounts for revenues and expenditures received from the State of California under Street and Highways Code. The allocations must be spent for street maintenance and construction and a limited amount for engineering.
Cherrywood Maintenance District – This fund is used to account for the special assessment funding for the on-going maintenance of public facilities at the Cherrywood development.
Measure B Paratransit – This fund accounts for the City’s share of proceeds of a one-half cent sales tax increase originally approved by the voters in November 1986. The program is administered by the Alameda County Transportation Authority. The tax provides funds for AC transit and paratransit operations.
Asset Seizure – This fund accounts for funds received from asset forfeiture and used for public safety purposes.
Heron Bay – This fund accounts for maintenance assessments to fund ongoing maintenance of wetlands impacted by residential growth.
Proposition IB Local Streets & Roads – This fund accounts for Proposition IB funds for safety improvements and repairs to local streets and roads.
Special Grants – This fund accounts for various grants from the State of California and the Federal Government to be expended for a specific purpose, activity or facility.
Measure B – This fund accounts for the City's share of proceeds on a one-half cent sales tax increase originally approved by the voters in November 1986. The program is administered by the Alameda County Transportation Authority. The tax provides funds for eight specific projects within Alameda County including major freeway improvements and a major rail extension. 105
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE FUNDS (Continued)
Measure F – This fund accounts for the City's share of proceeds on a $10 increase in Vehicle Registration fees originally approved by the voters in November 2010. The program is administered by the Alameda County Transportation Authority. The tax provides funds for projects to reduce traffic congestion and vehicle related pollution.
C.D.B.G. – This fund accounts for federally funded grants through the Community Development Block Grant Program from the U.S. Department of Housing and Urban Development.
HOME – This fund accounts for federally funded grants from the U.S. Department of Housing and Urban Development to provide for community housing renovation programs.
Housing In-Lieu – This fund accounts for Housing In-Lieu assessments levied to provide for partial funding of low/moderate housing projects.
Business Improvement District – This fund accounts for service fees charged to business owners to provide a shuttle service from BART to the downtown business district.
Public Education & Government (PEG) Fund – This fund accounts for the Digital Infrastructure and Video Competition Act (DIVCA) of 2006, collecting 1% of gross revenues from state franchise holders.
The fund accounts for user fees charged to cable television customers to provide public education on government programs.
DEBT SERVICE FUND
Special Assessment District – This fund accumulates monies for payments of special assessment bonds which are financed by assessments placed on the Alameda County tax roll.
San Leandro Public Financing Authority Debt Service Fund – This fund accounts for the Certificates of Participation issued for the library and fire stations seismic retrofit. These Certificates of Participation were refunded by the issuance of the 2016 Lease Revenue Bonds. The debt will be paid back pursuant to lease agreements between the City of San Leandro and the San Leandro Public Finance Authority.
CAPITAL PROJECTS FUNDS
San Leandro Hillside Geological Hazardous Abatement District (GHAD) – This fund is used to account for the finances of the collaborative between the City of San Leandro and the Geological Hazardous Abatement.
106
City of San Leandro
Combining Balance Sheet
Non-Major Governmental Funds
Special Revenue Funds
Affordable Park Underground
Housing Street/ Traffic Development Utility
Asset Fund Improvements Fee Fee
Cash and investments 1,948,466 $ $ 1,942,431 $ 1,398,261 $ 3,115,958 Receivables:
Accounts 2,644 - - -
Federal, State, and local grants - - - -
Interest 4,994 4,942 1,949 7,973
Special assessments - - - -
Loans 646,985 - - -
Prepaids - - - -
Property held for resale 382,668 - - -
Total Assets $ 2,985,757 $ 1,947,373 $ 1,400,210 $ 3,123,931 Accounts payable $ 744 $ 7,712 $ - $ -
Due to other funds - - - -
Total Liabilities 744 7,712 - -
Unavailable revenue - grants receivable - - - -
Total Deferred Inflow of resources - - - -
Fund Balances:
Nonspendable 382,668 - - -
Restricted 2,602,345 1,939,661 3,123,931 1,400,210
Unassigned - - - -
Total Fund Balances 2,985,013 1,939,661 1,400,210 3,123,931 Total Liabilities, Deferred Inflow of
Resources and Fund Balances $ 2,985,757 $ 1,947,373 $ 1,400,210 $ 3,123,931 (Continued)
DEFERRED INFLOW OF RESOURCES
June 30, 2021
ASSETS
LIABILITIES
108
Special Revenue Funds
Cherrywood Proposition IB
Special Maintenance Measure B Asset Local Streets
Parking Gas Tax District Paratransit Seizure Heron Bay & Roads $ 1,933,143 56,137 $ 490,150 $ 482,204 $ 1,103,215 $ 499,046 $ 14,093 $ 297,049 11,371 - 74,377 - 493 - - - - - - - -
512 3,318 1,188 742 3,477 1,985 37
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
$ 68,020 $ 2,233,510 $ 491,338 $ 557,323 $ 1,106,692 $ 501,524 $ 14,130 $ 100,412 $ 116,190 $ - $ 8,497 $ 2,500 $ 46,747 $ -
- 528,732 - - - - -
100,412 644,922 - 8,497 2,500 46,747 -
- - - - - - -
- - - - - - -
- - - - - - -
- 1,588,588 491,338 548,826 1,104,192 454,777 14,130
(32,392) - - - - - -
(32,392) 1,588,588 491,338 548,826 1,104,192 454,777 14,130 $ 68,020 $ 2,233,510 $ 491,338 $ 557,323 $ 1,106,692 $ 501,524 $ 14,130 (Continued)
109
City of San Leandro
Combining Balance Sheet
Non-Major Governmental Funds
Special Revenue Funds
Special
Grants Measure B Measure F C.D.B.G.
Cash and investments 645,611 $ 2,304,621 $ 1,502,010 $ - $ Receivables:
Accounts 89,743 9,541 82,645 405,768
Federal, State, and local grants 3,006,992 411,338 - -
Interest - 3,708 2,734 -
Special assessments - - - -
Loans - - - -
Prepaids 48,000 - - -
Property held for resale - - - -
Total Assets $ 3,790,346 $ 2,729,208 $ 1,587,389 $ 405,768 Accounts payable $ 122,293 $ 19,435 $ - $ 178,389
Due to other funds - - - 60,787
Total Liabilities 122,293 19,435 - 239,176
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - grants receivable 2,916,132 - - - Total Deferred Inflow of resources 2,916,132 - - -
Fund Balances:
Nonspendable 48,000 - - -
Restricted 2,709,773 703,921 1,587,389 166,592
Unassigned - - - -
Total Fund Balances 751,921 2,709,773 1,587,389 166,592 Total Liabilities, Deferred Inflow of
Resources and Fund Balances $ 3,790,346 $ 2,729,208 $ 1,587,389 $ 405,768 (Continued)
ASSETS
LIABILITIES
June 30, 2021
110
Capital Projects
Special Revenue Funds Debt Service Funds Fund
Total
Business Public Special San Leandro Non-Major
Housing Improvement Education and Assessment Public Financing Governmental HOME In-Lieu District Government District Authority GHAD Funds 922,847$ 262,810$ 313,141$ 630,000$ 121$ 423,606$ 13,622$ $20,001,493 - - 204,286 40,647 - - - 1,218,564
- - - - - - - 3,418,330
1,718 698 584 2,887 - - - 43,446
- - 96 - - - - 96 - - - - - - - 646,985
- - - - - - - 48,000
- - - - - - - 382,668
$ 924,565 $ 263,508 $ 518,107 $ 673,534 $ 121 $ 423,606 $ 13,622 $ 25,759,582 $ - $ - $ - $ - $ - $ - $ 602,919$ -
- - - - - - - 589,519
- - - - - - - 1,192,438
- - - - - - - 2,916,132
- - - - - - - 2,916,132
- - - - - - - 430,668
924,565 263,508 518,107 673,534 121 423,606 13,622 21,252,736 - - - - - - - (32,392)
924,565 263,508 518,107 673,534 121 423,606 13,622 21,651,012 $ 924,565 $ 263,508 $ 518,107 $ 673,534 $ 121 $ 423,606 $ 13,622 $ 25,759,582 111
City of San Leandro
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Special Revenue Funds
Affordable Park Underground
Housing Street/Traffic Development Utility
Asset Fund Improvements Fee Fee
REVENUES:
Property and other taxes - $ $ - $ - $ -
Licenses and permits - 43,983 - -
Service charges - - - 118,212
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 513,112 8,302 16,587 10,200
Other 15,000 - 159,945 -
Total Revenues 528,112 52,285 176,532 128,412
EXPENDITURES:
Current:
Public safety - - - -
Engineering and transportation - 96,949 - 30,786
Recreation and culture - - 17,951 -
Community development 4,486 - - -
Debt service:
Principal - - - -
Interest and fees - - - -
Total Expenditures 4,486 96,949 17,951 30,786
REVENUES OVER
(UNDER) EXPENDITURES (44,664) 523,626 158,581 97,626
OTHER FINANCING SOURCES:
Transfer in - - - -
Transfer out - - - -
Total Other Financing Sources - - - -
NET CHANGE IN FUND BALANCES 523,626 (44,664) 158,581 97,626 FUND BALANCES:
Beginning of year 2,461,387 1,984,325 1,241,629 3,026,305 End of year $ 2,985,013 $ 1,939,661 $ 3,123,931 1,400,210 $ (Continued)
112
Special Revenue Funds
Cherrywood Proposition IB
Special Maintenance Measure B Asset Local Streets
Parking Gas Tax District Paratransit Seizure Heron Bay & Roads $ - $ - $ 27,134 $ - $ - 307,383 $ $ -
- 161,829 - - - - -
- - - - - - -
109,367 - - - - - -
- 3,536,769 - 365,184 1,321 - -
(260) 13,280 1,797 6,281 79 (403) 37 - 169 - - - - -
270,936 3,550,218 28,931 371,465 1,400 306,980 37
- - - - 310,767 - -
569,753 2,692,636 452 413,344 - 670,035 -
- - - - - - -
- - - - - - -
- - - - - - - - - - - - 3,400 -
569,753 2,692,636 452 413,344 310,767 673,435 -
(298,817) 857,582 28,479 (41,879) (309,367) (366,455) 37 - - - - - - - - (176,512) - - - - - - (176,512) - - - - -
(298,817) 681,070 28,479 (41,879) (309,367) (366,455) 37 266,425 907,518 462,859 590,705 1,413,559 821,232 14,093 $ (32,392) $ 1,588,588 $ 491,338 $ 548,826 $ 1,104,192 $ 454,777 $ 14,130 (Continued)
113
City of San Leandro
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Special Revenue Funds
Special
Grants Measure B Measure F C.D.B.G.
