city of union city, california

CITY OF UNION CITY, CALIFORNIA

Comprehensive Annual Financial Report for the

Fiscal Year Ended June 30,2016

california

City of Union City Table of Contents

i

Page Introductory Section Table of Contents ........................................................................................................................................................ i Letter of Transmittal .................................................................................................................................................. v Regional Map ............................................................................................................................................................ xi Commissions, Committees and Boards ................................................................................................................ xii Directory of City Officials ..................................................................................................................................... xiii Organizational Chart ..............................................................................................................................................xiv Certificate of Achievement for Excellence in Financial Reporting - Government Finance Officers Association .................................................................................................... xv

Financial Section Independent Auditors’ Report ............................................................................................................................... 1 Management’s Discussion and Analysis .............................................................................................................. 5 Basic Financial Statements: Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................... 27 Statement of Activities ............................................................................................................................... 28 Governmental Funds Financial Statements: Balance Sheet ............................................................................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position....................................................................... 36 Statement of Revenues, Expenditures and Changes in Fund Balances .............................................. 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ......................................................................................................................... 40 Proprietary Fund Financial Statements: Statement of Net Position .......................................................................................................................... 43 Statement of Revenues, Expenses and Changes in Net Position ......................................................... 44 Statement of Cash Flows ............................................................................................................................ 45 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ........................................................................................................ 48 Statement of Changes in Fiduciary Net Position.................................................................................... 49 Notes to Basic Financial Statements ............................................................................................................... 53

City of Union City Table of Contents, Continued

ii

Page Financial Section, Continued

Required Supplementary Information:

Budgetary Basis of Accounting: Budgetary Control and Budgetary Accounting ................................................................................... 103

Budgetary Comparison Schedule, General Fund .......................................................................... 104 Budgetary Comparison Schedule, UC as Successor Agency to Redevelopment

Low-Moderate Income Special Revenue Fund .............................................................................. 105 Schedule of Changes in the Net Pension Liability and Related Ratios ............................................. 106 Schedule of City’s Proportionate Share of the Net Pension Liability ................................................ 107 Schedule of Contributions ....................................................................................................................... 107 Other Post Employment Benefits Plan Schedule of Funding Progress ............................................. 108

Supplementary Information:

Non-Major Governmental Funds: Combining Balance Sheet ........................................................................................................................ 114 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ......................................................................................................... 122

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure B/ACTIA Special Revenue Fund ........................................................................................... 130 Special Parks Special Revenue Fund ...................................................................................................... 131 State Gas Tax Special Revenue Fund ..................................................................................................... 132 Street Lights and Landscaping Special Revenue Fund ....................................................................... 133 Housing and Community Development Special Revenue Fund ....................................................... 134 HOME Special Revenue Fund ................................................................................................................ 135 DIPSA Development Special Revenue Fund ........................................................................................ 136 Community Facility Districts (Maintenance) ........................................................................................ 137 EMS Enhancement Special Revenue Fund ............................................................................................ 138 Traffic Signalization Special Revenue Fund ......................................................................................... 139 Supplemental Law Enforcement Special Revenue Fund .................................................................... 140 Clean Water Program Special Revenue Fund ....................................................................................... 141 Recycling and Waste Management Special Revenue Fund ................................................................ 142 Used Oil Block Grant Special Revenue Fund ....................................................................................... 143 Housing In-Lieu Special Revenue Fund ................................................................................................ 144 Public Safety Parcel Tax Special Fund ................................................................................................... 145 Union Landing PBID Special Revenue Fund ........................................................................................ 146 Alameda County Waste Import Mitigation Special Fund .................................................................. 147 Solid Waste Management Special Revenue Fund ................................................................................ 148 Asset Seizure Fund .................................................................................................................................. 149 Measure F Special Revenue Fund ........................................................................................................... 150


iii

Page Financial Section, Continued

Supplementary Information, Continued

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual, Continued: CUPA Enforcement Special Revenue Fund .......................................................................................... 151 Youth Violence Prevention & Intervention Fund ................................................................................ 152 Measure D Special Revenue Fund .......................................................................................................... 153 Affordable Housing Special Revenue Fund .......................................................................................... 154 Public Art Special Revenue Fund ........................................................................................................... 155 Measure BB Fund ...................................................................................................................................... 156

Cable TV PEG Special Revenue Fund .................................................................................................... 157 Pension Obligation Bonds Debt Service Fund ...................................................................................... 158 Community Facilities District Debt Services Fund .............................................................................. 159

Internal Service Funds: Combining Statement of Net Position ................................................................................................... 162 Combining Statement of Activities and Changes in Net Position ..................................................... 164 Combining Statement of Cash Flows ..................................................................................................... 166

General Fund: Balance Sheet ............................................................................................................................................. 169 Statement of Revenues, Expenditures and Changes in Fund Balances ..................................................................................................................................... 172 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: General Fund ............................................................................................................................................. 175 Retirement/Benefit Reserve Special Revenue Fund ............................................................................ 176 Post-Employment Medical Benefits Special Revenue Fund ............................................................... 177 Fire Equipment Acquisition Special Revenue Fund ............................................................................ 178

Southern Alameda County Major Crimes Task Force Fund .............................................................. 179 Leisure Revolving Special Revenue Fund ............................................................................................. 180 Parent Project Fund .................................................................................................................................. 181 Allied Waste Vehicle Special Fund ........................................................................................................ 182 Code Enforcement Special Revenue Fund ............................................................................................ 183 Corporation Yard and Fuel Facility Maintenance Special Revenue Fund ........................................ 184

Statistical Section

Net Position by Component ................................................................................................................................. 187 Changes in Net Position ........................................................................................................................................ 188 Fund Balances of Governmental Funds .............................................................................................................. 190 Changes in Fund Balances of Governmental Funds ......................................................................................... 191 Assessed Value and Estimated Actual Value of Taxable Property ................................................................ 193


iv

Page Statistical Section, Continued

Direct and Overlapping Property Tax Rates ...................................................................................................... 194 Principal Property Tax Payers ............................................................................................................................. 195 Principal Tax Levies and Collections .................................................................................................................. 196 Special Assessment Collections ........................................................................................................................... 197 Property Values and Construction ...................................................................................................................... 198 Ratios of Outstanding Debt by Type .................................................................................................................. 200 Ratios of General Bonded Debt Outstanding ................................................................................................... 201 Schedule of Direct and Overlapping Debt ......................................................................................................... 202 Legal Debt Margin Information ........................................................................................................................... 203 Pledged-Revenue Coverage ................................................................................................................................. 205 Bank Deposit Summary ........................................................................................................................................ 207 General Fund Expenditures by Function ........................................................................................................... 208 General Fund Revenues by Function .................................................................................................................. 209 Taxable Sales Transactions ................................................................................................................................... 210 Taxable Sales Transactions by Type of Business ............................................................................................... 211 Adopted and Final Budget for 2015-16 and 2016-17 Adopted Budget for

Unrestricted General Fund ............................................................................................................................ 212 Summary of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................. 213 Pooled Investment Portfolio ................................................................................................................................. 214 Demographic and Economic Statistics ................................................................................................................ 215 Principal Employers .............................................................................................................................................. 216 Full-time and Part-time City Employees (Full-Time Equivalents FTE's) by Department ........................... 217 Operating Indicators by Function ....................................................................................................................... 219 Capital Asset Statistics .......................................................................................................................................... 220 Miscellaneous Statistics ......................................................................................................................................... 221

UKIKDk CEITY California

CITY OF UNION CITY

34009 Alvarado-Niles Rd • Union City • CA • 94587 unioncity.org

January 10, 2017

To the Honorable Mayor, Members of the City Council and Citizens of Union City, California

We are pleased to submit the Comprehensive Annual Financial Report for the City of Union City for the fiscal year ended June 30, 2016. The Government Code of the State of California requires general law cities, such as the City of Union City, to have its financial statements audited by an independent certified public accountant at the end of each fiscal year and issue a complete set of financial statements. The financial statements are presented in conformity with generally accepted accounting principles and audited in accordance with generally accepted auditing standards.

This report was prepared by the City’s Finance Department and the responsibility for the accuracy of the data presented in this report and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. We believe the data presented is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and changes in financial position of the City as measured by the financial activities of its governmental funds, business-type funds, each major fund, and the aggregate remaining non-major governmental funds. In addition, the report contains all disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial affairs. In order to ensure that there is a reasonable basis for assuming responsibility for the information contained in the financial report, management has established an internal control framework which is designed to protect the City’s assets from loss, theft or misuse and provide assurance that the accounting system and its underlying data are reliable. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.

This year, the firm of Badawi and Associates was engaged to audit the City’s basic financial statements. The goal of an independent audit is to provide users of the financial report with reasonable assurance that the financial statements of the City for the fiscal ended June 30, 2016 are free of material misstatements.

The independent audit involved a review of internal controls; 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 presentation. The independent auditors concluded that there was a reasonable basis for rendering an unqualified opinion on the City’s financial statements for the fiscal year ended June 30, 2016. The independent auditor’s report is presented as the first component of the financial section of this report. The audit of the financial statements of the City included a federally mandated Single Audit Report, which is designed to meet the requirements of federal grantor agencies. The standards governing Single Audit engagements require that the independent auditor report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with emphasis

vi

on the internal controls and legal requirements involving the administration of federal grants. The Single Audit Report is issued separately by the City.

Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A immediately follows the independent auditor’s report.

Profile of the City

General Information: The City was incorporated in 1959, unifying the Alvarado and Decoto Districts. At that time, there were approximately 6,000 citizens living in the area. Today there are more than 70,000 residents occupying an 18-square-mile area located between the cities of Oakland to the north and San Jose to the south, along the eastern shore of the San Francisco Bay. Union City’s proximity to major highways, bridges, airports, public transportation, colleges and universities, and cultural and recreational areas make it a desirable community in which to live and work. The City is a family-oriented community where the focus is on the enrichment of the quality of life for its citizens.

Government Structure: The City has a Council-Manager form of government with the Mayor and City Council forming the legislative body that represents the community. The City Council is elected at-large for up to three consecutive four-year terms. The City Council is responsible for developing policies, passing ordinances, adopting the budget, hiring both the City Manager and City Attorney, and approving appointments of department heads and nominees to advisory commissions and committees. The City Manager is responsible for the administration of City services, the day-to-day operations of the City and the implementation of Council policies.

Union City is a general law city which operates under the provisions of state law. Like other general law cities, Union City has limited ability to set tax rates. The State Constitution establishes a maximum property tax rate and limits the growth of the assessed valuation of properties. The property tax collected is allocated among the jurisdictions in the City’s tax rate areas based on criteria established by the California legislature. The base rate and tax base of the City’s other major general revenue source– sales tax- is also set by the state legislature.

Increases in existing local taxes and any new taxes require voter approval. Taxes used for general purposes are subject to approval by a simple majority of voters. Taxes levied for specific purposes require a two-thirds majority of voters, as do property tax levies that are used to pay for debt issued to construct capital assets. Special property tax assessments must be approved by a two-thirds vote, with the voting rights apportioned based on the benefit of the assessments. Fees for facilities and services are subject to requirements that they not be set at levels that exceed the reasonable costs of providing the services. The balance generated by the difference between fee revenues and the related expenditures are retained and designated for services and facilities that benefit the fee payers.

Services Provided: The City provides the full range of services normally associated with a municipality. These include public safety, which encompasses police, fire, emergency medical services and code enforcement; construction and maintenance of streets, parks and other infrastructure; social and recreation

vii

services; planning, economic development and housing programs; and general administrative services. Fire suppression and emergency medical services are provided to the City under a contract agreement with the Alameda County Fire Department. The City also operates a transit and paratransit bus system that is coordinated with the services of other transit providers including the Bay Area Rapid Transit (BART) rail system, A-C Transit and Dumbarton Express bus services. The City manages franchises for solid waste disposal, recycling, cable television and gas and electric services.

Other common municipal services delivered within the City’s boundaries, such as water, wastewater treatment, education, libraries, regional parks and flood and vector control, are provided by other governmental agencies either directly to Union City residents or under contract with the City.

Component Unit: The financial statements included in this CAFR present the City and the Community Facilities District (the District) as its component unit. A component unit is a legally separate entity for which the elected officials of the primary government are financially accountable. The District was established by the City pursuant to the Mello-Roos Community Facilities Act of 1981, as amended. This followed a public hearing and a landholder election at which over a two-thirds majority vote authorized the District to incur bonded indebtedness and the levy of special taxes. The District is located in the area once known as the Dyer Street Triangle and is now commonly referenced as the Union Landing retail area. There are no other governmental units over which the City Council has financial accountability.

Budget: Subject to an appropriation limit established pursuant to state law, management prepares a biennial operating budget along with a five-year capital improvement plan. Through the budget process, the City’s goals and objectives are prioritized. The proposed budget is presented to the citizens at public hearings prior to adoption by the City Council. After due deliberation, City Council adopts the resolution appropriating the City’s resources. This resolution approves both years of the biennial operating budget. Budget amendments, for either or both years, require City Council approval. A fixed biennial budget is required for the General Fund, Special Revenue and Debt Service funds. Capital projects are appropriated in the capital improvement plan on a project-length basis. Budgets for proprietary funds are also adopted by City Council to serve as a financial plan.

The legal level of budgetary control is at the fund level. The City Manager is authorized to reallocate resources within a fund. Department Heads are permitted to reallocate non-payroll resources among the programs within their department and within the same fund. Budget revisions that reallocate dollars between funds or that alter the total budget amount require City Council approval. The City’s budget is integrated in the accounting system, which provides management with timely access to financial information. Unexpended or unencumbered operating appropriations lapse at the end of the fiscal year. Encumbrances, representing purchase orders outstanding at year end, are reappropriated in the following year’s budget. Appropriations for capital projects are appropriated on a project-length basis since completion of a project may span more than one fiscal year.

Economic Condition and Outlook

Local Economy: As a result of the 2007-2008 recession housing prices in the Alameda County area dropped dramatically. Since that time the market has continued to recover with just 13% of the properties remaining below their pre-recession values. The County Assessor’s office has estimated that these remaining properties will be reassessed in the next two property tax cycles.

viii

As in most cities in the San Francisco Bay Area (Bay Area), the City’s housing market and consumer spending drives its economy and the increased confidence in the economy has led businesses to upgrade or add to their facilities within the City. Property taxes, the General Fund’s major revenue source increased by 5.5% or $1.1m over last fiscal year. Property taxes represent 41% of the General Fund revenue.

Sales tax revenues increased by 17.9% or $2.0m over the prior fiscal year. In November 2014, Measure JJ, which would increase the temporary sales tax rate by an additional half-cent was approved by 74% of the City’s voters. Measure JJ took effect in April 2015 increasing the City’s sales tax rate to 10%. Measure JJ will expire in ten years. In addition, the City’s other revenue sources such as franchise fee, business license and transient occupancy increased by 4.0% or $366k. Combined with property taxes, the above sources of revenue represent 83% of the General Fund revenues for the City.

Economic Development: The increased confidence in the economy has generated interest in vacant parcels within the City. With the City’s location so close to major highways, ports and airports and the technology hubs in the Silicon Valley, opportunities are available for commercial growth. In December 2015, Terreno Realty Corporation acquired four recently constructed industrial buildings with a combined 310,000 square feet located on 16.4 acres. Additionally, over 200,000 square feet of commercial/industrial property has been renovated during the year for new tenants. This activity combined indicates an expanding commercial sector within Union City.

In late 2016 the City signed an option agreement with Woodstock Development to construct 1.2 million square feet of office and retail space on a three acre site in the station district. Construction is expected to begin in 2018.

The City’s Community and Economic Development Department continues to work closely with merchant associations to promote businesses in their area. Union City is home to a number of bio-medical businesses and the City has held joint meetings to encourage business-to-business transactions.

New housing opportunities are continuing to be developed in the City. During the year 257 residential units were permitted. Included in this total, Windflower, LLC, is currently constructing a 243 unit mixed use multifamily housing project on property that has been conveyed to the City from the Successor Agency. Completion is expected in summer of 2017. The second phase of the Windflower project is expected to be submitted for approval in early 2017 with construction beginning in late 2017. This projects consists of 450 multifamily housing units and will be located in the station district.

Long-Term Financial Planning: In 2015 the City Council update its previous policy of maintaining an unassigned fund balance amount in the General Fund of not less than 7.5% of the annual operating expenditures to 20% These funds are to be used for economic uncertainties such as unanticipated revenue shortfalls, unexpected expenditure increases or catastrophic impacts to the City.

Relevant Fiscal Policies: The City’s Fiscal Management Policy authorizes the use of one-time revenues for capital projects or one-time costs and seeks to minimize borrowing costs and preserve access to credit. City Management also prepares an annual multi-year forecast of the City’s operating revenues and expenditures to demonstrate the likely impact on the General Fund reserves for City Council to consider. The City utilizes the budgetary control feature in its financial system. This feature validates if funds are available, at the program level, each time a requisition is entered. If there are not sufficient funds to cover

ix

the proposed purchase cost, the user will not be able to create a requisition unless a budget transfer is made.

In fiscal year 2011-12, the City Council adopted the establishment of an administrative contingency as part of the Fiscal Management Policy. The amount to be set aside each year is to equal .5% of the audited annual expenditures of the General Fund in the prior fiscal year. The City Manager has been given the authority to approve funding for unforeseen costs or new programs that were not anticipated during the budget development process.

Major Initiatives:

Intermodal Station District: The creation of the Intermodal Station District, the area surrounding the Union City BART Station, is the City’s premier redevelopment project. The former 105-acre brownfield site and under-utilized land is being transformed into a vibrant transit-oriented neighborhood consisting of housing, shopping and offices focused around a community plaza with sculptures from a world-renowned artist, fountains, a pedestrian promenade and playground. The BART Station has been remodeled into an Intermodal Station with multiple transit providers. BART Phase I, consisting of new multiple points of access for pedestrians and buses, reconfigured parking lots that will enable the parking lots to be easily converted to offices without disrupting access to the Station, a new 16-bay bus facility with solar collectors that power the BART Station, improved passenger circulation and widened platforms on the south-bound side of the Station, a dynamic glass façade, and improved landscaping was completed in December 2010. BART awarded a construction contract for BART Phase II in 2013. BART Phase II will create a new east entrance to the BART Station and provide direct access to the new East Plaza, Pedestrian Promenade and Playground and new housing. Construction is expected to be completed in early 2017. A future passenger rail station serving the Capital Corridor, Dumbarton Rail and ACE will be integrated into the Intermodal Station.

In fiscal year 2016 the remaining $23 million of 2011 bond funds, held by the trustee were released to the City under an agreement with the Department of Finance. With the release of these funds Union City and BART entered into a contract to design and construct BART Phase 2A. BART Phase 2A will consist of installing additional escalators and widening the northbound platform to increase passenger capacity and improve circulation. The project will also include constructing an at-grade signalized pedestrian crossing of the Oakland Subdivision to enter the new east side BART entrance and to install and provide high speed dark fiber serving offices and homes in the Station District and connect with the BART fiber backbone. Six million dollars of the remaining $23 million will be spent on construction of the new East West Connector that will provide secondary road access to the Station District and enable buildout of the planned densities.

Long Term Forecasting Model - The City Finance Department has embarked on the creation of a new long term forecasting model. The model will look out to a 10 year horizon with emphasis being placed on General Fund unassigned fund balances, capital and liability reserves and other key economic and fiscal indicators. This new forecasting tool will be utilized by the City management and City Council when making fiscal decisions in all areas of City governance.

Awards

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Union City for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2015. This was the 26th consecutive

year that the government has achieved this prestigious award. In order to be awarded a Certificate of

Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program

requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The City has also received the Distinguished Budget Presentation Award from GFOA for the City's

adopted biennial budget for fiscal years 2015-16/2016-17. This is the fourth consecutive budget document to receive this award. In order to qualify for the award program, the City must publish a budget

document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device.

Acknowledgements

We would like to express our appreciation for the dedicated efforts of the staff of the Finance Department, which was essential in the preparation of this report. We also wish to thank the members of the various City departments who assisted and contributed in the preparation of this report.

Sincere appreciation is also expressed to our auditors, Badawi and Associates, for their support and

assistance.

Our thanks are also extended to Mayor Carol Dutra-Vernaci and the City Council for their support and establishment of the standards of excellence that are embodied in both this report and in the community

they serve.

Respectfully submitted,

Antonio Acosta

Mar arlson, CPA

City Manager

Finance Director

x

REGIONAL MAP

xi

xii


COMMISSIONS, COMMITTEES AND BOARDS

FISCAL YEAR 2015-16

Commission Chairperson Number of Members

Planning Raymond Gonzales Jr. 5 + alternates

Park and Recreation Glenn Nate 7 + alternates

Senior Citizens Estrellita Munsayac 7 + alternates

Human Relations Jaime Patino 7 + alternates

Youth Jaden Gray 5 + alternates

Committees and Boards:

Audit Committee

Sports Advisory Committee

Transit Accessibility Advisory Committee

Youth Violence Prevention and Intervention Advisory Committee

Public Art Board

Tree and Landscape Review Board

xiii


DIRECTORY OF CITY OFFICIALS

FISCAL YEAR 2015-16

CITY COUNCIL

Carol-Dutra-Vernaci Mayor

Emily Duncan Lorrin Ellis Vice-Mayor Councilmember

Pat Gacoscos Jim Navarro

Councilmember Councilmember CITY STAFF

Antonio Acosta City Manager

Mark Evanoff Benjamin Reyes Deputy City Manager City Attorney

Mintze Cheng Joan Malloy

Public Works Director Economic & Community Development Director

Jill Stavosky Mark Carlson, CPA

Community & Recreation Services Director

Finance Director

Darryl McAllister

Police Chief

Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

City of Union City

California

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

June 30, 2015

"Aor, Executive Director/CEO

xv

Address: 180 Grand Avenue, Suite 1500 Oakland, CA 94612 • Phone: 510.768.8251 • Fax: 510.768.8249

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of City Council of the City of Union City Union City, California

Report on the 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 Union City, California (City), as of and for the year ended June 30, 2016, 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 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 entity’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 entity’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.

Honorable Mayor and Members of City Council of the City of Union City

Union City, California Page 2

2

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, 2016, 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.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information for the general fund and major special revenue funds, pension information, and schedules of funding progress for other post-employment benefit plans on and 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 statements. The introductory section, combining and individual nonmajor fund financial statements, combining and individual general fund financial statements, budget comparison information for other governmental funds and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, combining and individual general fund financial statements, and budget comparison information for other governmental funds are the responsibility of management and were derived from and relate 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 basic financial statements or to the basic financial

Honorable Mayor and Members of City Council of the City of Union City

Union City, California Page 3

3

statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, combining and individual general fund financial schedules, and budget comparison information for other governmental funds are 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.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 9, 2017, 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 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 City’s internal control over financial reporting and compliance.

Badawi and Associates Certified Public Accountants Oakland, California January 10, 2017

This page intentionally left blank

4

5

MANAGEMENT’S DISCUSSION AND ANALYSIS

This section offers the reader a narrative introduction and a readily understandable analytical overview of the City of Union City’s (the City) financial activities and performance for the fiscal year ended June 30, 2016. Summary reports showing comparisons of current financial information with that of the previous year are included to enhance the clarity and usefulness of the reports. To gain a broad perspective of the City and its financial activities, we encourage the reader to consider the information presented here in conjunction with the information that has been provided in the letter of transmittal presented in the beginning of this report.

Financial Highlights

At the end of FY 2015-16, the City’s governmental activities reported net position of $248,758,000, an increase of $66,905,000 from last fiscal year;

Government-wide revenues for governmental activities increased by $5,126,000;

Government-wide expenses for governmental activities decreased by $4,416,000;

Overview of the Financial Statements

The City’s annual financial report consists of three components: (a) management’s discussion and analysis; (b) the basic financial statements; and (c) required supplementary information.

(a) The management’s discussion and analysis, the first component, is this particular section of the report.

(b) The basic financial statements are divided into three parts. The first of these is the government-wide financial statements consisting of a Statement of Net Position and a Statement of Activities. These statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to that of a private-sector business.

The second part is the fund financial statements focus on individual parts of the City’s operation in more detail than the government-wide statements.

The third part, the notes to basic financial statements, explains the information in the financial statements and provides more detailed data.

(c) The final component, required supplementary information, further explains and supports the data presented in the financial statements.

6

GOVERNMENT-WIDE FINANCIAL STATEMENTS

These statements provide information about the City as a whole. The Statement of Net Position presents information on all 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 whether the financial position of the City is improving or declining.

The Statement of Activities presents information showing how the City’s net position has 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 related cash flows. Thus, revenues and expenses are reported in this statement for certain items that will result in cash flows in future fiscal periods. Examples are uncollected revenues and earned employee compensation.

The government-wide financial statements distinguish functions of the City which are principally supported by taxes and intergovernmental revenues (governmental activities) from those functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Union City include general government, public safety, highways and streets, economic development and recreation and culture. The business-type activities of the City consist of the Transit and Paratransit bus operations.

The government-wide financial statements include not only the City itself (the primary government), but also the legally separate component unit, Community Facilities District No. 97-1 (Dyer Street Triangle).

FUND FINANCIAL STATEMENTS

The fund financial statements provide more detailed information about the City’s most significant funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related regulations and legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds are used to account for most of the City’s basic services reported as governmental activities in the government-wide financial statements. Governmental funds focus on a detailed short-term view of the inflows and outflows of spendable resources and the balances left at the end of the fiscal year. Such information may be useful in determining what financial sources are available in the near future to finance the City’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented in the Statement of Activities in

7

the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’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 to facilitate this comparison between governmental funds and governmental activities.

The City maintains individual governmental funds, organized according to their type (general, special revenue, debt services and capital projects). Information is presented separately in the governmental funds balance sheets and in the governmental funds statements of revenue, expenditures and changes in fund balance for the following major funds: General Fund, City of Union City as Successor Agency to the Redevelopment Low- and Moderate-Income Housing Special Revenue Fund, Capital Improvement Fund and Public Improvement Fund. Data for the remaining non-major governmental funds (Other Governmental Funds) are combined into a single, aggregated presentation. Information for each of these Other Governmental Funds is provided towards the end of the financial section.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

Proprietary funds are used to account for services for which the City charges customers – either outside customers or internal departmental units within the City. There are two types of proprietary funds maintained by the City:

o Enterprise funds report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the activities of its Transit and Paratransit operations.

o Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its general liability insurance, workers’ compensation insurance, employment law self-insurance and the City Garage operations. Because these services predominately benefit governmental rather than business-type functions, they have been included within the governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Information for each of the internal service funds is provided in the form of combining statements presented elsewhere in this report.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City has two fiduciary funds. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose. Since the

8

resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds.

NOTES TO THE BASIC FINANCIAL STATEMENTS

The Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. This information includes budgetary comparison schedules for the General Fund and the City of Union City as Successor Agency to the Redevelopment Agency Low-Moderate Income Special Revenue Fund and the funded status of the City’s pension plans.

