City of Vallejo2024 Financial AuditPresented by:Christian Townes, CPA, PartnerMarch 25, 2025 Your LSL Team
Keili GonzalezSupervisorChloe ZabrekSupervisorChristian Townes, CPAPartner Brandon Young, CPAPartner
Scope of Engagement•LSL has been engaged by the City of Vallejo to perform the following procedures:•Independentfinancial statement audit for the year ended June 30, 2024, in accordance with generally accepted auditing standards and Government Auditing Standards•Single audit over the federal award programs for the year ended June 30, 2024, in accordance with the federal Uniform Guidance.•Compliance audits on Measure P & Measure B/V•Audits on Housing Authority and Transportation Development Act (TDA) •Interim Fieldwork •July 2024•Examined internal controls•Provided feedback to management•Performed our audit risk assessment•Planned year-end audit procedures to respond to risk •Year-End Fieldwork•November/December 2024•Detailed testing of account balances and transactions•Compliance testing with laws, regulations, grant agreements, contracts & Measure P , B/V•Single Audit planning•Other procedures necessary to obtain sufficient, appropriate audit evidence Scope of Engagement
Changes from Prior Year•During the fiscal year ended June 30, 2024, the City implemented a new ERP system•During the fiscal year ended June 30, 2024, the City worked collaboratively with LSL to implement a new financial statement reporting platform Results of Audit -ACFR•We issued an unmodified auditor’s opinion on the financial statements. (pg. 25)•Financial statements are accurate and reliable as of June 30, 2024.•We issued the Report on Internal Control and Compliance•No material weaknesses or significant deficiencies in internal control noted.•No material noncompliance with laws, regulations, grants, etc. noted.
Compilation of ACFR•Introductory Section•Transmittal Letter (pg. 9)•Org Charts & GFOA Award (pg. 21)•Financial Section•MD&A (pg. 29)•Basic Statements (pg. 52)•Footnotes (pg. 76)•RSI (pg. 152) & Supplementary Information (pg. 176)•Statistical Section (pg. 239) Financial Highlights –General Fund Balance
See Balance Sheet –Governmental Funds –pg. 58 and footnote 12 on page’s 139-140 Financial Highlights –Net PositionGovernment-wide net position increased $66.8 million during the year to $441.2 million (pg. 53).•Governmental Activities•$329.7 million, increase of $49.5 million•Business-Type Activities•$111.5 million, increase of $17.3 million Financial Highlights –Capital AssetsCapital assets increased $22.7 million from the prior year (pg. 52 and 102).•Governmental Activities•$360.9 million, increase of $19.8 million•Business-Type Activities•$115.6 million, increase of $2.9 million Financial Highlights –Net Pension LiabilityNet pension liability increased $12.8 million from the prior year (pg. 52 and 119).•Governmental Activities•$305.5 million, increase of $9.7 million•Business-Type Activities•$42.2 million, increase of $3.1 million Financial Highlights –OPEB LiabilityOPEB liability decreased $1.7 million from the prior year (pg. 52 and 130).•Governmental Activities•$5.6 million, decrease of $1.3 million•Business-Type Activities•$1.4 million, decrease of $.4 million Results of Audit –Measure B/V, P•We issued an unmodified compliance opinion on the financial statements.•In all material respects City complied with compliance requirements referred to in specific Ordinances and expenditure direction approved by Council•We issued the Report on Internal Control over Compliance•No significant deficiencies in internal control noted•No material weaknesses in internal control noted.
Results of Audit –Transportation Development Act (TDA)•No activity occurred in the 2024 fiscal year -financial statements present comparative information•We issued an unmodified opinion•No matters of noncompliance, material weaknesses or significant deficiencies noted Status and Upcoming 2025 Audit•Housing Authority Audit and Single Audit •Expected issuance by 3/31/2025 to meet regulatory deadline for compliance with Uniform Guidance and REAC filing.•2025 Audit Dates•Interim Fieldwork –June 23, 2025 –June 27, 2025•Yearend Fieldwork –October 6, 2025 –October 24, 2025 Questions
[email protected]
CALIFORNIA: Irvine | SacramentoTEXAS: The Woodlands
Item 9.C.:$10M for Cyclic Roadway Paving/Restoration ProgramMelissa Tigbao, Public Works DirectorMark Helmbrecht, Transportation Program Superintendent FY 2024-25 Mid-Year
Step 2
Andrew Murray, City Manager
Rekha Nayar, Finance Director
March 25, 2025
Recap of FY 2024-25 Mid-year Adjustments:
Step 2
2 • General Fund Midyear Adjustments (including Measure P) o Expenditure and transfer-out budget will increase by $1.24M, with these additional costs covered through a combination of increased revenues, transfer-in, and fund balance.