REVENUES:
Property and other taxes - $ $ - $ - $ -
Licenses and permits - - - -
Service charges - - - -
Fines and forfeitures - - - -
Intergovernmental 1,088,143 2,019,638 484,708 1,966,735 Use of money and property 17,255 21,709 8,901 -
Other - 3,995 - -
Total Revenues 1,105,398 2,045,342 493,609 1,966,735
EXPENDITURES:
Current:
Public safety 102,232 - - -
Engineering and transportation 1,371,443 637,522 28,700 - Recreation and culture 300,337 - - -
Community development - 124,838 - 1,688,386
Debt service:
Principal - - - 132,000
Interest and fees - - - 50,972
Total Expenditures 1,164,929 1,371,443 28,700 1,871,358
REVENUES OVER
(UNDER) EXPENDITURES 673,899 (59,531) 464,909 95,377
OTHER FINANCING SOURCES:
Transfer in - - - -
Transfer out - - - -
Total Other Financing Sources - - - -
NET CHANGE IN FUND BALANCES (59,531) 673,899 464,909 95,377 FUND BALANCES:
Beginning of year 811,452 2,035,874 1,122,480 71,215
End of year $ 2,709,773 751,921 $ 1,587,389 $ 166,592 $ (Continued)
114
Capital Projects
Special Revenue Funds Debt Service Funds Fund
Total
Business Public Special San Leandro Nonmajor
Housing Improvement Education and Assessment Public Financing Governmental HOME In-Lieu District Government District Authority GHAD Funds $ - - $ - $ 159,784 $ - $ - $ - $ 494,301 $
- - 407,502 - - - - 613,314
- - - - - - - 118,212
- - - - - - - 109,367
- - 578,000 - - - - 10,040,498
5,706 690 516 (6,810) - 3,176,177 - 3,793,156
151,259 - - - - - - 330,368
156,965 690 986,018 152,974 - 3,176,177 - 15,499,216
- - - - - - - 412,999
- - - - - - - 6,511,620
- - - - - - - 318,288
13,986 - 685,000 316,270 - - - 2,832,966
- - - - - 1,591,000 - 1,723,000
- - - - - 1,596,884 - 1,651,256
13,986 - 685,000 316,270 - 3,187,884 - 13,450,129
142,979 690 301,018 (163,296) - (11,707) - 2,049,087
- - 50,000 - - - - 50,000
- - - - - - - (176,512)
- - 50,000 - - - - (126,512)
142,979 690 351,018 (163,296) - (11,707) - 1,922,575
781,586 262,818 167,089 836,830 121 435,313 13,622 19,728,437 $ 924,565 $ 263,508 $ 518,107 $ 673,534 $ 121 $ 423,606 $ 13,622 $ 21,651,012 115
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Affordable Housing Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ 55,000 $ 513,112 $ 458,112
Other 140,000 15,000 (125,000)
Total Revenues 195,000 528,112 333,112
EXPENDITURES:
Current:
Community development 417,999 4,486 413,513
Total Expenditures 417,999 4,486 413,513
NET CHANGE IN FUND BALANCES $ (222,999) 523,626 $ 746,625 FUND BALANCES:
Beginning of year 2,461,387
End of year $ 2,985,013
116
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Street/Traffic Improvements Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Licenses and permits $ 192,359 $ 43,983 $ (148,376)
Use of money and property - 8,302 8,302
Total Revenues 192,359 52,285 (140,074)
EXPENDITURES:
Current:
Engineering and transportation 1,257,447 96,949 1,160,498 Total Expenditures 1,257,447 96,949 1,160,498
NET CHANGE IN FUND BALANCES $ (1,065,088) (44,664) $ 1,020,424 FUND BALANCES:
Beginning of year 1,984,325
End of year $ 1,939,661
117
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Park Development Fee Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ - $ 16,587 $ 16,587
Other 300,000 159,945 (140,055)
Total Revenues 300,000 176,532 (123,468)
EXPENDITURES:
Current:
Recreation and culture 4,743,785 17,951 4,725,834
Total Expenditures 4,743,785 17,951 4,725,834
NET CHANGE IN FUND BALANCES $ (4,443,785) 158,581 $ 4,602,366 FUND BALANCES:
Beginning of year 1,241,629
End of year $ 1,400,210
118
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ 25,000 $ 10,200 $ (14,800)
Service charges 300,000 118,212 (181,788)
Total Revenues 325,000 128,412 (196,588)
EXPENDITURES:
Current:
Engineering and transportation 1,840,936 30,786 1,810,150 Total Expenditures 1,840,936 30,786 1,810,150
NET CHANGE IN FUND BALANCES $ (1,515,936) 97,626 $ 1,613,562 FUND BALANCES:
Beginning of year 3,026,305
End of year $ 3,123,931
Underground Utility Fees Special Revenue Fund
119
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Parking Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Licenses and permits 295,000 $ 161,829 $ (133,171) $
Fines and forfeitures 109,367 109,367
Use of money and property 350,000 (260) (350,260)
Total revenues 645,000 270,936 (374,064)
EXPENDITURES:
Current:
Engineering and transportation 775,105 569,753 205,352
Total expenditures 775,105 569,753 205,352
NET CHANGE IN FUND BALANCES $ (130,105) (298,817) $ (168,712) FUND BALANCES:
Beginning of year 266,425
End of year $ (32,392)
120
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Special Gas Tax Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental 3,164,793 $ 3,536,769 $ 371,976 $
Use of money and property 7,500 13,280 5,780
Other - 169 169
Total revenues 3,172,293 3,550,218 377,925
EXPENDITURES:
Current:
Engineering and transportation 5,961,471 2,692,636 3,268,835 Total expenditures 5,961,471 2,692,636 3,268,835
OTHER FINANCING SOURCES:
Transfers out (176,512) (176,512) -
Total expenditures (176,512) (176,512) -
NET CHANGE IN FUND BALANCES $ (2,965,690) 681,070 $ 3,646,760 FUND BALANCES:
Beginning of year 907,518
End of year $ 1,588,588
121
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Cherrywood Maintenance District Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Property and other taxes $ - $ 27,134 $ 27,134
Use of money and property 4,000 1,797 (2,203)
Total revenues 4,000 28,931 24,931
EXPENDITURES:
Current:
Engineering and transportation - 452 (452)
Total expenditures - 452 (452)
NET CHANGE IN FUND BALANCES $ 4,000 28,479 $ 24,479
FUND BALANCES:
Beginning of year 462,859
End of year $ 491,338
122
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental $ 377,200 $ 365,184 $ (12,016)
Use of money and property 6,281 6,281
Total revenues 377,200 371,465 (5,735)
EXPENDITURES:
Current:
Engineering and transportation 981,527 413,344 568,183
Total expenditures 981,527 413,344 568,183
REVENUES OVER (UNDER) EXPENDITURES:
(604,327) (48,160) (580,199)
NET CHANGE IN FUND BALANCES $ (604,327) (41,879) $ 562,448 FUND BALANCES:
Beginning of year 590,705
End of year $ 548,826
Measure B - Paratransit Special Revenue Fund
123
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Asset Seizure Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental 150,000 $ 1,321 $ (148,679) $
Use of money and property 10,000 79 (9,921)
Total revenues 160,000 1,400 (158,600)
EXPENDITURES:
Current:
Public safety 833,024 310,767 522,257
Total expenditures 833,024 310,767 522,257
NET CHANGE IN FUND BALANCES $ (673,024) (309,367) $ 363,657 FUND BALANCES:
Beginning of year 1,413,559
End of year $ 1,104,192
124
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Heron Bay Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Property and other taxes $ 370,000 $ 307,383 $ (62,617) Use of money and property 5,000 (403) (5,403)
Total revenues 375,000 306,980 (68,020)
EXPENDITURES:
Current:
Engineering and transportation 946,395 670,035 276,360
Debt service:
Interest and fees 3,400 3,400 -
Total expenditures 949,795 673,435 276,360
NET CHANGE IN FUND BALANCES $ (574,795) (366,455) $ (208,340) FUND BALANCES:
Beginning of year 821,232
End of year $ 454,777
125
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Proposition IB - Local Streets & Roads Special Revenue Fund For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ - $ 37 $ 37
Total revenues - 37 37
EXPENDITURES:
Current:
Engineering and transportation - - -
Total expenditures - - -
NET CHANGE IN FUND BALANCES $ - 37 $ 37
FUND BALANCES:
Beginning of year 14,093
End of year $ 14,130
126
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Special Grants Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental 2,627,562 $ 1,088,143 $ (1,539,419) $ Use of money and property - 17,255 17,255
Total revenues 2,627,562 1,105,398 (1,522,164)
EXPENDITURES:
Current:
Public safety 264,966 102,232 162,734
Engineering and transportation 5,027,707 637,522 4,390,185 Community development 267,608 124,838 142,770
Recreation and culture 1,239,370 300,337 939,033
Total expenditures 6,799,651 1,164,929 5,634,722
REVENUES OVER (UNDER) EXPENDITURES:
(4,172,089) (59,531) 4,112,558
NET CHANGE IN FUND BALANCES $ (4,172,089) (59,531) $ 4,112,558 FUND BALANCES:
Beginning of year 811,452
End of year $ 751,921
127
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Measure B Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental 1,734,307 $ 2,019,638 $ 285,331 $
Use of money and property 10,000 21,709 11,709
Other 230,000 3,995 (226,005)
Total revenues 1,974,307 2,045,342 71,035
EXPENDITURES:
Current:
Engineering and transportation 8,172,309 1,371,443 6,800,866 Total expenditures 8,172,309 1,371,443 6,800,866
NET CHANGE IN FUND BALANCES $ (6,198,002) 673,899 $ 6,871,901 FUND BALANCES:
Beginning of year 2,035,874
End of year $ 2,709,773
128
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Measure F - (Vehicle Registration Fees) Special Revenue Fund For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental $ 448,000 $ 484,708 $ 36,708
Use of money and property 6,000 8,901 2,901
Total revenues 454,000 493,609 39,609
EXPENDITURES:
Current:
Engineering and transportation 1,617,368 28,700 1,588,668 Total expenditures 1,617,368 28,700 1,588,668
NET CHANGE IN FUND BALANCES $ (1,163,368) 464,909 $ 1,628,277 FUND BALANCES:
Beginning of year 1,122,480
End of year $ 1,587,389
129
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
C.D.B.G Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental 2,549,060 $ 1,966,735 $ (582,325) $
Total revenues 1,966,735 2,549,060 (582,325)
EXPENDITURES:
Current:
Community development 2,101,315 1,688,386 412,929
Debt service:
Principal 132,000 132,000 -
Interest and fees 50,972 50,972 -
Total expenditures 1,871,358 2,284,287 412,929
NET CHANGE IN FUND BALANCES $ 264,773 95,377 $ (169,396) FUND BALANCES:
Beginning of year 71,215
End of year $ 166,592
130
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
HOME Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Intergovernmental $ 13,600 $ - $ (13,600)
Use of money and property 4,000 5,706 1,706
Other 50,000 151,259 101,259
Total revenues 67,600 156,965 89,365
EXPENDITURES:
Current:
Community development 13,664 13,986 (322)
Total expenditures 13,664 13,986 (322)
NET CHANGE IN FUND BALANCES $ 53,936 142,979 $ 89,043
FUND BALANCES:
Beginning of year 781,586
End of year $ 924,565
131
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Housing In-Lieu Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ 1,000 $ 690 $ (310)
License and permits 2,000 - -
Total revenues 3,000 690 (310)
NET CHANGE IN FUND BALANCES $ 3,000 690 $ (2,310)
FUND BALANCES:
Beginning of year 262,818
End of year $ 263,508
132
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Business Improvement District Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Licenses and permits $ 400,000 $ 407,502 $ 7,502
Intergovernmental 200,000 578,000 378,000
Use of money and property 1,000 516 (484)
Total revenues 601,000 986,018 385,018
EXPENDITURES:
Current:
Community development 695,530 685,000 10,530
Total expenditures 695,530 685,000 10,530
OTHER FINANCING SOURCES:
Transfers in 50,000 50,000 -
NET CHANGE IN FUND BALANCES $ (44,530) 351,018 $ 395,548 FUND BALANCES:
Beginning of year 167,089
End of year $ 518,107
133
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
Public Education and Government Special Revenue Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Property and other taxes 225,000 $ 159,784 $ (65,216) $ Use of money and property 7,000 (6,810) (13,810)
Total revenues 232,000 152,974 (79,026)
EXPENDITURES:
Current:
Community development 396,706 316,270 80,436
Total expenditures 396,706 316,270 80,436
NET CHANGE IN FUND BALANCES $ (164,706) (163,296) $ 1,410 FUND BALANCES:
Beginning of year 836,830
End of year $ 673,534
134
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Property and other taxes $ - $ - $ -
Use of money and property - - -
Total revenues - - -
EXPENDITURES:
Debt service:
Interest and fees - - -
Total expenditures - - -
NET CHANGE IN FUND BALANCES $ - - $ -
FUND BALANCES:
Beginning of year 121
End of year $ 121
Special Assessment District Debt Service Fund
135
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
San Leandro Public Financing Authority Debt Service Fund For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $ 3,180,376 $ 3,176,177 $ (4,199) Total revenues 3,180,376 3,176,177 (4,199)
EXPENDITURES:
Debt service:
Principal 1,591,000 1,591,000 -
Interest and fees 1,593,859 1,596,884 (3,025)
Total expenditures 3,184,859 3,187,884 (3,025)
OTHER FINANCING SOURCES:
Transfers out - - -
Proceeds from issuance of debt - - -
Premium on issuance of debt - - -
NET CHANGE IN FUND BALANCES $ (4,483) (11,707) $ (7,224) FUND BALANCES:
Beginning of year 435,313
End of year $ 423,606
136
City of San Leandro
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Non Major Governmental Fund
San Leandro Hillside Geological Abatement Fund (GHAD) Capital Projects Fund For the year ended June 30, 2021
Variance
Final Positive
Budget Actual (Negative)
EXPENDITURES:
Current:
Engineering and transportation $ 14,265 $ - $ 14,265
Total expenditures 14,265 - 14,265
NET CHANGE IN FUND BALANCES $ (14,265) - $ 14,265
FUND BALANCES:
Beginning of year 13,622
End of year $ 13,622
137
NON-MAJOR ENTERPRISE FUNDS
Storm Water Utility – Provides for the City’s storm water program in conjunction with the National Pollutant Discharge and Emissions Services Act.
