HomeMy WebLinkAboutCity of Pleasanton - Public Financial ReportPleasanton!
POPULAR ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021
DESTINATION
CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021 CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
Mayor
Karla Brown
Vice Mayor
Julie Testa
Councilmember
Kathy Narum
Councilmember
Valerie Arkin
Councilmember
Jack Balch
CITY COUNCIL
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
Dear Reader,
Destination Pleasanton! is a summarized financial report to help our citizens understand the City of Pleasanton’s
financial position. Every year the City issues an audited financial report that provides a detailed view of the City’s
financial transactions during the course of the year. That audited report, also known as the Annual Comprehensive
Financial Report (ACFR) is prepared by independent auditors and must meet the criteria of the generally accepted
accounting principles (GAAP). The information presented in this report is based on the ACFR for the fiscal year
ended on June 30, 2021. The full report can be found on the City’s website at www.cityofpleasantonca.gov
Pleasanton is a thriving community that has something to offer everyone. From golf courses, major employers,
prosperous vineyards and large community parks and recreation areas to our small business, historic downtown
with its boutique stores and restaurants, the city will capture the heart of all that visit just as it does for its residents.
The area that grew to be the city of Pleasanton played a significant role in California history as a Native American
settlement and later a Spanish settlement during the Mission period. The city’s environs were settled 4,000 years
ago by the Ohlone Indians and became a thriving agricultural area when the Spanish arrived in the 1770s.
Located along the first Transcontinental railway, the area was known as Alisal in the 1850s when it served as a
main mercantile stopover during the Gold Rush era. The town also enjoyed the nickname “The Most Desperate
Town in the West,” due to many bandits who ambushed gold miners returning with their riches.
The city of Pleasanton was incorporated on June 18, 1894. Pleasanton’s history has been shaped largely by its
geographic location, from its days as a stop on the transcontinental railroad, to its modern-day position as a
center of commerce. Pleasanton enjoys a rich blend of historic turn-of-the-century charm and vital modern facilities that
provide the quality of life and economic well-being desired by residents and businesses. This successful balance
has been achieved through Pleasanton’s active and involved citizenry, strong community leadership and committed
City government.
The city’s geographic location makes it strategically accessible. Pleasanton is located at the intersection of two major
interstate freeways. These freeways link Pleasanton to Sacramento in the north, San Francisco Bay Area in the west,
the Silicon Valley in the south and the San Joaquin central valley in the east. Along with the major freeways, the
city also boasts connection with transit systems, including the Bay Area Rapid Transit (BART) and Altamont Corridor
Express (ACE) which make traveling to and from the city extremely convenient.
The city’s location combined with abundant parks and recreational areas, thriving community, low crime,
excellent business districts and a beautiful downtown makes Pleasanton the city of choice for new businesses,
industry and residents.
MESSAGE TO OUR READERS
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
Introduction ............................................................2
Public Entity ............................................................3
Community Profile .......................................................4
City Organization Chart ...................................................5
Government Funds .......................................................6
Enterprise Funds .........................................................7
Net Position ............................................................8
Fund Balance and Reserves .................................................9
Investments ...........................................................10
Long Term Debt ........................................................11
Pension Obligations .....................................................12
Other Post Employment Benefits .............................................13
TABLE OF CONTENTS
DESTINATION PLEASANTON FUN FACT
Pleasanton was incorporated in 1894 and named after Major General Alfred Pleasanton of the Union Army. A
typographical error by the U.S. Post Office is believed to be responsible for the current spelling of the city’s name.
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
Destination Pleasanton, Popular Annual Financial Report contains financial highlights for the City of
Pleasanton. The information has been presented in an easy to read format that simplifies complex
data and avoids financial jargon. The City of Pleasanton is a Charter City with a Mayor/City
Manager form of government. The Mayor and City Council are elected officials that represent the
will of Pleasanton residents and businesses. The City Manager and their staff provide operations and
management of services and facilities provided by the City. The City adopts a biennial Operating
Budget and a four year Capital Improvement Plan in odd number years. For more information on the
City’s various financial reports and information please visit the Finance page on Citys website located
at www.cityofpleasantonca.gov
Here is a quick reference to some terms used in the report:
Fiscal Year - a one year period that the City used for accounting purposes and preparing financial report. The
fiscal year for the City begins on July 1 of every year and ends on June 30. The City issues its annual financial
reports by December 31 of every year.