o Measure P Expenditures Totaling $650K
Fire: Protective Equipment & Thermal Imaging $155K
Fire: Standards of Cover $75K
Public Works: Modular Dispatch Center $300K
Public Works: Bay Vine Trail $20K
Public Works: Intersection Improvement Project $100K
• Other Fund Midyear Adjustments
o Expenditure and transfer-out budget will increase by $2.06M, with these additional costs covered through a combination of increased revenues, transfer-in, and fund balance.
3 Recap of FY 2024-25 Mid-year Adjustments:
Step 2
CONTACT(S)
Rekha Nayar
[email protected]
Annual Funding for an ongoing Capital Improvement Program (CIP)•CIP projects require planning, engineering, bidding, contracting, construction, inspection, and close-out.•To deliver paving projects each Summer/Fall, these efforts have to repeat each year and must be funded each year.•For optimal bid results,weather dependent construction projects such as paving should bebid during the winter months, so planning/engineering for bid packages should be donebefore winter.
Budget needs to continue annual paving program•Last year's $5M Measure P allocation has $500k remaining for curb ramps and $200k remaining in engineering funding.•Public Works isengineeringtwo pavingpackages forsummer/fall 2025 with a total cost of$10M.•$10MMeasure P ask includes:–$9.5Mfor2025 construction whichwill besupplemented with the $500k of curb ramp funding fromlast year.–$500k to engineer the 2026 paving projects which will be supplemented with the remaining ~$200k engineering funds from last year. 2025 $3M Cape Seal and Curb Ramps Project
2025 $7M Grind and Overlay and Curb Ramps Project
Additional costs of this $7M project are the curb ramps, PM/CM, and inspection
CONTACT(S)
Melissa Tigbao, Public Works Director
Broadway ProjectMonthly Schedule and Budget UpdateGillian Haen, Assistant City ManagerNatalie Peterson, Assistant to the City Manager March 25, 2025
Broadway Project Background•Location: 2441 Broadway•47 Permanent Supportive Housing Units •Roughly 90% complete•Partners:–Developer: Firm Foundation–Operator: Shelter Inc. •Firm Foundation –current property owners (through construction)•City to take ownership at end of construction for anticipated future sale/transfer to affordable housing nonprofit organization Update on Schedule•Timeline Update –The Project has received a tentative energization date from PG&E –April 10, 2025•This will delay Project completion approximately three weeks–Temporary Certificate of Occupancy (TCO) –May 7, 2025 (previously forecasted for April 15, 2025)–Certificate of Occupancy (construction completion) –May 29, 2025 (previously forecasted for May 5, 2025)•Full Lease-Up –90 days from construction completion* The schedule presented (from March 19th) –does not include possible weather delays –currently anticipated 7 days of rain (30 day forecast) Update on Budget•Total Funding Secured: $27,114,262•Funding Spent: $23,934,517 –Includes January 2025 invoices•Remaining Funding: $3,179,745•Remaining funding is anticipated to be sufficient to complete the construction of the project
CONTACT(S)
Gillian Haen, Assistant City Manager [email protected] Peterson, Assistant to the City Manager [email protected] ID Task Name Duration Start Finish
1 Milestones 683 days Mon 9/19/22 Thu 5/29/25
10 Permanent Power Complete 0 days Thu 4/10/25 Thu 4/10/25 11 Elevator Complete 0 days Wed 4/30/25 Wed 4/30/25