Environmental Services – Accounts for the regulation of hazardous materials, wastewater discharge, storm water runoff, solid waste and recycling, and the landfill at the Marina. 139
City of San Leandro
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2021
Total
Non-Major
Storm Water Environmental Enterprise
Utility Services Funds
Current Assets:
Cash and investments $ - $ 1,928,770 $ 1,928,770
Receivables:
Accounts 7,490 138,966 146,456
Interest - 4,571 4,571
Total current assets 7,490 2,072,307 2,079,797
Noncurrent assets:
Capital assets:
Depreciable 15,696 4,873 20,569
Less accumulated depreciation (15,439) (4,873) (20,312) Total noncurrent assets 257 - 257
Total Assets 7,747 2,072,307 2,080,054
Current Liabilities:
Accounts payable 10,034 7,557 17,591
Due to other funds 1,405,558 - 1,405,558
Compensated absences - due in one year 8,911 26,563 35,474 Total current liabilities 1,424,503 34,120 1,458,623
Non-current Liabilities:
Compensated absences - due in more than one year 35,642 106,257 141,899 Total Liabilities 1,460,145 140,377 1,600,522
Net investment in capital asset 257 - 257
Unrestricted (1,452,655) 1,931,930 479,275
Total Net Position $ (1,452,398) $ 1,931,930 $ 479,532
ASSETS
LIABILITIES
NET POSITION
140
City of San Leandro
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the year ended June 30, 2021
Total
Non-Major
Storm Water Environmental Enterprise
Utility Services Funds
OPERATING REVENUES
Charges for services $ 1,068,439 $ 259,198 $ 1,327,637
Licenses and permits - 373,949 373,949
Other operating revenue 3,435 24,523 27,958
Total operating revenues 1,071,874 657,670 1,729,544
OPERATING EXPENSES
Salaries and benefits 814,648 464,378 1,279,026
Contractual and other services 306,048 78,091 384,139
Material and supplies 30,271 28,821 59,092
Other operating costs 400,699 236,340 637,039
Total operating expenses 1,551,666 807,630 2,359,296
OPERATING INCOME (LOSS) (479,792) (149,960) (629,752)
NONOPERATING REVENUES (EXPENSES):
Investment income - 5,123 5,123
Intergovernmental - 250,199 250,199
Total Nonoperating Revenues (Expenses) - 255,322 255,322 INCOME (LOSS) BEFORE TRANSFERS: (479,792) 105,362 (374,430) Transfers in - 132,782 132,782
Change in net position (479,792) 238,144 (241,648)
NET POSITION:
Beginning of year (972,606) 1,693,786 721,180
End of year $ 1,931,930 (1,452,398) $ 479,532 $
141
City of San Leandro
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the year ended June 30, 2021
Total
Non-Major
Storm Water Environmental Enterprise
Utility Services Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 1,068,975 $ 630,202 $ 1,699,177 $ Cash received from other funds 461,558 - 461,558
Cash payments to suppliers and service providers (733,868) (349,550) (1,083,418) Cash payments to employees for services (796,782) (479,598) (1,276,380) Net cash provided (used) by operating activities (117) (198,946) (199,063)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received - 250,199 250,199
Transfers in from other funds - 132,782 132,782
Net cash provided (used) by noncapital financing activities - 382,981 382,981
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (257) - (257)
Net cash provided (used) by capital and related financing activities (257) - (257) CASH FLOWS FROM INVESTING ACTIVITIES:
Change in market values of investments - (23,253) (23,253) Interest income - 29,296 29,296
Net cash provided (used) by investing activities - 6,043 6,043 Net increase (decrease) in cash and cash equivalents (374) 190,078 189,704 CASH AND CASH EQUIVALENTS:
Beginning of year 374 1,738,692 1,739,066
End of year $ - $ 1,928,770 1,928,770 $
RECONCILIATION OR OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) (479,792) $ (149,960) $ (629,752) $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (2,899) (27,468) (30,367) (Decrease) increase in accounts payable 3,150 (6,298) (3,148) (Decrease) increase due to other funds 461,558 - 461,558 (Decrease) increase in compensated absences 17,866 (15,220) 2,646 Total adjustments 479,675 (48,986) 430,689
Net cash provided (used) by operating activities $ (117) $ (198,946) $ (199,063) 142
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis.
Building Maintenance – This fund accounts for the City’s custodial maintenance and minor building modifications performed on various City complexes. The source of revenue is reimbursement of costs for services performed to the departments.
Information Management Services – The fund accounts for centralized data processing and the maintenance, acquisition and replacement of computerized systems. Sources of revenue for this fund are reimbursement of costs for services and equipment purchased by other departments.
Self Insurance – This fund accounts for the administration of the City’s self-insurance programs, payment of worker’s compensation and liability claims payments.
Equipment Maintenance – This fund accounts for the maintenance and replacement of vehicles and equipment used by all City departments. Source of revenues for this fund is reimbursement of costs for services and supplies purchased by other departments.
143
City of San Leandro
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Information
Building Management Self - Equipment
Maintenance Services Insurance Maintenance Total
Cash and investments $ 1,110,843 $ 2,167,835 $ 11,645,027 $ 4,242,259 $ 19,165,964 Receivables:
Accounts - - 489,634 - 489,634
Interest 5,495 5,472 25,243 9,622 45,832
Inventory and prepaids 11,881 $84,749 - 165,488 262,118 Total current assets 1,128,219 2,258,056 12,159,904 4,417,369 19,963,548 Capital assets:
Depreciable 80,353 5,808,895 - 12,722,786 18,612,034
Less accumulated depreciation (33,060) (5,727,149) - (6,998,187) (12,758,396) Total Net capital assets 47,293 81,746 - 5,724,599 5,853,638 Total noncurrent assets 47,293 81,746 - 5,724,599 5,853,638 Total Assets 1,175,512 2,339,802 12,159,904 10,141,968 25,817,186 Current Liabilities:
Accounts payable 164,989 87,413 124,554 50,901 427,857
Other liabilities - - 1,029,609 - 1,029,609
Claims and judgments - due in one year - - 4,233,746 - 4,233,746 Compensated absences payable - due in one year 2,422 22,450 1,836 6,329 33,037 Total current liabilities 167,411 109,863 5,389,745 57,230 5,724,249 Noncurrent Liabilities:
Claims and judgments - due in more than one year - - 2,817,888 - 2,817,888 Compensated absences - due in more than one year 13,722 127,217 10,401 35,864 187,204 Total noncurrent liabilities 13,722 127,217 2,828,289 35,864 3,005,092 Total Liabilities 181,133 237,080 8,218,034 93,094 8,729,341 Net investment in capital assets 47,293 81,746 - 5,724,599 5,853,638 Unrestricted 947,086 2,020,976 3,941,870 4,324,275 11,234,207 Total Net Position $ 994,379 $ 2,102,722 $ 3,941,870 $ 10,048,874 $ 17,087,845
LIABILITIES
NET POSITION
ASSETS
144
City of San Leandro
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2021
Information
Building Management Self - Equipment
Maintenance Services Insurance Maintenance Total
OPERATING REVENUES:
Service charges 3,278,214 $ 4,269,472 $ 5,433,474 $ 3,219,250 $ 16,200,410 $ Other operating revenues 43 250 879,856 50,000 930,149
Total Operating Revenues 3,278,257 4,269,722 6,313,330 3,269,250 17,130,559 OPERATING EXPENSES:
Salaries and benefits 1,198,816 1,722,060 264,125 570,739 3,755,740 Contractual and other services 1,873,693 1,850,409 4,756,776 429,146 8,910,024 Materials and supplies 226,789 39,763 - 510,581 777,133 Depreciation 6,447 23,614 - 1,191,969 1,222,030
Other operating costs 619,977 537,596 91,133 294,708 1,543,414 Total Operating Expenses 3,925,722 4,173,442 5,112,034 2,997,143 16,208,341 OPERATING INCOME (LOSS) (647,465) 96,280 1,201,296 272,107 922,218
NONOPERATING REVENUES (EXPENSES)
Interest income (15,209) (1,251) 46,768 7,385 37,693
Total nonoperating revenues (expenses) (15,209) (1,251) 46,768 7,385 37,693 INCOME BEFORE TRANSFERS (662,674) 95,029 1,248,064 279,492 959,911 TRANSFERS:
Transfers in - - - 176,512 176,512
Change in net position (662,674) 95,029 1,248,064 456,004 1,136,423 NET POSITION:
Beginning of the year 1,657,053 2,007,693 2,693,806 9,592,870 15,951,422 End of the year $ 2,102,722 994,379 $ 3,941,870 $ 10,048,874 $ 17,087,845 $ 145
City of San Leandro
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
Information
Building Management Self - Equipment
Maintenance Services Insurance Maintenance Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 43 $ $ 250 $ 390,222 $ 50,000 $ 440,515 Receipts from interfund charges 3,278,214 4,242,985 5,433,474 3,219,250 16,173,923 Cash payments to suppliers and service providers (2,721,549) (2,426,764) (4,958,727) (1,522,410) (11,629,450) Cash payments to employees for services (1,196,688) (1,706,890) (258,407) (558,847) (3,720,832) Net cash provided (used) by operating activities 109,581 (639,980) 606,562 1,187,993 1,264,156
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers in from other funds - - - 176,512 176,512
Net cash provided (used) by noncapital
financing activities - - - 176,512 176,512
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (1) (63,209) - (1,195,943) (1,259,153) Net cash provided (used) by capital
and related financing activities (1) (63,209) - (1,195,943) (1,259,153) CASH FLOWS FROM INVESTING ACTIVITIES:
Change in market values of investments (34,615) (29,826) (121,346) (49,612) (235,399) Interest income 20,511 29,676 173,192 58,933 282,312
Cash Flows from Investing Activities (150) (14,104) 51,846 9,321 46,913 Net Cash Flows (654,085) 46,222 658,408 177,883 228,428 CASH AND CASH EQUIVALENTS:
Cash and investments at beginning of year 1,764,928 2,121,613 10,986,619 4,064,376 18,937,536 Cash and investments at end of year $ 2,167,835 1,110,843 $ 11,645,027 $ 4,242,259 $ 19,165,964 $
RECONCILIATION OF OPERATING
INCOME (LOSS TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating income (loss) $ (647,465) $ 96,280 $ 1,201,296 $ 272,107 $ 922,218 Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 6,447 23,614 - 1,191,969 1,222,030
Change in assets and liabilities:
(Increase) decrease in accounts receivable - - (489,634) - (489,634) (Increase) decrease in inventory - (26,487) - 1,677 (24,810) (Decrease) increase in accounts payable (1,090) 1,004 11,884 (289,652) (277,854) (Decrease) increase in other liabilities - - 488,911 - 488,911 (Decrease) increase in claims and judgments payable (611,613) (611,613) (Decreased) increase in compensated absences 2,128 15,170 5,718 11,892 34,908 Total cash provided (used) by operating activities $ 109,581 (639,980) $ 606,562 $ 1,187,993 $ 1,264,156 $ 146
STATISTICAL SECTION
Contents Page
Financial Trends 149
Revenue Capacity 157
Debt Capacity 169
Demographic and Economic Information 177
Operating Information 181
These schedules contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs.