Fund - a method to account financial transactions that are for a specific purpose.
Assets - property or equipment that has a monetary value.
Other Assets - cash, investments, and money owed to the City.
Liability - a legal monetary obligation.
INTRODUCTION
DESTINATION PLEASANTON FUN FACT
Over the years over 30 movies have been filmed in the city of Pleasanton, including the 1917 Mary Pickford classic
“Rebecca of Sunnybrook Farm” and 1918 “Little Orphant Annie” and more recently the 2017 thriller “Best F[r]iends”
Special Revenue Funds
Grants, donations
Restricted for special purposes
General Fund
Taxes, fees, permits
Police, fire, general City operations
Internal Service Funds
Cost allocation from other funds
Equipment, vehicles, technology
Other Funds
Debt Service
Trust funds
Enterprise Funds
Fees for services or utilities
Water, sewer, golf course
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
PUBLIC ENTITY
City of Pleasanton is a public entity that manages its monies as governed by the generally accepted accounting
practices. A public entity makes use of “funds” to ensure appropriate use of the public funds.
Think of “funds” as separate buckets
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
CITY OF PLEASANTON COMMUNITY PROFILE
210
Miles
24.2 mi2
Total City Limit
Area
29,344Total Housing Units
Maintained City Streets
47Parks
80
TrailMiles
4 minutes
Average Police Department
Emergency Call Response
Time
97% of Residents
Say Pleasanton is an
Excellent or Good place
to live
Large Employers
in Pleasanton
5,098Employees
3732Employees
1493Employees
1348Employees
1,040Employees
Community Demographics
51% • Caucasian
33% • Asian
6% • Hispanic/Latino
10% • Other/ No Data
51% Female
49% Male
$240,760Average Household Income(Family of 4)
The Average
Resident
The City of Pleasanton is a great
|community made up of great people.
These facts/figures reflect the average
Pleasanton resident.
THE CITY OF PLEASANTON BY THE NUMBERS
Industry Most Likely to Work In
20% • Professional, technical services
14% • Manufacturing
10% • Healthcare
Owns 2 Cars
Owns Their Home
70% of Residents
Has a
commute time
39 minute
Possesses a Bachelors Degree
61% of Residents
5,308
Total Fire
Department
Incidents
159
Total
Annual Fires
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
ORGANIZATION CHART
CITIZENS
MAYOR & CITY COUNCIL
CITY MANAGER CITY ATTORNEY
COMMUNITY DEVELOPMENT
Develops and updates the General Plan, reviews development proposals, zoning regulations, and traffic engineering standards.
ECONOMIC DEVELOPMENT
Works to create a positive business climate, attract and retain a diverse network of companies in the city.
ENGINEERING
Designs and constructs public facilities,
reviews improvements constructed by
private development.
FINANCE
Responsible for accounting, financial and investment activities of the City.
HUMAN RESOURCES
Works to attract and retain a highly talented and qualified City workforce.
FIRE
Protection of life and property, with a focus on prevention and control of fires and hazardous materials.
INFORMATION TECHNOLOGY
Provides support for computer technologies including, hardware, software, and cloud based solutions.
OPERATIONS SERVICES
Oversees the City’s vehicle fleet, utility billing, parks, water, sewers, storm drainage, build-ings, and streets.
POLICE
Responsible for law enforcement functions, investigating cases, and continuous patrol around Pleasanton.
• BICYCLE, PEDESTRIAN AND TRAILS
COMMITTEE
• CIVIC ARTS COMMISSION
• COMMITTEE ON ENERGY AND THE
ENVIRONMENT
• ECONOMIC VITALITY COMMITTEE
• HOUSING COMMISSION
• HUMAN SERVICES COMMISSION
• LIBRARY COMMISSION
• PARKS AND RECREATION
COMMISSION
• PLANNING COMMISSION
• YOUTH COMMISSION
CITY CLERK
Responsible for legislative/administrative functions, including overseeing regular and special meetings and elections.