The combining and individual fund statements and schedules referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The following table provides a two-year comparison of the results of governmental and business-type activities of the City:

9

2016 2015 2016 2015 2016 2015Assets:Current and other assets 173,964$ 114,628$ 452$ 1,033$ 174,416$ 115,661$ Capital assets 183,942 172,123 8,846 7,436 192,788 179,559

Total assets 357,906 286,751 9,298 8,469 367,204 295,220

Deferred outflows of resources 6,608 5,578 - - 6,608 5,578

Liabilities:Current and other liabilities 19,129 14,266 350 700 19,479 14,966 Long-term liabilities 84,457 77,302 32 24 84,489 77,326

Total liabilities 103,586 91,568 382 724 103,968 92,292

Deferred inflows of resources 11,170 17,908 - - 11,170 17,908

Net position:Invested in capital assets 178,517 167,010 8,847 7,436 187,364 174,446 Restricted 69,601 16,211 - - 69,601 16,211 Unrestricted 1,640 (368) 69 309 1,709 (59)

Total net position 249,758$ 182,853$ 8,916$ 7,745$ 258,674$ 190,598$

TotalActivitiesGovernmental

Activities

Statement of Net PositionJune 30

(in thousands of dollars)

Business-type

Governmental Activities

Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City’s governmental activities, total assets and deferred outflows exceeded total liabilities and deferred inflows by $249,758,492. The City’s governmental activities net position increased by $66,905,000 or 36% over last fiscal year.

Total assets increased $71,155,000 or 25% from FY 2014-15. Several factors contribute to the $59,336,000 or 52% increase in current and other assets. $29,148,300 in property held for resale was conveyed to the City from the Redevelopment Property Tax Trust Fund (RPTTF), reported by the City as a fiduciary fund. A new fund, Public Improvement Fund, was established this year with funding in the amount of $19,220,000 coming from the release of tax allocation bond proceeds held by the trustee. Refer to Note 20 in Notes to Basic Financial Statements for additional information. Total receivables increased by $5,035,000, which represents property and sales taxes and grant payments due to the City. The City’s capital assets include land, buildings and improvements, machinery and equipment and construction in progress. Capital

10

assets increased by 6% from last year largely due to infrastructure and parks improvement projects.

Deferred outflows of resources increased by $1,030,000 or 18% over last year as a result of pension activity. The $1,260,000 in deferred employer contributions was offset by a decrease of $575,000 related to other pension activity.

Total liabilities increased by 13% or $12,018,000 over last fiscal year. The net pension liability increased by $6,944,000 or 15% over last year. The current liabilities increased by 34% or $4,863,000; accounts payable increased by 101% or $3,870,000 and accrued payroll increased by 47% or $391,000. Total long-term liabilities increased by just 1% or $211,000.

Deferred inflows of resources decreased by $6,738,000 or 37% due to pension-related activities.

The three categories of net position are classified as net investment in capital assets, restricted or unrestricted.

Net investment in capital assets represents capital assets net of accumulated depreciation and related debt. Unlike the capital assets reported in business-type activities, these assets are not income-generating but are used to provide services to the community and are therefore not available for future spending. Net investment in capital assets increased by 7% or $11,507,000 due to park and infrastructure improvements.

Restricted net assets represent resources that are subject to external restrictions on how they may be used. These restrictions may be imposed by creditors, grantors and the laws or regulations of other governmental agencies. Net assets are restricted for capital projects, debt service, housing and community development, public safety, street maintenance and improvements and other specific purposes. Total restricted net assets increased by $53,044,000 or approximately 327% from last fiscal year with the conveyance of assets from the RPTT fund to the City as the primary reason.

Unrestricted net position is the “residual” component of net position; that is, it is the portion of net position that does not meet the definitions of “invested in capital assets” or “restricted assets.” The unrestricted amount may be used to meet the City’s ongoing obligations. At the end of this fiscal year, the City’s governmental activities reported $876,000 in unrestricted net position.

11

Business-type Activities

The City’s business-type activities consist of transit and paratransit operations. These operations are funded by passenger fares, Measure B and Measure BB sales taxes and operating grants from the Transit Development Act (TDA) and State Transit Assistance (STA). The operating grants are passed through to the City from a regional transportation agency, the Metropolitan Transportation Commission or MTC. At the end of each fiscal year, unspent TDA and STA operating grant funds are returned to MTC. Capital projects are financed by capital grants, which, with a few exceptions are reimbursement-based.

Total assets increased by $829,000 or 10% however, current and other assets decreased by $581,000 or 56%. The $700,000 (99%) decrease in cash from last fiscal year is due to two major factors. At the end of last fiscal year, Transit had cash on hand from capital grant funds totaling $338,805 from various State programs to be applied to the cost of new bus acquisitions. The new vehicles were delivered to the City this year and the $338,805 was applied toward the payment. At the end of each fiscal year, unexpended operating grant funds are returned to the MTC. Last year, $447,800 was to be returned to MTC; in FY 15-16, $92,400 is to be returned, a decrease of $355,400. Capital assets, net of depreciation, increased by $1,410,000 or 19%. Four new vehicles were added to the Transit fleet at a cost of $2,157,300; new bus shelters were added to the Transit inventory at a cost of $81,000. There were no changes in the capital assets used in Paratransit operations. Total depreciation expense for this year was $827,500.

Short term liabilities decreased by $350,000 (50%) primarily due to the change in the amount due to other agencies. At the end of each fiscal year, unexpended TDA operating grant funds must be returned to the MTC. For FY 2015-16, the refund due to MTC is $92,400 compared to $447,800; for last fiscal year, to be a decrease of $355,400, a 21% decrease.

At the end of FY 2015-16, the total net position of the City’s business-type activities was $8,916,000, an increase of $1,171,000 or 15%. The largest classification of net position, net investment in capital assets, increased by $1,411,000, reflecting the change in capital asset activity that was described above. Unrestricted net position decreased by $240,000 or 78%, reflecting the expense of the $338,800 in State grants received last fiscal year, offset by $98,500 received from various State programs during the current year that are to be applied against capital projects to be undertaken in FY 2016-17.

The following comparative table summarizes major changes in revenues and expenses for the current and prior fiscal years:

12

2016 2015 2016 2015 2016 2015Revenues:Program revenues:Charges for services 17,539$ 13,634$ 387$ 424$ 17,926$ 14,058$ Operating grants and contributions 7,142 6,431 4,316 - 11,458 6,431 Capital grants and contributions 8,328 10,503 1,997 476 10,325 10,979 General revenues:Property taxes 31,557 30,408 - - 31,557 30,408 Transient occupancy taxes 2,321 2,085 - - 2,321 2,085 Sales taxes 13,031 11,051 - - 13,031 11,051 Franchise taxes 4,928 5,406 - - 4,928 5,406 Business license taxes 1,570 1,450 - - 1,570 1,450 Real property transfer tax 408 254 - - 408 254 Unrestricted/Intergovernmental - - - 4,114 - 4,114 Investment earnings 202 223 2 - 204 223 Gain (loss) on sales of assets 308 12 - - 308 12 Miscellaneous 116 867 - - 116 867 Total revenues 87,450 82,324 6,702 5,014 94,152 87,338

Expenses:General government 17,173 15,699 - - 17,173 15,699 Public safety 41,279 32,800 - - 41,279 32,800 Housing and community development 702 2,897 - - 702 2,897 Community and recreation services 6,354 4,408 - - 6,354 4,408 Economic and community development 2,712 3,535 - - 2,712 3,535 Public works 185 13,431 - - 185 13,431 Interest and fiscal charges 1,668 1,719 - - 1,668 1,719 Transit operations - - 4,514 4,366 4,514 4,366 Paratransit operations - - 1,017 996 1,017 996 Total expenses 70,073 74,489 5,531 5,362 75,604 79,851

Extraordinary item - 5,744 - - - 5,744

Special item 19,219 - - - 19,219 - Change in net position 36,596 7,835 1,171 (348) 37,767 7,487

Net position - beginning, as restated 213,162 169,274 7,745 8,093 220,907 177,367

Net position - ending 249,758$ 177,109$ 8,916$ 7,745$ 258,674$ 184,854$

Activities Activities TotalGovernmental Business-Type

Governmental activities

Total revenues increased by 6% or $5,126,000 from last fiscal year. Property taxes and sales tax, the City’s two major revenue sources recognized increases over last year. Property taxes increased by $1,149,000 or 4% which reflects growth in City’s taxable assessed values while sales tax increased by $1,980,000 or 18%. The City’s transient occupancy taxes saw an increase of $236,000 or 11%. Franchise fees decreased by 7% or $(478,000) due to an adjustment in the compensation paid to a refuse hauler. Charges for services increased by $3,905,000 or 29% as a result of development fees collected. The gain on sales of assets increased by $296,000; the City sold two homes that had been used as affordable rental housing units for low and moderate income households. Miscellaneous revenues decreased by 87% from last year; in FY 2014-15, this revenue source included a onetime settlement payment.

13

Total government-wide expenses decreased by $(4,416,000) or 5% from last year. Public Works expenses decreased by $(13,246,000) or 98% as a result of reclassifying expenses to capital assets. Public Safety expenses increased by $8,479,000 or 25% as costs related to pension, post-employment benefits and accrued compensated absences were recognized. Housing and Community Development expenses decreased by $(2,195,000) or 75%; in FY 2014-15 an expense to write-off a loan receivable was made.

Business-type activities

The City’s business-type activities, consisting of fixed route transit service and paratransit services experienced a decrease in net position. These activities receive their revenues from passenger fares, fees for use of transit facilities, two regional sales taxes established for transportation purposes and operating and capital grants. The City owns the buses and paratransit vans while the drivers and vehicle maintenance are provided through a contractual agreement with a transportation carrier.

Total charges for services for Transit operations decreased by $37,000 or 9%. Passenger fares account for the largest portion of charges for services. Total passengers using the City’s fixed-route transit system decreased by 7% which corresponds to the drop in farebox revenue. Farebox revenue, which includes fares paid upon boarding and monthly bus pass presentation, decreased by $25,900 or 7%. Monthly bus passes allow unlimited boardings and are sold to general (adult), youth and senior/disabled riders. Paratransit service is an advanced reservation transportation service for those with a certified disability that prevents them from using the City’s fixed-route service. Paratransit tickets are purchased in advance of use and do not have an expiration date. Paratransit fares decreased by $8,700 or 14% and recognized a 5% drop in ridership. The transit system also receives nominal amounts from the sale of advertising space on its vehicles and charges other local transportation providers fees for the use of the bus wash.

Restricted/intergovernmental revenues are composed of Transit’s and Paratransit’s share of Measure B and Measure BB funds (regional sales taxes dedicated to transportation-related purposes) and Transit Development Act (TDA) and State Transit Assistance (STA) operating grants. Each year the City submits a claim to the Metropolitan Transportation Commission (MTC) requesting funding assistance from TDA and STA sources. Because it can be difficult to project certain expenses, such as fuel costs, the City requests an additional allocation from MTC at mid-year. For both Transit and Paratransit, farebox and non-farebox revenues are considered to be spent first, followed by Measure B and Measure BB revenues and finally TDA and/or STA funding. At the end of each fiscal year, any unspent TDA and STA operating grant funds are returned to MTC. In fiscal year 2015-16, Transit received $2,667,000 in TDA operating funds and $73,300 in STA funding and will return $92,400 to MTC. Paratransit received $301,500 in TDA funding and $267,700 from STA and has no excess funds to return to MTC. This contrasts with $3,209,200 received by Transit for TDA funding in fiscal year 2014-15 with a return of

14

funds of $47,800 and $536,600 in TDA and STA funding received by Paratransit with no operating grant funds returned.

Capital contributions, representing additions to capital assets, are typically received on a reimbursement basis and can fluctuate greatly from year to year. Capital contributions for the current year increased by $1,521,000 or 320% over last year’s contributions. Capital reimbursements totaled $1,898,600 and state funding of $98,500 was received for projects to be undertaken in FY 2016-17.

A reclassification of revenue was made for FY 2015-16: revenues that had been previously reported as unrestricted/intergovernmental are now reported in the proper category of operating grants and contributions.

Transit operating expenses increased by $147,300 or 3% over last year due to increases in payroll costs and the contract with the transportation provider. Paratransit operating expenses increased by 2% or $21,600, due to the increases in payroll costs and in the contract with the transportation provider.

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS

The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. This information is useful in assessing the City’s financing requirements.

Following GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balances are classified as non-spendable, restricted, committed, assigned or unassigned. Detailed information regarding the fund balance classifications are found in Note 9 in the Notes to Basic Financial Statements.

The net change in fund balance increased by $18,141,612 or 253% for all funds. The net change in fund balances of the City’s major funds increased by $17,816,462 while the net change in fund balances of the non-major funds increased by $325,150. A special item was recorded during the year which resulted in the payment of funds from the Redevelopment Property Tax Trust Fund (RPTTF) to the City. The funds received from the RPTTF were used to create the Public Improvement Fund. For additional information regarding this transaction, see Note 20 in Notes to Basic Financial Statements.

The following non-major funds experienced a major change in fund balance as a result of current year operations:

15

Special Parks: The decrease of $136,000 or 97% is attributed to a lag in funding. Projects were undertaken but the expected funding from development fees will not be received until next fiscal year.

Community Facility Districts (CFD) Maintenance: An analysis of this fund found that some activities were charged to the CFD in error. Transfers were made from funds that should have borne the cost of certain activities which resulted in the elimination of the deficit fund balance reported for FY 2014-15. Fund balance changed from $(45,000) last year to $18,300 for the current year, an increase of $63,300 or 141%.

Traffic Signalization: The increase of $312,700 or 132% was due to fees received from developers due to new construction.

Recycling and Waste Management: The fund balance deficit reported at the end of last fiscal year was eliminated during the current year. Rather than transferring out the budgeted amount to the General Fund, the transfer out amount was limited to available funds. By this action, fund balance changed from $(18,600) in FY 2014-15 to zero at year end 2015-16.

Housing In-lieu: A 586% or $1,136,000 increase in fund balance was recognized due to funds received from a housing developer. Housing developers may opt to pay a fee to the City rather than build housing units restricted to low- or moderate-income households.

Union Landing PBID: The deficit fund balance reported last fiscal year was eliminated through a transfer from other funds. A review of expenditures found certain activities had been charged against this fund in error. Fund balance increased during the year by $69,400 or 100%, eliminating last year’s deficit of $(69,300) and ending FY 2015-16 with a fund balance of $100.

CUPA Enforcement: Fund balance increased by $53,100 or 97% over last fiscal year. This increase is attributable to administrative penalties collected for hazardous waste/materials violations.

Measure BB: Fund balance in this fund increased $97,700 or 61% over prior year. FY 2015-16 is the first full year Measure BB funds were received.

General Fund: Included as part of the General Fund for reporting purposes are several funds that are budgeted as special revenue funds but do not meet the criteria for classification as a special revenue fund in accordance with generally accepted accounting principles. These funds are identified and their individual fund activities are presented in the Supplementary Information section of this report.

The General Fund is the primary operating fund of the City. At current fiscal year end, the General Fund reported a total fund balance of $56,134,316, a decrease of $1,564,000 or 3% from last fiscal year’s restated fund balance. The nonspendable and assigned fund balances of those funds categorized in the City’s ledger as “special revenue” but included in the General Fund for

16

reporting purposes are included in these totals. Of total fund balance, less than 2% or $885,100 is classified as nonspendable and represents prepaid costs and short-term notes receivable. At $34,903,200 restricted fund balance comprises the largest component of total fund balance. Of this total, $10,900 is classified as restricted and represents state-mandated revenue collected under SB 1186 that is to be used to ensure compliance with disabled accessibility requirements. The remaining $34,892,200 represents property held for resale. The proceeds from the sale of property are to be used in the Intermodal Station District Area. At $12,913,300, assigned fund balance comprises 23% of total fund balance. The amount assigned for retirement and benefits is the largest component at $4,580,800 with assignments for economic uncertainty and capital projects and improvements, at $3,453,200 and $1,166,000 respectively comprising the next largest segments. The remaining $3,713,300 of total assigned fund balance is comprised of assignments for encumbrances or unfulfilled purchase orders in the General Fund, administrative contingencies, litigation, compensated absences, capital improvements, parking program improvement, retirement benefits, and post-employment medical. The unassigned portion of fund balance, $7,432,800 which equates to 13% of total fund balance, represents the amount available for future use. For detailed information regarding fund balances, please see Note 9 in Notes to Basic Financial Statements.

As noted earlier, included in the General Fund for reporting purposes are activities that had been reported as special revenue funds prior to the implementation of GASB Statement No. 54. For the General Fund proper, significant events include:

Restatement of fund balance to reflect $29,149,612 in property conveyed to the City from the Redevelopment Property Tax Trust Fund. The restatement increased beginning fund balance from $28,549,943 to $57,696,945. See Note 16 in Notes to Basic Financial Statements for additional information.

The net change in fund balance in FY 2015-16 is $(1,562,629) compared to $5,331,724 for FY 2014-15.

Total revenues decreased by $(2,820,900) or 5% from prior year. However, FY 2014-15 revenue included $5,744,000 representing the value of property conveyed to the City from the Redevelopment Property Tax Trust Fund.

Taxes and assessments increased by $3,112,000 or 8%. Property taxes increased by 10% or $1,107,800 based on higher taxable assessed valuation. Sales tax increased by 18% or $1,980,500. In FY 2014-15, sales tax revenue was impacted by a negative accounting adjustment processed by the State Board of Equalization (BOE) to correct a prior year allocation. Transient occupancy tax saw a $236,400 or 11% increase over fiscal year 2014-15.

17

Total expenditures increased by 10% or $4,330,000. A reorganization of activities resulted in programs related to youth and family services being reclassified from General Government activities to the Community and Recreation Services Department.

Payroll-related costs increased by $3,235,800 or 13% over last fiscal year largely due to an increases for health insurance and retirement payments.

Transfers in increased by $492,452. Transfers out, made to provide support to other funds, increased by $5,340,146.

For the City’s other major funds, the following items are of note:

The City as Successor Agency to Redevelopment Housing Special Revenue Fund recorded a prior period adjustment of $305,371 to recognize down payment assistance loans receivable that were conveyed to the City from a regional housing organization. Please see Note 3 in Notes to Basic Financial Statements for additional information. Prior to the dissolution of the Redevelopment Agency, this fund received a statutory portion of the incremental property tax allocated to the Redevelopment Agency. Those tax increment revenues were used to provide housing assistance loans to income-qualified individuals which allowed them to purchase mobile homes. Additional loans were made to organizations that develop affordable housing. It is by virtue of these loans that this fund qualifies as a major fund. A detailed description of the outstanding loans is found in Note 3 in the Notes to Basic Financial Statements. Since the dissolution of the Redevelopment Agency, no new housing projects have been undertaken.

The Capital Improvement Fund accounts for activities that are financed through grants and contributions from other agencies. Since grant funds and contributions from other agencies are received on a reimbursement basis, this fund carries a deficit fund balance. The deficit decreased by 19% or $1,477,000 from last fiscal year. Revenues decreased by 25% or $2,702,000 over last fiscal year and expenditures decreased by 50% or $6,333,000. The Capital Improvement Fund has earned but unavailable revenues of $5,457,000, an increase of $430,000 over last year. These unavailable revenues are reported as deferred inflow of resources on the balance sheet. Some of the funds are considered unavailable because of the timing difference between the filing of the reimbursement claim and the payment of the funds due. Other reimbursements may be claimed when the project is complete. A receivable related to the Intermodal Station District project falls into this category: a $3,987,000 receivable from the State of California constitutes the largest amount of deferred inflow related to unavailable revenue.

The Public Improvement Fund was established during the year to account for projects that had utilized funds from the former Redevelopment Agency’s 2011 Tax Allocation Bonds (TAB). Upon agreement with the State Department of Finance, the trustee released the cash held in reserve for the 2011 TAB to the City and this fund was created pursuant to an agreement between the City and the Redevelopment Agency Successor Agency. See Note 20 in Notes to Basic Financial Statements for additional information on this matter. In addition to the cash

18

transfer of funds from the trustee, cash received from the payment of accounts receivables recorded in the Redevelopment Property Transfer Trust Fund (RPTTF) associated with 2011 TAB activities are to be deposited into the Public Improvement Fund. Accordingly, a transaction was made to move the receivables from the RPTTF into this fund. At the end of this fiscal year, this fund reported $4,209,000 in intergovernmental receivables. A loan was made from this fund to the Capital Improvement Fund to offset the Capital Improvement Fund’s to cover that fund’s cash flow needs. $3,143,000 is reported as a deferred inflow, representing grant funds due but not available.

GENERAL FUND BUDGETARY HIGHLIGHTS

The Schedule of Revenues, Expenditures and Changes in Fund Balance Budget to Actual comparison for the General Fund can be found in the Required Supplementary Information section of this report.

The City prepares a biennial budget document. The budget for the first year of the cycle is independent of the budget for the second year. Fiscal year 2015-16 is the first year of the City’s biennial budget cycle. During the course of the fiscal year, budget amendments were submitted to the City Council for approval. The following represent material amendments to the original fiscal year 2015-16 General Fund budget:

$2,049,000 for encumbrances carried over from prior year;

$100,000 to fund a local hazard mitigation plan;

$92,650 to reconfigure/remodel City Hall office areas;

$80,000 to fund polling services;

$76,200 for legal services related to special projects

The following table recognizes revenue categories with notable variances:

Property taxes are the City’s largest revenue source and account for 42% of total FY 2015-16 General Fund revenues. Total collections were 2% higher than the amount projected for this year. This is a reflection of strong real estate market where the assessed values growth is based on the sales prices per Prop 13. Sales tax with base sales taxes and Measure JJ sales taxes

Estimated ActualRevenue Source Revenues Revenues DifferenceProperty tax 20,713,500$ 21,278,771$ 951,429$ Sales tax 12,773,000 13,031,185 258,185 Transient occupancy tax 2,200,000 2,321,649 121,649 Charges for services 2,352,500 2,546,240 193,740 Investment & rental income 454,000 547,661 93,661

19

combined, make up 25% of the total General Fund Revenues for this year. An increase in transient occupancy tax rates resulted in actual revenues exceeding this year’s projected revenue. Fees received from a developer edged charges for services over projections. Investment & rental income account for 1% of the total FY 2015-16 General Fund revenues. The 20% increase over estimates is mainly due to the rental income received from an office building owned by the City that will be sold next year.

Actual expenditures in the General Fund were 93% of the final budget. Part of this was caused by keeping vacant positions unfilled for longer periods of time and by careful monitoring of expenditures by the individual departments.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At the end of the fiscal year, the City had an investment in capital assets totaling $183,942,000. This is a net increase of 7% or $11,819,000 over last year. Completed construction in progress projects transferred to infrastructure totaled $5,180,000. Major governmental projects completed during this year listed at their cumulative cost to date include:

$1,679,200 2015-16 Overlay Project

$1,318,400 UC Green Street Demo Project

$931,400 Whipple Rd. Overlay between Amaral & Ithica Streets

$537,700 Traffic Signals: 11th Street & Transit Loop Road

$381,000 Casa Verde Park Trail & Playground Improvements

Major governmental projects representing work in progress at their cumulative cost to date include:

$24,034,000 Intermodal Phase 2 Development

$3,337,000 South Decoto Green Street Project

$1,858,000 Offsite Property Room/Office

$504,000 Youth/Teen Center Project-Kennedy Center

The City also has a number of smaller projects underway. These projects are improvements to City facilities, parks and infrastructure.

All depreciable assets were depreciated from their acquisition date through the end of the fiscal year. Individual fund financial statements record capital asset acquisitions as expenditures.

20

The business-type funds had a net investment in capital assets of $8,846,717, a 19%% or $1,41,163 increase from prior year. Depreciation on the business-type assets is calculated from the date of acquisition through the end of the fiscal year. Current year acquisitions include:

$2,157,258 Acquisition of four CNG buses

$81,379 Bus shelters and shelter amenities

Comparative reports of the City’s capital assets for governmental and business-type activities are presented below and summarize the changes during the year.

Additional information about the City’s capital assets can be found in Note 6 in Notes to Basic Financial Statements.

2016 2015 2016 2015 2016 2015Land 7,121$ 7,462$ -$ -$ 7,121$ 7,462$ Construction in progress 35,638 20,440 - - 35,638 20,440 Infrastructure 281,541 276,797 - - 281,541 276,797 Buildings and improvements 23,620 23,880 3,862 3,780 27,482 27,660 Machinery and equipment 18,206 17,678 12,483 10,326 30,689 28,004

Subtotal 366,126 346,257 16,345 14,106 382,471 360,363 Less: accumulated depreciation (182,184) (174,134) (7,498) (6,670) (189,682) (180,804)

Total 183,942$ 172,123$ 8,847$ 7,436$ 192,789$ 179,559$

Activities Activities Total

Capital Assets

June 30(in thousands of dollars)

Governmental Business-type

Debt Administration

The City has outstanding debt in the form of pension obligation bonds issued to fund a portion of the unfunded accrued actuarial liability to the State’s CalPERS retirement system. There is outstanding debt in the form of special tax refunding bonds; the original bond issue was used to finance infrastructure improvements in the Dyer Street Triangle (Union Landing) area. The City also has capital lease obligations related to energy efficiency/seismic retrofit improvements; information technology equipment and Police communications equipment.

Additional information regarding the City’s long-term obligations can be found in Note 7 in Notes to Basic Financial Statements.

Economic factors and next year’s budget

21

Among the actions taken in preparing the budget for fiscal year 2015-16 are:

Budget restorations – these are changes that restore programs, positions, or operating accounts that were reduced during the Great Recession and which had not yet been restored;

New or enhanced positions, programs, or items – these are positions, programs, or specific items that are needed for operational reasons. Some are brand new positions, some are reclassified existing positions, and some are positions with expanded work schedules;

Increase in pension costs – Over the next five fiscal years, the City may expect to see higher PERS rates in range from 30-35% of payroll (combined normal and unfunded liability cost), which translates to increased costs of $2,300,000-$3,000,000 annually by the year 2021. In addition, costs to the City associated with the Alameda County Fire Department contract for fire services are also expected to increase significantly due to unfunded pension costs;

Increase in workers compensation costs – the City’s exposure to Workers Compensation claims by City employees continues to grow with an 11% increase in claims costs over the previous year. Efforts to reduce claims through education and worker training have been instituted in the past year and the City is expecting results to manifest themselves in the coming fiscal year. City liability reserves are very strong with a funding confidence level in excess of 90%;

Increase in Alameda County Fire Services contract – Union City will be required to pay significantly higher costs associated with the ACFD’s historically unfunded Retiree Medical benefit program (also referred to as Other Post-Employment Benefits, or OPEB). The City will also be assigned a share of the ACFD’s unfunded OPEB liability which exceeds $130 million. For FY 2015-16, ACFD requested a 7.09% or $787,900 budget increase, bringing the total annual ACFD contract services budget to almost $12,000,000.

The City will continue to monitor its revenues and expenditures throughout the year so that budget amendments can be made in response to changing economic conditions. The City’s budget may be viewed on-line at www.unioncity.org/admin/city_budget.htm

The City is also currently working on the 2017-18/2018-19 biennial budget process which will be submitted to the City Council in May of 2017. The budget document is being significantly revised to enhance its readability for the user.

Request for information

This financial report is designed to provide a general overview of the City’s finances for all those with an interest. Questions concerning any of the information provided in this report or

22

requests for additional information should be addressed to the Finance Director, City of Union City, 34009 Alvarado-Niles Road, Union City, CA 94587.

BASIC FINANCIAL STATEMENTS

23


24

GOVERNMENT-WIDE FINANCIAL STATEMENTS

25

This page intentionally left blank.