This section of the City of San Leandro's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health.
These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the city's most significant local revenue sources, sales tax and property tax.
These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future.
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place. 147
FINANCIAL TRENDS
Net Position by Component Unit - Last Ten Fiscal Years
Changes in Net Position - Last Ten Fiscal Years
Program Revenues by Function / Program - Last Ten Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years General Fund Revenue by Source - Last Ten Fiscal Years
Changes in Fund Balance of Governmental Funds - Last Ten Fiscal Years These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.
149
City of San Leandro
Net Position by Component UnitLast Ten Fiscal Years(Accrual Basis of Accounting) Governmental Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 251,252,877 $ 219,701,797 $ 225,401,873 $ 212,967,616 $ 200,560,064 $ 190,556,178 $ 181,178,754 $ 152,522,070 $ 147,336,413 $ 146,227,950 $ Restricted 17,947,666 24,162,116 14,371,041 21,206,626 23,680,435 31,647,662 41,104,032 63,079,453 64,472,691 51,588,031 Unrestricted 42,585,608 33,524,445 28,282,857 (98,955,552) (77,776,029) (67,544,332) (84,962,486) (88,393,775) (90,215,808) (70,341,620) Total Governmental Activities Net Position 311,786,151 $ 277,388,358 $ 268,055,771 $ 135,218,690 $ 146,464,470 $ 154,659,508 $ 137,320,300 $ 127,207,748 $ 121,593,296 $ 127,474,361 $ Business-Type Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 30,737,068 $ 32,979,235 $ 31,512,875 $ 32,505,629 $ 30,434,444 $ 31,056,113 $ 34,872,307 $ 38,661,914 $ 41,645,101 $ 39,934,659 $ Restricted - - - - - - - - - -
Unrestricted 13,097,006 15,002,725 21,031,537 12,609,167 18,050,170 20,616,425 17,962,702 20,090,760 16,938,807 25,724,305 Total Business-Type Activities Net Position 43,834,074 $ 47,981,960 $ 52,544,412 $ 45,114,796 $ 48,484,614 $ 51,672,538 $ 52,835,009 $ 58,752,674 $ 58,583,908 $ 65,658,964 $ Primary government 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 281,989,945 $ 252,681,032 $ 256,914,748 $ 245,473,245 $ 230,994,508 $ 221,612,291 $ 216,051,061 $ 191,183,984 $ 188,981,514 $ 186,162,609 $ Restricted 17,947,666 24,162,116 14,371,041 21,206,626 23,680,435 31,647,662 41,104,032 63,079,453 64,472,691 51,588,031 Unrestricted 55,682,614 48,527,170 49,314,394 (86,346,385) (59,725,859) (46,927,907) (66,999,784) (68,303,015) (73,277,001) (44,617,315) Total Governmental Activities Net Position 355,620,225 $ 325,370,318 $ 320,600,183 $ 180,333,486 $ 194,949,084 $ 206,332,046 $ 190,155,309 $ 185,960,422 $ 180,177,204 $ 193,133,325 $ Source: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Statement of Net Position Net investment in capital assetsNet investment in capital assetsNet investment in capital assetsNote: (1) Large negative amount in 2015 is due to the implementation of GASB 68. ‐
‐
100,000,000
50,000,000
0 50,000,000
400,000,000350,000,000300,000,000250,000,000200,000,000150,000,000100,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net investment in capital assets Restricted Unrestricted 151
City of San Leandro
Changes in Net PositionLast Ten Fiscal Years(accrual basis of accounting) Expenses: 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Governmental activities: General government 10,238,787 $ 13,166,855 $ 11,609,391 $ 10,896,679 $ 7,923,300 $ 8,524,377 $ 13,658,584 $ 14,053,667 $ 13,979,398 $ 10,695,243 $ Public safety 43,574,011 45,465,294 47,180,237 47,989,126 52,944,433 54,510,194 64,971,782 68,742,284 73,021,991 78,812,214 Engineering & Transportation 23,903,746 25,662,305 31,712,176 30,566,925 31,476,280 28,124,152 32,933,260 35,750,270 32,594,161 23,380,477 Recreation & Culture 9,894,015 11,586,223 11,786,787 11,667,158 13,824,385 13,228,291 14,756,277 14,087,453 13,337,227 11,113,653 Community Development 8,178,377 4,904,402 5,389,381 5,704,907 6,840,393 8,134,895 10,216,834 10,390,977 15,377,114 17,849,902 Interest on long-term debt 2,317,753 2,548,119 2,097,257 2,156,400 1,764,322 2,218,025 1,677,316 1,794,526 1,827,883 2,201,522 Total governmental activities expenses 98,106,689 103,333,198 109,775,229 108,981,195 114,773,113 114,739,934 138,214,053 144,819,177 150,137,774 144,053,011 Business-type activities: Water Pollution Control 8,395,692 7,499,555 7,978,058 8,802,564 13,534,488 10,795,950 12,184,473 11,814,460 15,233,737 14,588,118 Shoreline 1,848,428 1,861,532 1,922,489 1,691,932 1,839,667 1,754,842 1,786,193 1,677,896 2,094,266 5,393,167 Storm Water Utility 919,998 978,816 1,078,252 1,105,054 1,212,469 1,106,011 1,412,257 1,407,078 1,417,416 1,551,666 Environmental Services 1,222,543 1,175,257 1,027,054 1,020,388 1,189,985 1,065,885 1,095,232 1,061,370 1,081,674 807,630 Total business-type activities expenses 12,386,661 11,515,160 12,005,853 12,619,938 17,776,609 14,722,688 16,478,155 15,960,804 19,827,093 22,340,581 Total primary government expenses 110,493,350 114,848,358 121,781,082 121,601,133 132,549,722 129,462,622 154,692,208 160,779,981 169,964,867 166,393,592 Program revenues:
Governmental activities: General government Property taxes 22,357,186 17,631,582 18,514,127 18,898,038 20,044,219 20,858,027 22,994,212 24,123,875 26,307,855 26,664,153 Sales taxes 24,126,105 26,304,583 29,097,614 32,948,155 42,336,643 41,727,835 42,990,223 45,865,704 44,654,873 49,574,497 Franchise Fees 4,231,420 4,444,251 4,581,920 4,845,086 4,968,614 5,102,904 5,269,391 5,192,138 5,648,900 5,844,069 Utility Users Tax 9,968,546 9,888,123 10,157,762 10,359,050 10,807,581 10,975,234 10,719,315 10,182,141 10,529,901 10,830,889 Property Transfer Tax 2,981,685 2,956,419 3,282,026 4,112,030 4,460,568 5,459,316 5,176,403 5,372,712 3,788,439 9,558,694 911 Communication Access Tax 2,684,591 2,723,255 2,804,181 2,974,313 2,917,993 2,890,302 3,035,256 3,110,165 3,123,155 3,255,178 Other taxes 555,988 591,016 652,866 733,867 811,619 907,651 1,008,115 1,430,740 1,821,885 1,813,395 Motors Vehicle License Fees 42,294 44,112 36,768 35,936 - - - - - - Investment 1,098,406 919,213 1,255,043 1,191,893 1,882,764 1,560,277 1,691,972 4,286,379 4,483,519 1,403,560 Community Impact Reimbursement - - - - - - - - - -
Miscellaneous 988,126 962,356 514,851 825,082 4,225,123 1,702,501 5,426,862 853,797 878,095 769,949 Gain on sale of assets 3,353 393,741 16,196 6,902 7,060 3,004 1,020,970 553,670 1,578 1,221,097 Transfers 234,349 (72,135) - - 25,000 - 187,921 (476,000) 111,937 - Charges for Service 12,200,726 13,735,756 14,989,867 16,063,276 16,552,308 16,956,990 18,674,955 19,315,193 17,865,810 15,588,302 Capital grants and contributions 11,416,356 7,216,114 10,009,842 10,516,591 11,421,781 9,456,976 9,394,883 7,998,205 17,774,584 7,878,242 Operating grants and contributions 5,585,461 5,672,929 4,529,539 8,038,949 5,557,620 5,333,955 6,579,225 6,897,906 7,532,791 15,532,050 Total Governmental activities program revenues 98,474,592 93,411,315 100,442,602 111,549,168 126,018,893 122,934,972 134,169,703 134,706,625 144,523,322 149,934,075 Business-type activities: Charges for services 14,895,604 14,813,211 15,635,395 16,878,752 15,991,142 16,858,465 16,368,849 18,052,981 17,162,985 24,818,868 Capital Grants and Contributions - - - - - 243,304 369,087 982,215 258,586 3,644,686 Operating grants and contributions - - - - - - - 268,599 472,735 349,804 Other taxes 323,430 360,246 417,231 477,190 520,321 629,411 806,392 836,332 660,893 441,445 Investment Earnings 141,980 209,659 264,904 259,724 425,834 179,432 284,219 1,262,342 1,215,065 160,834 Miscellaneous 418,969 207,795 250,775 268,689 4,234,130 - - - - - Gain or loss on sale of assets (1,290,470) - - - - - - - - - Transfers (234,349) 72,135 - - (25,000) - (187,921) 476,000 (111,937) - Total Business activities program revenues 14,255,164 15,663,046 16,568,305 17,884,355 21,146,427 17,910,612 17,640,626 21,878,469 19,658,327 29,415,637 Total primary government
program revenues 112,729,756 109,074,361 117,010,907 129,433,523 147,165,320 140,845,584 151,810,329 156,585,094 164,181,649 179,349,712 Extraordinary Items 21,123,375 - - - - - - - - -
Net revenues (expenses): Governmental Activities 367,903 (9,921,883) (9,332,627) 2,567,973 11,245,780 8,195,038 (4,044,350) (10,112,552) (5,614,452) 5,881,064 Business-type activities 1,868,503 4,147,886 4,562,452 5,264,417 3,369,818 3,187,924 1,162,471 5,917,665 (168,766) 7,075,056 Total net revenues (expenses) 2,236,406 $ (5,773,997) $ (4,770,175) $ 7,832,390 $ 14,615,598 $ 11,382,962 $ (2,881,879) $ (4,194,887) $ (5,783,218) $ 12,956,120 $ Source: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Statement of Activities 152
City of San Leandro
Program Revenues by Function/ ProgramLast Ten Fiscal Years(Accrual Basis of Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Program / FunctionGovernmental Activities:
General Government 7,367,750 $ 7,436,918 $ 7,310,491 $ 7,887,476 $ 10,326,562 $ 8,550,928 $ 9,381,699 $ 9,786,425 $ 9,660,706 $ 10,206,812 $ Public Safety 4,585,001 4,482,346 3,749,814 3,623,194 3,897,568 3,801,944 4,429,180 3,877,786 3,582,527 3,164,583 Engineering and transportation 10,661,253 6,723,903 9,607,387 8,668,597 10,897,823 10,772,477 11,825,335 11,626,649 20,260,794 15,402,179 Recreation and culture 4,551,617 4,022,452 5,114,524 4,493,916 4,385,376 4,062,763 3,605,783 3,559,591 3,890,762 3,280,434 Community development 2,036,922 3,959,180 3,747,032 9,945,633 4,024,380 4,559,809 5,407,066 5,360,853 5,778,396 6,944,586 Interest on long-term debt 2,317,753 - - - - - - - - -
Subtotal governmental activities 31,520,296 $ 26,624,799 $ 29,529,248 $ 34,618,816 $ 33,531,709 $ 31,747,921 $ 34,649,063 $ 34,211,304 $ 43,173,185 $ 38,998,594 $ Business-Type Activities
Water Pollution Control Plant 11,189,362 $ 11,266,178 $ 11,961,374 $ 12,996,465 $ 12,467,570 $ 13,068,979 $ 12,574,723 $ 15,250,875 $ 14,172,199 $ 20,054,960 $ Shoreline 1,968,839 1,846,750 1,928,280 2,038,388 1,702,955 1,994,642 2,085,975 1,970,376 1,710,740 6,778,655 Storm Water Utility 1,078,455 1,086,070 1,072,146 1,070,154 1,093,460 1,084,122 1,056,708 1,068,814 1,073,513 1,071,874 Environmental Services 658,948 614,213 673,595 773,745 727,157 954,026 1,020,530 1,013,730 937,854 907,869 Subtotal business-type activities 14,895,604 $ 14,813,211 $ 15,635,395 $ 16,878,752 $ 15,991,142 $ 17,101,769 $ 16,737,936 $ 19,303,795 $ 17,894,306 $ 28,813,358 $ Total primary government 46,415,900 $ 41,438,010 $ 45,164,643 $ 51,497,568 $ 49,522,851 $ 48,849,690 $ 51,386,999 $ 53,515,099 $ 61,067,491 $ 67,811,952 $ Source: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Statement of Activities 153
City of San Leandro
Fund Balance of Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund: Reserved - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Unreserved - - - - - - - - - - Nonspendable 10,147,160 10,147,160 10,147,160 13,849,630 14,448,674 12,552,626 11,267,706 10,902,741 7,997,945 7,626,704 Restricted 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Assigned 3,555,009 264,275 662,973 1,766,700 3,128,977 4,577,831 5,301,907 6,296,907 9,799,641 9,505,953 Unassigned 10,717,313 14,836,844 18,762,223 19,145,226 29,378,795 33,781,436 36,552,684 42,741,116 46,666,766 66,536,219 Total General Fund 24,469,482 $ 25,298,279 $ 29,622,356 $ 34,811,556 $ 47,006,446 $ 50,961,893 $ 53,172,297 $ 59,990,764 $ 64,514,352 $ 83,718,876 $ All other governmental funds: Reserved - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Unreserved, designated - - - - - - - - - - Unreserved, undesignated, reported in: Special revenue funds - - - - - - - - - - Capital projects funds - - - - - - - - - -
Nonspendable - - - - - - - - - 430,668
Restricted 17,809,532 17,417,246 16,083,695 22,590,294 25,002,605 32,364,776 41,104,032 63,726,144 64,472,691 54,358,746 Assigned - - - - - - - - - -
Unassigned (132,601) (1,646,590) (1,712,654) (1,383,668) (1,322,170) (717,114) - (646,691) - (3,201,383) Total all other governmental funds 17,676,931 $ 15,770,656 $ 14,371,041 $ 21,206,626 $ 23,680,435 $ 31,647,662 $ 41,104,032 $ 63,079,453 $ 64,472,691 $ 51,588,031 $ Total All Governmental Funds 42,146,413 $ 41,068,935 $ 43,993,397 $ 56,018,182 $ 70,686,881 $ 82,609,555 $ 94,276,329 $ 123,070,217 $ 128,987,043 $ 135,306,907 $ Source: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Governmental Funds Balance Sheet Note: GASB 54 was implemented in fiscal year 2011 and onwards. Fund balances prior to fiscal year 2011 were not restated. 154
City of San Leandro
General Governmental Revenues By SourceAll Government Fund TypesLast Ten Fiscal Years Fiscal
Year
Property & Other
Taxes
Licenses &
Permits
Fines &
Forfeitures Service Charges
Intergovernmental Use of Money & Property Other Revenue Total 2012 67,388,968 $ 6,940,678 $ 1,110,669 $ 3,051,084 $ 10,246,859 $ 3,645,827 $ 7,456,519 $ 99,840,604 $ 2013 65,125,564 6,482,902 1,237,354 2,830,649 9,233,120 3,445,104 4,011,757 92,366,4502014 69,453,813 7,700,470 1,302,814 3,492,225 11,640,820 3,582,413 3,215,110 100,387,6652015 75,226,114 8,041,005 1,524,570 3,489,068 14,476,306 3,332,499 5,266,519 111,356,0812016 86,735,605 8,594,731 1,685,098 3,099,475 12,191,846 4,023,537 6,587,487 122,917,7792017 88,391,366 9,348,195 1,572,898 3,543,567 11,078,666 4,117,990 4,882,290 122,934,9722018 91,648,512 10,726,515 1,688,351 3,790,985 12,843,102 4,145,901 9,138,416 133,981,7822019 95,596,907 11,429,826 1,675,533 3,592,813 11,964,009 6,878,046 4,045,491 135,182,6252020 96,089,825 12,249,199 1,495,851 2,399,404 20,552,655 7,972,029 3,652,422 144,411,3852021 107,772,445 10,062,117 1,338,461 1,426,373 14,601,427 5,277,599 1,075,849 141,554,271 Source: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances $0
$90,000,000$80,000,000$70,000,000$60,000,000$50,000,000$40,000,000$30,000,000$20,000,000$10,000,000 $100,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property & Other Taxes Licenses & Permits Fines & Forfeitures Service Charges Intergovern- mental Use of Money & Property Other Revenue 155
City of San Leandro
Changes in Fund Balance of Governmental FundsLast Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues: Property and other taxes 67,388,968 $ 65,125,564 $ 69,453,813 $ 75,226,114 $ 86,735,605 $ 88,391,366 $ 91,648,512 $ 95,596,907 $ 96,089,825 $ Licenses and permits 6,940,678 6,482,902 7,700,470 8,041,005 8,594,731 9,348,195 10,726,515 11,429,826 12,249,199 Fines and forfeitures 1,110,669 1,237,354 1,302,814 1,524,570 1,685,098 1,572,898 1,688,351 1,675,533 1,495,851 Service charges 3,051,084 2,830,649 3,492,225 3,489,068 3,099,475 3,543,567 3,790,985 3,592,813 2,399,404 Intergovernmental 10,246,859 9,233,120 11,640,820 14,476,306 12,191,846 11,078,666 12,843,102 11,964,009 20,552,655 Use of money and property 3,645,827 3,445,104 3,582,413 3,340,946 4,023,537 4,117,990 4,145,901 6,878,046 7,972,029 Intergovernmental 2,401,869 2,001,928 2,002,139 2,250,266 1,999,878 1,999,878 1,999,878 1,999,878 1,999,878 Other 5,054,650 2,009,829 1,212,971 3,007,806 4,587,609 2,882,412 7,138,538 2,045,613 1,652,544 Total revenues 99,840,604 92,366,450 100,387,665 111,356,081 122,917,779 122,934,972 133,981,782 135,182,625 144,411,385Expenditures: Current: General government 9,943,871 12,993,178 11,350,118 11,720,994 11,846,864 11,493,208 11,679,072 12,305,756 13,109,392 Public safety 68,789,652 46,437,960 46,983,838 49,441,422 52,258,892 54,732,167 60,034,363 62,392,436 64,708,745 Engineering and transportation 9,778,421 14,550,085 19,310,489 17,905,896 19,185,657 19,487,997 25,648,773 24,132,999 28,781,633 Recreation and culture 8,373,427 10,274,496 10,244,659 10,481,528 12,214,366 11,845,986 11,898,321 11,101,882 10,999,381 Community development 9,236,773 4,311,194 5,138,376 5,708,945 6,480,125 7,700,158 8,244,056 9,132,310 14,699,407 Capital Outlay 5,763,826 - - - - - - - -
Debt service: Principal 3,511,866 1,577,051 2,271,828 2,524,833 2,549,397 18,960,762 3,206,330 3,480,537 3,668,156 Interest and fees 3,043,070 2,605,761 2,163,895 2,299,286 1,963,779 2,196,157 1,744,082 2,207,841 2,417,755 Total expenditures 118,440,906 92,749,725 97,463,203 100,082,904 106,499,080 126,416,435 122,454,997 124,753,761 138,384,469 Excess (deficiency of revenues over (under) expenditures (18,600,302) (383,275) 2,924,462 11,273,177 16,418,699 (3,481,463) 11,526,785 10,428,864 6,026,916 Other financing Sources (uses): Issuance of capital lease - - - - - - - - - Proceeds from refunding of bonds - (9,817,009) - - - - - - - Payment to refunded bonds escrows agents - - - - - - - - - Transfers in 6,029,970 577,000 776,000 2,604,156 3,877,017 4,193,000 10,345,878 28,198,333 6,425,000 Transfers out (5,775,621) (1,606,599) (776,000) (2,604,156) (5,627,017) (10,453,000) (10,205,889) (30,047,660) (6,535,090) Property Proceeds - - - - - - - - -
Bonds Proceeds - - - - - - - - - Loan Proceeds - - - - - - - - - Lease Proceeds - - - - - - - - - Issuance of Debt 18,305,000 10,152,405 - - - 21,664,137 - 20,214,351 - Total other financing sources (uses) 18,559,349 (694,203) - - (1,750,000) 15,404,137 139,989 18,365,024 (110,090) Prior period restatement - - - - - - - - -
Net change in fund balances (40,953) $ (1,077,478) $ 2,924,462 $ 11,273,177 $ 14,668,699 $ 11,922,674 $ 11,666,774 $ 28,793,888 $ 5,916,826 $ Debt Services as a percentage of noncapital expenditures 6.18% 4.72% 4.77% 5.06% 4.43% 20.10% 4.21% 4.78% 4.60% Sources: City of San Leandro Comprehensive Annual Financial Report (CAFR) - Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances City of San Leandro Comprehensive Annual Financial Report (CAFR) - Reconciliation of the Net Change in Fund Balances - Total Government Funds with the Statement of Activities 156
REVENUE CAPACITY
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Assessed Value of Taxable Property - Last Ten Fiscal Years Net Assessed Value of Property by Use Code, Citywide - Last Three Fiscal Year Principal Property Tax Payers - Current Year and Nine Years Ago Property Tax Levies and Collections - Last Ten Fiscal Years Historical Sales Tax Amount by Benchmark Year - Last Nine Calendar Years at Quarter 1 (Q1) Principal Sales Tax Producers - Last Fiscal Year and Nine Years Ago Sewer Rates - Last Ten Fiscal Years
Number of Permits and Valuation of Taxable Transactions - Last Ten Calendar Years These schedules contain information to help the reader assess the city's most significant local revenue sources, sales tax and property tax.