LIBRARY & RECREATION
Provides access to services that meet informational and educational needs of the community.
CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
Governmental funds are a group of funds (sources) that a government entity collects during the year and are used
to provide most of the City services. These funds include monies collected through taxes, permits, licenses, fines,
fees for services, etc. They are typically used for services that are not restricted by usage. Examples of programs
funded through Governmental Funds include police and fire services, libraries, parks, and public works.
Where does money come from?
Taxes like property tax, sales tax, and transient occupancy tax comprise the larget portion of governmental funds.
This makes up about 76% of the total revenues in this category. The table below breaks down the different revenues
collected by the City in FY 2020/21 compared with FY 2019/20.
GOVERNMENTAL FUNDS
Where does money get spent?
The governmental funds are used for typical City operations split into five categories: General Government, Public Safety,
Community Development, Operations Services, and Community Activities. Public safety makes up for 37% of the expenses
as firefighting and police services continue to develop as the city grows. The table below breaks down the different programs
funded by the City in FY 2020/21 compared with FY 2019/20.
Revenue by Sources (in millions)FY 2019/20 FY 20/2021
Property Taxes & Special Assessments $74.5 $77.9
Sales Tax 20.7 21.9
Other Taxes 10.8 8.7
Other Sources 21.3 16.6
Fines, Forfeitures & Fees 8.0 5.2
Intergovernmental 7.3 13.2
Total $142.6 $143.5
Expenditures by Program (in millions)FY 2019/20 FY 2020/21
General Government $16.0 $15.9
Public Safety 50.3 52.1
Community Development 16.7 24.6
Operations Services 20.8 20.7
Community Activities 12.7 10.3
Capital & Debt 12.7 18.1
Total $129.2 $141.7
Fees forServices8%
Other Revenues16%
Taxes76%
Public Safety37%
CommunityDevelopment17%
OperationsServices15%
Community Activities7%
Capital &Debt13%
General Government11%
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021 CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
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Enterprise or Business Funds are a group of funds that are managed similar to a business entity. These funds collect
fees to cover the cost of service and all monies collected can only be used to provide the same service. These funds
are typically used for utilities – including water, sewer and storm drain, as well as golf and transit services.
Where does money come from?
The Water Utility is the biggest component, comprising of about 59% of the total group. Unlike governmental
funds, each fund is a separate entity and funds from one source cannot be mixed with another. The “Other
Enterprise Funds Category” represents three funds: Transit Fund, Cemetery Fund and Housing Fund. The table
below breaks down the different revenues collected by the City in FY 2020/21 compared with FY 2019/20.
ENTERPRISE (BUSINESS OR PROPRIETARY) FUNDS
Where does money get spent?
The enterprise funds are used specifically for the purpose the revenue is collected. For example, the amount paid on a water
bill can only be used to provide water to a resident or business. This includes operating cost of the utility, capital projects
needed to maintain the water system and the cost of buying the water. The table below breaks down the different programs
funded by the City in FY 2020/21 compared with FY 2019/20.
Revenue by Sources (in millions)FY 2019/20 FY 2020/21
Water Fund $32.3 $33.4
Sewer Fund 17.4 16.7
Golf Fund 3.2 4.5
Storm Drain Fund 1.1 1.5
Other Enterprise Funds 1.1 0.8
Total $55.1 $56.9
Expenditures by Program (in millions)FY 2019/20 FY 2020/21
Water Fund $32.1 $31.7
Sewer Fund 16.1 16.9
Golf Fund 4.8 5.9
Storm Drain Fund 2.7 2.4
Other Enterprise Funds 0.8 0.7
Total $56.5 $57.6
Golf10%
Storm Drain4%
Sewer30%
Water55%
Other1%
Golf8%
Sewer29%Water59%
Storm Drain3%
Other1%
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
The net position is an overview of the City’s assets and liabilities. The change in total net position shows how much
the balance of assets and liabilities has changed in the past year. The change in net position from FY 2019/20 to
FY 2020/21 was an increase of half a percent. This indicates that the City gained more assets than the increase in
liabilities. The goal is to ensure the City’s assets always exceed the liabilities.