12 Punch List 10 days Mon 4/28/25 Fri 5/9/25
13 TCO Testing & Inspections (Main Building) 5 days Thu 5/1/25 Wed 5/7/25 14 TCO Testing & Inspections (Duets & Comm Room) 5 days Thu 5/1/25 Wed 5/7/25 15 TCO & Occupancy (Main Building) 0 days Wed 5/7/25 Wed 5/7/25 16 TCO & Occupancy (Duets & Comm Room) 0 days Wed 5/7/25 Wed 5/7/25 17 Final Certificate of Occupancy 15 days Thu 5/8/25 Thu 5/29/25 36 Permanent Power 517 days Wed 3/22/23 Thu 4/10/25
50 PG&E Set Transformer, Run Cables, Set Meters 15 days Tue 3/18/25 Mon 4/7/25 51 PG&E Energize Power 1 day Thu 4/10/25 Thu 4/10/25
52 Elevator 535 days Thu 3/16/23 Wed 4/30/25
63 Install smoke doors 5 days Mon 3/24/25 Fri 3/28/25
64 finish drywall at elevator fronts & install call buttons 5 days Mon 3/31/25 Fri 4/4/25 65 Balance & Program 3 days Fri 4/11/25 Tue 4/15/25
66 State Inspection Scheduling 10 days Wed 4/16/25 Tue 4/29/25 67 State Elevator Inspection 1 day Wed 4/30/25 Wed 4/30/25 98 Corridors 464 days Fri 6/16/23 Mon 4/21/25
102 Level 1 451 days Fri 7/7/23 Mon 4/21/25
118 Install ACT tiles 3 days Tue 3/18/25 Thu 3/20/25
119 MEPS trim 3 days Thu 3/20/25 Mon 3/24/25
120 Flooring 5 days Thu 4/3/25 Wed 4/9/25
121 Wood Base 3 days Thu 4/10/25 Mon 4/14/25
122 paint touch-up & punch list 5 days Tue 4/15/25 Mon 4/21/25 123 Level 2 444 days Mon 7/10/23 Fri 4/11/25
140 MEPS trim 3 days Wed 4/2/25 Fri 4/4/25
142 paint touch-up & punch list 5 days Mon 4/7/25 Fri 4/11/25 143 Level 3 440 days Tue 7/11/23 Tue 4/8/25
160 MEPS trim 3 days Fri 3/28/25 Tue 4/1/25
162 paint touch-up & punch list 5 days Wed 4/2/25 Tue 4/8/25 163 Level 4 436 days Wed 7/12/23 Thu 4/3/25
180 MEPS trim 3 days Tue 3/25/25 Thu 3/27/25
182 paint touch-up & punch list 5 days Fri 3/28/25 Thu 4/3/25 4/10
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5/7
5/7
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2441 BROADWAY PROJECT CANNON CONSTRUCTORS NORTH, INC.
29 Orinda Way, PO 2047
Orinda, CA 94563
Project: BROADWAY SCHEDULE
Date: Wed 3/19/25
ID Task Name Duration Start Finish
196 Site Built Common Areas 453 days Wed 7/5/23 Mon 4/21/25 206 Community Room & Lobby Finishes 366 days Mon 11/6/23 Mon 4/21/25 214 Prime & Paint 3 days Tue 3/18/25 Thu 3/20/25
215 Install Ceiling Grid 3 days Mon 3/24/25 Wed 3/26/25 216 Ceiling MEPS 3 days Thu 3/27/25 Mon 3/31/25
217 Install Wood Ceiling 4 days Tue 4/1/25 Fri 4/4/25
218 Install Flooring & Base 3 days Mon 4/7/25 Wed 4/9/25 219 Install Cabinets & Countertops 5 days Thu 4/10/25 Wed 4/16/25 220 Touch-up Paint 2 days Wed 4/16/25 Thu 4/17/25
221 Trim-Out 2 days Fri 4/18/25 Mon 4/21/25
288 Landscape/Hardscape 65 days Fri 2/7/25 Fri 5/9/25
289 Grading & base rock 30 days Fri 2/7/25 Fri 3/21/25
291 install curbs & sidewalks 25 days Mon 3/17/25 Fri 4/18/25 292 install hardscape & pavers 20 days Thu 4/3/25 Wed 4/30/25 293 landscaping & surface irrigation 20 days Mon 4/7/25 Fri 5/2/25 294 install asphalt 10 days Mon 4/14/25 Fri 4/25/25
295 Install pavement markings 2 days Mon 4/28/25 Tue 4/29/25 296 install site perimeter fence 10 days Mon 4/21/25 Fri 5/2/25 297 Cleaning & Punch List 5 days Mon 5/5/25 Fri 5/9/25
9 16 23 30 6 13 20 27 4 11 18 25 1
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2441 BROADWAY PROJECT CANNON CONSTRUCTORS NORTH, INC.
29 Orinda Way, PO 2047
Orinda, CA 94563
Project: BROADWAY SCHEDULE
Date: Wed 3/19/25