157
City of San Leandro
Direct and Overlapping Property Tax Rates(Rate per $1,000 of assessed value)Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic City and County Levy City of San Leandro 0.156681 0.156681 0.156681 0.156681 0.156681 0.156681 0.156681 0.156681 0.156681 0.156681 County of Alameda 0.843319 0.843319 0.843319 0.843319 0.843319 0.843319 0.843319 0.843319 0.843319 0.843319Total Basic Levy 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000Override Assessments County GO Bond 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.011200 0.010800 0.003600 San Leandro Unified School Bond 0.110800 0.108500 0.118800 0.131000 0.121500 0.117900 0.140600 0.133500 0.132500 0.177000 Chabot-Las Positas College Bond 0.021400 0.021900 0.021400 0.021700 0.019800 0.024600 0.044500 0.044300 0.042200 0.021400 Bay Area Rapid Transit 0.007100 0.005100 0.007500 0.004500 0.002600 0.008000 0.008400 0.007000 0.012000 0.013900 East Bay Regional Park 0.004100 0.004300 0.007800 0.008500 0.006700 0.003200 0.002100 0.005700 0.006000 0.001400Total Override Rate 0.143400 0.139800 0.155500 0.165700 0.150600 0.153700 0.195600 0.201700 0.203500 0.217300Total Tax Rate 1.143400 1.139800 1.155500 1.165700 1.150600 1.153700 1.195600 1.201700 1.203500 1.217300Sources 1) County Auditor/Controller data, Avenu Insights & Analytics2) 2011-12 and prior, previously published CAFR Report Note: TRAs 10-001 is represented for this report.
159
City of San Leandro
Assessed Value of Taxable PropertyLast Ten Fiscal Years(In Thousands) Fiscal Year
Ended June
30 Secured
Property
Unsecured
Property
Less:
Exemptions
Taxable
Assessed
Value
Secured
Property
Unsecured
Property
Less:
Exemptions
Taxable
Assessed Value
Total Tax
Rate (`1)
Taxable Assessed
Value
Estimated
Actual Taxable
Value (2)
Factor of Taxable
Assessed Value (2)
2012 5,540,713 $ 126,353 $ 15,376 $ 5,651,690 $ 3,568,829 $ 406,084 $ 208,631 $ 3,766,282 $ 1.1434 9,417,972 $ - $ - $ 2013 6,015,787 147,948 113,086 6,050,649 3,570,284 382,532 123,831 3,828,985 1.1398 9,879,634 - - 2014 5,899,077 153,300 183,511 5,868,866 4,365,737 359,508 139,085 4,586,160 1.1555 10,455,026 - - 2015 6,310,548 152,421 196,657 6,266,312 4,694,159 367,800 907,973 4,153,986 1.1657 10,420,298 13,808,666 1.3252 2016 7,795,139 197,971 178,848 7,814,262 3,899,194 371,143 892,306 3,378,031 1.1657 11,192,293 15,938,474 1.42412017 8,243,336 235,839 334,516 8,144,659 3,995,308 404,452 851,651 3,548,110 1.1537 11,692,768 20,767,772 1.77612018 8,775,315 229,625 319,941 8,684,999 4,195,622 413,077 880,570 3,728,128 1.1956 12,413,128 18,025,239 1.4521 2019 9,283,562 281,710 355,814 9,209,457 4,424,460 473,473 894,212 4,003,721 1.2017 13,213,179 21,102,345 1.5971 2020 9,780,976 301,691 362,978 9,719,689 4,796,146 544,368 956,213 4,384,301 1.2035 14,103,990 20,936,315 1.48442021 10,237,915 275,465 367,295 10,146,085 5,026,306 580,363 1,004,807 4,601,862 1.2173 14,747,947 18,755,382 1.2717 Source: County Assessor Data, Avenu Insights & AnalyticsSource: 2011-12 and prior, previously published CAFR Report Table has been restated from previous years to show city and successor agency values exclusivelyTable does not include state unitary value of $2,702,056 Notes:
(-) Data Unavailable (1) Total direct tax rate is represented by TRA 10-001(2)Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a multiplier value was extrapolated and applied to current assessed values.
City (Excl Successor Agency) Successor Agency City Wide 160
City of San Leandro
Net Assessed Value of Property by Use Code, Citywide Last Three Fiscal Year Category FY 2019 FY 2020 FY 2021Residential 8,803,831,830 $ 9,313,064,010 $ 9,547,285,037 $ Industrial 2,177,987,684 2,342,209,067 2,446,370,564
Commercial 1,498,221,698 1,521,483,820 1,703,634,396
Vacant 1,130,716,850 1,245,366,739 253,274,012Institution 91,595,191 137,623,925 1,076,356,414 Professional - - 7,266,289
Government - 11,223,057 50,635,312
Public - 872,653 -
Recreation 5,666,283 5,276,745 1,136,936Unknown 2,479 2,454 178,262,772 Net Secured Value 13,708,022,015 14,577,122,470 15,264,221,732 Unsecured 755,182,605 846,059,291 855,827,698
Exemptions 1,250,026,103 1,319,190,336 1,372,102,115
Net Assessed Value 13,213,178,517 $ 14,103,991,425 $ 14,747,947,315 $ Source: County Assessor data, Avenu Insights & AnalyticsUse code categories are based on County Assessor's data Note: Secured Property does not includes state unitary value of $2,702,056. 161
City of San Leandro
Principal Property Tax PayersJune 30, 2021Current Fiscal Year and Nine Years Ago Taxpayer Rank Taxable Value ($)
Percent of Total City
Taxable
Value (%) Rank Taxable Value ($)
Percent of Total City
Taxable
Value (%)
AMB Us Logistics Fund LP 1 202,657,888 $ 1.37% 1 143,134,237 $ 1.52% Ghirardelli Chocolate Company 2 148,790,536 1.01% 3 96,545,060 1.03% Waste Management of Alameda County Inc 3 135,235,826 0.92% 11 34,630,094 0.37% Colfin 2018 2 Industrial Owner LLC 4 104,560,200 0.71%
Kaiser Foundation Hospitals 5 102,448,633 0.69% 2 100,581,148 1.07% 100 Halcyon Owner LLC 6 96,758,996 0.66%
SLTC LLC 7 94,642,948 0.64%
BRE Westgate Property Owner LLC 8 88,915,587 0.60%
BPP Pacific Industrial Ca Reit Owner 2 LLC 9 85,368,123 0.58% MM PG Bayfair Properties LLC 10 83,549,647 0.57%
Safeway Stores Incorporated 11 71,003,802 0.48% 9 36,434,035 0.39% BG8 Williams Street LLC 12 70,635,000 0.48%
Bigge Crane & Rigging Co A Corp 13 63,888,986 0.43% 19 24,291,800 0.26% Prologis USLV Newca 7 LLC 14 55,300,401 0.37%
Chill Build San Leandro 15 55,274,915 0.37%
Woodchase Owner 16 55,187,473 0.37%Reyes Coca-Cola Bottling LLC 17 53,620,045 0.36% 2000 Marina Llc 18 50,510,309 0.34%
Creekside Plaza Partners LLC 19 48,863,474 0.33%
Lone Oak San Leandro L L C 20 46,818,000 0.32%
Gateway Buena Park Inc 21 41,850,912 0.28% 10 35,725,916 0.38% Georgia Pacific Corrugated LLC 22 41,810,155 0.28% 13 31,319,653 0.33% 77 & 85 Estabrook LLC 23 38,848,844 0.26%
Leandro Brookshire LLC 24 36,822,000 0.25%Terreno Merced Llc 25 36,720,000 0.25% Madison Bay Fair Llc 4 76,181,847 0.81%
BCI Coca Cola Bottling Co of L 5 67,384,151 0.72%
General Foods Corp 6 66,409,228 0.71%
SKB Westgate Investments LLC H 7 47,284,996 0.50%
Batarse Anthony A Jr 8 37,512,966 0.40%
Peterson Power Systems 12 32,551,118 0.35%
Emerald Properties 14 29,365,143 0.31%
FPA Woodchase Assoc LP 15 28,066,774 0.30%
World Savings Loan Assoc 16 27,966,183 0.30%
Lakeside Village Assoc 17 26,449,764 0.28%
PLP Partners LP Wells Fargo Ba 18 25,367,983 0.27%
BRCP San Leandro Industrial LL 20 22,717,752 0.24%
Heritage Assoc LLC 21 22,487,088 0.24%
Acco Engineered Systems Inc. 22 22,222,483 0.24%
WRI Greenhouse LP 23 21,576,917 0.23%
Target Corp 24 21,489,400 0.23%
Price Company 25 21,327,397 0.23%
Total Top 25 Taxpayers 1,910,082,700 12.95% 1,099,023,133 11.71% Total Taxable Value 14,747,947,315 $ 100.00% 9,388,873,168 $ 100.00% Source: County Assessor data, Avenu Insights & Analytics 2021 2012
162
City of San Leandro
Property Tax Levies and CollectionsLast Ten Fiscal Years Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Residual Percent
June 30 Fiscal Year Amount of Levy Years Distribution Amount of Levy 2012 9,676,693 $ 9,190,945 $ 94.98% 261,132 $ 266,242 $ 9,452,077 $ 97.68% 2013 9,959,351 10,142,627 101.84% 287,147 222,507 10,652,282 106.96% 2014 10,732,261 10,338,768 96.33% 177,313 289,806 10,805,887 100.69% 2015 10,630,839 10,250,071 96.42% 158,636 337,278 10,745,985 101.08% 2016 11,326,738 10,897,360 96.21% 191,132 165,626 11,254,119 99.36% 2017 11,817,732 11,631,783 98.43% 133,429 1,604,861 13,370,073 113.14%2018 12,566,402 12,399,772 98.67% 84,584 2,559,564 15,043,920 119.72% 2019 13,300,863 13,135,622 98.76% 168,341 2,457,712 15,761,675 118.50%2020 14,079,125 13,862,645 98.46% 83,577 3,278,262 17,224,484 122.34%2021 14,606,893 14,387,162 98.50% 103,506 2,721,627 17,212,295 117.84% Source: Alameda County Auditor-Controller's Office
Collected within the
Fiscal Year of Levy Total Collections to Date
163
City of San Leandro
Historical Sales Tax Amount by Benchmark YearLast Nine Fiscal Years at Quarter 1 (Q1)(In Thousands) 2021 Q1 2020 Q1 2019 Q1 2018 Q1 2017 Q1 2016 Q1 2015 Q1 2014 Q1 2013 Q1 2012 Q1 Accommodation and Food Services 1,703,681 $ 2,300,288 $ 2,269,178 $ 2,100,152 $ 1,936,475 $ 1,789,864 $ 1,553,657 $ 1,453,337 $ 1,259,630 $ 1,182,283 $ Agriculture, Forestry, Fishing and Hunting 305,190 303,594 338,622 262,230 395,673 323,508 377,665 222,757 257,573 159,493 $ Arts, Entertainment, and Recreation 1,821 7,155 2,973 1,055 1,164 3,906 9,309 8,516 9,185 8,911 Construction 2,223,291 2,167,402 1,472,852 1,543,984 1,466,438 1,824,763 1,491,611 1,177,911 1,029,487 1,051,035 Educational Services 309,815 356,577 411,229 303,901 241,138 237,883 311,128 229,934 237,138 175,985Information 59,878 78,988 89,673 85,581 84,141 74,144 79,550 55,295 53,108 141,275 Manufacturing 1,989,297 2,023,670 1,682,543 1,813,778 3,183,213 3,474,886 2,977,827 1,345,319 1,189,945 1,231,674 Mining, Quarrying, and Oil and Gas Extraction 2,765,341 2,771,670 2,804,052 2,783,299 2,360,734 2,070,242 2,090,308 2,117,433 1,821,319 1,972,289 Other Services (except Public Administration) 257,690 304,266 279,004 338,982 303,082 323,462 269,204 245,244 210,153 188,091 Professional, Scientific, and Technical Services 190,593 196,334 198,962 190,052 211,126 209,561 166,247 114,730 105,989 151,619 Real Estate and Rental and Leasing 169,939 211,994 288,580 159,759 157,397 211,377 194,121 221,014 211,355 138,901Retail Trade 14,467,019 15,990,559 16,103,343 16,044,139 14,964,833 14,072,218 13,096,604 12,912,757 12,060,706 11,360,787 Utilities 698,790 828,950 720,486 629,003 601,770 562,333 497,113 480,995 410,610 364,723 All Other NAICS Sectors 216,336 247,689 234,607 222,222 186,087 198,288 268,963 278,966 266,624 346,268 TOTAL 25,358,680 $ 27,789,136 $ 26,896,105 $ 26,478,137 $ 26,093,271 $ 25,376,438 $ 23,383,307 $ 20,864,209 $ 19,122,822 $ 18,473,336 $ Source: Avenu Insights & AnalyticsNote:The data contained in this report is economic and therefore constantly changing as adjustments, fund transfers, late filings and audits are recorded.