26

Statement of Net PositionJune 30, 2016

Governmental Business-TypeActivities Activities Total

ASSETS

Current assets:Cash and investments 81,701,604$ 1,780$ 81,703,384$ Restricted cash and investments 2,625,791 - 2,625,791 Receivables:

Tax 5,060,745 197,294 5,258,039 Accounts, net 662,116 3,511 665,627 Interest 78,415 - 78,415 Intergovernmental 11,575,750 327,473 11,903,223

Prepaid items and deposits 440,759 3,057 443,816 Internal balances 81,410 (81,410) -

Total current assets 102,226,590 451,705 102,678,295

Noncurrent assets:Loans receivable 33,402,034 - 33,402,034 Land held for resales, net of allowance for decline in value 36,574,115 - 36,574,115

Net OPEB asset 1,761,355 - 1,761,355 Capital assets:

Non-depreciable 42,759,053 - 42,759,053 Depreciable, net 141,182,909 8,846,717 150,029,626 Total capital assets 183,941,962 8,846,717 192,788,679 Total noncurrent assets 255,679,466 8,846,717 264,526,183

TOTAL ASSETS 357,906,056 9,298,422 367,204,478 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to debt refunding 345,305 - 345,305 Deferred employer pension contributions 5,591,794 - 5,591,794 Deferred outflows related to pension 670,996 - 670,996

TOTAL DEFERRED OUTFLOWS OF RESOURCES 6,608,095 - 6,608,095

LIABILITIES Current liabilities:

Accounts payable 7,689,974 7,414 7,697,388 Accrued payroll 1,218,516 19,030 1,237,546 Interest payable 589,626 - 589,626 Deposits payable 1,852,334 23,261 1,875,595 Other accrued liabilities 2,472,861 181,616 2,654,477 Due to other agencies 43,102 92,401 135,503 Unearned revenue 531,414 783 532,197 Accrued general liabilities claims - due within one year 95,811 - 95,811 Accrued workers' compensation claims - due within one year 803,769 - 803,769 Compensated absences - due within one year 1,886,357 25,235 1,911,592 Long-term debt - due within one year 1,944,986 - 1,944,986 Total current liabilities 19,128,750 349,740 19,478,490

Noncurrent liabilities: Net pension liability 51,738,729 - 51,738,729

Accrued general liabilities claims - due in more than one year 596,692 - 596,692 Accrued workers' compensation claims - due in more than one year 3,489,231 - 3,489,231 Compensated absences - due in more than one year 245,573 32,933 278,506 Long-term debt - due in more than one year 28,386,628 - 28,386,628

Total noncurrent liabilities 84,456,853 32,933 84,489,786 TOTAL LIABILITIES 103,585,603 382,673 103,968,276 DEFERRED INFLOWS OF RESOURCES Deferred inflow related to pension 11,170,056 - 11,170,056

NET POSITION

178,516,362 8,846,717 187,363,079 Restricted for:

Capital projects - - - Debt service 5,083,996 - 5,083,996 Community development 5,390,086 - 5,390,086 Specific projects and programs 59,127,752 - 59,127,752

Total restricted 69,601,834 - 69,601,834

Unrestricted 1,640,296 69,032 1,709,328

TOTAL NET POSITION 249,758,492$ 8,915,749$ 258,674,241$

See accompanying Notes to Basic Financial Statements.

Primary Government

City of Union City

27

City of Union CityStatement of Activities For the year ended June 30, 2016

Operating Capital

Charges for Grants and Grants andFunctions / Programs Expenses Services Contributions Contributions Total

Primary Government:

Governmental activities:

General government 17,173,274$ 2,557,432$ 512,633$ 42,145$ 3,112,210$

Public safety 41,279,927 930,181 1,365,183 - 2,295,364

Housing and community development 701,903 1,294,087 795,091 - 2,089,178

Community and recreation services 6,353,792 2,652,355 253,672 - 2,906,027

Economic and community development 2,712,076 6,592,447 199,658 - 6,792,105

Public works 185,059 3,512,396 4,015,953 8,285,750 15,814,099 Interest on long-term debt (unallocated) 1,667,571 - - - -

Total governmental activities 70,073,602 17,538,898 7,142,190 8,327,895 33,008,983

Business-type activities:

Transit 4,513,589 335,339 3,418,574 1,997,110 5,751,023

Paratransit 1,017,218 51,629 897,084 - 948,713

Total business-type activities 5,530,807 386,968 4,315,658 1,997,110 6,699,736

Total primary government 75,604,409$ 17,925,866$ 11,457,848$ 10,325,005$ 39,708,719$

General Revenues and Transfers:

Taxes:

Property taxes

Transient occupancy tax

Sales taxes

Franchise taxes

Business license tax

Real property transfer tax

Total taxes

Investment earnings (loss)

Gain on disposal of capital assets

Miscellaneous

Total general revenues and transfers

Special Item

Change in net position

Net position - beginning of year, as restated

Net position - end of year


Program Revenues

28

Governmental Business-TypeActivities Activities Total

(14,061,064)$ -$ (14,061,064)$

(38,984,563) - (38,984,563)

1,387,275 - 1,387,275

(3,447,765) - (3,447,765)

4,080,029 - 4,080,029

15,629,040 - 15,629,040 (1,667,571) - (1,667,571)

(37,064,619) - (37,064,619)

- 1,237,434 1,237,434

- (68,505) (68,505)

- 1,168,929 1,168,929

(37,064,619)$ 1,168,929$ (35,895,690)$

31,556,903 - 31,556,903

2,321,649 - 2,321,649

13,031,186 - 13,031,186

4,927,813 - 4,927,813

1,569,252 - 1,569,252

407,546 - 407,546

53,814,349 - 53,814,349

201,801 2,094 203,895

308,449 - 308,449

116,158 - 116,158

54,440,757 2,094 54,442,851

19,219,507 - 19,219,507

36,595,645 1,171,023 37,766,668

213,162,847 7,744,726 220,907,573

249,758,492$ 8,915,749$ 258,674,241$

and Changes in Net position

Net (Expense) Revenue

29


30

FUND FINANCIAL STATEMENTS

Governmental Fund Financial StatementsProprietary Fund Financial StatementsFiduciary Fund Financial Statements

31


32

GOVERNMENTAL FUND FINANCIAL STATEMENTS

General Fund

General Fund is the general operating fund of the City. This fund accounts for all financial resources andactivities not required to be accounted for in other funds.

City of Union City (UC) as Successor Agency to the Redevelopment Low-Moderate Income (LMI) Special Revenue Fund

To account for housing assets that were transferred from the dissolved Redevelopment Agency's Low- andModerate-Income Housing Fund which have been specifically defined by Assembly Bill 1484.

Capital Improvement Fund

To account for major equipment acquisition or construction projects funded primarily by grants.

Public Improvement Fund

Established by City Council resolution, the funding source is the 2011 Tax Allocation Bond proceeds released bythe bond trustee to the City. These funds will be used to continue the public improvements undertaken by theformer Redevelopment Agency.

33

Balance SheetGovernmental FundsJune 30, 2016

Low and Moderate CapitalGeneral Income Housing Improvement

Fund Special Revenue Fund Fund

ASSETSCash and investments 20,565,708$ 1,430,576$ 214,181$ Restricted cash and investments, held by fiscal agent - - - Receivables:

Taxes 4,644,670 - - Accounts 410,232 - - Interest 76,926 - - Intergovernmental 171,448 - 6,493,410

Due from other funds 286 - - Loans receivable 522,730 29,414,344 - Prepaid items and condemnation deposits 362,413 - - Property held for resale, net of allowance for

decline in value 34,892,267 - -

Total assets 61,646,680 30,844,920 6,707,591

LIABILITIES

Accounts payable 1,803,712 5,098 479,702 Accrued payroll 944,046 - 1,879 Other accrued liabilities 155,708 - 194,263 Due to other funds 106,802 - 6,801,741 Due to other agencies 42,466 - - Deposit payable 1,852,334 - -

Unearned revenue 531,414 - - Total liabilities 5,436,482 5,098 7,477,585

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 75,882 - 5,457,074

Total deferred inflows of resources 75,882 - 5,457,074

Fund Balances (Deficits): Nonspendable 885,143 - - Restricted 34,903,166 30,839,822 -

Committed - - - Assigned 12,913,256 - - Unassigned 7,432,751 - (6,227,068)

Total fund balance 56,134,316 30,839,822 (6,227,068)

Total liabilities, deferred inflows of resources and fund balances

61,646,680$ 30,844,920$ 6,707,591$


City of Union City

34

Public Improvement Non-Major Total Capital Project Governmental Governmental

Fund Funds Funds

12,202,413$ 22,607,312$ 57,020,190$ - 2,166,316 2,166,316

- 416,075 5,060,745 - 158,842 569,074 - 1,489 78,415

4,209,294 701,598 11,575,750 6,801,607 551,473 7,353,366

- 3,464,960 33,402,034 - 74,275 436,688

- 1,681,848 36,574,115

23,213,314 31,824,188 154,236,693

1,323,387 3,710,042 7,321,941 - 258,948 1,204,873

1,945,184 144,076 2,439,231 - 519,410 7,427,953 - 636 43,102 - - 1,852,334

- - 531,414 3,268,571 4,633,112 20,820,848

3,143,278 1,026,945 9,703,179

3,143,278 1,026,945 9,703,179

- 69,098 954,241 16,801,465 16,130,399 98,674,852

- 9,979,986 9,979,986 - 343,485 13,256,741 - (358,837) 846,846

16,801,465 26,164,131 123,712,666

23,213,314$ 31,824,188$ 154,236,693$

35

Reconciliation of the Governmental Funds Balance Sheetto the Government-Wide Statement of Net Position

Total Fund Balances - Total Governmental Funds 123,712,666$

Capital assets used in governmental activities were not current financial resources. Therefore,they were not reported in the Governmental Funds Balance Sheet. Except for the internalservice funds reported below, the capital assets were adjusted as follows:

Government-Wide Statement of

Net Position Internal

Service Funds

- Non-depreciable 42,759,053 - 42,759,053

- Depreciable, net 141,182,909 1,354,246 139,828,663

Total capital assets 183,941,962 1,354,246 182,587,716

Prefunded other post-employment benefits results in an asset on the Statement of Net Position. 1,761,355

In the Government-wide Financial Statements, accounting losses on debt refunding are amortized over the life of the bonds. However this loss in not reported in governmental fund activity 345,305

In the Government-wide Financial Statements, certain differences between actuarial estimates and actual results are deferred and amortized over a period of time, however these differences do not impact the Governmental Funds Balance Sheet

Deferred outflow of resources - pension 670,996

Deferred inflow of resources - pension (11,170,056) (10,499,060)

Employer contributions for pension were recorded as expenditures in the governmental funds. However in the Government-Wide Financial Statements, these contributions are deferred 5,591,794

Interest payable on long-term debt did not require current financial resources. Therefore,interest payable was not reported as a liability in Governmental Funds Balance Sheet.

(589,626)

Deferred inflows of resources recorded in the Fund Financial Statements resulting fromactivities in which revenues were earned but funds were not available are reclassified asrevenues in the Government-Wide Financial Statements. 9,703,179

Internal Service Funds were used by management to charge the costs of certain activities, suchas insurance, to individual funds. The assets and liabilities of the Internal Service Funds wereincluded in governmental activities in the Government-Wide Statement of Net Position.

21,330,880

Long-term liabilities were not due and payable in the current period. Therefore, they were notreported in the Governmental Funds Balance Sheet.

Government-Wide Statement of

Net Position Internal

Service Funds

- Compensated absences - due within one year (1,886,357) (11,314) (1,875,043)

- Compensated absences - due in more than one year (245,573) (5,242) (240,331)

- Long-term debt - due within one year (1,944,986) - (1,944,986)

- Long-term debt - due in more than one year (28,386,628) - (28,386,628)

Total long-term liabilities (84,202,273) (16,556) (84,185,717)

Net Position of Governmental Activities 249,758,492$


June 30, 2016

Amounts reported for governmental activities in the Statement of Net Position were differentbecause:

City of Union City

36


37

Governmental FundsFor the year ended June 30, 2016

Low and Moderate

General Income Housing Capital

Fund Special Revenue Fund Improvement Fund

REVENUES:

Taxes and special assessments 43,536,217$ -$ -$

Licenses, permits and fees 2,245,308 - -

Fines and forfeitures 494,467 - -

Intergovernmental 764,170 - 7,678,248

Charges for services 6,484,890 - 120,137

Investment income 185,090 16,846 -

Other 846,351 351,767 559

Total revenues 54,556,493 368,613 7,798,944

EXPENDITURES:

Current:General government 9,376,700 - - Public safety 30,449,607 - - Housing and community development - 49,680 - Community and recreation services 5,249,033 - - Economic and community development 3,271,567 - - Public works 5,187,826 - 1,461,909

Capital outlay 531,142 - 4,860,180 Debt service:

Principal repayment 249,985 - - Interest and fiscal charges 98,071 - -

Total expenditures 54,413,931 49,680 6,322,089

REVENUES OVER (UNDER) EXPENDITURES 142,562 318,933 1,476,855

OTHER FINANCING SOURCES (USES):

Debt issuance 980,990 -

Sale of asset 7,520 781,838 - Transfers in 3,683,145 - - Transfers out (6,376,846) - -

Total other financing sources (uses) (1,705,191) 781,838 -

SPECIAL ITEM:

Net asset transfer from Redevelopment Property Tax Trust - - -

Net change in fund balances (1,562,629) 1,100,771 1,476,855

FUND BALANCES (DEFICITS):

Beginning of year, as restated 57,696,945 29,739,051 (7,703,923) `

End of year 56,134,316$ 30,839,822$ (6,227,068)$ #REF! #REF!


Statement of Revenues, Expenditures and Changes in Fund BalancesCity of Union City

38

Non-Major Total

Public Governmental Governmental

Improvement Fund Funds Funds

-$ 13,713,977$ 57,250,194$

- - 2,245,308

- - 494,467

1,066,016 1,501,272 11,009,706

- 6,133,739 12,738,766

- 97,241 299,177

- 1,783,026 2,981,703

1,066,016 23,229,255 87,019,321

- 1,170,060 10,546,760 - 7,267,610 37,717,217 - 722,520 772,200 - 1,058,935 6,307,968 - 276,741 3,548,308 - 7,134,218 13,783,953

3,484,058 2,601,600 11,476,980

- 1,610,678 1,860,663 - 1,385,857 1,483,928

3,484,058 23,228,219 87,497,977

(2,418,042) 1,036 (478,656)

- - 980,990

- - 789,358 - 1,174,425 4,857,570 #######- (850,311) (7,227,157)

- 324,114 (599,239)

19,219,507 - 19,219,507

16,801,465 325,150 18,141,612

- 25,838,981 105,571,054

16,801,465$ 26,164,131$ 123,712,666$ #REF! #REF!

39

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2016

Net Change in Fund Balances - Total Governmental Funds 18,141,612$

Governmental funds reported additions of capital assets as capital outlay and program expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets purchased in the current period. 20,785,950

Disposals of capital assets are not reported in governmental funds, but in the Government-WideStatement of Activities, the gain on the disposal of capital assets is reported. (635,246)

Pension expense in the Statement of Activities is recognized on the full accrual basis of accounting inaccordance with GASB Statement No. 68 (5,113,216)

Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities andChanges in Net Position, but they did not require the use of current financial resources. Therefore,depreciation expense was not reported as expenditures in Governmental Funds. (8,163,660)

Employer contributions for pension were recorded as expenditures in the governmental funds. Howeverin the Government-Wide Financial Statements, these contributions are deferred 5,591,794

Revenues that have not met the revenue recognition criteria in the Fund Financial Statements arerecognized as revenue in the Government-Wide Statement of Activities. 3,640,900

Borrowing of capital leases are reported as other financing sources in governmental funds and contributeto the change in fund balance. However, issuing debt increases the long-term liabilities in the statementof net position and does not affect the statement of activities (980,990)

OPEB expenses do not require the use of current financial resources, and therefore are not reported asexpenditures in governmental funds. (763,371)

Accrued vacation payable was an expenditure in governmental funds, but payoff of accrued leave timedecreased liabilities in the Government-Wide Statement of Net Position. (274,204)

Repayment of debt principal was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. 1,860,663

Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, butthey did not require the use of current financial resources. Therefore, interest expense was not reported asexpenditures in governmental funds. The following amount represented the change in accrued interestfrom the prior year. (183,643)

Internal Service Funds were used by management to charge the costs of certain activities to individualfunds. The net revenue of the Internal Service Funds was reported with governmental activities. 2,689,056

Change in Net Position of Governmental Activities 36,595,645$

See accompanying Notes to Basic Financial Statements. -

Amounts reported for governmental activities in the Statement of Activities were different because:

40

PROPRIETARY FUND FINANCIAL STATEMENTS

Transit Fund

To account for the operation and management of the City's bus system. This system is operated andmaintained by an independent transit management company under contract with the City.

Paratransit Fund

To account for the operation and management of the City's paratransit system. The system is operated andmaintained by an independent transit management company under contract with the City.

41


42

Statement of Net PositionProprietary FundsJune 30, 2016

Governmental

Activities

Internal

Transit Paratransit Totals Service Funds

ASSETS

Current assets:

Cash and investments $1,780 $0 $1,780 $24,681,414

Restricted cash and investments with fiscal agents - - - 459,475

Receivables:

Taxes 118,629 78,665 197,294 -

Accounts 761 2,750 3,511 93,042

Intergovernmental 264,058 63,415 327,473 -

Due from other funds - - - 157,097

Prepaid items 1,777 1,280 3,057 4,069

Total current assets 387,005 146,110 533,115 $25,395,097

Noncurrent assets:

Capital assets:

Depreciable, net 8,711,236 135,481 8,846,717 1,354,246

Total capital assets 8,711,236 135,481 8,846,717 1,354,246

Total noncurrent assets 8,711,236 135,481 8,846,717 1,354,246

Total assets 9,098,241 281,591 9,379,832 26,749,343

LIABILITIES

Current liabilities:

Accounts payable 7,414 - 7,414 368,033

Accrued payroll 13,890 5,140 19,030 13,643

Other accrued liabilities 137,630 43,986 181,616 33,630

Due to other funds 5,628 75,782 81,410 1,098

Due to other agencies 92,401 - 92,401 -

Deposit payable 23,261 - 23,261 -

Unearned revenue 783 - 783 -

Compensated absences - due within one year 16,403 8,832 25,235 11,314

General liability claims - due within one year - - - 95,811

Workers' compensation claims - due within one year - - - 803,769

Total curent liabilities 297,410 133,740 431,150 1,327,298

Noncurrent liabilities:

Compensated absences - due in more than one year 21,406 11,527 32,933 5,242

General liability claims - due in more than one year - - - 596,692

Workers' compensation claims - due in more than one year - - - 3,489,231

Total noncurrent liabilities 21,406 11,527 32,933 4,091,165

Total liabilities 318,816 145,267 464,083 5,418,463

NET POSITION

Net investment in capital assets 8,711,236 135,481 8,846,717 1,354,246

Unrestricted 68,189 843 69,032 19,976,634

Total net position 8,779,425$ 136,324$ 8,915,749$ 21,330,880$



City of Union City

43

Statement of Revenues, Expenses and Changes in Net PositionProprietary FundsFor the year ended June 30, 2016

Governmental

Activities

Internal


OPERATING REVENUES:

Charges for services 335,339$ 51,629$ 386,968$ 4,496,054$

Total operating revenues 335,339 51,629 386,968 4,496,054

OPERATING EXPENSES:

Garage operations - - - 700,180

Payroll and related costs 450,937 165,475 616,412 -

Purchased transportation 2,618,891 - 2,618,891 -

Paratransit contract - 699,223 699,223 -

Workers' compensation claims and premiums - - - 2,239,982

Other insurance - - - 915,183

Administration 187,850 45,422 233,272 158,075

Depreciation 758,984 68,490 827,474 303,712

Interest expense 3,168 241 3,409 -

Services and supplies 493,759 38,367 532,126 -

Total operating expenses 4,513,589 1,017,218 5,530,807 4,317,132

OPERATING INCOME (LOSS) (4,178,250) (965,589) (5,143,839) 178,922

NONOPERATING REVENUES (EXPENSES):

Intergovernmental 3,418,574 897,084 4,315,658 -

Investment income 2,080 14 2,094 16,711

Other revenues - - - 105,259

Gain on disposal of capital assets - - - 18,576

Total nonoperating revenues (expenses) 3,420,654 897,098 4,317,752 140,546

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTION AND TRANSFERS (757,596) (68,491) (826,087) 319,468

Capital contribution 1,997,110 - 1,997,110 -

Transfer out - - - 2,369,588

Change in net position 1,239,514 (68,491) 1,171,023 2,689,056

Net position:

Beginning of year 7,539,911 204,815 7,744,726 18,641,824

End of year 8,779,425$ 136,324$ 8,915,749$ 21,330,880$ 8,779,425 136,324 21,330,880


City of Union City


44

Statement of Cash FlowsProprietary FundsFor the year ended June 30, 2016

GovernmentalActivitiesInternal


CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 335,339$ 51,629$ 386,968$ 4,496,054$ Payments to suppliers (3,765,110) (786,326) (4,551,436) (2,556,687) Payments for employee services (447,591) (164,079) (611,670) (388,633)

Net cash provided by (used in) operating activities (3,877,362) (898,776) (4,776,138) 1,550,734

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: - - -

Operating grants received 3,418,574 897,084 4,315,658 -

Cash receipts from other revenues - - - 105,259 Transfers to other funds - - - 2,369,588

Net cash provided by noncapital financing activities 3,418,574 897,084 4,315,658 2,474,847

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Cash receipts from capital grants 1,997,110 - 1,997,110 -

Cash paid for the acquisition/construction of capital assets (2,238,636) - (2,238,636) (139,712)

Cash receipts from sale of assets - - - 18,576

Net cash provided by (used in) capital and related financing activities (241,526) - (241,526) (121,136)

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest income 2,080 14 2,094 16,711

Net cash provided by investing activities 2,080 14 2,094 16,711

Net increase (decrease) in cash and cash equivalents (698,234) (1,678) (699,912) 3,921,156

CASH AND CASH EQUIVALENTS:

Beginning of year 700,014 1,678 701,692 20,760,258

End of year 1,780$ -$ 1,780$ 24,681,414$

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss) (4,178,250)$ (965,589)$ (5,143,839)$ 178,922$ Adjustments to reconcile operating income (loss) to net

cash provided by (used in) operating activities:Depreciation 758,984 68,490 827,474 303,712

Changes in current assets and liabilities:Accounts receivable (180,540) (18,440) (198,980) (29,915) Due from other funds 66,639 - 66,639 (102,428) Prepaid items (1,466) (92) (1,558) (164) Accounts payable (137,516) (40,359) (177,875) 139,035 Accrued payroll 3,346 1,397 4,743 3,515 Other accrued liabilities (214,848) 52,918 (161,930) - Accrued compensated absences 6,289 2,899 9,188 (7,095) Accrued general liability claims - - - 81,985 Accrued worker's compensation claims - - - 983,167

Total adjustments 300,888 66,813 367,701 1,371,812

Net cash provided by (used in) by operating activities (3,877,362)$ (898,776)$ (4,776,138)$ 1,550,734$


City of Union City


45


46

FIDUCIARY FUND FINANCIAL STATEMENTS

Resources held and administered by the City when acting in a fiduciary capacity for other organizations or governments are accounted for in fiduciary funds. The activities of these funds are excluded from the government-wide financial statements. The City's reports activity in the following fiduciary funds:

Trust Funds

Trust funds are used to report resources held by the City in a purely custodial capacity; the assets are held forothers and cannot be used to support the City's own activities. The City maintains the following trust fund:

POA Retiree Medical Fund

To account for funds held by the City to fund the post-retirement healthcare benefits for eligible members ofthe Police Officers Association.

Private Purpose Trust Funds

Private-purpose trust funds account for resources of all other trust arrangements in which principal andincome benefit individuals, private organizations, or other governments. The City maintains the followingPrivate Purpose Trust Fund:

Redevelopment Property Tax Trust Fund

To account for property taxes that would have been redevelopment property tax increment had theRedevelopment Agency not been dissolved. The property taxes are distributed semi-annually by the CountyAuditor-Controller's Office and are used to pay enforceable obligations and Successor Agency administrativecosts. This fund also accounts for all non-housing assets transferred from the dissolved RedevelopmentAgency.

47

Statement of Fiduciary Net Position Fiduciary FundsJune 30, 2016

Redevelopment

POA Retiree Property Tax

Medical Trust Fund Trust Fund

ASSETS

Cash and investments 90,942$ 7,932,471$

Restricted cash and invesments 3,022,469

Receivables:

Interest 339

Intergovernmental 1,416,004

Prepaid items 1,002

Capital assets:

Depreciable, net 19,921,815

Non-depreciable 67,436,672

Total assets 90,942 99,730,772

DEFERRED OUTFLOW OF RESOURCES

Deferred loss on refunding bonds - 5,014,346

Total deferred outflow of resources - 5,014,346

LIABILITIES

Accounts payable - 47,614

Accrued payroll - 9,650

Other accrued liabilities - 430,396

Interest payable - 1,394,355

Deposits payable - 17,009 Bonds payable: -

Due in one year - 3,260,000

Due in more than one year - 140,567,807

Total liabilities - 145,726,831

Net position held in trust 90,942$ (40,981,713)$


City of Union City

48

Statement of Changes in Fiduciary Net PositionFiduciary FundsFor the year ended June 30, 2016

Redevelopment

POA Retiree Medical Property Tax

Trust Fund Trust Fund

ADDITIONS

Property tax distribution -$ 11,060,984$

Intergovernmental revenues 428,298 855,357

Investment income 1,788 17,867

Total additions 430,086 11,934,208

DEDUCTIONS

Administration 1,065,327

Pass-through payments 398,910

Interest and other fiscal expense 6,391,882

Retiree medical payments 510,878 -

Depreciation expense 559,571

Payments to City 19,219,507

Total deductions 510,878 27,635,197

Change in net position (80,792) (15,700,989)

NET POSITION

Net position, beginning of period, as restated 171,734 (25,280,724)

Net position, end of period 90,942$ (40,981,713)$


City of Union City

49


50

NOTES TO FINANCIAL STATEMENTS

51


52

City of Union City Notes to Basic Financial Statements For the year ended June 30, 2016

53

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Union City (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (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. Reporting Entity

The City was incorporated on January 26, 1959 as a General Law city and operates under a Council-Manager form of government. The City Council consists of five elected members. The following services are provided by the City to its citizens: public safety, highways and streets, community and recreation services, public improvements, planning and zoning, transit, and general administrative services.

B. Basis of Accounting and Measurement Focus

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-Wide Financial Statements The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. 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. Certain types of transactions are reported as program revenues for the City in three categories:

Charges for services Operating grants and contributions Capital grants and contributions

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Assets, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:

Due to/from other funds Transfers in/out Interfund charges


54

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Government-Wide Financial Statements, Continued The City applies all applicable GASB pronouncements, including all NCGA Statements and Interpretations currently in effect. Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and Non-Major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria. The City reports the following major governmental funds:

The General Fund – is used to account for all financial resources and activities not required to be accounted for in other funds. The City of Union City as Successor Agency to Redevelopment Housing Fund – is used to account for housing assets that were transferred from the dissolved Redevelopment Agency’s Low and Moderate-Income Housing Fund which have been specifically defined by Assembly Bill 1484. With the dissolution of the Redevelopment Agency, this fund no longer receives property tax increment revenue. The primary revenue sources are now investment income and interest from notes receivable, which are restricted for housing purposes. The Public Improvement Fund – is used to account for public improvements that had previously been funded by the Community Redevelopment Agency of the City. The Capital Improvement Fund – is used to account for the acquisition of equipment or construction projects that are funded by grants.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except revenues subject to accrual (generally 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred inflows arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred inflows also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred inflow is removed from the Combined Balance Sheet and recognized as revenue. 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.


55

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued

Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund. 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. 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 Fund 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.