NET POSITION
Net Position (in millions)
City Assets - What we own FY 2019/20 FY 2020/21
Capital Assets (land, roads, building, vehicles, equipment)$671.4 $668.1
All Other Assets (cash, receivables, other)358.9 377.6
Total City Assets 1,030.3 1,045.7
City Liabilities - What we owe
Long Term Liabilities (long-term debt, pension obligations)$236.9 $246.0
All Other Liabilities (payables, claims, deposits, other)44.3 46.6
Total City Liabilities 281.2 292.6
City’s Net Financial Position $749.1 $753.1
DESTINATION PLEASANTON FUN FACT
The Racetrack at Alameda County Fairgrounds is the oldest horse racing track in the United States. It was founded
in1858 and is a one-mile track still used for Thoroughbred, Quarter horses and Arabian horses. The track is owned
and operated by Alameda County.
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
A fund balance is essentially the left over monies in a fund in addition to the assets owned by the fund after
meeting all liabilities for the fund. Think of it as the account balance in a checking account left at the end of the
month, after all the monthly purchases and bills are paid. These funds are then available for allocation to use in
the next fiscal year and to retain as reserves. The City manages each fund to maintain a healthy fund balance that
helps with long range planning and fiscal sustainability. The following charts show the fund balances for various
governmental and enterprise funds.
FUND BALANCES
Governmental Funds - Fund Balance (in millions)
Enterprise Funds - Available Fund Balance* (in millions)
Other Governmental Funds
Other CIP Funds
Misc CIP Fund
Lower Income Housing Fund
General Fund
$22.0
$24.2
$53.9
$57.8
$22.0
$24.2
$21.4
$19.3
$43.7
$-$10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0
$37.3
FY 2019/20FY 2020/21
Storm Drain Fund
Golf Fund
Other Enterprise Funds
Sewer Fund
Water Fund
$[2.0]
$0.1
$0.0
$1.4
$1.3
$8.9
$13.4
$13.5
$9.2
$[0.3]
$[0.1]
$-$2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0
FY 2020/21 FY 2019/20
*Available Fund Balance refers to resources left for future appropriation or use after meeting all liabilites on the fund.
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
The City’s investment policy is designed to limit exposure to losses arising from a volatile market. The City limits
investment to a maximum of five years of maturity. The City’s investments are rated by nationally recognized rating
organizations. The following table shows the amounts contributed by the City in the various types of investments.
INVESTMENTS
The City’s investments are rated by nationally recognized rating organizations. The City’s policy requires a rating
of “A” or better. As of June 30, 2021, the ratings for the City’s investment portfolio, excluding pension related
investments and LAIF, are as follows:
Amount
U.S. Government Agencies $153,652,664
Medium-Term Corporate Note 52,586,722
Non-Negotiable Certificates of Deposit 1,024,210
California Local Agency Investment Fund (LAIF) 26,002,157
Supranationals 988,704
PARS Pension Trust Fund 47,928,827
Total Investments $282,183,284
US Government$154 million54%Corporate$53 million19%
PARS Trust$48 million17%
LAIF$26 million9%
Other$2 million1%
Govern
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
DESTINATION PLEASANTON FUN FACT
The Firehouse Arts Center in Pleasanton is a center of culture and art for Pleasanton. It features a 227-seat theater, the
Harrington art gallery, and classrooms for art and drama. It is also home to the critically acclaimed teen improv comedy
troupe, Creatures of Impulse. The theatre was opened in 2010 and has housed many named acts over the years.
The City is financially strong and manages its long term liabilities and debt strategically. The following table
compares the outstanding balances on the City’s long-term debt for FY 2020/21 compared with FY 2019/20.
Overall, there is a reduction in the amount owed in both government and business-type funds.
Governmental activities debt decreased by $226,406 in FY 2020/21 as a result of payments.
• The California Energy Commission loan for the LED Lighting Upgrade project
• Section 108 housing loan balance
Debt of the business-type activities decreased by $0.4 million in FY 2020/21 due to payments.