The categories listed in previous reports were based on SBOE NAICS codes and have been updated to reflect current updated CDTFA standards. 164
City of San Leandro
Principal Sales Tax Producers Current Fiscal Year and Nine Years Ago Taxpayer Business Type Taxpayer Business Type
American Emperor Bldg.Matls-Whsle AB Calif Acquisition Bldg.Matls-Retail Beacon Roofing Supply Bldg.Matls-Whsle CA Superstores Chrysler Jeep Auto Sales - New California Waterproofing Supply Bldg.Matls-Whsle Chevron Service Stations Service Stations Chevron Service Stations Service Stations Costco Wholesale Department Stores Consolidated Electrical Distributors Bldg.Matls-Whsle Cummins West Heavy IndustryCostco Wholesale Department Stores ESD Company Electronic Equipment Edges Electrical Group Electronic Equipment F H Dailey Chevrolet Auto Sales - NewEnterprise Rent-A-Car Leasing Flyers Service Stations Service Stations F H Dailey Chevrolet Auto Sales - New Home Depot Bldg.Matls-Retail Ferguson Enterprises Bldg.Matls-Whsle Macy's Department Store Department Stores Home Depot Bldg.Matls-Retail Marina Square Auto Center Auto Sales - New Living Spaces Furniture Furniture/Appliance Nike Factory Store Apparel StoresNorcal Kenworth Bay Area I.T. Infrastructure Nordstrom Rack Apparel StoresPeterson Power Systems Heavy Industry Peterson Power Systems Electronic Equipment Peterson Tractor Company Heavy Industry Peterson Tractor Company Heavy Industry Peterson Trucks Misc. Vehicle Sales Roofing Supply Group Bldg.Matls-Whsle Ross Stores Apparel Stores Ross Stores Apparel StoresSafeway Stores Food Markets Safeway Stores Food MarketsSan Leandro Chrysler Jeep Dodge Ram Auto Sales - New San Leandro Honda Auto Sales - New San Leandro Honda Auto Sales - New Shell Service Stations Service StationsSan Leandro Hyundai/Kia Auto Sales - New SSMB Pacific Holding Company Auto Parts/RepairTarget Stores Department Stores Target Stores Department Stores The Ford Store Auto Sales - New The Ford Store Auto Sales - NewVolvo Construction Equipment & Services Bldg.Matls-Whsle Wal Mart Stores Department Stores Wal Mart Stores Department Stores Western States Oil Energy Sales Source: Avenu Insights & Analytics
FY 2021 FY 2012
165
City of San Leandro
Sewer RatesLast Ten Fiscal Years
Fiscal Single MultiYear Family Family Institutional
2012 28.97 20.56 3.19 - 6.67 2.62
2013 29.98 21.28 3.30 - 6.90 2.71
2014 32.27 22.90 3.55 - 7.45 2.92
2015 33.07 23.54 3.65 - 7.66 3.00
2016 33.17 23.54 3.65 - 7.66 3.00
2017 34.03 24.15 3.74 - 7.86 3.08
2018 34.71 24.63 3.81 - 8.02 3.14
2019 35.75 25.37 3.92 - 8.26 3.23
2020 37.13 26.35 4.07 - 8.58 3.36
2021 41.60 29.30 4.36 - 9.75 3.93
Notes: Commercial and Institutional charge is based upon the volume of water used.
Source: City of San Leandro Public Works Department and Master Fee Schedulehttps://www.sanleandro.org/depts/pw/wpcp/rates.asp Sewer Non-Residential
Commercial
166
City of San Leandro
Number of Permits and Valuation of Taxable Transactions Last Ten Calendar Years
Retail Stores
Taxable Taxable
Calendar Number Transactions Number Transactions
Year of Permits (in thousands) of Permits (in thousands) 2012 1,341 1,273,883 $ 2,322 $ 1,867,865
2013 1,304 1,348,729 2,273 2,026,119
2014 1,290 1,378,120 2,258 2,246,508
2015 1,309 1,478,697 2,425 2,483,400
2016 1,362 1,598,459 2,508 2,584,669
2017 1,374 1,662,454 2,513 2,650,938
2018 1,373 1,688,378 2,555 2,665,437
2019 1,379 1,702,666 2,618 2,718,393
2020 1,379 1,580,927 2,618 2,573,889
2021 1,455 1,709,464 2,766 2,784,599
Note: Data 2015 and beyond is provided by California Dept. of Tax and Fee Administration Note for 2020: The Number of Permits for Retail Stores and for All Outlets was not available for disclosure at the time of Financial Reporting and the 2019 year amounts were used for the number of permits.
Prior to 2015, data provided by State Board of Equalization (BOE), Taxable Sales in California (Sales and Use Tax).
Total All Outlets
167
DEBT CAPACITY
Direct and Overlapping Debt - As of June 30, 2021
Pledged-Revenue Coverage - Last Ten Fiscal Years
Computation of Legal Debt Margin - Last Ten Fiscal Years Ratios of Outstanding Debt by Type - Last Ten Fiscal Years Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. 169
Direct and Overlapping Debt
As of June 30, 2021
2020-21 Assessed Valuation $ 14,848,484,619
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 Alameda County $ 191,300,000 4.480% $ 8,570,240
Bay Area Rapid Transit District 1.734% 32,458,573 1,871,890,000 Chabot-Las Positas Community College District 10.568% 62,698,887 593,290,000 San Leandro Unified School District 90.285% 285,983,648 316,756,547 San Lorenzo Unified School District 21.949% 41,477,025 188,970,000 East Bay Regional Park District 2.774% 3,694,136 133,170,000 City of San Leandro Cherrywood Community Facilities District 100% 1,855,000 1,855,000 HUD 108 Loan - Guarantee Loan 100% 1,188,000 1,188,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 437,925,509 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Alameda County General Fund Obligations $ 790,122,500 4.480% $ 35,397,488 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 5.305% 618,298 San Lorenzo Unified School District Certificates of Participation 9,060,000 21.949% 1,988,579 City of San Leandro General Fund Obligations 48,625,983 100% 48,625,983 City of San Leandro Pension Obligation Bonds 6,570,000 100% 6,570,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 93,200,348 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):
San Leandro Tax Allocation Bonds $ 11,868,000 100% $ 11,868,000 Alameda County – San Leandro Tax Allocation Bonds 17,775,000 56.173% $ 9,984,751 TOTAL OVERLAPPING TAX INCREMENT DEBT $21,852,751
TOTAL DIRECT DEBT $ 55,195,983
TOTAL OVERLAPPING DEBT $ 497,782,625
COMBINED TOTAL DEBT $ 552,978,608 (2)
Ratios to 2020-21 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.95%
Total Direct Debt ($55,195,983) 0.37%
Combined Total Debt 3.72%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,070,201,724):
Total Overlapping Tax Increment Debt 0.71%
City of San Leandro
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 171
City of San Leandro
Pledged-Revenue CoverageLast Ten Fiscal Years
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2012 - - - -
2013 - - - -
2014 - - - -2015 - - - -2016 - - - -2017 - - - -
2018 - - - -2019 - - - -2020 - - - -
2021 - - - -
Notes: During Fiscal Year 2009-10 and beyond no assessments were necessary due to the availability of funds to pay the debt.Source: City of San Leandro Special Assessment Bonds
Debt Service
172
City of San Leandro
Computation of Legal Debt MarginLast Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed Valuation:Secured property assessed value 8,885,535,000 $ 9,349,154,000 $ 9,942,218,000 $ 9,900,077,000 $ 10,623,178,219 $ 11,098,868,606 $ 11,810,249,391 $ 12,457,995,912 $ 13,257,932,134 $ 13,892,119,617 $ Addback: Exemptions 224,007,000 236,917,000 322,596,000 1,104,630,000 1,071,154,402 1,139,775,183 1,160,687,336 1,250,026,103 1,319,190,336 1,372,102,115 Total Assessed Valuation 9,109,542,000 $ 9,586,071,000 $ 10,264,814,000 $ 11,004,707,000 $ 11,694,332,621 $ 12,238,643,789 $ 12,970,936,727 $ 13,708,022,015 $ 14,577,122,470 $ 15,264,221,732 $ Bonded debt (15% of Assessed Value) 1,366,431,300 $ 1,437,910,650 $ 1,539,722,100 $ 1,650,706,050 $ 1,754,149,893 $ 1,835,796,568 $ 1,945,640,509 $ 2,056,203,302 $ 2,186,568,371 $ 2,289,633,260 $ Total Bonded Debt 3,980,825 980,820 694,992 715,441 42,066,944 42,404,398 37,374,715 37,374,715 50,714,022 46,829,107 Less:
Special assessment bonds - - - - - - - - - -
Lease Revenue Debt (29,515,000) (28,340,000) (30,440,000) (26,208,000) (25,198,000) (27,410,045) (20,495,000) (37,904,000) (36,368,000) (34,777,000) Capital Leases (287,790) (980,820) (694,992) (715,441) (678,944) (240,353) (5,254,715) (4,941,178) (4,621,022) (4,294,107) Amount of Debt subject to Limit (25,821,965) (28,340,000) (30,440,000) (26,208,000) 16,190,000 14,754,000 11,625,000 (5,470,463) 9,725,000 7,758,000 Legal Debt Margin 1,392,253,265 $ 1,466,250,650 $ 1,570,162,100 $ 1,676,914,050 $ 1,737,959,893 $ 1,821,042,568 $ 1,934,015,509 $ 2,061,673,765 $ 2,176,843,371 $ 2,281,875,260 $ Source: County Assessor Data, Avenu Insights & Analytics Source: County of Alameda office of Auditor-Controller and Statement of Direct and Overlapping Debt 173
City of San Leandro
Ratios of General Bonded Debt OutstandingLast Ten Fiscal Years Pension Total % of Debt General Bonded
Fiscal Total of Obligation Capital Other General Personal per Debt to Year Personal Income Population Bonds Leases Debt Bonded Debt Income Capita Taxable Property 2012 5,248,658,550 $ 85,490 18,305,000 $ 287,790 $ - $ 18,592,790 $ 0.36% 216 0.204% 2013 5,159,811,699 85,941 17,585,000 980,820 - 18,565,820 0.35% 214 0.194% 2014 5,310,979,146 86,666 16,675,000 694,992 - 17,369,992 0.31% 195 0.169% 2015 5,545,682,831 89,189 15,555,000 715,441 - 16,270,441 0.29% 184 0.148% 2016 5,524,820,829 88,441 14,345,000 678,944 - 15,023,944 0.27% 170 0.128% 2017 5,587,279,300 87,700 13,040,000 240,353 - 13,280,353 0.24% 151 0.109% 2018 5,894,517,000 88,274 11,625,000 5,254,715 - 16,879,715 0.29% 191 0.130% 2019 6,729,183,000 89,825 10,085,000 4,941,178 - 15,026,178 0.22% 167 0.110% 2020 6,851,117,000 87,930 8,405,000 4,621,022 - 13,026,022 0.19% 148 0.089% 2021 7,341,134,000 87,289 6,570,000 4,294,107 - 10,864,107 0.15% 124 0.071% Sources:
(a) Income Data is provided by the U.S. Census Bureau, 2019 American Community Survey. Income data has been restated from previous years.(b) Population Projections are provided by the California Department of Finance Projections.(c) All other information provided by the City of San Leandro. 174
City of San Leandro
Ratios of Outstanding Debt by TypeLast Ten Fiscal Years Tax Pension CFDs % of Debt Total % of Debt Total % of Debt Fiscal Year Total of Allocation Obligation and Lease Capital Other Total Personal per Business-Type Personal per Government-Wide Personal per Ended Personal Income Population Bonds Bonds Revenue Debt (1) Leases Debt Governmental Debt Income Capita Debt (2) Income Capita Debt Income Capita 2012 5,248,658,550 $ 85,490 -$ 18,305,000 $ 29,515,000 $ 287,790 $ 2,865,000 $ 50,972,790 $ 0.97% 596.24 8,979,154 $ 0.17% 105.03 38,494,154 $ 0.73% 450.28 2013 5,159,811,699 85,941 - 17,585,000 28,133,000 980,820 2,238,000 48,936,820 0.95% 569.42 23,426,651 0.45% 272.59 51,559,651 1.00% 599.942014 5,310,979,146 86,666 - 16,675,000 27,188,000 694,992 2,107,000 46,664,992 0.88% 538.45 37,914,665 0.71% 437.48 65,102,665 1.23% 751.192015 5,545,682,831 89,189 - 15,555,000 26,208,000 715,441 1,976,000 44,454,441 0.80% 498.43 42,092,468 0.76% 471.95 68,300,468 1.23% 765.792016 5,524,820,829 88,441 - 14,345,000 25,198,000 678,944 1,845,000 42,066,944 0.76% 475.65 44,179,819 0.80% 499.54 69,377,819 1.26% 784.452017 5,587,279,300 87,700 - 13,040,000 27,410,045 240,353 1,714,000 42,404,398 0.76% 483.52 42,297,582 0.76% 482.30 69,707,627 1.25% 794.842018 5,894,517,000 88,274 - 11,625,000 20,495,000 5,254,715 1,583,000 38,957,715 0.66% 441.33 40,364,096 0.68% 457.26 60,859,096 1.03% 689.432019 6,729,183,000 89,825 - 10,085,000 37,904,000 4,941,178 1,452,000 54,382,178 0.81% 605.42 38,373,780 0.57% 427.21 76,277,780 1.13% 849.18 2020 6,851,117,000 87,930 - 8,405,000 36,368,000 4,621,022 1,320,000 50,714,022 0.74% 576.75 36,327,008 0.53% 413.14 72,695,008 1.06% 826.74 2021 7,341,134,000 87,289 - 6,570,000 37,371,395 4,294,107 1,188,000 49,423,502 0.67% 566.21 41,847,033 0.57% 479.41 79,218,428 1.08% 907.54 Note: (1) CFDs - Community Facility District
(2) Business-type Activity Debt consists of a Marina Loan, a State Water Resources Control Board Loan, and Climatec Lease.Sources: (a) Income Data is provided by the U.S. Census Bureau, 2019 American Community Survey. Income data has been restated from previous years.(b) Population Projections are provided by the California Department of Finance Projections.(c) All other information provided by the City of San Leandro.See "XDM-Demo EC" tab for Personal Income and Population Governmental Activities Business-Type Activity Total Government-Wide 175
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics - Last Ten Fiscal Years Principal Employers - Current Year and Nine Years Ago
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place. 177
City of San Leandro
Demographic and Economic StatisticsLast Ten Fiscal Years Fiscal Year Population (1)
Personal
Income
( in thousands)
(2)
Per Capita
Personal
Income (2) Median Age
Public School
Enrollment (3)
Median Home
Price
Consumer
Price Index
City
Unemployment
Rate (4)
2012 85,941 5,159,812 $ 60,039 $ 37.6 8,776 320,000 $ 228.110 9.3% 2013 86,666 5,310,979 61,281 39.1 8,769 400,000 245.935 7.4% 2014 89,189 5,545,683 62,179 39.2 8,668 440,000 253.317 6.3% 2015 88,441 5,524,821 62,469 39.2 8,617 510,000 238.654 4.8% 2016 87,700 5,587,279 63,709 40.5 8,560 529,000 239.810 5.1% 2017 88,274 5,894,517 66,775 40.5 8,638 585,400 244.786 4.6% 2018 87,598 6,221,503 71,023 43.9 8,880 671,200 251.846 3.1% 2019 89,825 6,729,183 74,914 40.8 8,926 647,500 256.161 2.8% 2020 87,930 6,851,117 77,916 40.5 9,067 694,295 259.101 17.7% 2021 87,289 7,341,134 84,101 40.7 8,828 862,445 270.981 10.8% Source: Avenu Insights & Analytics, U.S. Census Bureau, 2011-2015 American Community Survey. Source: 2013-14 and prior, previous published CAFRThe California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark. Therefore, thNotes:1) Population Projections are provided by the California Department of Finance Projections.2) Income Data is provided by the U.S. Census Bureau, 2011-2015 American Community Survey. Income data has been restated from previous years.4) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. e estimates for 2010 through 2012
published in this report might be noticeably different from the previous year estimates. 3) Student Enrollment reflects the total number of students enrolled in the San Leandro Unified School District. Any other school districts within the City are not accounted for in this statistic. 179
City of San Leandro
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment Kaiser Permanente 3,600 1 7.96%
Alameda Health System* 1,591 2 3.52% 1,119 1 3.98%
San Leandro Unified School District** 1,227 3 2.71%
Acco Engineered Systems 951 4 2.10% 2.14%
Walmart (2 locations) 835 5 1.85% 601 2
Safeway (4 locations) 612 6 1.35% 409 4 1.33%
Ghirardelli Chocolate Co. 525 7 1.16% 375 6 1.46%
City of San Leandro* 495 8 1.10%
Costco Wholesale 475 9 1.05% 264 8 0.94%
Peterson Cat 446 10 0.99%
OSI Soft, Inc. 253 9 0.90%
American Medical Response West 468 3 1.67%
North Face, Inc 395 5 1.41%
Kindred Hospital - SF Bay Area 268 7 0.95%
Total Top Employers 10,757 23.80% 4,152 14.78%
Total City Employment (1) 45,200 28,100
Source: Avenu Insights & Analytics
Source: 2011-12, previously published ACFR. Walmart locations are combined to show comparison.
Notes:
*Includes full and part-time
**Includes part-time and substitutes
(1) Total City Labor Force provided by EDD Labor Force Data 2020-21 2011-12
180
OPERATING INFORMATION
Full-Time and Part-Time City Employees by Function - Last Ten Fiscal Years Operating Indicators by Function - Last Ten Fiscal Years Capital Assets by Function - Last Ten Fiscal Years
These schedules contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs. 181
City of San Leandro
Full-Time and Part-Time City Employees by FunctionLast Ten Fiscal Years Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government 51 50 51 55 50 51 52 52 52 52
Police 136 136 139 139 143 143 140 140 140 140Engineering & Transportation 25 27 27 27 31 30 29 29 29 29 Development Services 19 21 22 22 26 25 29 27 27 27
Public Works Services 103 102 101 102 102 104 110 109 109 109Other Agencies 8.5 000000000 Library 33 33 33 33 34 34 36 36 36 36
Recreation & Human Services 33 37 39 39 39 39 41 41 41 41 Total 409 406 412 417 425 426 437 434 434 434
Notes:Numbers represent Full-Time equivalents. Fire Services contracted with the Alameda County Fire Department.
Source: City of San Leandro Adopted Budget
183
City of San Leandro
Operating Indicators by FunctionLast Ten Fiscal years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police Department:
Arrests 3,299 3,279 3,036 2,148 2,789 2,799 2,513 2,151 1,968 1,196 Building Department:
Permits Issued 2,503 2,564 2,624 1,961 2,891 2,762 4,080 2,275 2,065 2,575 Engineering and Transportation:
Street reconstruction (miles) 1.39 - 1.35 0.26 0.74 2.24 1.42 1.77 1.25 1.69 Street resurfacing (miles) 8.68 - 17.94 5.39 4.12 5.21 4.69 7.33 0.67 - Parks and Recreation:
Number of registrants 20,236 21,324 18,914 17,737 17,114 16,742 14,703 14,261 9,748 5,179 Number of facility rentals 1,282 1,999 2,656 3,830 2,439 2,222 2,465 2,373 1,209 220 Golf Course:
Golf rounds played 97,310 95,995 96,450 102,534 99,185 98,987 105,043 100,409 97,803 163,279Notes:
Fire Services are contracted with the Alameda County Fire Department. Building Department: Methodology changed in 2015 from issuing permits for each discipline to one consolidated permit per project.Source: City of San Leandro Recreation Department, Police Department, Public Works, and Building Regulations. 184
City of San Leandro
Capital Asset Statistics by FunctionLast Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire Stations 5 5 5 5 5 5 5 5 5 5
Park and Recreation:
Parks 16 16 16 16 16 16 16 16 16 16
Community Center 2 2 2 2 2 2 2 2 2 2
Engineering and Transportation:
Streets (miles) 175 175 175 175 175 175 175 175 175 174 Streetlights 5,500 5,500 5,500 5,500 5,500 5,500 6,000 6,000 6,000 6,000 Traffic signals 755 755 755 755 755 755 1,254 1,254 1,254 1,254 Wastewater:
Sanitary Sewer Lines (miles) 130 130 130 130 128 128 128 128 128 128 Storm Drainage Lines In the City (miles) 175 175 175 175 180 180 180 180 180 180 Golf Course:
Courses 2 2 2 2 2 2 2 2 2 2
Sources: City of San Leandro: Public Works Department, Engineering & Transportation Department, Recreation Department 185