The City reports the following enterprise funds:

The Transit Fund – accounts for the operation and management of the City’s bus system. The City provides oversight of the management of the transit system while an independent transit company, under contract with the City, handles the operations. The Paratransit Fund – accounts for the operation and management of the City’s paratransit transportation system. This system is managed by the City while the operations are provided by an independent transit company under contract with the City.

Internal service fund balances and activities have been combined with governmental activities in the government-wide financial statements and are comprised of the following funds:

The Workers Compensation Self-Insurance Fund – accounts for disbursements made for insurance premiums, medical and legal expenses to an independent claims administrator for distribution to employees who qualify to receive benefits under the law. The General Liability Self-Insurance Fund – this fund was established to account for the processing of general liability insurance premiums, claims and settlements. The Garage Operations Fund – is used to account for the acquisition and maintenance of the City’s vehicles.

The Employment Law Self-Insurance Fund – to account for the processing of employment practices insurance premiums and claims by the Employment Risk Management Authority. During the year, it was determined that this fund was no longer needed and the fund was closed.

Operating revenues in the proprietary fund are those revenues that are generated from the primary operation or purpose 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.


56

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued

Fiduciary Fund Financial Statements Fiduciary fund financial statements consist of a Statement of Changes in Net Position. The fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:

The POA Retiree Medical Fund – accounts for assets held by the City. The City’s agency fund accounts for the post-retirement healthcare benefits for eligible members of the Police Officers Association. The financial activities of these funds are excluded from the Government-wide financial statement, but are presented in separate Fiduciary Fund financial statements. The Redevelopment Property Trust Fund – accounts for property taxes that would have been redevelopment property tax increment had the RDA not been dissolved. The property taxes are distributed semi-annually by the County Auditor-Controller’s Office and are used to pay amounts due on enforceable obligations and Successor Agency administrative costs. This fund also accounts for all non-housing assets transferred from the dissolved Redevelopment Agency to the Redevelopment Successor Agency, which are legally restricted for uses specified by debt covenants, grant restrictions and enforceable obligations.

C. Cash, Cash Equivalents and Investments

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:

1. Interest Rate Risk 2. Credit Risk

Overall Custodial Credit Risk Concentrations of Credit Risk

In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City participates in an investment pool managed by the State of California, the Local Agency Investment Fund (LAIF), which has invested a portion of pooled funds in Structured Notes and Asset-backed Securities. The LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-backed Securities are subject to market risk as to change in interest rates.


57

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Restricted Cash and Investments

Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Cash and investments are also restricted for deposits held for others within the enterprise funds.

E. Receivables

During the course of normal operations, the City carries various receivable balances for taxes, interest, services and special assessments. Accounts receivables are shown net of an allowance for doubtful accounts.

F. Interfund Transactions

Interfund transactions are reflected as loans, services provided reimbursements or transfers. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as “internal balances.” Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the Government-Wide Financial Statements presentation.

G. Capital Assets

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 City defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Assets acquired with grant funds may be capitalized even though their individual cost is less than $5,000. Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. 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. The City has assigned the useful lives listed below to capital assets: Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of asset constructed, net of interest earned on the invested proceeds over the same period. The Governmental Accounting Standards Board (GASB) Statement No. 34 requires the inclusion of infrastructure capital assets in the local government’s basic financial statements. In accordance with GASB Statement No. 34, the City has included the value of all infrastructures into its Basic Financial Statements.


58

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Capital Assets, Continued

The City defines infrastructure as the basic physical assets that allow the City to function, which consists of two major categories:

Roadways Recreation such as major park facilities and landscaped areas, park trails and bike paths used by

the City in the conduct of its business.

The City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City conducted a valuation of its infrastructure assets as of June 30, 2004. This valuation determined the estimated acquisition cost using one of the following methods:

1. Use of historical records where available. 2. Standard unit costs appropriate for the construction/acquisition date. 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 method using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. The City updates its infrastructure each year.

H. Compensated Absences

Compensated absences are comprised of earned but unused administrative leave, compensated time off in lieu of overtime pay and earned but unused vacations hours, all of which are payable to the employee upon separation of employment. The maximum hours of each compensated leave type that may be accrued is determined by bargaining unit agreements. The liability for compensated absences includes salary-related benefits, where applicable. The City’s liability for compensated absences is recorded at the entity-wide level in the Statement of Net Position for Governmental Activities and in proprietary funds as appropriate. Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.

I. Long-Term Debt

Government-Wide Financial Statements - Long-term debt and other long-term 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 bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. Fund Financial Statements - The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

J. Property Taxes

Alameda County assesses properties and bills, collects, and remits property taxes, including delinquencies and penalties, to the City. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.


59

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued J. Property Taxes, Continued

Property tax levies are recorded as revenue and receivables in the fiscal year of levy provided they are collected during the fiscal year or within ninety days of the year end. Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. The term ‘unsecured’ refers to taxes on personal property other than real estate, land or buildings. These taxes are secured by liens on the properties being taxed.

K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category: deferred outflows that result from changes in the net pension liability and deferred employer pension contributions. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports two items in this category: unavailable revenue and amounts related to changes in the City’s net pension liability that are deferred and amortized over a period of time. Unavailable revenue arises under the modified accrual basis of accounting and accordingly is only reported in the governmental funds balance sheet. These amounts are deferred and will be recorded as an inflow of resources in the period that the amounts become available. Certain changes in the City’s net pension liability are required to be deferred and reflected in pension expense over a closed amortization period.

L. Net Position / Fund Balance

In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets – Consists of capital assets net of accumulated depreciation reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position – Consists of funds restricted by external creditors, grantors, contributors, laws or regulations of other governments.

Unrestricted Net Position – Consists of any amounts that do meet the definition of net investment in capital assets or restricted net position.

Fund balances of governmental funds are classified in one of five categories:

Nonspendable Fund Balance- That portion of fund balance that includes amounts that are either 1) not in a spendable form; or 2) legally or contractually required to be maintained intact. Amounts considered “not in a spendable form” include items that are not expected to be converted to cash such as prepaid items and long-term notes receivable.


60


L. Net Position / Fund Balance, Continued

Restricted Fund Balance – That portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either 1) externally imposed by creditors, such as through debt covenants, grantors, contributors or the laws and regulations of other governments; or 2) imposed by law through constitutional provisions or enabling legislation. These restrictions may by effectively changed only with the consent of the resource provider. Committed Fund Balance – That portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, the City’s government’s highest level decision making authority. In order for funds to be considered committed, an ordinance must be introduced at a City Council meeting describing the proposed action. At the following City Council meeting, a second reading of the ordinance is made and the ordinance is adopted. The ordinance must be published in the City’s official newspaper of publication within 15 days of adoption. Ordinances are then codified in the City’s municipal code. Those funds collected and expended for specific purposes defined in the City’s municipal code report committed fund balances. The established constraints remain binding until City Council takes action to amend the applicable section of municipal code. Assigned Fund Balance – Represents that portion of fund balance that includes amounts that are constrained by the City’s intended use of the resources but are neither restricted nor committed. Assignments of fund balance may be made by City Council resolution. Actions made by resolution are not codified into the municipal code. In addition, the City Council has given the City Manager the authority to assign portions of fund balance for use for specific purposes. From time to time, the City receives new revenue sources that are neither restricted by outside constraints nor committed by formal action of City Council. If the City Manager and Administrative Services Director agree that the activities to be funded by the new revenue source should be accounted for separately from General Fund activity, a new fund is created. The new fund is included as part of the General Fund for reporting purposes and the fund balance is categorized as assigned. From time to time, other City funds may perform work that is reimbursed by third parties. The net activity (reimbursements received less City expenditures) is classified as assigned fund balance. Unassigned Fund Balance – Represents that portion of fund balance that includes amounts that are not contained in any of the other fund balance categories. The General Fund is the only governmental fund that may report a positive amount as unassigned fund balance. For all other governmental funds, only negative balances may be reported as unassigned fund balance. When an expenditure is incurred for purposes for which both restricted and unrestricted funds are available, it is the City’s policy to apply the restricted net assets first. The City also considers committed funds to be spent first, assigned funds to be spent second and unassigned funds to be spent last when an expenditure is incurred for purposes for which committed, assigned and unassigned fund balance is available.

M. Use of Estimates

The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.


61


N. Pension

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) and 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.

O. New Pronouncements

In 2016, the City adopted the new accounting standard in order to conform to the Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. This statement defines fair value, how fair value is measured and what assets and liabilities should be measured at fair value. This statement improves the comparability among governments by requirement measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. It also enhances fair value application guidance and related disclosures in order to provide information about the impact of fair value measurements on the City’s financial position. Under GASB Statement No. 72, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability between buyers and sellers in an orderly transaction between market participants at the measurement date. The measurement date is defined as the date of which the fair value of an asset or liability is determined. This statement requires governments to measure fair value in a manner consistent with one of three approaches: the market approach, the cost approach and the income approach. The market approach to measure fair value uses prices and relevant market information to determine a measurement. The cost approach reflects the amount that would be required to replace the asset and its service capacity. The income approach converts future amounts, such as cash flows, into a single current amount. When the income approach is used, the fair value measurement reflects current market expectations about those future amounts. GASB Statement No. 72 uses the fair value hierarchy. The hierarchy differentiates three levels of inputs based on the objectivity and reliability of the information:

Level 1 inputs are quoted prices in active markets for assets or liabilities identical to those being measured. Level 2 inputs are observable for similar assets or liabilities. Level 3 inputs are unobservable inputs.

Only the investments of the City are subject to GASB Statement No. 72 fair value measurement.


62

2. CASH AND INVESTMENTS

The City maintains a cash and investment pool for all funds. Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

The following is a summary of cash and investments at June 30, 2016:

FiduciaryFunds

Governmental Business-Type Statement of Activities Activities Net Position Total

Cash and investments 81,701,604$ 1,780$ 8,023,413$ 89,726,797$ Restricted cash and investments 2,625,791 - 3,022,469 5,648,260

Total 84,327,395$ 1,780$ 11,045,882$ 95,375,057$

Government-WideStatement of Net Position

At June 30, 2016 the City’s pooled cash and investments, including restricted funds consisted of the following:

City Treasury:

Deposits:

Cash on hand 3,000$

Deposits with banks 11,262,394

Total deposits 11,265,394

Investments:

U.S. government securities 21,008,400 California Local Agency Investment Fund 57,453,003

Total investments 78,461,403

Total City Treasury 89,726,797$

Cash with Fiscal Agent 5,648,260$

A. Deposits

The carrying amount of the City’s cash deposit was $11,262,394 at June 30, 2016. Bank balances before reconciling items were $12,702,884 the total amount of which was insured and/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 market 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 and has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.


63

2. CASH AND INVESTMENTS, Continued A. Deposits, Continued

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.

B. Investments

Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

MaximumMaximum Minimum Credit Percentage of

Authorized Investment Type Maturity Quality Portfolio

U.S. Agency and U.S. Government 5 years N/A No Limit

State of California Obligations 5 years N/A No Limit

CA Local Agency Obligations 5 years N/A No Limit

Prefunded Municipal Obligations N/A AAA No Limit

Banker Acceptances 365 days AAA No Limit

Commercial Paper 270 days AAAm No Limit

Negotiable Certificates of Deposit 365 days AAA No Limit

Repurchase Agreements 1 year AAA No Limit

Money Market Mutual Funds N/A AAAm No Limit

Collateralized Bank Deposits 5 years None No Limit

Mortgage Pass-Through Securities 5 years AA 20%

Time Deposits 365 days AAA No Limit

Guaranteed Investment Contracts N/A AA No Limit

California Local Agency Investment Fund N/A N/A No Limit

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units, resulting in the following investment income in all funds and component units: Investment income, City’s pooled cash $ 238,373 Unrealized gain in changes in fair value of investments 61,436 Total investment income $ 299,809 The City portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates have risen, the portfolio value will have declined. If interest rates have fallen, the portfolio value will have risen. In accordance with GASB Statement No. 31, the portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. The City’s policy is to buy and hold investments until maturity dates. The City’s investments are carried at fair value as required by generally accepted accounting principles.


64

2. CASH AND INVESTMENTS, Continued B. Investments, Continued

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investment with LAIF at June 30, 2016 includes a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. 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 collateralized mortgage obligations) or credit card receivables.

As of June 30, 2016, the City had $57,453,003 invested in LAIF, which had 1.55% of the pool investment funds in Structured Notes and 1.26% in Asset-Backed Securities. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 1.000621222 to the total investments held by LAIF.

C. Risk Disclosures

Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates. It is mitigated by limiting the average maturity of the City’s portfolio not to exceed five years. Because of the economic conditions, the City holds investments with maturity dates five years from the purchase date but certain investments are callable with interest step-up increases. At June 30, 2016, the City had the following investment maturities:

Investment Type Fair Value 1 year or less 1-2 years 2-3 years 3-5 yearsSecurities of the U.S. Government: Federal Home Loan Bank 5,000,390$ 2,000,020$ -$ -$ 3,000,370$ Federal Home Loan Mortgage Corp. 9,005,990 - - 4,002,180 5,003,810 Federal National Mortgage Assn. 7,002,020 - 4,000,740 1,001,280 2,000,000 External Pool:Local Agency Investment Fund 57,453,003 57,453,003 - - -

78,461,403$ 59,453,023$ 4,000,740$ 5,003,460$ 10,004,180$

Investment Maturities

Credit Risk: Credit risk is the loss of value of an investment due to a downgrade of its rating or the failure or impairment of its issuer. It is the City's policy to limit its investments in these investment types to the top rating issued by nationally recognized statistical rating organizations (NRSROs), including raters Standard & Poor's and Moody's Investor's Service. At June 30, 2016, the City's credit risks, expressed on a percentage basis, were as follows:


65

2. CASH AND INVESTMENTS, Continued C. Risk Disclosures, Continued

Standard Amount at

Investment Type Moody's & Poor's June 30, 2016 PercentSecurities of the U.S. Government

Federal Home Loan Bank Aaa AA+ 5,000,390$ 6.37%Federal Home Loan Mortgage Corp. Aaa AAA 9,005,990 11.48%Federal National Mortgage Assn. Aaa AA+ 7,002,020 8.92%External Pool:

State of California-Local Agency Investment Fund 57,453,003 73.23%

78,461,403$ 100.00%

Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. As the collateral is held by a trustee in the City’s name none of the investments were subject to custodial credit risk.

D. Fair Value Measurement

The City acquires its investments with the expectation of future income or profit and is subject to GASB Statement No. 72, Fair Value Measure and Application. As of June 30, 2016, the City’s investments were classified at the following level inputs:

Investment Type Fair Value Level InputSecurities of the U.S. Government:

Federal Home Loan Bank 5,000,390$ 2 Federal Home Loan Mortgage Corp. 9,005,990 2 Federal National Mortgage Assn. 7,002,020 2External Pool

State of California-Local Agency Investment Fund 57,453,003 2 Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means, such as “market-corroborated” inputs.


66

3. LOANS RECEIVABLE The following table summarizes the loans receivable outstanding as of June 30, 2016:

Amount

CDBG housing rehabilitation loans 945,618$ Eden Senior Housing Project HOME Fund loan 2,457,862 Employee assistance housing loan 522,730 Filipino Community of Alvarado and Vicinity loan 61,480 Mobile home program loans 349,101 Down payment assistance loans 190,000 Mid-Peninsula Housing Coalition loan 28,875,243 Eden Senior Housing Project loan 1,621,948 Less: Allowance for conditional loans (1,621,948)

Total 33,402,034$

Community Development Block Grant (CDBG) Housing Rehabilitation Loans – The City administers a housing rehabilitation loan program funded with Community Development Block Grant funds. Under this program, home owners with incomes below certain levels are eligible to receive low interest loans to pay for the needed improvements to their homes. These loans are secured by deeds of trust and may be amortized over the life of the loans, deferred or a combination of both. As of June 30, 2016, the City has outstanding CDBG rehabilitation loans in the amount of $522,730. Eden Senior Housing Project HOME Fund Loan – In May 2000, the City entered into a Disposition Development Agreement (DDA) with Eden Housing for Union City Senior Village Independent Living Development (Independent Living Development). Through Home Investment Partnership Act program (HOME funds), the City has agreed to provide a loan of $2,200,000, which Eden can drawdown as needed. The loan is due in 40 years at 3% interest and will be repaid from residual receipts generated by the project. As of June 30, 2013, Eden Housing has drawn down $1,801,115 in HOME funds. The current loan balance of $2,457,862 reflects the interest that has been accrued to date less interest payments received from residual receipts through June 30, 2016. Employee Assistance Housing Loan – The City offers a housing assistance loan to full-time employees who meet certain criteria. The employee must be a first-time Union City homebuyer and the purchased home must be used as the employee’s primary residence. The loans are secured by first deeds of trust and interest is adjusted annually, each February 1. The interest rate of the loan is the same as the rate of interest earned on City funds on deposit with the California Local Agency Investment Fund (LAIF) as of December 31 of the previous calendar year. Principal and interest are paid bi-weekly, through payroll deductions. At June 30, 2016, the City has two outstanding loans the totaling $522,729. Filipino Community of Alvarado and Vicinity (FCAV) – The former Redevelopment Agency loaned $124,235 for the rehabilitation of the Holly House and to retain its use as affordable housing and meeting center of the Filipino Community of Alvarado and Vicinity. The loan is deferred and matures in 2028. The loan bears interest at 7%, which is also deferred. In July 2007, the City and the FCAV entered into an agreement that set forth the terms for the repayment of this loan and other loans provided to the FCAV under the CDBG program. The balance of this loan at June 30, 2016 is $61,480. Mobile Home Program – This Redevelopment Agency program provided assistance to low- and moderate- income individuals to purchase mobile homes. Nine loans have been funded and bear interest at 5%; principal and interest is paid monthly. The loan maturities range between 10 and 30 years from the date of loans and are secured by the properties. With the dissolution of the Redevelopment Agency, these loans are now accounted for in the City of Union City as Successor Agency to the Redevelopment Agency Low-Moderate Income Housing Fund. As of June 30, 2016 the


67

3. LOANS RECEIVABLE, Continued City has outstanding mobile home program loans in the amount of $349,101 which includes contingent deferred loans of $67,084. Down Payment Assistance Loans – In June 2003, the Redevelopment Agency entered into an agreement with the Neighborhood Housing Services Silicon Valley (NHSSV) to fund a down payment assistance program using tax increment revenue received in the Redevelopment Agency Low and Moderate Income Housing Fund. The Redevelopment Agency provided $1,000,000 in funding. In late June 2015, NHSSV informed the City that they would be closing their operations. Accordingly, in November 2015 undisbursed funds were returned to the City and the down payment assistance loans were conveyed to the City. As June 30, 2016, $190,000 in down payment assistance loans is outstanding. Mid-Peninsula Housing Coalition – On August 2004, the Redevelopment Agency agreed to provide the Mid-Peninsula Housing Coalition (the Coalition), doing business as Mid-Peninsula Mission Associates, a loan of $4,150,000 to build 120 family rental units on Mission Boulevard. The loan is to be repaid in 55 years at 3% interest from residual receipts generated by the project. On December 9, 2008, the Redevelopment Agency executed a $1,500,000 Predevelopment Loan Agreement with Mid-Peninsula Housing Coalition to develop 160 affordable housing units on Block 4 in the Station District. Loan funds are to be disbursed to Mid-Peninsula Housing Coalition on a cost-reimbursement basis with interest accruing on the outstanding principal balance of the Predevelopment Note at 3% simple interest per annum. On November 10, 2009 the Predevelopment Loan was folded into a Disposition and Development Agreement (DDA). The Redevelopment Agency approved the financing plan for the Mid-Peninsula Housing Coalition Station District Family Housing Project which consists of 155 affordable housing units and 2 management units. Through that financing plan, the Redevelopment Agency committed a total of $24,701,674 to be provided as grants or loans to the limited partnerships that will own the facility, with Mid-Peninsula serving as the general partner. As of June 30, 2016 the balance of the loans is $28,875,243. With the dissolution of the Redevelopment Agency, these loans are now accounted for in the City of Union City as Successor Agency to the Redevelopment Agency Low-Moderate Income Housing Fund. Eden Senior Housing Project Loan – The City’s former Redevelopment Agency had made available up to $1,800,000 through a development loan for this project. Through June 30, 2016, $1,621,948 has been drawn down by Eden Senior Housing. Repayment of this loan may be forgiven if certain conditions are met; accordingly, an allowance for doubtful accounts has been recorded in the amount of $1,621,948. With the dissolution of the Redevelopment Agency, this loan is now accounted for in the City of Union City as Successor Agency to the Redevelopment Agency Low-Moderate Income Housing Fund. 4. UNEARNED REVENUE AND UNAVAILABLE REVENUES

A. Funds Financials

Unearned revenues represent amounts received in advance of services to be provided. At June 30, 2016, unearned revenues were as follows:

Governmental ProprietaryFunds Funds

July 2016 rental income 2,875$ -$ Summer 2016 recreation fees 528,539 - July 2016 transit passes - 783

531,414$ 783$


68

4. UNEARNED REVENUE AND UNAVAILABLE REVENUES, Continued

A. Funds Financials, Continued

At June 30, 2016, the following unavailable revenues were recorded in governmental funds, denoting revenues that are not available to finance expenditures of the current period:

General Capital Public Non-MajorFund Improvement Fund Improvement Fund Funds Total

Skyventure payment obligation 70,830$ -$ -$ -$ 70,830$ Business license tax outstanding 5,052 - - - 5,052 Charges for services - - - 11,361 11,361 Accrued interest on outstanding loan - - - 656,746 656,746 Grants receivable - 5,457,074 3,143,278 358,838 8,959,190

Total 75,882$ 5,457,074$ 3,143,278$ 1,026,945$ 9,703,179$

B. Government Wide Financial Statement

At June 30, 2016 the following unearned revenues were recorded in the Government Wide Financial Statements:

Governmental ProprietaryFunds Funds

July 2016 rental income 2,875$ -$ Summer 2016 recreation fees 528,539 - July 2016 transit passes - 783

531,414$ 783$

5. INTERFUND TRANSACTIONS A. Interfund Receivables / Payables

Interfund receivables and payables activity for the year ended June 30, 2016 is summarized as follows:

Public Non-Major InternalGeneral Improvement Governmental Service

Fund Fund Funds Fund Total

Governmental Funds: General Fund -$ -$ 50,110$ 56,692$ 106,802$ Capital Improvement Fund - 6,801,607 34 100 6,801,741 Non-Major Governmental Fund 286 - 500,705 18,419 519,410 Enterprise Funds: Transit - - 267 5,361 5,628 Paratransit - - 95 75,687 75,782 Internal Service Fund - - 261 837 1,098

286$ 6,801,607$ 551,472$ 157,096$ 7,510,461$

Due from other funds

Du

e to

oth

er f

un

ds


69

5. INTERFUND TRANSACTIONS, Continued A. Interfund Receivables / Payables, Continued

Interfund receivables and payables represent the following items: Interfund activity to address cash needs:

Due to Public Improvement Fund Due from Capital Improvement Fund 6,801,607$ Due to Non-Major Funds Due from Non-Major Funds 490,144 Due to Internal Service Funds Due from Transit Fund 4,726 Due to Internal Service Funds Due from Paratransit Fund 75,495 Due to General Fund Due from Non-Major Funds 286

Interfund activity related to payroll accrual:

Due to Non-Major Funds Due from General Fund 50,110 Due to Non-Major Funds Due from Capital Improvement Fund 34 Due to Non-Major Funds Due from Non-Major Funds 10,561 Due to Non-Major Funds Due from Internal Service Funds 261 Due to Non-Major Funds Due from Transit 267 Due to Non-Major Funds Due from Paratransit 95 Due to Internal Service Funds Due from General Fund 56,692 Due to Internal Service Funds Due from Capital Improvement Fund 100 Due to Internal Service Funds Due from Non-Major Funds 18,419 Due to Internal Service Funds Due from Transit 635 Due to Internal Service Funds Due from Paratransit 192 Due to Internal Service Funds Due from Internal Service Funds 837

7,510,461$

Transfers In/Out Interfund transfers are made to support activities that are not supported through fees, grants or charges for services. Transfers may also be made when funds are established or closed. Interfund transfers for the year ended June 30, 2016 were as follows:

Non-major Internal TotalGeneral Governmental Service Governmental

Fund Funds Funds Funds

Governmental Funds:

General Fund 2,967,145$ 214,800$ 501,200$ 3,683,145$

Non-major Governmental 538,914 635,511 - 1,174,425

Internal Service Fund 2,870,788 - 1,524,100 4,394,888

Total 6,376,846$ 850,311$ 2,025,300$ 9,252,458$

Transfers Out

Tra

nsfe

rs In


70

5. INTERFUND TRANSACTIONS, Continued

During the year, two budgeted transfers were made that resulted in the closure of two funds. $561,844 was transferred to the General Fund from the Retirement/Benefit Reserve Fund (included as part of the General Fund for reporting purposes). In the Internal Service Funds, $375,000 was transferred to the General Liability Self Insurance Fund from the Employment Law Self Insurance Fund. It had been determined that it is more appropriate to report the activities related to retirement and benefits and employment law in the General and General Liability Self Insurance funds, respectively. All other transfers were made to provide operating support to other funds. Interfund transfers are summarized as follows: Transfer out from funds reported as General Fund Transfer in to funds reported as General Fund $2,967,144 Transfer out from funds reported as General Fund Transfer in to Non-Major governmental funds 538,914 Transfer out from funds reported as General Fund Transfer in to Internal Service funds 2,870,788 Transfer out from Non-Major governmental funds Transfer in to General Fund 214,800 Transfer out from Non-Major governmental funds Transfer in to Non-Major governmental funds 635,511 Transfer out from Internal Service funds Transfer in to General Fund 501,200 Transfer out from Internal Service funds Transfer in to Internal Service Funds 1,524,100


71

6. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2016, was as follows:

Balance Balance

July 1, 2015 Additions Retirements Transfer June 30, 2016

Governmental activities:

Nondepreciable assets:

Land 7,461,705$ -$ (340,623)$ -$ 7,121,082$

Construction in progress 20,440,302 20,513,641 (135,760) (5,180,212) 35,637,971

Total nondepreciable assets 27,902,007 20,513,641 (476,383) (5,180,212) 42,759,053

Depreciable assets:

Buildings and improvements 23,880,295 - (296,074) 35,911 23,620,132 Machinery and equipment 17,678,452 412,021 (284,592) 400,302 18,206,183 Infrastructure 276,797,072 4,743,999 - - 281,541,071

Total depreciable assets 318,355,819 5,156,020 (580,666) 436,213 323,367,386

Less accumulated depreciation:

Buildings and improvements (18,724,354) (566,542) 137,242 - (19,153,654) Machinery and equipment (14,652,597) (619,392) 280,082 - (14,991,907) Infrastructure (140,757,478) (7,281,438) - - (148,038,916)

Total accumulated depreciation (174,134,429) (8,467,372) 417,324 - (182,184,477)

Net depreciable assets 144,221,390 (3,311,352) (163,342) 436,213 141,182,909

Governmental activities

capital assets, net 172,123,397$ 17,202,289$ (639,725)$ (4,743,999)$ 183,941,962$

Business-type activities:

Depreciable assets:

Buildings and improvements 3,780,381$ 81,379$ -$ -$ 3,861,760$

Equipment and machinery 10,325,734 2,157,258 - - 12,482,992

Total depreciable assets 14,106,115 2,238,637 - - 16,344,752

Less accumulated depreciation:

Buildings and improvements (1,518,238) (94,876) - - (1,613,114)

Equipment and machinery (5,152,323) (732,598) - - (5,884,921)

Total accumulated depreciation (6,670,561) (827,474) - - (7,498,035)