• Golf Course Capital Lease debt
• California Clean Water State Revolving Fund loan for the Recycled Water Infrastructure Expansion project
increased by $0.5 million. This is a net effect of an increase in loan less amounts paid
• Water Revenue Bonds, Series 2017
• Debt incurred by the golf course from the federal government under the Paycheck Protection Program (PPP)
remains unchanged. The PPP was established as part of the Coronavirus Aid, Relief and Economic Security Act
(CARES Act) to assist businesses in staying afloat during the COVID-19 pandemic
LONG TERM DEBT
Governmental Business-Type Total
Description FY 2019/20 FY 2020/21 FY 2019/20 FY 2020/21 FY 2019/20 FY 2020/21
California Energy
Commission (CEC)$468,588 $282,182 $ - $ -$468,588 $282,182
HUD Section 108 Loan 726,000 686,000 --726,000 686,000
Golf Course Capital Lease --132,612 56,665 132,612 56,665
Golf Course Note Payable --291,667 291,667 291,667 291,667
California Clean Water
SRF Loan --9,379,766 9,917,013 9,379,766 9,917,013
Water Revenue Bond --4,600,000 3,720,000 4,600,000 3,720,000
Total $1,194,588 $968,182 $14,404,045 $13,985,345 $15,598,633 $14,953,527
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
The City participates in the California Public Employees’ Retirement System (CalPERS). Under this system there
are three separate accounts used by the City. The employee benefits are determined by type of work (Police, Fire
or Miscellaneous Employee), date of hire, years of service and age at retirement. Both the City and employees
contribute towards the pension fund.
The City’s pension liability is measured as the total pension liability less the plans’ assets. While the City is
currently fiscally stable, an increase to the pension liability can prove to be a challenge, since it increases pension
contributions. The City has taken measures to smooth the impact of these rates by creating a longterm fiscal plan
and establishing a Section 115 Pension Trust Fund, specially designed to manage pension rate fluctuations
as needed.
To date, the City allocated a total of $38 million towards this trust fund (balance at 6/30/21 with investment
earnings is $48 million), which is administered by PARS Trust Fund, comprised of both short and long term
investments. City Council also adopted policies that placed limits on the City’s ability to draw on the PARS Trust
Fund to ensure funds are available for pension contributions during financially difficult times without having to
reduce City services. In addition, the extent to which the City is able to not draw on the PARS Trust Fund, the fund
can grow through compounded investment earnings. The table below reflects the City’s pension liability for the
different plans. The increase in liability for FY 2020/21 is originally due to CalPERS lower investment earnings. For
more information on the pension liability, please refer to the Annual Comprehensive Financial Report (ACFR).
PENSION OBLIGATIONS
$105.5
$175.0
$187.0
$99.7
Miscellaneous Safety (Police)Safety (Fire)Totals
$34.8 $39.5 $40.5 $42.0
$200.0
$160.0
$120.0
$80.0
$40.0
$-
FY 2019/20 FY 2020/21
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CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2021
The City of Pleasanton provides retiree health benefits to employees that retire directly from the City. The value
of this benefit is defined by negotiated labor contracts. The City established an irrevocable trust set up with the
California Employer’s Retiree Benefit Trust program (CERBT) administered by CalPERS, to help fund future health
benefits. The table below reflects the City’s net OPEB liability as shown in the ACFR for FY 2020/21 as compared
with FY 2019/20.
OTHER POST EMPLOYMENT BENEFITS (OPEB)
DESTINATION PLEASANTON FUN FACT
There are approximately 240 restaurants in Pleasanton. Downtown Pleasanton alone boasts over 40 dining
establishments that serve a variety of cuisines, ranging from cuisines of the west to those from the far east.
Net Liability as of:Non-Fire Fire Total
As of June 30, 2020 $33,901,000 $8,239,000 $42,140,000
As of June 30, 2021 33,228,000 8,060,000 41,288,000
Difference ($673,000)($179,000)($852,000)
Percent Difference (2%)(2%)(2%)
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CONTACT US
Important Numbers
Mayor and City Council (925) 931-5001
City Attorney’s Office (925) 931-5015
City Manager’s Office (925) 931-5002
Public Information Officer (925) 931-5044
For a full employee directory please visit
www.cityofpleasantonca.gov/contact/staff.asp