Net depreciable assets 7,435,554 1,411,163 - - 8,846,717

Business-type activities

capital assets, net 7,435,554$ 1,411,163$ -$ -$ 8,846,717$


72

6. CAPITAL ASSETS, Continued

A. Depreciation

Depreciation expense was charged to various governmental functions as follows:

General government 7,457,959$ Public safety 188,652 Housing and community development 4,800 Community and recreation services 161,103 Economic and community development 4,430 Public works 650,428

Total depreciation expense - governmental functions 8,467,372$

Depreciation expense was charged to the business-type functions as follows:Transit 758,984$ Paratransit 68,490

Total depreciation expense-business-type functions 827,474$

7. LONG-TERM LIABILITIES The following is a summary of changes in long-term liabilities for the year ended June 30, 2016:

Amounts Amounts Amounts Amounts

Outstanding Outstanding Due Within Due in More

July 1, 2015 Additions Reductions June 30, 2016 One Year than One Year

Governmental Activities:

2013 Special Tax Refunding Bonds 5,470,000$ -$ (310,000)$ 5,160,000$ 320,000$ 4,840,000$

4.000% - 5.000% due serially 2028

2004 Series Pension Obligation Bonds 19,077,973 - (960,000) 18,117,973 1,100,000 17,017,973

5.360% - 5.920% due serially 2026

Capital Lease Obligation 4,179,042 - (234,854) 3,944,188 258,885 3,685,303

Equipment Lease 5.520% due 2026

Capital Lease Obligation 70,793 - (70,793) - - -


Capital Lease Obligation 716,302 - (133,671) 582,631 138,302 444,329


Capital Lease Obligation - 980,990 (151,346) 829,644 127,799 701,845


Total principal activity 29,514,110 980,990 (1,860,664) 28,634,436 1,944,986 26,689,450

Unamortized premium 2013 Special Tax Refunding Bonds 6,526 - (1,201) 5,325 - 5,325 Accreted interest on capital bonds 1,489,733 202,120 - 1,691,853 - 1,691,853

Total long-term liabilities 31,010,369 1,183,110 (1,861,865) 30,331,614 1,944,986 28,386,628


73

7. LONG-TERM LIABILITIES, Continued Community Facilities District 97-1 (Dyer Street Triangle) 2013 Special Tax Refunding Bonds On August 14, 2013, the City issued for and on behalf of the CFD 97-1, the 2013 Special Tax Refunding Bonds. This issue was used to current refund and defease the 1998 Special Tax Bonds and provide for a reserve fund for the 2013 Special Tax Refunding Bonds. These bonds bear interest rates ranging from 4.000% to 5.000% and are payable in annual installments ranging from $290,000 to $505,000 through September 1, 2028. Although the refunding resulted in the recognition of an accounting loss of $398,429, which will be amortized over the 15 year life of the bonds, the CFD 97-1 in effect decreased its aggregate debt service payments by $528,044 over the next 15 years and obtained an economic gain (difference between the present values of the old and new debt service payment) of $303,853. 2004 Pension Obligations Bonds On June 17, 2004, the City issued bonds in the amount of $22,997,973 to fund a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (PERS). Interest payments are payable semi-annually on January 1 and July 1. The bonds are comprised of $21,475,000 of current interest bonds and $1,522,973 of capital appreciation bonds. The bonds in the amount of $3,920,000 mature through July 1, 2014, and bear interest at the rate of 5.36% term bond. The bonds in the amount of $6,335,000 mature through July 1, 2019, and bear interest at the rate of 5.71% term bond. The bonds in the amount of $11,220,000 mature through July 1, 2026, and bear interest at the rate of 5.92% term bond. The accreted values of the capital appreciation bonds are $3,015,000 and $3,140,000 and are due July 1, 2025 and July 1, 2026, respectively. Cumulative interest expense recognized on the capital appreciation bonds is $1,489,733. The bonds are funded by the City’s general revenue. The bonds are insured by MBIA Insurance Corporation. Capital Lease Obligations On October 10, 2010, the City entered into an equipment lease/purchase agreement under the taxable Build America Bond program. The proceeds from this lease will be used to acquire, install and lease equipment designed to improve energy efficiency within the City. Equipment valued at $4,820,559 is reflected in the governmental activities capital asset schedule. The lease proceeds are held by a custodian and funds are drawn down on a reimbursement basis. The interest rate on the lease proceeds is 5.52%; the Internal Revenue Service reimburses the City 35% of the interest payment. At fiscal year-end, $3,944,188 is outstanding. On February 12, 2012, the City entered into an equipment lease-purchase agreement for the acquisition of H-P blade servers. The lease has a term of five years. The equipment is leased to the City for lease payments, which will be sufficient to meet the debt service obligations of the leasing arrangement. The equipment, valued at $341,134 is reflected in the governmental activities capital asset schedule. At the end of the leasing period, the title to the equipment will pass to the City. Because they are similar to debt, the present value of the total payments to be made by the City is recorded as long-term debt. The final lease payment was made in fiscal year 2015-16. On June 29, 2012, the City entered into an equipment lease-purchase agreement for the acquisition of Motorola communications equipment. The lease has a term of seven years. The equipment is leased to the City for lease payments, which will be sufficient to meet the debt service obligations of the leasing arrangement. At the end of the leasing period, the title to the equipment will pass to the City. Communications equipment in the amount of $970,179 is included in the governmental activities capital asset schedule. Because they are similar to debt, the present value of the total payments to be made by the City is recorded as long-term debt. $582,631 remains outstanding at the end of this fiscal year.


74

7. LONG-TERM LIABILITIES, Continued On July 23, 2015, the City entered into a lease-purchase agreement for the acquisition of network infrastructure equipment. The lease has a term of seven years. The equipment is leased to the City for lease payments which will be sufficient to meet the debt service obligations of the leasing arrangement. At the end of the leasing period, the title to the equipment will pass to the City. Because they are similar to debt, the present value of the total payments to be made by the City is recorded as long-term debt. $829,644 remains outstanding at the end of this fiscal year. The following schedule illustrates the debt service requirements to maturity for governmental activities as of June 30, 2016, exclusive of the premium on the Special Tax Bonds and the accreted interest on the Pension Obligation capital appreciation bonds:

Year EndingJune 30 Principal Interest Total Principal Interest Total

2017 320,000$ 206,251$ 526,251$ 1,100,000$ 939,731$ 2,039,731$ 2018 330,000 199,259 529,259 1,255,000 872,496 2,127,496 2019 335,000 191,024 526,024 1,420,000 796,125 2,216,125 2020 345,000 180,895 525,895 1,600,000 709,904 2,309,904 2121 355,000 169,298 524,298 1,790,000 611,240 2,401,240

2022-2026 2,025,000 587,719 2,612,719 10,200,755 4,627,168 14,827,923 2027-2029 1,450,000 108,740 1,558,740 752,218 1,193,891 1,946,109

5,160,000$ 1,643,186$ 6,803,186$ 18,117,973$ 9,750,555$ 27,868,528$

Year EndingJune 30 Principal Interest Total Principal Interest Total

2017 524,986$ 260,445$ 785,431$ 1,944,986$ 1,406,427$ 3,351,413$ 2018 559,318 236,996 796,314 2,144,318 1,308,751 3,453,069 2019 595,510 211,824 807,334 2,350,510 1,198,973 3,549,483 2020 633,658 184,833 818,491 2,578,658 1,075,632 3,654,290 2021 515,367 155,918 671,285 2,660,367 936,456 3,596,823

2022-2026 2,527,624 386,657 2,914,281 14,753,379 5,601,544 20,354,923 2027-2029 - - - 2,202,218 1,302,631 3,504,849

5,356,463$ 1,436,673$ 6,793,136$ 28,634,436$ 12,830,414$ 41,464,850$

Special Tax Bonds Pension Obligation Bonds

Capital Lease Obligations Summary - All Governmental Fund Debt

Pledges of Revenues: Special Tax Bonds/Special Tax Refunding Bonds Community Facilities District 97-1 (Dyer Street Triangle) The City had pledged the special tax revenues assessed on property owners in the Community Facilities District 97-1 (the CFD) to the payment of the principal, interest and any premium on the 2013 Special Tax Refunding Bonds Community Facilities District 97-1 (Dyer Street Triangle). Special tax revenues are defined as the proceeds of the special tax levies within the CFD and received by the City, including any scheduled payment and any prepayments thereof, interest earned on the proceeds and the proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the special taxes to the amount of said lien and interest thereon. Special tax revenues do not include any penalties collected in connection with delinquent special taxes. Annual principal and interest payments on the bonds are expected to require approximately 94 percent of special tax revenues received. The total principal and interest remaining on the bonds is $6,803,186 payable through September 2028. For the current fiscal year, principal and interest paid with special tax revenues and total special revenues received were $525,731 and $553,043 respectively.


75

7. LONG-TERM LIABILITIES, Continued Summary of Long-Term Debt without City Commitment Los Robles Apartments Multi-Family Housing Revenue Bond The City assisted Los Robles Apartments Associates, L.P. in the refinancing of their existing multi-family housing revenue bonds at more attractive interest rates. This project provides 140 housing units. These bonds are secured by a deed of trust on the property and are payable by rent and tax-credit equity. Neither the faith and credit nor the taxing power of the City, the State, or any political subdivision thereof are pledged for the payment of the principal or interest on the bonds. The outstanding balance due on these bonds at June 30, 2016 is $10,175,898. 8. COMPENSATED ABSENCES The City records a liability to recognize the financial effect of unused vacation and other compensated absences. The total of vacation and other compensated absences is $2,190,098.

9. FUND BALANCES A. Classification of Governmental Fund Balances Governmental fund balances represent the net current asset of each fund. Net current position generally represents a fund’s cash and receivables, less its liabilities. Implementation of Governmental Accounting Standards Board Statement (GASB) No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, became effective with fiscal periods beginning after June 15, 2010. GASB 54 has replaced the fund balance definitions of reserved, unreserved-designated and unreserved-undesignated with the following classifications:

Nonspendable fund balance – The portion of fund balance that represents amounts that are not in a spendable form or are required to remain intact. Restricted fund balance – The portion of fund balance representing amounts constrained to specific purposes by their providers such as grantors, bondholders or higher levels of government, through constitutional provisions or by enabling legislation. Committed fund balance – The portion of fund balance constrained to specific purposes by a government itself, using its highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint. Assigned fund balance – The portion of fund balance representing amounts the government intends to use for a specific purpose. The intent can be expressed by the governing body or by an official to whom the governing body delegates the authority.

Unassigned fund balance – The portion of fund balance representing amounts that are available for any purpose. Only the General Fund may report a positive unassigned balance amount. Negative unassigned fund balance amounts can exist in any fund.

Balance Balance Due WithinJuly 1, 2015 Additions Deletions June 30, 2016 One Year

Governmental Activities 1,864,821$ 1,867,318$ (1,600,209)$ 2,131,930$ 1,886,357$ ,Business-Type Activities 48,980$ 35,049$ (25,861)$ 58,168$ 25,235$


76

9. FUND BALANCES, Continued

Under GASB Statement No. 54, reserve for encumbrances is no longer reported on the face of the financial statements. In the General Fund, the amount reported as assigned fund balance represents purchase orders outstanding at the end of the year. Of this amount, General Government has outstanding purchase orders in the amount of $132,000 in the City Manager’s office for the preparation of a hazard mitigation study and web design services ($92,000 total) and audit services for the Administrative Services Department. The Public Safety (Police) department has $183,000 in commitments to vendors working on remodeling/upgrading Police facilities and the Economic and Community Development Department has $162,000 in purchase orders for consultants assisting with the General Plan Update. The balance of $37,000 represents amounts due for goods ordered prior to June 30, 2016 but not delivered as of fiscal year-end and work remaining on consulting or construction contracts.


77

9. FUND BALANCES, Continued The following table represents amounts reported under the GASB Statement No. 54 fund balance classifications:

Low Moderate Capital Public Non-Major Total

General Income

Housing Improvement Improvement Governmental Governmental Fund Fund Fund Fund Funds Funds Fund balances: Nonspendable: Prepaid items 362,413 - - - 69,098 431,511

Notes receivable 522,730 - - - - 522,730

Total nonspendable 885,143 - - - 69,098 954,241 Restricted: SB 1186 10,897 - - - - 10,897 Debt service - - - - 4,737,489 4,737,489 Grants - - - - 20,191 20,191 Waste management - - - - 1,615,209 1,615,209 Youth violence prevention - - - - 312,782 312,782 Public safety - - - - 769,248 769,248 Housing & community development 34,892,269 30,839,822 - - 3,964,612 69,696,703 Streets/parks improvements/maintenance - - - - 4,646,386 4,646,386 Community facility districts - - - - 12,982 12,982 Clean water program - - - - 9,355 9,355 Public access television improvements - - - - 42,145 42,145

Capital improvements - - - 16,801,465 - 16,801,465

Total restricted 34,903,166 30,839,822 - 16,801,465 16,130,399 98,674,852 Committed: Public art - - - - 656,691 656,691 Housing & community development - - - - 766,727 766,727 Streets/parks improvements/maintenance - - - - 1,328,626 1,328,626 Parks & other capital improvements - - - - 7,227,942 7,227,942 - - - - 9,979,986 9,979,986 Assigned: Economic uncertainty 3,453,206 - - - - 3,453,206 Capital projects & improvements 1,166,000 - - - - 1,166,000 Support for 911 communications 454,316 - - - - 454,316 Administrative/litigation contingencies 579,435 - - - - 579,435 Retirement & benefits 4,580,825 - - - - 4,580,825 Public safety 108,989 - - - - 108,989 Community & recreation services 649,845 - - - - 649,845 Parking program 56,484 - - - - 56,484 Housing & community development - - - - 1,000 1,000 Streets/parks improvements/maintenance 145,844 - - - 342,485 488,329 Code enforcement 17,426 - - - - 17,426 Corporation Yard maintenance 799,016 - - - - 799,016 Compensated absences 387,905 - - - - 387,905 Encumbrances 513,965 - - - - 513,965 Total assigned 12,913,256 - - - 343,485 13,256,741

Unassigned 7,432,751 - (6,227,068) - (358,837) 846,846

Total fund balance $ 56,134,316 $ 30,839,822 $ (6,227,068) $ 16,801,465 $ 26,164,131 $ 123,712,666


78

10. RISK MANAGEMENT The City is a member for the Bay Cities Joint Powers Insurance Authority (BCJPIA). The Authority provides coverage against the following types for loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies: The City has insurance for employment practices liability with coverage of $1,000,000, including the City’s self-insured retention of $75,000; property with coverage at the replacement value of the property with a limit of $1,000,000,000 including the City’s deductible of $10,000; auto and physical damage with coverage of $1,000,000,000 including the City’s deductible of $1,000; and general liability with coverage of $29,000,000 including City’s self-insured retention of $250,000. The City has workers’ compensation insurance with coverage up to $1,000,000. The City has a self-insured retention up to $250,000 per claim. For the years ended June 30, 2016, 2015, and 2014, the amount of settlements did not exceed insurance coverage. The BCJPIA is governed by a Board consisting of representatives from member agencies. The Board controls the operations of the BCJPIA, including selection of management and approval of operating budgets, independent of any influence by member agencies beyond their representation on the Board. The City’s deposits with the Authority are in accordance with formulas established by the Authority. 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. Financial statements for the risk pools may be obtained from BCJPIA 1750 Creekside Oaks Dr. Suite 200, Sacramento, CA 95833; or www.bjcpia.org. Insurance Internal Service Funds The City’s liability for uninsured general liability claims, including claims incurred but not reported is reported in the General Liability Self-Insurance Internal Service Fund. Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion, of these claims. The liability is based on an independent actuarial study prepared biennially and was computed as follows for the year ended June 30, 2016:

Beginning End

Balance as of of Year Claims and Changes Claims of Year Due Within

June 30, Liability in Estimates Payments Liability One Year

2016 610,518$ 439,257$ (357,272)$ 692,503$ 95,811$

2015 372,136 607,890 (369,508) 610,518 158,972

2014 306,905 218,124 (152,893) 372,136 78,840

The change in the Workers’ Compensation Self-Insurance Internal Service Fund’s claims liability, including claims incurred but not reported is based on historical trend information and was computed as follows at June 30, 2016:

Beginning Current Year Claim Payments End

Balance as of of Year Claims and Changes for Current and of Year Due Within

June 30, Liability in Estimates Prior Years Liability One Year

2016 3,309,833$ 2,639,853$ (1,656,686)$ 4,293,000$ 803,769$

2015 2,960,738 1,842,148 (1,493,053) 3,309,833 897,106

2014 2,448,965 1,843,735 (1,331,962) 2,960,738 783,393


79

11. DEFINED BENEFIT PENSION PLAN A. California Public Employees’ Retirement Plan (CalPERS): Agent Multiple-Employer Defined Benefit Plan

I. General Information About the Plan Plan Description – All miscellaneous qualified permanent and probationary employees are eligible to participate in the City’s pension plans 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 statue 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. Benefits Provided – CalPERS provides retirement and disability retirement benefits, annual cost-of-living adjustments, and death benefits to plan members 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. The retirement benefit, payable monthly for life, is based on a formula which varies depending on the employee’s retirement plan, date of hire, and participation in a public retirement plan prior to City employment. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. On October 26, 2010, the City amended its contract with CalPERS to provide a two-tier retirement formula plan. Employees hired on or after November 24, 2010 would fall under second-tier plans. On January 1, 2013, the Public Employees’ Pension Reform Act (PEPRA) took effect. PEPRA distinguishes between “Classic” employees, who were in a public retirement plan prior to January 1, 2013 and “new” employees, who first became a member of a public retirement plan on or after January 1, 2013. “Classic” employees hired by the City on or after November 24, 2010 are eligible for Tier 2 benefits while new employees are eligible for the retirement benefits established by PEPRA. A summary of the benefit formulas is provided below:

Prior to On or After On or AfterHire date November 24, 2010 November 24, 2010 January 1, 2013Benefit formula 2.5% @ 55 2.0% @ 60 2.0% @ 62Average final compensation period 12 months 36 months 36 monthsBenefit vesting schedule 5 years service 5 years service 5 years serviceBenefit payments monthly for life monthly for life monthly for lifeRetirement age 55 60 62Monthly benefits, as a % of eligible compensation 2.500% 2.000% 2.000%Required employee contribution rates 8.000% 7.000% 7.000%Required employer contribution rates 20.137% 20.137% 20.137%

Miscellaneous Members

Covered Employees – At June 30, 2016, the most recent data available, the following Miscellaneous employees were covered by the benefit terms: Miscellaneous Inactive employees or beneficiaries currently receiving benefits 206 Inactivity employees entitled to but not yet receiving benefits 244 Active employees 201 Total 651


80

11. DEFINED BENEFIT PENSION PLAN, Continued A. California Public Employees’ Retirement Plan (CalPERS): Agent Multiple-Employer Defined Benefit Plan,

Continued

I. General Information About the Plan, Continued 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 contribution for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. 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. The required Miscellaneous Plan employer contribution rate for measurement period ended June 30, 2015, was 18.06% of covered payroll resulted in CalPERS recognizing $2,609,444 as employer contributions. II. Net Pension Liability The City’s net pension liability for Miscellaneous employees is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2015, using an annual actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 using standard update procedures. Actuarial Assumptions – The total pension liabilities in the June 30, 2014 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2014 Measurement Date June 30, 2015 Actuarial Cost Method Entry-age normal in accordance with GASB 68 requirements Actuarial Assumptions: Discount Rate 7.65% Inflation 2.75% Payroll Growth 3.00% Projected Salary Increase 1 3.0% Investment Rate of Return 2 7.65% Mortality Derived using CalPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter

1 Depending on age, service and type of employment

2 Net of pension plan investment and administrative expenses; includes inflation

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Discount Rate – The discount rate used to measure the total pension liability was 7.65% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long term expected discount rate of 7.65% is applied to all plans in the Public Employees Retirement Fund (PERF).


81


Continued

II. Net Pension Liability, Continued

The stress test resulted are presented in a detailed report that called “GASB Crossover Testing Report” can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of GASB Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.65% investment return assumption used in this accounting valuation is without reduction of pension plan administrative expense. 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 (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. 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 (11-60 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 rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014.

Asset Class

Current Target Allocation

Real Return Years 1-10 1

Real Return Years 11+ 2

Global Equity 51.0% 5.25% 5.71% Global Fixed Income 19.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 10.0% 6.83% 6.95% Real Estate 10.0% 4.50% 5.13% Infrastructure and Forestland 2.0% 4.50% 5.09% Liquidity 2.0% (0.55)% (1.05)% 1 An expected inflation rate of 2.50% used for this period

2 An expected inflation rate of 3.00% used for this period


82


Continued III. Changes in the Net Pension Liability The changes in the Net Pension Liability for the Miscellaneous plan follows:

Total Pension Plan Fiduciary Net PensionLiability Net Position Liability/(Asset)

Balance at June 30, 2014 107,830,366$ 85,757,422$ 22,072,944$ Changes in the year: Service cost 2,513,110 - 2,513,110 Interest on total pension liability 7,877,012 - 7,877,012 Changes of assumptions (1,991,573) - (1,991,573) Differences between expected and actual experience (1,972,066) - (1,972,066) Plan to plan resource movement - (1,936) 1,936 Contribution-employer - 2,609,444 (2,609,444) Contribution-employee (paid by employer) - 1,104,774 (1,104,774) Net investment income - 1,907,216 (1,907,216) Benefit payments, including refunds of employee contributions (4,311,625) (4,311,625) -

Administrative expense - (97,901) 97,901

Net changes 2,114,858 1,209,972 904,886 Balance at June 30, 2015 109,945,224$ 86,967,394$ 22,977,830$

Increase (Decrease)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each 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:

1% Decrease 6.65% Net pension liability $38,314,618 Current discount rate 7.65% Net pension liability $22,977,830 1% Increase 8.65% Net pension liability $10,394,418

Pension Plan Fiduciary Net Position – Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.


83


Continued IV. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2016, the City recognized pension expense of $1,068,976. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflowsof Resources of Resources

Pension contributions subsequent to measurement date 2,680,592$ -$ Changes in assumptions - (1,349,130) Net difference between projected and actual earnings on investments - (672,599) Differences between expected and actual experience - (1,335,916) Total 2,680,592$ (3,357,645)$

$2,890,106 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Periods

Ended June 30:

Deferred Outflows/(Inflows)

of Resources 2016 $(1,809,430) 2017 (1,809,430) 2018 (658,696) 2019 919,911 2020 0

Remaining 0

V. Payable to Pension Plan

As of June 30, 2016, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2016. B. Cost Sharing Multiple-Employer Defined Benefit Plans – CalPERS Safety Plans I. General Information About the Plan

Plan Description - All qualified permanent and probationary safety employees are eligible to participate in pension plans administered by the California Public Employees’ Retirement System (CalPERS), a cost sharing multiple-employer defined benefit pension plan which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State status and City resolution.


84

11. DEFINED BENEFIT PENSION PLAN, Continued B. Cost Sharing Multiple-Employer Defined Benefit Plans – CalPERS Safety Plans, Continued I. General Information About the Plan, Continued Benefits Provided – CalPERS provides retirement and disability retirement benefits, annual cost-of-living adjustments and death benefits to plan members and their 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. The retirement benefit, payable for life, is based on a formula which varies depending on the employee’s retirement plan, date of hire, and participation in a public retirement plan prior to City employment. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 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 contribution for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. 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. II. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2016, the City reported its proportionate share of the net pension liability of the Safety Plan as follows:

Proportionate Shareof Net Pension Liability

Safety 28,760,899$

The City’s net pension liability for the Plans is measured as the proportionate share of the total net pension liability of each Plan. The net pension liability of the Plans are measured as of June 30, 2014 rolled forward to June 30, 2015 using standard update procedures. 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 plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of June 30, 2014 and 2015 was as follows:

Change:

Increase/ (Decrease)

Fiscal year ended June 30, 2016 June 30, 2015Measurement Date June 30, 2015 June 30, 2014Percentage of Plan (PERF C ) NPL 0.419017% 0.365157% 0.053860%

Percentage Share of Risk Pool

For the year ended June 30, 2016, the City recognized pension expense of $4,067,947. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:


85

11. DEFINED BENEFIT PENSION PLAN, Continued B. Cost Sharing Multiple-Employer Defined Benefit Plans – CalPERS Safety Plans, Continued

II. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions,

Continued

Deferred Outflows Deferred Inflowsof Resources of Resources

Pension contributions subsequent to measurement date 2,911,202$ -$ Changes in assumptions - (1,058,301) Net difference between projected and actual earnings on investments - (536,353) Change in employer's proportion 670,966 - Differences between expected and actual experience - (230,097) Changes in proportion and differences between contributions and proportionate share of contributions - (5,987,660) Total 3,582,168$ (7,812,411)$

$1,568,634 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Periods Outflows/(Inflows)Ended June 30 of Resources

2017 (2,860,810)$ 2018 (2,802,802) 2019 (2,136,266) 2020 658,408

Thereafter - Actuarial Assumptions – The total pension liabilities in the June 30, 2015 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2014 Measurement Date June 30, 2015 Actuarial Cost Method Entry-age normal Actuarial Assumptions: Discount Rate 7.65% Inflation 2.75% Payroll Growth 3.00% Salary Increases Varies by entry age and service Investment Rate of Return 7.65% Mortality

Derived using CalPERS membership data for all funds


86



Continued Discount Rate – The discount rate used to measure the total pension liability was 7.65%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, the plan will not run out of assets. Therefore, the current 7.65% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.65% will be applied to the plan in the Public Employees Retirement Fund (PERF). The stress test resulted are presented in a detailed report that can be obtained from the CalPERS website. According to Paragraph 30 of GASB Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. 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 returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.


87



Continued Asset Class

New Strategic Allocation

Real Return Years 1-10 1

Real Return Years 11+ 2

Global Equity 51.0% 5.25% 5.71% Global Fixed Income 19.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 10.0% 6.83% 6.95% Real Estate 10.0% 4.50% 5.13% Infrastructure and Forestland 2.0% 4.50% 5.09% Liquidity 2.0% (0.55)% (1.05)% 1 An expected inflation rate of 2.50% used for this period

2 An expected inflation rate of 3.00% used for this period

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each 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:

1% Decrease 6.65% Net pension liability $52,665,700 Current discount rate 7.65% Net pension liability $28,760,899 1% Increase 8.65% Net pension liability $9,159,457

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan – At June 30, 2016, the City reported a payable of $0 for outstanding amount of contributions to the pension plan required for the year ended June 30, 2016. 12. POST EMPLOYMENT HEALTH CARE BENEFITS The Union City Retiree Healthcare Plan (Plan) is a single-employer defined benefit post-employment healthcare plan administered by the City. The Plan provides healthcare benefits to eligible retirees and their dependents through the California Public Employees’ Retirement System (CalPERS) Public Employees Medical and Hospital Care Act (PEMCHA). Benefit provisions are established and may be amended through agreements and memoranda of understanding between the City, its non-represented employees and the unions representing City employees. The Plan does not issue a stand-alone financial report.


88

12. POST EMPLOYMENT HEALTH CARE BENEFITS, Continued For eligible permanent employees who retire directly from the City under CalPERS, the City pays the PEMHCA minimum employer contribution under the unequal method. Police (both sworn and non-sworn) and Police Management retirees are eligible for an additional City medical contribution based on longevity of service. For police retirements after July 1, 2002, the benefit (subject to a cap) is a percent up to the Kaiser 2-party premium, with the percent varying by City service at retirement, starting at 50% after 15 years of service, 75% after 20 years of service, and reaching 100% after 25 years of service. As of June 30, 2016, there were 80 City retirees in PEMHCA receiving the PEMHCA minimum employer contribution. Under agreement, three miscellaneous employees receive additional medical benefits and 53 police department retirees receive additional medical contributions under the Police Officers Association agreement. The City pays between $2,891 and $3,840 annually for three firefighters who retired after July 1, 2004 but before the July 1, 2010 effective date of the City’s contract with the Alameda County Fire Department. Copies of the PERS annual financial report may be obtained from their Executive Office located at 400 Q Street, Sacramento, California 95814. The contribution requirements of the Plan participants and the City are established by and may be amended by the City pursuant to agreements with its non-represented employees and with the unions representing City employees. The Plan is currently funded on a pay-as-you-go basis for GASB Statement 45 purposes. Under agreement with the Police Officers Association (POA) and Police Managers, police employees are required to make contributions each pay period into the POA Retiree Medical Fund. Police management contributes $60 per pay period. All other eligible police personnel contribute 1.5% of their salary per pay period. The City is required to match employee contributions into this fund, in addition to contributing $170,000 annually. The POA Retiree Medical Fund is not an irrevocable trust and therefore does not count as Plan Assets under GASB Statement 45. The City’s annual other postemployment benefit cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City’s Net OPEB obligation:

Annual required contribution 1,306,000$ Interest on net OPEB obligation (235,000) Adjustment to annual required contribution 234,000 Annual OPEB cost 1,305,000 Contributions made (541,629) Decrease in net OPEB obligation 763,371 Net OPEB asset, beginning of year (2,524,726) Net OPEB asset, end of year (1,761,355)$

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for the fiscal year ended June 30, 2016 and the two preceding fiscal years were as follows:


89

12. POST EMPLOYMENT HEALTH CARE BENEFITS, Continued

Year Annual Annual OPEB OPEBEnded OPEB Cost Costs Contributed Obligation6/30/2016 1,305,000$ 41.50% (1,761,355)$ 6/30/2015 1,257,000 38.44% (2,524,726) 6/30/2014 844,000 101.78% (3,298,560)

The funded status of the Plan as of June 30, 2014 the Plan’s most recent actuarial valuation date, was as follows:

Actuarial Accrued Liability (AAL) 17,028,000$

Actuarial Value of Plan Assets (AVPA) 6,291,000

Unfunded Actuarial Accrued Liability 10,737,000$

Funded Ratio (AVPA/AAL) 37%

Covered Payroll 20,099,000$ Actuarial valuations of an ongoing plan involve estimates of the value of expected benefit payments and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the Notes to Basic Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actual accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan participants) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan participants to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. For the June 30, 2014 actuarial valuation, the Entry Age Normal (EAN) actuarial cost method was used. The actuarial assumptions included a 6.25% investment rate of return taking into consideration pre-funding by the PARS Moderate OPEB Trust. The general inflation assumption was 3.25%. PEMHCA premiums were assumed to increase with a pre-Medicare medical cost increase rate of 7.10% for HMOs and 7.50% for PPOs for 2013, both grading down to 4.50% for 2017 and thereafter. The post-Medicare medical cost increase rates were 8.00% for HMOs and 8.50% for PPOs for 2013, with both grading down to 4.50% for 2017 and thereafter. The June 30, 2014 unfunded actuarial accrued liability was amortized as a level percentage of projected payroll over a closed 24 -year period. On July 11, 2011, the City entered into an agreement with Public Agency Retirement Services (PARS) to participate in the PARS Public Agencies Post-Retirement Health Care Plan irrevocable trust. To date, the City has contributed $3,994,000 for miscellaneous employees and $2,270,000 for safety employees to prefund the OPEB annual required contribution.


90

13. COMMITMENTS AND CONTINGENT LIABILITIES The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which could have adverse effects on the financial position of the City. The City participates in Federal, State and local grant programs. These programs have been audited through fiscal year ended June 30, 2016 by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act of 1984 including 1996 amendments 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 which could be disallowed by the granting agencies cannot be determined at this time. 14. DEVELOPMENT AND PARTICIPATION AGREEMENTS A. Mid-Peninsula Housing Coalition

In August 2004, the Agency agreed to provide the Mid-Peninsula Housing Coalition (the Coalition), doing business as Mid-Peninsula Mission Associates, a loan of $4,150,000 to build 120 family rental units on Mission Boulevard. The loan is to be repaid in 55 years at 3% interest from residual receipts generated by the project. On December 9, 2008, the Agency executed a $1,500,000 Predevelopment Loan Agreement with Mid-Peninsula Housing Coalition to develop 160 affordable housing units on Block 4 in the Station District. The loan funds are to be disbursed to Mid-Peninsula Housing Coalition on a cost-reimbursement basis with interest accruing on the outstanding principal balance of the Predevelopment Note at 3% simple interest per annum. On November 10, 2009 the Predevelopment Loan was folded into a Disposition and Development Agreement (DDA). The Agency approved the financing plan for the Mid-Peninsula Housing Coalition Station District Family Housing project which will construct 155 affordable housing units and 2 managers units. Through that financing plan the Agency committed a total of $24,701,674, to be provided as grants or loans to the limited partnerships that will own the facility (Mid-Pen as General Partner). As of June 30, 2016 the balance of the loans is $28,875,243.

15. DEFICIT FUND BALANCES At June 30, 2016, the following funds had a deficit fund balance:

Deficit Fund Fund Balance

Major Funds:

Capital Improvements (6,227,068)$

Non-major Funds:

Measure WW (358,837)

The Capital Improvements and Measure WW funds receive their revenues through grant reimbursements. The deficit in these two funds will be reduced as grant reimbursements are received.


91

16. RESTATEMENT OF NET POSITION/FUND BALANCES Government-Wide Financial Statements

As Previously Prior Period Net Position,Reported Adjustment as Restated

182,852,571$ 30,310,276$ 213,162,847$

In the government-wide financial statements, the following adjustments were made:

$29,149,612 to record property conveyed to the City from the Redevelopment Property Tax Trust Fund $305,371 to record loans conveyed to the City from the Neighborhood Housing Services of Silicon

Valley organization $459,475 to record funds on deposit with Bay Cities Joint Powers Insurance Authority $395,818 to record economic loss on the 2013 Special Tax Revenue Refunding Bond issue

Governmental Funds Financial Statements

Fund Balance,as Previously Prior Period Fund Balance,

Reported Adjustment as RestatedGeneral Fund 28,549,943$ 29,147,002$ 57,696,945$

Low and Moderate Income Housing Special Revenue Fund 29,433,680 305,371 29,739,051

In the General Fund proper, the prior period adjustment reflects the value of property conveyed to the City from the Redevelopment Property Tax Trust Fund. These properties were overlooked when other properties were conveyed to the City in fiscal year 2013-14. In the City as Successor Agency to the Redevelopment Low-Moderate Income special revenue fund, the prior period adjustment was made to recognize down payment assistance loans receivable (described in Note 3, Down Payment Assistance Loans) that were conveyed to the City from the Neighborhood Housing Services of Silicon Valley.

Internal Service Funds Financial Statements

Net Position,as Previously Prior Period Net Position,

Reported Adjustment as RestatedWorkers Compensation Self-Insurance Fund 7,551,622$ 419,475$ 7,971,097$ General Liability Self-Insurance Fund 6,748,593 40,000 6,788,593

For both the Workers Compensation Self-Insurance Fund and the General Liability Self-Insurance funds, the prior period adjustments reflect cash held by the Bay Cities Joint Powers Insurance Authority that is available for the City to use to for premium or claims payments. These are funds that have accumulated over several years; the City became aware of these funds during the current fiscal year.


92

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action has impacted the reporting entity of the City of Union City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 24, 2012, by Resolution 4260-12, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the bill. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill, as modified by the California Supreme Court on December 29, 2011, all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of activity of the Redevelopment Agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved Redevelopment Agency are reported in the Redevelopment Property Tax Trust Fund, a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The transfer of assets and liabilities of the former Redevelopment Agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary loss.


93

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued A. Cash and Investments The City of Union City maintains a cash and investment pool that is available for all City activities, including those of the Successor Agency Trust fund. Cash and investments reported in the Statement of Fiduciary Net Position consisted of the following:

Amount

Cash pooled with City 7,932,471$ Restricted cash and investments 3,022,469 Total cash and investments 10,954,940$

The City manages the Successor Agency’s cash and investments in a manner consistent with the rest of its cash and investment pool. See Note 2 for additional information regarding the type of investments and risks. B. Loans Receivable The Successor Agency has the following loan receivable outstanding as of June 30, 2016:

Amount

Abaxis, Inc. 1,000,000$

Allowance for doubtful account (1,000,000) Total -$

On January 1, 2011, the Redevelopment Agency agreed to provide Abaxis, Inc. a loan of $1,000,000 to rehabilitate the buildings it leases, including without limitation, the installation of tenant improvements designed to improve the capacity and efficiency of the company’s operations and accommodate an expansion of workforce and the installation of new capital equipment. Loan funds were disbursed to Abaxis, Inc. on a reimbursement basis. The outstanding principal balance of the note will bear interest at 5% simple annual interest accruing from the date of, and on the amount of the loan disbursement to Abaxis, Inc. As of June 30, 2016, Abaxis, Inc. has drawn down $1,000,000. The loan may be forgiven if certain criteria are met; accordingly, an allowance for doubtful accounts has been recorded in the amount of $1,000,000.


94

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued C. Capital Assets At June 30, 2016, the following assets are reported in the Successor Agency:

Balance BalanceJuly 1, 2015 Additions Retirements Transfer June 30, 2016

Fiduciary Activities:Non-depreciable assets: Land 2,896,332$ -$ -$ 1,610$ 2,897,942$ Construction in progress 63,704,069 1,206,158 - (371,497) 64,538,730 Total nondepreciable assets 66,600,401 1,206,158 - (369,887) 67,436,672

Depreciable Assets: Buildings and improvements 1,709,428 - - - 1,709,428 Machinery and equipment 3,404,382 - - 371,496 3,775,878 Infrastructure 18,360,737 - - - 18,360,737 Total depreciable assets 23,474,547 - - 371,496 23,846,043

Less accumulated depreciation: Buildings and improvements (449,364) (3,698) - - (453,062) Machinery & equipment (96,345) (104,867) - - (201,212) Infrastructure (2,818,949) (451,005) - - (3,269,954) Total accumulated depreciation (3,364,658) (559,570) - - (3,924,228)

Total net depreciable assets 20,109,889 (559,570) - 371,496 19,921,815

Fiduciary capital assets, net 86,710,290$ 646,588$ -$ 1,609$ 87,358,487$


95

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued D. LONG-TERM LIABILITIES Upon the dissolution of the Redevelopment Agency, the balances of long-term liabilities were transferred from the former Redevelopment Agency to the Successor Agency. The balances of these long-term liabilities, represented by tax allocation bonds (TAB), as of June 30, 2016 are presented below:

Amounts Due Amounts Due

Balance Balance Within In More than

July 30, 2015 Additions Retirements Defeased June 30, 2016 One Year One Year

2001A TAB 11,505,000$ -$ (355,000)$ (11,150,000)$ -$ -$ -$

4.500% - 5.375% due 10/01/34

2001B TAB 4,990,000 - (135,000) (4,855,000) - - -

6.100% - 7.500% due 10/01/34

2003A Refunding TAB 8,560,000 - (800,000) (7,760,000) - - -

2.000% - 4.750% due 10/01/23

2005 TAB 31,725,000 - - (31,725,000) - - -

4.500% - 4.750% due 10/01/38

2007 TAB 31,790,000 - (665,000) - 31,125,000 700,000 30,425,000

4.000% - 5.000% due 10/01/33

Unamortized premium, 2007 TAB 791,437 - (43,338) - 748,099 - 748,099

2010 TAB 27,165,000 - (185,000) (26,980,000) - - -

3.000% - 5.200% due 10/01/33

Unamortized discount, 2010 TAB (99,676) - 6,560 93,116 - - -

2011 TAB 27,400,000 - (485,000) - 26,915,000 645,000 26,270,000

3.000% - 6.875% due 12/01/2033

Unamortized discount, 2011 TAB (257,586) - 14,570 (243,016) - (243,016)

2015A Refunding TAB - 72,135,000 - - 72,135,000 1,680,000 70,455,000

2.000% - 5.000% due 10/01/38

Unamortized premium, 2015A TAB - 8,436,541 (239,947) - 8,196,594 8,196,594

2015B Refunding TAB - 5,005,000 - - 5,005,000 235,000 4,770,000

1.000% - 4.500% due 10/01/33

Unamortized discount, 2015B TAB - (55,885) 2,055 - (53,830) - (53,830)

143,569,175$ 85,520,656$ (2,885,100)$ (82,376,884)$ 143,827,847$ 3,260,000$ 140,567,847$

2001 Series A Community Redevelopment Agency Tax Allocation Bonds On May 1, 2001, the former Redevelopment Agency issued tax-exempt bonds in the amount of $14,635,000 to fund various Agency projects. Principal payments are payable annually on October 1 and interest payments are payable semi-annually on April 1 and October 1. The bonds in the amount of $765,000 mature through October 1, 2022, and bear interest at the rate of 5.25% term bond. The bonds in the amount of $1,560,000 mature through October 1, 2027, and bear interest at the rate of 5.00% term bond. The bonds in the amount of $2,470,000 mature through October 1, 2033, and bear interest at the rate of 5.25% term bond. The bonds in the amount of $7,000,000 mature through October 1, 2034, and bear interest at the rate of 5.375% term bond. In lieu of a reserve fund, the Bonds are secured by Surety Bond issued by AMBAC Assurance Corporation. On November 12, 2015, the outstanding balance of $11,150,000 was refunded by the issuance of the 2015 Series A Refunding Tax Allocations Bonds. The issuance of the refunding bonds is discussed in a separate note.


96

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued D. LONG-TERM LIABILITIES, Continued 2001 Series B Taxable Community Redevelopment Agency Tax Allocation Bonds On May 1, 2001, the former Redevelopment Agency issued taxable bonds in the amount of $10,430,000 to fund various Agency projects. Principal payments are payable annually on October 1 and interest payments are payable semi-annually on April 1 and October 1. The bonds in the amount of $725,000 mature through October 1, 2021 and bear interest at the rate of 7.00% term bond. The bonds in the amount of $1,230,000 mature through October 1, 2026 and bear interest at the rate of 7.10% term bond. The bonds in the amount of $2,610,000 mature through October 1, 2033 and bear interest at the rate of 7.25% term bond. The bonds in the amount of $4,300,000 were redeemed in 2005. In lieu of a reserve fund, the bonds are secured by a surety bond issued by AMBAC Assurance Corporation. On November 12, 2015, the outstanding balance of $4,885,000 was refunded by the issuance of the 2015 Series B Refunding Tax Allocation Bonds. The issuance of the refunding bonds is discussed in a separate note. 2003A Community Redevelopment Agency Refunding Tax Allocation Bonds On January 9, 2003, the former Redevelopment Agency issued bonds in the amount of $16,630,000 to advance refund the 1996 Community Redevelopment Project Tax Allocation Bonds and to fund various Agency projects. Principal payments are payable annually on October 1 and interest payments are payable semi-annually on April 1 and October 1. In lieu of a reserve fund, the bonds are secured by a surety bond issued by AMBAC Assurance Corporation. On November 12, 2016, the outstanding balance of $7,760,000 was refunded by the issuance of the 2015 Series A Refunding Tax Allocation Bonds. The issuance of the refunding bonds is discussed in a separate note. 2005 Community Redevelopment Agency Tax Allocation Bonds On January 14, 2005, the former Redevelopment Agency issued bonds in the amount of $31,725,000 to fund various Agency projects. Interest payments are payable semi-annually on April 1 and October 1. The bonds in the amount of $19,595,000 mature through October 1, 2036, and bear interest at the rate of 4.50% term bond. The bonds in the amount of $12,130,000 mature through October 1, 2038, and bear interest at the rate of 4.75% term bond. In lieu of a reserve fund, the bonds are secured by a surety bond issued by AMBAC Assurance Corporation. On November 12, 2015, the outstanding balance of $31,725,000 was refunded by the issuance of the 2015 Series A Refunding Tax Allocation Bonds. The issuance of the refunding bonds is discussed in a separate note. 2007 Community Redevelopment Agency Refunding Tax Allocation Bonds On July 11, 2007, the former Redevelopment Agency issued bonds in the amount of $32,905,000 to advance refund a portion of the Agency’s outstanding 1999 tax allocation bonds. The refunding was done in order to take advantage of lower interest rates. The net present value debt service savings is $2,190,807. Interest payments are due semi-annually on April 1 and October 1. Principal payments became due beginning October 1, 2013. 2010 Community Redevelopment Agency Tax Allocation Bonds On February 4, 2010, the former Redevelopment Agency issued bonds in the amount of $27,550,000 to finance the Agency’s undertakings in implementing the Redevelopment Plan. Interest payments are payable semi-annually on April 1 and October 1. The bonds in the amount of $760,000 mature through October 1, 2016 and bear interest at the rate of 3.00%. The bonds in the amount of $26,760,000 maturing through October 1, 2033 bear interest rates between 3.50% and 5.25%. These bonds were issued on parity with the Tax Allocation Bond Series, 2001A, 2001B, and 2005 and the Refunding Tax Allocation Bonds Series 2003 and 2007. On November 12, 2016, the outstanding balance of $26,980,000 was advanced refunded by the issuance of the 2015 Series A Tax Allocation Bonds. The issuance of the refunding bonds is discussed in a separate note.


97

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued D. LONG-TERM LIABILITIES, Continued 2011 Community Redevelopment Agency Tax Allocation Bonds On March 2, 2011, the former Redevelopment Agency issued bonds in the amount of $29,590,000 to finance specific projects in the Redevelopment Project Area. The majority of the projects are centered around the Intermodal Station Area by the Union City BART station. Interest payments are payable semi-annually on December 1 and June 1. The bonds in the amount of $1,850,000 mature through December 2013 and bear interest at the rate of 3.000%. The bonds in the amount of $340,000 mature December 2014 and bear an interest rate of 3.750%. Bonds in the amount of $27,400,000 mature through December 2033 and bear interest rates between 4.000% and 6.875%. These bonds are subordinate to the Tax Allocation Bond Series 2001A, 2001B, 2003A, 2005, 2010 and the Refunding Tax Allocation Bond Series 2007. 2015 Series A Tax Allocation Refunding Bonds On November 12, 2015, the Successor Agency issued tax-exempt refunding tax allocations bonds in the amount of $72,135,000 to current refund the outstanding balances of the 2001 Series A, 2003A, and 2005 tax allocations bonds and to advance refund the outstanding balance of the 2010 tax allocation bonds. The escrow agent will hold amounts in an escrow fund for the 2010 TAB in amounts sufficient to advance refund the bonds on the first optional redemption date of October 1, 2020. The refunding was done in order to take advantage of lower interest rates. The net present value debt service savings are $2,090,770 on the 2001 Series A, $914,228 on the 2003A, $3,454,929 on the 2005 and $17,380 on the 2010 tax allocation bonds. Interest payments are due semi-annually on April 1 and October 1; principal payments are due October 1. $60,910,000 in serial bonds bear interest rates between 2.000% and 5.000% and mature October 1, 2036. Term bonds of $11,225,000 bear an interest rate of 3.625% and are due October 1, 2038. 2015 Series B Tax Allocation Refunding Bonds On November 12, 2015, the Successor Agency issued taxable refunding tax allocation bonds in the amount of $5,005,000 to current refund the outstanding balance of the 2001 Series B tax allocation bonds. The refunding was done in order to take advantage of lower interest rates. The net present value debt service savings is $1,329,377. Interest payments are due semi-annually on April 1 and October 1; principal payments are due October 1. $2,690,000 in serial bonds bear interest rates between 1.000% and 4.000% are due October 1, 2026. Term bonds of $1,230,000 bear an interest rate of 4.250% and are due October 1, 2030 and term bonds of $1,085,000 with an interest rate of 4.500% are due on October 1, 2033.


98

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued D. LONG-TERM LIABILITIES, Continued The following schedule illustrates the debt service requirements to maturity for the Successor Agency as of June 30, 2016:

Year EndingJune 30 Principal Interest Total

2017 3,260,000$ 6,670,427$ 9,930,427$ 2018 3,095,000 6,560,974 9,655,974 2019 3,365,000 6,424,763 9,789,763 2020 3,630,000 6,270,725 9,900,725 2021 3,910,000 6,093,019 10,003,019

2022-2026 25,030,000 26,880,353 51,910,353 2027-2031 37,255,000 18,448,738 55,703,738 2032-2036 39,160,000 9,471,166 48,631,166 2036-2038 16,475,000 948,597 17,423,597

Total 135,180,000$ 87,768,762$ 222,948,762$

Unamortized bondpremium/discount 8,647,847 8,647,847

143,827,847$ 231,596,609$

Tax Allocation Bonds

Pledge of Revenue: Tax Allocation Bonds The former Redevelopment Agency had pledged its tax increment revenue to pay the debt service on the tax allocation bonds. With the elimination of the Redevelopment Agency on January 31, 2012, this outstanding debt has been assumed by the Successor Agency. The security for this debt will be property tax revenues to be distributed by the County pursuant to Assembly Bill 1X26 and AB 1484 whereby the outstanding tax allocation bonds are considered enforceable obligations. As such, the Successor Agency will receive property taxes sufficient to meet the annual debt service requirement each year until the bonds are fully retired. Total principal and interest remaining on these bonds is $222,948,762. The annual debt service requirements are shown in the above schedule. For the fiscal year ended June 30, 2016, $7,761,804 of property tax revenue was used for payment of bonded debt with the balance of payments, $7, made from funds held by the trustee. E. DEVELOPMENT AND PARTICIPATION AGREEMENTS Union Landing (Dyer Street Triangle) In 1998, the City formed the Community Facilities District 97-1 (the District), which is within the former Redevelopment Agency project area known as the Dyer Street Triangle. The District issued $8,000,000 in special tax bonds to be used for the design, acquisition and construction of public facilities. The debt service payments on these bonds are made from the special taxes levied on properties within the District. The former Redevelopment Agency entered into agreements with the following property owners in the Community Facilities District 97-1 (the District), through Owner Participation Agreements (OPA), to pay or reimburse them for any special taxes assessed given certain conditions. With the dissolution of the Redevelopment Agency, responsibility for the payments associated with these OPAs has been assigned to the Successor Agency.


99

17. SUCCESSOR AGENCY TRUST FOR FORMER COMMUNITY REDEVELOPMENT AGENCY, Continued E. DEVELOPMENT AND PARTICIPATION AGREEMENTS, Continued Syufy OPA – In October 1997, the Redevelopment Agency approved and amended an OPA with Sycal Properties, Inc. and Syufy Enterprises, whereby Syufy would demolish a drive-in theater and redevelop the subject property. Syufy also provided property to the Redevelopment Agency for road improvements to Dyer Street and Union Landing Drive. This OPA provides that the Redevelopment Agency will pay for the special taxes levied on them by the CFD No. 97-1 1998 Special Tax Bonds. In fiscal year 2015-16, $208,486 was paid to the property owners pursuant to this agreement. Pappas OPA – In December 1997, the Redevelopment Agency approved an OPA with Pappas Union City LP and Louie J. Pappas and Voula L. Pappas (collectively known as Pappas), whereby Pappas would redevelop certain parcels within the subject property. Pappas also provided property to the Redevelopment Agency for road improvements to Dyer Street and Union Landing Drive. The Pappas OPA provides that the Redevelopment Agency will pay for the special taxes levied on them by the CFD No. 97-1 1998 Special Tax Bonds. In fiscal year 2015-16, $184,594 was paid to Pappas Union City pursuant to this agreement. F. COMMITMENTS AND CONTINGENT LIABILITIES The following table represents material commitments for fiscal year 2016-17 that will be included on the recognized obligation payment schedule presented to the State Department of Finance. These obligations are subject to review and approval by the State.

Project Name/Debt Obligation Amount CommittedTax allocation bond payments 9,655,974$

Union Landing OPA payments 410,328

18. SUBSEQUENT EVENTS On November 8, 2016, Union City voters approved the extension of the Public Safety Parcel Tax. First approved by voters in 2004, this parcel tax has been extended twice. The funds are used to maintain public safety services and youth violence prevention and intervention services. This parcel tax generates approximately $3.8 million in annual revenue. 19. SPECIAL ITEM Upon the dissolution of the Redevelopment Agency, there was a disagreement between the City and the State Department of Finance (DOF) regarding the use of the 2011 TAB funds. The DOF did not agree that the City had the right to use the 2011 TAB funds for their intended purpose under certain circumstances. On May 12, 2012, the City and the Successor Agency entered into the “Amended and Restated Cooperative Agreement and Public Improvement Agreement” (Agreement), whose primary purpose was to establish a mechanism whereby the City could assume and continue the public improvements that were undertaken by the former Redevelopment Agency. Based on communication received from the DOF on April 13, 2016, it was determined that the City can use the 2011 TAB funds for the purposes stated in the Agreement. To accomplish this, the City requested the balance of 2011 TAB funds held by the trustee to be released to the Successor Agency. These funds were expensed by the Successor Agency and were used to establish the Public Improvement Fund, a capital projects governmental fund. The total cash received from the trustee was $19,219,507. This transaction was recorded as a payment to the City in the Redevelopment Property Tax Trust fund and as a special item in the Public Improvement Fund.


100

REQUIRED SUPPLEMENTARY INFORMATION

101


102

City of Union City Required Supplementary Information For the year ended June 30, 2016

103

1. BUDGETARY BASIS OF ACCOUNTING A. Budgetary Control and Budgetary Accounting

The City’s budget is the mechanism through which priorities are established and resources are allocated. By resolution, the City Council adopts a biennial operating budget. The budget is adopted on a basis consistent with generally accepted accounting principles (GAAP). Annual appropriations are made for the General Fund, Special Revenue and Debt Service funds, with each year of the two-year budget independent of the other. The annual operating budget is effective July 1 and lapses the following June 30. At the fund level, expenditures may not legally exceed appropriations. Budgetary control is maintained at the department level. Within each fund, department Directors have the authority to make budget transfers between non-payroll related line item accounts and programs under their control. Requests for budget transfers from payroll to non-payroll accounts require the approval of the City Manager. The City Manager is also authorized to approve budget transfers between departments within the same fund. Any budget revisions which will alter the total appropriation of any fund and transfers between funds must be approved by City Council resolution. These revisions are reflected in the final budget information presented in the comparison schedules. Unexpended appropriations lapse at the end of each fiscal year. The City’s five-year capital improvement plan serves as the basis for the budgets in the capital improvement funds. Appropriations for Capital Improvement funds are adopted at the same time as the operating budget. These appropriations are made in the year the project is scheduled to commence and are effective for the life of the project. Amendments to capital budgets may be approved by City Council at any time during the project’s life. As a result, budget to actual schedules are not presented. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of resources are recorded in governmental funds as restricted, committed, or assigned fund balance at fiscal year-end. In the following fiscal year, the encumbered amounts are reappropriated in order to honor the outstanding commitments. Unexpended capital improvement appropriations are carried forward into the new fiscal year so that the projects may be completed. The following pages present the budget comparison schedules for the General Fund and the Special Revenue Major Governmental Funds.


104

1. BUDGETARY BASIS OF ACCOUNTING, Continued A. Budgetary Control and Budgetary Accounting, Continued

Budgetary Comparison Schedule, General Fund

Variance withFinal Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES:

Taxes and assessments 42,096,700$ 42,283,300$ 43,536,217$ 1,252,917$

Licenses and permits 2,004,300 2,110,900 2,245,308 134,408

Fines and forfeitures 549,900 529,600 494,467 (35,133)

Intergovernmental 957,900 1,108,676 764,170 (344,506)

Charges for services 2,273,300 2,352,500 2,546,240 193,740

Investment income 450,800 92,600 185,090 92,490

Other 532,200 733,654 739,725 6,071 Total revenues 48,865,100 49,211,230 50,511,217 1,299,987

EXPENDITURES:

Current:

General government:

City council and commissions 548,601 361,067 339,518 21,549

City manager 1,233,469 2,539,630 1,795,221 744,409

City attorney 789,024 789,024 789,024 -

City clerk 562,094 566,670 506,337 60,333

Administrative services 3,644,336 3,082,200 4,438,669 (1,356,469)

Risk management 1,402,002 1,402,002 1,401,163 839

Total General government 8,179,526 8,740,593 9,269,932 (529,339)

Public safety 28,806,367 30,745,116 30,278,275 466,841

Community and recreation services 4,046,828 4,107,451 3,210,783 896,668

Economic and community development 3,387,705 3,720,553 3,271,567 448,986

Public works 3,787,040 5,018,945 3,762,903 1,256,042

Capital outlay - - - -

Debt service:

Principal repayment 98,639 249,985 249,985 -

Interest and fiscal charges 95,537 98,071 98,071 - Total expenditures 48,401,642 52,680,714 50,141,516 2,539,198

REVENUE OVER (UNDER) EXPENDITURES: 463,458 (3,469,484) 369,701 (1,239,211)


Debt issuance - - 980,990 980,990

Proceeds from sale of assets - - 7,520 7,520

Transfers in 740,300 1,302,144 1,277,845 (24,299)

Transfers out (1,026,700) (3,900,214) (3,900,214) -

Total other financing sources (uses) (286,400) (2,598,070) (1,633,859) 964,211

Net change in fund balance 177,058$ (6,067,554)$ (1,264,158) (275,000)$

FUND BALANCES:

Beginning of year, as restated 51,054,160

End of year 49,790,002

Adjustments to GAAP basis (Footnote A) 6,344,314

Fund balances, end of year 56,134,316$

Budgeted Amounts

Footnote A: The General Fund includes funds that are budgeted as special revenue but do not meet the criteria for classification as a special revenue fund in accordance with GAAP. The funds are budgeted as special revenue funds are not included as part of the budgetary comparisons.


105

1. BUDGETARY BASIS OF ACCOUNTING, Continued A. Budgetary Control and Budgetary Accounting, Continued

Budgetary Comparison Schedule, Low-Moderate Income Housing Special Revenue Fund


Actual PositiveOriginal Final Amounts (Negative)

REVENUES:

Investment income -$ -$ 16,846$ 16,846$ Other - - 351,767 351,767

Total revenues - - 368,613 368,613

EXPENDITURES:

Current: Housing and community development - 268,315 49,680 218,635

Total expenditures - 268,315 49,680 218,635

REVENUE OVER (UNDER) EXPENDITURES - (268,315) 318,933 587,248

OTHER FINANCING SOURCES (USES):Sale of asset - - 781,838 781,838

Net change in fund balance -$ (268,315)$ 1,100,771$ 149,978$

FUND BALANCE:Beginning of year, as restated 29,739,051

End of year 30,839,822$

Budgeted Amounts


106

2. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

Miscellaneous Employees, Agent Multiple-Employer Defined Benefit Plan

Last 10 Years*

Measurement period FY 2013-14 FY 2014-15

Total Pension LiabilityService cost 2,430,874$ 2,513,110$ Interest on the total pension liability 7,576,954 7,877,012 Changes of assumptions - (1,991,573) Differences between expected and actual experience - (1,972,066) Changes in benefits - - Benefit payments, including refunds of employee contributions (3,976,150) (4,311,625)

Net change in total pension liability 6,031,678 2,114,858 Total pension liability - beginning (a-1) 101,798,688 107,830,366

Total pension liability - ending (a-2) 107,830,366$ 109,945,224$

Plan Fiduciary Net PositionPlan to plan movement -$ (1,936)$ Contributions-employer 2,520,794 2,609,444 Contributions-employee 1,164,221 1,104,774 Net investment income 12,715,346 1,907,216 Benefit payments, including refunds of employee contributions (3,976,150) (4,311,625) Administrative expense 1 - (97,901)

Net change in fiduciary net position 12,424,211 1,209,972 Plan fiduciary net position - beginning (b-1) 73,333,211 85,757,422

Plan fiduciary net position - ending (b-2) 85,757,422$ 86,967,394$

Plan net pension liability - beginning (a-1)-(b-1) 28,465,477$ 22,072,944$ Plan net pension liability - ending (a-2)-(b-2) 22,072,944$ 22,977,830$

Plan fiduciary net position as a percentage of total pension liability 79.53% 79.10%

Covered employee payroll 13,057,104$ 14,451,463$

Net pension liability as a percentage of covered-employee payroll 163.42% 159.00%

Note 1For Measurement period 2013-14, administrative expense was netted from investment income

*Fiscal year 2014-15 was the first year of implementation; additional years' information will be displayed as it becomes available.


107

3. SCHEDULE OF CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

Safety Cost-Sharing Multiple-Employer Defined Benefit Plan

Last Ten Years*

Measurement period FY 2013-14 FY 2014-15

Proportion of the net pension liability 0.36515% 0.41902%

Proportionate share of the net pension liability 22,721,774$ 28,760,899$

Covered-employee payroll 8,687,097$ 8,737,678$

Proportionate share of the net pension liability as a percentage ofcovered-employee payroll 261.56% 329.16%

Plan's fiduciary net position 145,802,215$ 145,586,211$

Plan fiduciary net position as a percentage of the total pension liability 79.82% 78.40%

* Fiscal year 2014-15 was the first year of implementation; additional years' information will be displayed as it becomes available.

4. SCHEDULE OF CONTRIBUTIONS

A. Miscellaneous Employees, Agent Multiple-Employer Defined Benefit Plan

Last Ten Years* FY 2014-15 FY 2015-16

Actuarially determined contribution 2,609,444$ 2,890,106$ Contributions in relation to the actuarially determined contribution (2,609,444) (2,890,106)

Contribution deficiency (excess) -$ -$

Covered-employee payroll 14,451,463$ 14,409,773$

Contributions as a percentage of covered-employee payroll 18.06% 20.06%

* Fiscal year 2014-15 was the first year of implementation; additional years' information will be displayed as it becomes available.


108

4. SCHEDULE OF CONTRIBUTIONS, Continued

B. Safety Employees, Cost-Sharing Multiple-Employer Defined Benefit Plan

Last Ten Years*

FY 14-15 FY 15-16

Contractually required contribution (actuarially determined) 1,746,271$ 2,705,659$ Contributions is relation to the actuarially determined contributions (1,746,271) (2,705,659) Contribution deficiency (excess) -$ -$

Covered-employee payroll 8,737,678 9,335,067

Contributions as a percentage of covered-employee payroll 19.99% 28.98%

5. OTHER POST EMPLOYMENT BENEFITS

A. Schedule of funding progress is presented below

(Overfunded)

Unfunded Actuarial(Overfunded) Liability as

Actuarial Actuarial Actuarial Actuarial Percentage ofValuation Asset Accrued Accrued Funded Covered Covered

Date Value Liability Liability Ratio Payroll Payroll

6/30/2010 -$ 12,404,000$ 12,404,000$ 0% 18,156,000$ 68.3%6/30/2012 5,494,000 13,065,000 7,571,000 42% 19,225,000 39.4%6/30/2014 6,291,000 17,028,000 10,737,000 37% 20,099,000 53.4%

SUPPLEMENTARY INFORMATION

109

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to acount for revenues that are legally restricted to expenditures for particular purposes.

Measure B/ACTCUnder Measure B administered by the Alameda County Transportation Commission (ACTC), the City receives proceedsof a voter-approved additional half-cent sales tax for use on transportation-related expenditures. This fund accounts forthe City's portion of Measure B sales tax used to finance streets and roads projects and bicycle and pedestrian pathprojects.

Special Parks

This fund accounts for the park dedication fees and bedroom taxes received for the development and improvement ofCity parks. Financing is also provided by state and local grant funds.

State Gas Tax

To account for Highways Users Tax funds received. The State imposes excise taxes on transportation fuels. Taxes on fuelused for motor vehicles is transferred to the Highways Users Tax Account and is apportioned to cities under population-based formulas contained in the State Streets and Highways code. These funds are used for street maintenance andconstruction.

Street Lights and Landscaping

To account for funds received from a special assessment on properties within the City. The Landscaping and LightingAct of 1972 allows local governmental agenies to form Landscape and Lighting Maintenance Districts for the purpose offinancing the costs and expenses of landscaping and lighting public areas.

Housing and Community Development

This fund accounts for grants received from the U.S. Department of Housing and Urban Development's CommunityBlock Grant Program. The grant funds are used to provide housing rehabilitation loans to qualified homeowners and toprovide support for community service organizations.

HOME

To account for federal funds received through the County of Alameda for the development or rehabilitation of affordablehousing.

DIPSA Development

To account for revenues received in the Decoto Industrial Park Study Area (DIPSA). The primary source of revenue isdeveloper impact fees. These fees are to be used for infrastructure improvements in this eastern section of the City.

Community Facility Districts (Maintenance)

To account for property tax assessments in community facilities districts that are used to fund police services, fireprotection and suppression services and park maintenance in the community facility districts. The City has three suchdistricts: DIPSA, Summerhill/Melodia and Avalon Bay/Masonic Homes.

EMS Enhancement (Emergency Medical Services)

To account for monies received from property tax assessment and a first responder program administered by theAlameda County Health Department to fund paramedic activities.

Traffic Signalization

To account for monies received from developers for the installation of traffic signals.

Supplemental Law Enforcement

To account for monies received under State AB3229, Citizens' Option for Public Safety. The funds are passed through tothe City from the County of Alameda and are used for front-line law enforcement services.

110


SPECIAL REVENUE FUNDS, Continued:

Clean Water Program

To account for monies received from property tax assessments for the implementation of the federal Clean Water Actrequirements under the regulatory authority of the San Francisco Bay Regional Water Quality Control Board.

Recycling and Waste Management

To account for revenues received from a special property tax assessment to administer the City's recycling and wastemanagement activities. The City contracts with a private company for recycling services.

Used Oil Block Grant

To account for funds received from the California Integrated Waste Management Board that are used to educate thepublic about the recyclingo of used oil and to provide used oil and used oil filter collection opportunities.

Housing In-Lieu

To account for fees paid by developers of housing projects with six units or less, outside the Redevelopment ProjectArea. If the housing development is six units or less, the developer may opt to pay this in-lieu fee rather than provideaffordable housing units in their development.

Public Safety Parcel TaxTo account for a voter-approved assessment to support public safety services in the City. Measure UU, which extendedthis tax, authorizes a portion of this assessment, $500,000, to be used to fund youth violence prevention and interventionactivities.

Union Landing PBID

This fund accounts for activities in the Union Landing shopping center. The property owners approved the formation ofa property-based business improvement district and the associated special assessment levied on their properties. Thesefunds are used to support a police sub-statiopn at the shopping center and provide special police patrols.

Alameda County Waste Import MitigationTo account for grant funds received from Alameda County Waste Management Authority. These funds are to be spenton waste reduction efforts in accordance with the guidelines adopted by the Authority.

Solid Waste Management

To account for funds received from levies on properties for the collection of solid waste. Under the terms of the franchiseagreement, the major portion of this money is remitted to the solid waste collector as payment of their services and aportion of is remitted to the City's General Fund as their share of the franchise fee.

Asset Seizure

To account for asset confiscation funds received from the federal government.

Measure F

To account for funds received under Measure F. Approved by voters in November 2010, Measure F increases the motorvehicle registration fee by $10 on all vehicles registered in Alameda County. The funds received from this fee are to beused on transportation-related projects, such as local streets and roads and pedestrial and bicycle programs.

CUPA Enforcement

To account for administrative penalties collected under California Health and Safety Code Section 25404.1.1(i). Thepenalties received by the City as a Certified Unified Program Agency (CUPA) are to be used to fund the enforcementactivities of this section of the Health and Safety Code.

111


SPECIAL REVENUE FUNDS, Continued:

Youth Violence Preventino & Intervention Fund

Funded from a portion of the Public Safety Parcel Tax Assessment, this program identifies and works with at-risk youth to reduce or prevent violent incidents.

Measure D

To account for funds received for Measure D, the Alameda County Waste Reduction and Recycling Initiative. Thisinitiative levies a surcharge on solid waste landfilled in unincorporated Alameda County; a portion of this revenue isdisbursed to cities to be used for the continuation and expansion of municipal recycling programs.

Affordable Housing

To account for the proceeds received from tax allocation bonds used to acquire or develop affordable housing units for qualified low- and moderate-income households throughout the City.

Public ArtTo account for funds received from developers that are to be used to acquire, place and maintain public art on public property throughout the City.

ACTC Measure BB

To account for funds received for Measure BB, a sales tax approved by Alameda County voters in November 2014. Measure BB extends the existing Measure B 1/4 cent transportation sales tax to April 2045. Funds received will be used for local streets maintenance and safety and bike and pedestrian paths and safety.

Cable TV PEG Fund

To account for funds received from cable television providers, these funds are to be used for improvements related to public, education and governmental access channels. Per the Federal Communications Commission, the funds are to be used for capital improvements.

DEBT SERVICE FUNDS

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debtprincipal, interest and related costs.

Pension Obligation Bonds

To account for principal and interest requirement on Pension Obligation Bonds to fund a portion of unfunded liability tothe State's public employee retirement system.

Community Facilities District

This fund accounts for the debt service requirements on the Special Tax Bonds issued by the Community FacilitiesDistrict 97-1. The bonds were issued to finance the construction of public facilities and improvements in the Dyer StreetTriangle area, more commonly known as the Union Landing shopping area.

112


CAPITAL PROJECT FUNDS:

Capital project funds are used to account for the acquisition, construction and improvements to major capital facilities

Capital Facilities Improvements

To account for developer impact fees received. These funds are used to construct or improve various facilitiesthroughout the City.

Bridge Benefit District

To account for the construction and maintenance of bridges within the City, funded by developers and the propertyowners benefittedby the bridges.

Park Facilities

To account for funds collected from new non-subdivided residential construction (apartments) developers. These monieswill be used for park facilities and the costs of acquiring land for park improvements.

Measure WWTo account for grant funds received from the East Bay Regional Parks District Measure WW bond measure. A portion of the this bond measure provides funds to local cities for the acquisition and development of local parklands.

113

Combining Balance SheetNon-Major Governmental Funds June 30, 2016

Measure B Special StateACTIA Parks Gas Tax

ASSETS

Cash and investments 372,650$ 24,033$ 3,674,581$

Restricted cash and investments with fiscal agents - - -

Receivables:Taxes 148,061 - - Accounts - - 13,081 Interest - - Intergovernmental - 3,300 32,455

Due from other funds - - - Loan receivable - - - Prepaid items - - 10,043 Property held for resale, net of allowance for

decline in value - - -

Total assets 520,711 27,333 3,730,160


- - -

Total deferred outflow of resources - - -

LIABILITIES

Accounts payable 191,741 23,933 47,741

Accrued payroll 1,991 - 26,815

Other accrued liabilities 20,239 - 10,112

Due to other funds 49 - 2,732

Due to other agencies - - 65

Deposits payable - - -

Unearned revenue - - -

Total liabilities 214,020 23,933 87,465

DEFERRED INFLOW OF RESOURCES

Unavailable revenues - - 11,361

Total deferred inflow of resources - - 11,361

FUND BALANCE

Nonspendable - - 10,043 Restricted 306,691 - 3,416,623 Committed - 3,400 - Assigned - - 204,668 Unassigned - - -

Total fund balance 306,691 3,400 3,631,334

Total liabilities, deferred inflow of resources and fund balances $520,711 $27,333 $3,730,160

City of Union City

Special Revenue Funds

114

Housing and CFDStreet Lights Community DIPSA Maintenance EMS

and Landscaping Development HOME Development Districts Enhancement

503,467$ -$ 90,579$ 1,238,762$ 55,595$ -$

- - - - - -

15,619 - - - 4,585 2,498 - - - - - - - - - - - - 54,746 1,717 - - 46,429 - - - - - - - 1,007,098 2,457,862 - -

18,539 192 - - 5,318 -

- - - 1,681,848 - -

537,625 1,062,036 2,550,158 2,920,610 65,498 48,927

- - - - - -

- - - - - -

93,023 17,998 - 21,871 28,541 46,418

42,894 2,548 - 516 16,393 -

- 6,540 - 10,853 - -

4,613 129,256 - 38 2,187 2,409

197 - - - 77 -

- - - - - -

- - - - - -

140,727 156,342 - 33,278 47,198 48,827

- - 656,747 - - -

- - 656,747 - - -

18,539 192 - - 5,318 -

240,542 905,502 1,893,411 - 12,982 100 - - - 2,887,332 - -

137,817 - - - - - - - - - - -

396,898 905,694 1,893,411 2,887,332 18,300 100

$537,625 $1,062,036 $2,550,158 $2,920,610 $65,498 $48,927


115

City of Union CityCombining Balance SheetNon-Major Governmental Funds, ContinuedJune 30, 2016

Supplemental Traffic Law Clean Water

Signalization Enforcement Program

ASSETS

Cash and investments 552,881$ 236,578$ 17,714$

Restricted cash and investments with fiscal agents - - -

Receivables:Taxes - - 5,581 Accounts - - 82,954 Interest - - - Intergovernmental - - -

Due from other funds - - - Loan receivable - - - Prepaid items - - 11,958 Property held for resale, net of allowance for


Total assets 552,881 236,578 118,207


- - -


LIABILITIES

Accounts payable 3,597 - 55,067

Accrued payroll - - 38,422

Other accrued liabilities - - -

Due to other funds - - 3,375




Total liabilities 3,597 - 96,894


Unavailable revenues - - -

Total deferred inflow of resources - - -

FUND BALANCE

Nonspendable: - - 11,958 Restricted - 236,578 9,355 Committed 549,284 - - Assigned - - - Unassigned - - -

Total fund balance 549,284 236,578 21,313

Total liabilities, deferred inflow of resources and fund balances $552,881 $236,578 $118,207


116

Recycling Union Alameda Countyand Waste Used Oil Housing Public Safety Landing Waste Import

Management Block Grant In-Lieu Parcel tax PBID Mitigation

124,445$ 22,875$ 1,205,253$ 541,291$ 18,441$ 79,331$

- - - - - -

19,746 - - 31,581 5,784 - 47,258 - - - - 675

- - - - - - - - - 39,538 - - - - 129,183 2,123 - - - - - - - - - - 296 13,861 5,177 -

- - - - - -

191,449 22,875 1,334,732 628,394 29,402 80,006

- - - - - -

- - - - - -

171,853 2,480 3 144,009 7,255 2,838

- 190 4,674 62,035 18,873 -

19,596 - - - - -

- 14 133 9,917 3,173 -

- - - - - -

- - - - - -

- - - - - -

191,449 2,684 4,810 215,961 29,301 2,838

- - - - - -

- - - - - -

- - 296 13,861 - - - 20,191 - 398,572 101 77,168 - - 1,328,626 - - - - - 1,000 - - - - - - - - -

- 20,191 1,329,922 412,433 101 77,168

$191,449 $22,875 $1,334,732 $628,394 $29,402 $80,006

s Special Revenue Funds

117


SolidWaste Asset

Management Seizure Measure F

ASSETS

Cash and investments 3,270,389$ 29,442$ 368,374$

Restricted cash and investments - with fiscal agents - - -

Receivables: - Taxes 44,532 - - Accounts 6,600 - - Interest - - - Intergovernmental - - 62,992

Due from other funds - - - Loan receivable - - - Prepaid items 633 - - Property held for resale, net of allowance for -


Total assets 3,322,154 29,442 431,366


- - -


LIABILITIES

Accounts payable 2,080,812 - 1,281

Accrued payroll 7,955 3,559 -

Other accrued liabilities 1,336 - 5,121

Due to other funds 466 133 -

Due to other agencies - - -



Total liabilities 2,090,569 3,692 6,402


Unavailable revenues - - -


Fund Balances:

Nonspendable: 633 - - Restricted 1,230,952 25,750 424,964 Committed - - - Assigned - - - Unassigned - - -

Total fund balance 1,231,585 25,750 424,964

Total liabilities, deferred inflow of resources and fund balances $3,322,154 $29,442 $431,366


118

Youth Measure DViolence Waste

CUPA Prevention & Reduction/ Affordable Public Cable TVEnforcement Intervention Recycling Housing Art Measure BB PEG

117,259$ 284,680$ 266,791$ 1,164,210$ 673,566$ 444,785$ 34,047$

- - - - - - -

- - - - - 127,622 - - - - - - - 8,098 - - - 1,489 - - - - 54,463 47,121 - - - - - - - - - - - - - - - - - - 6,983 1,275 - - - -

- - - - - - -

117,259 346,126 315,187 1,165,699 673,566 572,407 $42,145

- - - - - - -

- - - - - - -

9,112 265 279 - 16,875 298,976 -

- 24,440 5,969 - - 158 -

- - - - - 15,696 -

- 1,656 311 - - 11 -

- - 264 - - - -

- - - - - - -

- - - - - - -

9,112 26,361 6,823 - 16,875 314,841 -

- - - - - - -

- - - - - - -

- 6,983 1,275 - - - -

108,147 312,782 307,089 1,165,699 - 257,566 42,145 - - - - 656,691 - - - - - - - - - - - - - - - -

108,147 319,765 308,364 1,165,699 656,691 257,566 42,145

$117,259 $346,126 $315,187 $1,165,699 $673,566 $572,407 $42,145


119


Pension Community Capital Obligation Facilities Facilities

Bonds District Improvements

ASSETS

Cash and investments 1,593,152$ 906,050$ 2,922,068$

Restricted cash and investments with fiscal agents 1,632,752 533,564 -

Receivables:Taxes - 10,466 - Accounts 176 - - Interest - - - Intergovernmental - - -

Due from other funds 61,329 - - Loan receivable - - - Prepaid items - - - Property held for resale, net of allowance for -


Total assets 3,287,409 1,450,080 2,922,068


- -


LIABILITIES

Accounts payable - - 441,246

Accrued payroll - - 1,516

Other accrued liabilities - - 54,583

Due to other funds - - 100




Total liabilities - - 497,448


Unavailable revenues -


Fund Balances:

Nonspendable: - Restricted 3,287,409 1,450,080 - Committed - - 2,424,620 Assigned - - - Unassigned - - -

Total fund balance 3,287,409 1,450,080 2,424,620

Total liabilities, deferred inflow of resources and fund balances $3,287,409 $1,450,080 $2,922,068

Debt Service Funds

120

TotalBridge Non-MajorBenefit Park GovernmentalDistrict Facilities Measure WW Funds

217,443$ 1,556,580$ -$ 22,607,312$

- - - 2,166,316

- - - 416,075 - - - 158,842 - - - 1,489 - - 358,837 701,598 - 358,838 551,473 - - - 3,464,960 - - - 74,275

- - - 1,681,848

217,443 1,915,418 358,837 31,824,188

- - - -

- - - -

- 2,828 3,710,042

- - - 258,948

- - - 144,076

- - 358,837 519,410

- - - 636

- - - -

- - - -

- 2,828 358,837 4,633,112

- - 358,837 1,026,945

- - 358,837 1,026,945

- - - 69,098 - - - 16,130,399

217,443 1,912,590 - 9,979,986 - - - 343,485 - - (358,837) (358,837)

217,443 1,912,590 (358,837) 26,164,131

$217,443 $1,915,418 $358,837 $31,824,188

Capital Project Funds

121

City of Union CityCombined Statement of Revenues, Expenditures and Changes in Fund BalancesNon-Major Governmental FundsFor the year ended June 30, 2016

ACTC Special State

Measure B Parks Gas Tax

REVENUES:

Taxes and special assessments 941,631$ 71,820$ 1,585,700$

Intergovernmental - - -

Charges for services - - 24,875

Investment income 1,504 161 25,411

Other revenues - -

Total revenues 943,135 71,981 1,635,986

EXPENDITURES:

Current:

General government - -

Public safety - -

Housing and community development - -

Community and recreation services - -

Economic and community development - -

Public works 95,413 70,004 1,345,479

Capital outlay 843,148 360,215 407,071

Debt service:

Principal repayment -

Interest and fiscal charges - 242

Total expenditures 938,561 430,461 1,752,550

REVENUE OVER

(UNDER) EXPENDITURES 4,574 (358,480) (116,564)

OTHER FINANCING

SOURCES (USES):

Transfers in - 222,459

Transfers out - - -

Total other financing sources (uses) - 222,459 -

Net change in fund balances 4,574 (136,021) (116,564)

FUND BALANCES:

Beginning of year as restated 302,117 139,421 3,747,898

End of year 306,691$ 3,400$ 3,631,334$


122

Community

Housing and Facility

Street Lights Community DIPSA Districts EMS

and Landscaping Development HOME Development Maintenance Enhancement

2,491,531$ -$ -$ -$ 798,576$ 329,859$

38,479 307,759 100,469 - - 184,502

13,729 - - 1,247,319 2,231 -

- - 671 6,508 - -

- - 12,620 - - -

2,543,739 307,759 113,760 1,253,827 800,807 514,361

11,196 - - - 11,418 8,082

- - - 437,082 529,782

- 452,735 111,371 - -

- - - - -

- - - - -

2,375,747 - - 243,644 518,354 -

- - - 152,246 - -

122,124 - - - -

118,284 - - - 286

2,627,351 452,735 111,371 395,890 966,854 538,150

(83,612) (144,976) 2,389 857,937 (166,047) (23,789)

- - - - 864,889 19,560

- - - - (635,511) -

- - - - 229,378 19,560

(83,612) (144,976) 2,389 857,937 63,331 (4,229)

480,510 1,050,670 1,891,022 2,029,395 (45,031) 4,329

396,898$ 905,694$ 1,893,411$ 2,887,332$ 18,300$ 100$


123


Supplemental

Traffic Law Clean Water

Signalization Enforcement Program

REVENUES:

Taxes and special assessments -$ -$ 1,621,455$

Intergovernmental - 130,505 -

Charges for services 317,191 - -

Investment Income 3,082 1,369 -

Other revenues - - -

Total revenues 320,273 131,874 1,621,455

EXPENDITURES:

Current:

General government - - 80,247

Public safety - - -

Housing and community development - - -

Community and recreation services - - -

Economic and community development - - 249,458

Public works 7,595 - 1,466,611

Capital outlay - - 100,489

Debt service:

Principal repayment - 133,670 -

Interest and fiscal charges - 24,819 -

Total expenditures 7,595 158,489 1,896,805

REVENUE OVER

(UNDER) EXPENDITURES 312,678 (26,615) (275,350)

OTHER FINANCING

SOURCES (USES):

Transfers in - -

Transfers out - - -

Total other financing sources (uses) - - -

Net change in fund balances 312,678 (26,615) (275,350)

FUND BALANCES:

Beginning of year, as restated 236,606 263,193 296,663

End of year 549,284$ 236,578$ 21,313$


124


Recycling CIWMB Union Alameda County

and Waste Used Oil Housing Public Safety Landing Waste Import

Management Block Grant In-Lieu Parcel Tax PBID Mitigation

-$ -$ -$ 3,362,589$ 629,883$ -$

- 17,622 - 80,540 - -

238,822 - 1,294,087 - - -

- - - 3,551 - -

- - - - - 3,710

238,822 17,622 1,294,087 3,446,680 629,883 3,710

5,421 15,983 - 66,386 31,735 8,492

- - - 3,653,299 595,289 -

- - 158,064 - - -

- - - 209,865 - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - 100 941 -

5,421 15,983 158,064 3,929,650 627,965 8,492

233,401 1,639 1,136,023 (482,970) 1,918 (4,782)

- - - 67,517 -

(214,800) - - - - -

(214,800) - - - 67,517 -

18,601 1,639 1,136,023 (482,970) 69,435 (4,782)

(18,601) 18,552 193,899 895,403 (69,334) 81,950

-$ 20,191$ 1,329,922$ 412,433$ 101$ 77,168$

125


Solid

Waste Asset

Management Seizure Measure F

REVENUES:

Taxes and special assessments -$ -$ -$

Intergovernmental - - 346,549

Charges for services 79,195 - -

Investment income - - 3,308

Other revenues 1,200 - -

Total revenues 80,395 - 349,857

EXPENDITURES:

Current:

General government 521,404 - -

Public safety - 3,692 -


Community and recreation services - - -

Economic and community development - - -

Public works - - 617,026

Capital outlay - - 112,799

Debt service:

Principal repayment - - -

Interest and fiscal charges - - -

Total expenditures 521,404 3,692 729,825

REVENUE OVER

(UNDER) EXPENDITURES (441,009) (3,692) (379,968)

OTHER FINANCING

SOURCES (USES):

Transfers in - - -

Transfers out - - -


Net change in fund balances (441,009) (3,692) (379,968)

FUND BALANCES:

Beginning of year, as restated 1,672,594 29,442 804,932

End of year 1,231,585$ 25,750$ 424,964$


126

Youth Measure D

Violence Waste

CUPA Prevention/ Reduction/ Affordable Public ACTC Cable TV

Enforcement Intervention Recycling Housing Art Measure BB PEG

-$ 500,000$ -$ -$ -$ 827,890$ -$

- 100,612 189,795 - - - -

- - - - 67,644 - -

- - 2,066 4,961 5,109 1,573 -

77,500 - - - - - 42,145

77,500 600,612 191,861 4,961 72,753 829,463 42,145

- - 248,245 - - - -

- - - - - - -

- - - 350 - - -

- 787,477 - - - - -

24,353 - - - 2,930 - -

- - - - 34,450 330,076 -

- - - - - 401,704 -

- - - - - - -

- - - - - - -

24,353 787,477 248,245 350 37,380 731,780 -

53,147 (186,865) (56,384) 4,611 35,373 97,683 42,145

- - - - - - -

- - - - - - -

- - - - - - -

53,147 (186,865) (56,384) 4,611 35,373 97,683 42,145

55,000 506,630 364,748 1,161,088 621,318 159,883 -

108,147$ 319,765$ 308,364$ 1,165,699$ 656,691$ 257,566$ 42,145$


127


Pension Community Capital

Obligation Facilities Facilities

Bonds District Improvements

REVENUES:

Taxes and special assessments -$ 553,043$ -$

Intergovernmental - - 4,440

Charges for services - - 2,263,259

Investment income 9 78 23,665

Other revenues 1,645,851 - -

Total revenues 1,645,860 553,121 2,291,364

EXPENDITURES:

Current:

General government - 30,000 131,451

Public safety - - 2,048,466


Community and recreation services - - 61,593

Economic and community development - - -

Public works - - -

Capital outlay - - -

Debt service:

Principal repayment 960,000 310,000 84,884

Interest and fiscal charges 1,001,568 223,198 16,419

Total expenditures 1,961,568 563,198 2,342,813

REVENUE OVER

(UNDER) EXPENDITURES (315,708) (10,077) (51,449)

OTHER FINANCING

SOURCES (USES):

Transfers in - -

Transfers out - -


Net change in fund balances (315,708) (10,077) (51,449)

FUND BALANCES:

Beginning of year, as restated 3,603,117 1,460,157 2,476,069

End of year 3,287,409$ 1,450,080$ 2,424,620$

Debt Service Funds

128

Total

Bridge Non-Major

Benefit Park Measure Governmental

District Facilities WW Funds

-$ -$ -$ 13,713,977$

- - - 1,501,272

- 585,387 - 6,133,739

1,716 12,499 - 97,241

- - - 1,783,026

1,716 597,886 - 23,229,255

- - - 1,170,060

- - - 7,267,610

- - - 722,520

- - - 1,058,935

- - - 276,741

29,819 - - 7,134,218

- 179,502 44,426 2,601,600

- - - 1,610,678

- - - 1,385,857

29,819 179,502 44,426 23,228,219

(28,103) 418,384 (44,426) 1,036

- - - 1,174,425

- - - (850,311)

- - - 324,114

(28,103) 418,384 (44,426) 325,150

245,546 1,494,206 (314,411) 25,838,981

217,443$ 1,912,590$ (358,837)$ 26,164,131$

Capital Project Funds

129

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualMeasure B Special Revenue FundFor the year ended June 30, 2016

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments 1,721,000$ 1,721,000$ 941,631$ (779,369)$

Investment income 7,000 7,000 1,504 (5,496)

Total revenues 1,728,000 1,728,000 943,135 (784,865)

EXPENDITURES:

Current:

Public works 65,000 351,243 95,413 255,830

Capital outlay 1,457,100 1,135,854 843,148 292,706

Total expenditures 1,522,100 1,487,097 938,561 548,536

REVENUE OVER (UNDER) EXPENDITURES 205,900 240,903 4,574 (1,333,401)

Net change in fund balance 205,900$ 240,903$ 4,574 (1,333,401)$

FUND BALANCES:

Beginning of year 302,117

End of year 306,691$

Budgeted Amounts

City of Union City

130

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualSpecial Parks Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments 777,490$ 777,490$ 71,820$ (705,670)$

Investment income 5,000 5,000 161 (4,839)

Total revenues 782,490 782,490 71,981 (710,509)

EXPENDITURES:

Public works - 110,470 70,004 40,466

Capital outlay 2,539,274 2,445,000 360,215 2,084,785

Debt service:

Principal repayment 200,000 200,000 - 200,000

Interest and fiscal charges - - 242 (242) Total expenditures 2,739,274 2,755,470 430,461 2,325,009

REVENUE OVER (UNDER) EXPENDITURES (1,956,784) (1,972,980) (358,480) 1,614,500


Transfer in - 222,459 222,459 -

Debt issuance 1,900,000 1,900,000 - (1,900,000) Total other financing sources (uses) 1,900,000 2,122,459 222,459 (1,900,000)

Net change in fund balance (56,784)$ 149,479$ (136,021) (4,935,518)$

FUND BALANCES:


End of year 3,400$

Budgeted Amounts

City of Union City

For the year ended June 30, 2016

131

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualState Gas Tax Special Revenue FundFor the year ended June 30, 2016

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments 1,588,386$ 1,588,366$ 1,585,700$ (2,666)$

Charges for services - - 24,875 24,875


Total revenues 1,603,386 1,603,366 1,635,986 32,620

EXPENDITURES:

Current: Public works 1,598,153 2,787,937 1,345,479 1,442,458

Capital outlay 260,000 736,715 407,071 329,644 Total expenditures 1,858,153 3,524,652 1,752,550 1,772,102

REVENUE OVER (UNDER) EXPENDITURES (254,767) (1,921,286) (116,564) 1,804,722

Net change in fund balance (254,767)$ (1,921,286)$ (116,564) 1,804,722$

Beginning of year 3,747,898

End of year 3,631,334$

Budgeted Amounts

City of Union City

132

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualStreet Lights and Landscaping Special Revenue FundFor the year ended June 30, 2016

Variance with

Final Budget

Actual Positive


REVENUES:


Intergovernmental - - 38,479 38,479

Charges for services 31,000 31,000 13,729 (17,271)

Other revenues 41,399 41,399 - (41,399)

Total revenues 2,639,199 2,639,199 2,543,739 (95,460)

EXPENDITURES:

Current:

General government 10,200 10,200 11,196 (996)

Public works 2,609,202 2,609,202 2,375,747 233,455

Debt service:


Interest and fiscal charges 118,284 118,284 118,284 -

Total expenditures 2,859,810 2,859,810 2,627,351 232,459

REVENUE OVER (UNDER) EXPENDITURES (220,611) (220,611) (83,612) 136,999

Net change in fund balance (220,611)$ (220,611)$ (83,612) 136,999$



Budgeted Amounts

City of Union City

133

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualHousing and Community Development Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 477,192$ 477,192$ 307,759$ (169,433)$

Total revenues 477,192 477,192 307,759 (169,433)

EXPENDITURES:

Current:

Housing and community development 503,141 533,852 452,735 81,117

Total expenditures 503,141 533,852 452,735 81,117

REVENUE OVER (UNDER) EXPENDITURES (25,949) (56,660) (144,976) (88,316)

Net change in fund balance (25,949)$ (56,660)$ (144,976) (88,316)$

FUND BALANCES:



Budgeted Amounts

City of Union City


134

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualHOME Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Investment income 1,000$ 1,000$ 671$ (329)$

Other - - 12,620 12,620

Total revenues 1,000 1,000 113,760 112,760

EXPENDITURES:

Current:



REVENUE OVER (UNDER) EXPENDITURES (35,000) (113,685) 2,389 116,074

Net change in fund balance (35,000)$ (113,685)$ 2,389 116,074$

FUND BALANCES:



Budgeted Amounts

City of Union City


135

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualDIPSA Development Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments 1,247,319$ -$ -$ -$

Charges for services - 1,247,319 1,247,319 -


Total revenues 1,252,319 1,252,319 1,253,827 1,508

EXPENDITURES:

Current:

Public works - 316,049 243,644 72,405

Capital outlay 437,750 797,150 152,246 644,904

Debt Service: -

Principal repayment 58,490 58,490 - 58,490 Total expenditures 496,240 1,171,689 395,890 775,799

REVENUE OVER (UNDER) EXPENDITURES 756,079 80,630 857,937 777,307

Net change in fund balance 756,079$ 80,630$ 857,937 777,307$

FUND BALANCES:



Budgeted Amounts

City of Union City


136

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCommunity Facility Districts (Maintenance)

Variance with

Final Budget

Actual Positive


REVENUES:


Charges for services - - 2,231 2,231

Total revenues 963,000 963,000 800,807 (162,193)

EXPENDITURES:

Current:

General government 16,600 17,050 11,418 5,632

Public safety 381,186 468,756 437,082 31,674

Public works 486,002 486,002 518,354 (32,352) Total expenditures 883,788 971,808 966,854 4,954

REVENUE OVER (UNDER) EXPENDITURES 79,212 (8,808) (166,047) (157,239)


Transfer in - 864,889 864,889 -

Transfer out - (635,511) (635,511) - Total other financing sources (uses) - 229,378 229,378 -

Net change in fund balance 79,212$ 220,570$ 63,331 (157,239)$

FUND BALANCES:

Beginning of year (45,031)

End of year 18,300$

Budgeted Amounts

City of Union City


137

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualEMS Enhancement Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Intergovernmental 186,300 186,300 184,502 (1,798)

Total revenues 538,600 538,600 514,361 (24,239)

EXPENDITURES:

Current:


Public safety 547,836 547,836 529,782 18,054

Debt service Interest and fiscal charges - - 286 (286)




Transfer in - 19,560 19,560 - Total other financing sources (uses) - 19,560 19,560 -


FUND BALANCES:


End of year 100$

Budgeted Amounts

City of Union City


138

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualTraffic Signalization Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for services 358,620$ 358,620$ 317,191$ (41,429)$

Investment income - - 3,082 3,082

Total revenues 358,620 358,620 320,273 (38,347)

EXPENDITURES:

Current: Public works - 109,979 7,595 102,384

Capital outlay 250,000 323,000 - 323,000


REVENUE OVER (UNDER) EXPENDITURES 108,620 (74,359) 312,678 387,037

Net change in fund balance 108,620$ (74,359)$ 312,678 387,037$

FUND BALANCES:



Budgeted Amounts

City of Union City


139

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualSupplemental Law Enforcement Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 123,600$ -$ 130,505$ 130,505$

Investment income 400 - 1,369 1,369

Total revenues 124,000 - 131,874 131,874

EXPENDITURES:

Current:

Public safety 4,317 - - -

Capital outlay 100,000 - - -

Debt Service

Principal - 133,671 133,670 1

Interest - 24,819 24,819 - Total expenditures 104,317 158,490 158,489 1

REVENUE OVER (UNDER) EXPENDITURES 19,683 (158,490) (26,615) 131,875

Net change in fund balance 19,683$ (158,490)$ (26,615) 131,875$

FUND BALANCES:



Budgeted Amounts

City of Union City


140

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualClean Water Program Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Charges for services 4,000 4,000 - (4,000)

Total revenues 1,664,789 1,664,789 1,621,455 (43,334)

EXPENDITURES:

Current:

General government 75,098 75,248 80,247 (4,999)

Economic and community development 245,610 245,610 249,458 (3,848)

Public works 1,476,259 1,564,817 1,466,611 98,206 Capital outlay 100,000 100,000 100,489 (489) Total expenditures 1,896,967 1,985,675 1,896,805 88,870


Net change in fund balances (232,178)$ (320,886)$ (275,350) 45,536$

FUND BALANCES:


End of year 21,313$

Budgeted Amounts

City of Union City


141

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualRecycling and Waste Management Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for services 236,800$ 236,800$ 238,822$ 2,022$

Total revenues 236,800 236,800 238,822 2,022

EXPENDITURES:

Current:



REVENUE OVER (UNDER) EXPENDITURES 229,500 229,350 233,401 4,051


Transfers out (239,100) (239,100) (214,800) 24,300

Total other financing sources (uses) (239,100) (239,100) (214,800) 24,300

Net change in fund balances (9,600)$ (9,750)$ 18,601 28,351$

FUND BALANCES:


End of year -$

Budgeted Amounts

City of Union City


142

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualUsed Oil Block Grant Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental -$ 20,102$ 17,622$ (2,480)$

Total revenues - 20,102 17,622 (2,480)

EXPENDITURES:

Current:

General government - 38,819 15,983 22,836

Total expenditures - 38,819 15,983 22,836


Net change in fund balance -$ (18,717)$ 1,639 20,356$

FUND BALANCES:


End of year 20,191$

Budgeted Amounts

City of Union City


143

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualHousing In-Lieu Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for services -$ -$ 1,294,087$ 1,294,087$

Total revenues - - 1,294,087 1,294,087

EXPENDITURES:

Current:



REVENUE OVER (UNDER) EXPENDITURES (152,134) (184,134) 1,136,023 1,320,157

Net change in fund balance (152,134)$ (184,134)$ 1,136,023 1,320,157$

FUND BALANCES:



Budgeted Amounts

City of Union City


144

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualPublic Safety Parcel Tax Special Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Intergovernmental - - 80,540 80,540

Investment income 5,000 5,000 3,551 (1,449)

Total revenues 3,374,500 3,374,500 3,446,680 72,180

EXPENDITURES:

Current:


Public safety 3,411,836 3,709,745 3,653,299 56,446

Community and recreation services 205,654 205,654 209,865 (4,211)

Debt service:

Interest and fiscal charges 5,000 5,000 100 4,900

Total expenditures 3,631,590 3,929,549 3,929,650 (101)



FUND BALANCES:



Budgeted Amounts

City of Union City


145

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualUnion Landing PBID Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Total revenues 665,300 665,300 629,883 (35,417)

EXPENDITURES:

Current:


Public safety 610,379 610,379 595,289 15,090

Debt service:

Interest and fiscal charges - - 941 (941)


REVENUE OVER (UNDER) EXPENDITURES 22,021 21,871 1,918 (19,953)


Transfer in - 67,517 67,517 - Total other financing sources (uses) - 67,517 67,517 -

Net change in fund balance 22,021$ 89,388$ 69,435 (19,953)$

FUND BALANCES:


End of year 101$

Budgeted Amounts

City of Union City


146

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualAlameda County Waste Import Mitigation Special Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Other revenues -$ -$ 3,710$ 3,710$

Total revenues - - 3,710 3,710

EXPENDITURES:

Current:





FUND BALANCES:


End of year 77,168$

Budgeted Amounts

City of Union City


147

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualSolid Waste Management Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Other revenues - - 1,200 1,200 Total revenues 71,300 71,300 80,395 9,095

EXPENDITURES:

Current:





FUND BALANCES:



Budgeted Amounts

City of Union City


148

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualAsset Seizure Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 15,000$ 15,000$ -$ (15,000)$

Investment income 200 200 - (200)

Total revenues 15,200 15,200 - (15,200)

EXPENDITURES:

Current:Public safety 12,888 12,888 3,692 9,196


REVENUE OVER (UNDER) EXPENDITURES 2,312 2,312 (3,692) (6,004)

Net change in fund balances 2,312$ 2,312$ (3,692) (6,004)$

FUND BALANCES:


End of year 25,750$

Budgeted Amounts

City of Union City


149

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualMeasure F Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 322,000$ 322,000$ 346,549$ 24,549$

Investment income 5,000 5,000 3,308 (1,692) Total revenues 327,000 327,000 349,857 22,857

EXPENDITURES:

Current:Public works - 703,651 617,026 86,625

Capital outlay 250,000 443,126 112,799 330,327

Total expenditures 250,000 1,146,777 729,825 416,952

REVENUE OVER (UNDER) EXPENDITURES (250,000) (1,146,777) (379,968) 766,809

Net change in fund balance 77,000$ (819,777)$ (379,968) 439,809$

FUND BALANCES:

Beginning of year, as restated 804,932


Budgeted Amounts

City of Union City


150

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCUPA Enforcement Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Other revenues 25,000$ 117,000$ 77,500$ (39,500)$

Total revenues 25,000 117,000 77,500 (39,500)

EXPENDITURES:

Current:

Economic and community development 55,000 142,000 24,353 117,647

Capital outlay - 5,000 - 5,000 Total expenditures 55,000 147,000 24,353 122,647

REVENUE OVER(UNDER) EXPENDITURES (30,000) (30,000) 53,147 (162,147)

Net change in fund balance (30,000)$ (30,000)$ 53,147 (162,147)$

FUND BALANCES:



Budgeted Amounts

City of Union City


151

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualYouth Violence Prevention & Intervention Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments 500,000$ 500,000$ 500,000$ -$

Intergovernmental 175,000 175,000 100,612 (74,388)

Total revenues 675,000 675,000 600,612 (74,388)

EXPENDITURES:

Current:

Community and recreation services 958,096 958,096 787,477 170,619




FUND BALANCES:



Budgeted Amounts

City of Union City


152

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualMeasure D Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 198,000$ 198,000$ 189,795$ (8,205)$


Total revenues 199,000 199,000 191,861 (7,139)

EXPENDITURES:

Current:

General government 351,873 351,873 248,245 103,628 Total expenditures 351,873 351,873 248,245 103,628



FUND BALANCES:



Budgeted Amounts

City of Union City


153

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualAffordable Housing Special Revenue Fund



REVENUES:

Investment income -$ -$ 4,961$ 4,961$

Total revenues - - 4,961 4,961

EXPENDITURES:

Current:

Housing and community development 100,000 3,000 350 2,650

Capital outlay 250,000 - - -

Total expenditures 350,000 3,000 350 2,650

REVENUE OVER (UNDER) EXPENDITURES (350,000) (3,000) 4,611 7,611

Net change in fund balances (350,000)$ (3,000)$ 4,611 7,611$

FUND BALANCES:



Budgeted Amounts

City of Union City


154

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualPublic Art Special Revenue Fund



REVENUES:

Charges for services 105,000$ 105,000$ 67,644$ (37,356)$ Investment income - - 5,109 5,109

Total revenues 105,000 105,000 72,753 (32,247)

EXPENDITURES:

Current: Economic and community developmentCapital outlay - 2,156 2,930 (774)



Net change in fund balance 55,000$ (197,156)$ 35,373 232,529$

FUND BALANCES:



Budgeted Amounts

City of Union City


155

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualMeasure BB Special Revenue FundFor the year ended June 30, 2016

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and special assessments -$ -$ 827,890$ 827,890$

Investment income - - 1,573 1,573

Total revenues - - 829,463 829,463

EXPENDITURES:

Current:

Public works - 118,415 330,076 (211,661)

Capital outlay - 613,365 401,704 211,661

Total expenditures - 731,780 731,780 -


Net change in fund balance -$ (731,780)$ 97,683 829,463$

FUND BALANCES:



City of Union City

Budgeted Amounts

156

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCable TV PEG Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Other revenues -$ $25,000 $42,145 17,145$

Total revenues - 25,000 42,145 17,145

EXPENDITURES:

General government - - -

- -

Total expenditures - - - -

REVENUE OVER (UNDER) EXPENDITURES - - - -

Net change in fund balances -$ 25,000$ 42,145 17,145$

FUND BALANCES:

Beginning of year -

End of year 42,145$

City of Union City


Budgeted Amounts

157

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualPension Obligation Bonds Debt Service Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Investment income -$ -$ 9$ 9$

Other 1,467,380 1,467,380 1,645,851 178,471

Total revenues 1,467,380 1,467,380 1,645,860 178,480

EXPENDITURES:

Debt service:


Interest and fiscal charges 1,004,044 1,004,044 1,001,568 2,476

Total expenditures 1,964,044 1,964,044 1,961,568 2,476

REVENUE OVER (UNDER) EXPENDITURES (1,964,044) (1,964,044) (1,961,568) 2,476


FUND BALANCES:



Budgeted Amounts

City of Union City


158

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCommunity Facilities District Debt Service Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Investment income 85 85 78 (7)

Total revenues 560,743 560,743 553,121 (7,622)

EXPENDITURES:

Current: General government 48,075 48,075 30,000 18,075

Debt service:

Principal repayment 260,000 260,000 310,000 (50,000)

Interest and fiscal charges 302,340 302,340 223,198 79,142 Total expenditures 610,415 610,415 563,198 47,217

REVENUE OVER (UNDER) EXPENDITURES (49,672) (49,672) (10,077) (54,839)

Net change in fund balance (49,672)$ (49,672)$ (10,077) (54,839)$

FUND BALANCES:



Budgeted Amounts

City of Union City


159

This page intentionally left blank.

160

INTERNAL SERVICE FUNDS

Internal Service Funds are used to finance and account for special activities and services performed by adesignated department for other departments in the City on a cost reimbursement basis.

Workers' Compensation Self-Insurance

To account for disbursement to an independent claims administrator for employees who qualify to receivebenefits under the law. The City has obtained insurance to cover claims exceeding $150,000.

General Liability Self-Insurance

Established to account for the processing of general liability premiums and claims by the Bay Cities JointPower Insurance Association. The City has insurance to cover claims exceeding $25,000.

Employment Law Self-Insurance

To account for the processing of employment practices insurance and claims by the Employment RiskManagement Authority. The City is self-insured up to $75,000 and has insurance to cover claims exceedingthis amount up to $1,000,000. During the course of this year, it was determined that this fund was no longerneeded.

City Garage Operations

To account for the rental of equipment to all City departments and for the accumulation of funds anddisbursements for equipment acquisitions. User charges include an amount necessary for the maintenanceand repair of equipment.

161

Combining Statement of Net PositionInternal Service FundsJune 30, 2016

Workers' General Employment

Compensation Liability Law

Self-Insurance Self-Insurance Self-Insurance

ASSETS

Current assets:

Cash and investments 12,640,319$ 7,875,332$ -$

Restricted cash and investments

with fiscal agents 419,475.00 40,000.00

Accounts receivable 49,503 43,539 -

Due from other funds 76,876 - -

Prepaid items 474 102 -

Total current assets 13,186,647 7,958,973 -

Capital assets, net - - -

TOTAL ASSETS 13,186,647 7,958,973 -

LIABILITIES

Current liabilities:

Accounts payable 163,900 102,543 -

Accrued payroll 4,382 1,144 -

Other accrued liabilities 36,459 (2,905) -

Due to other funds 126 34 -

Due to other agencies - - -

Compensated absences due in one year - - -

General liability claims due in one year - 95,811 -

Workers' compensation claims due in one year 803,769 - -

Total current liabilities 1,008,636 196,627 -

Noncurrent liabilities:

Compensated absences due in more than one year - - -

General liability claims due in more than one year - 596,692 -

Workers' compensation claim due in more than one year 3,489,231 - -

Total noncurrent liabilities 3,489,231 596,692 -

TOTAL LIABILITIES 4,497,867 793,319 -

NET POSITION

Net investment in capital assets - -

Unrestricted 8,688,780 7,165,654 -

Total net position 8,688,780$ 7,165,654$ -$

####### ####### -

City of Union City

162

City

Garage

Operations Total

4,165,763$ 24,681,414$

459,475

- 93,042

80,221 157,097

3,493 4,069

4,249,477 25,395,097

1,354,246 1,354,246

5,603,723 26,749,343

101,590 368,033

8,117 13,643

76 33,630

938 1,098

- -

11,314 11,314

- 95,811

- 803,769

122,035 1,327,298

5,242 5,242

- 596,692

- 3,489,231

5,242 4,091,165

127,277 5,418,463

1,354,246 1,354,246

4,122,200 19,976,634

5,476,446$ 21,330,880$

####### #######

163

Combining Statement of Activities and Changes in Net PositionInternal Service FundsFor the year ended June 30, 2016

Workers' General EmploymentCompensation Liability LawSelf-Insurance Self-Insurance Self-Insurance

OPERATING REVENUES:

Charges for sales and services 2,042,506$ 1,401,163$ -$

Total operating revenues 2,042,506 1,401,163 -

OPERATING EXPENSES:

Garage operations - - - Workers' compensation claims and premiums 2,239,982 - - Insurance - 915,183 - Administration 102,561 26,258 - Depreciation - -

Total operating expenses 2,342,543 941,441 -

OPERATING INCOME (LOSS) (300,037) 459,722 -

NONOPERATING REVENUES (EXPENSES):

Investment income - - -

Other 61,720 43,539 -

Gain on sale of assets - - - Total nonoperating revenue (expenses) 61,720 43,539 -

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS

Transfer in/(out) 956,000 (126,200) (375,000)

Change in net position 717,683 377,061 (375,000)

Net position:

Beginning of year, as restated 7,971,097 6,788,593 375,000

End of year 8,688,780$ 7,165,654$ -$

City of Union City

164

City Garage

Operations Total

1,052,385$ 4,496,054$

1,052,385 4,496,054

700,180 700,180 - 2,239,982 - 915,183

29,256 158,075 303,712 303,712

1,033,148 4,317,132

19,237 178,922

16,711 16,711

- 105,259

18,576 18,576 35,287 140,546

1,914,788 2,369,588

1,969,312 2,689,056

3,507,134 18,641,824

5,476,446$ 21,330,880$

165

Combining Statement of Cash FlowsInternal Service FundsFor the year ended June 30, 2016

Workers' General EmploymentCompensation Liability LawSelf-Insurance Self-Insurance Self-Insurance


Cash received from other funds 2,042,506$ 1,401,163$ -$ Cash payments to suppliers (1,297,392) (765,656) - Payments for employee services (100,647) (26,050) -

Net cash provided by operating activities 644,467 609,457 - - - -

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Other 61,720 43,539 -

Transfers in/out 956,000 (126,200) (375,000)

Net cash provided by (used in) by noncapital financing activities 1,017,720 (82,661) (375,000)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Cash paid for the acquisition/construction of capital assets - - - Cash receipts from sale of assets - - -

Net cash provided (used in) capital and related financing activities - - -

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest income - - -

Net cash provided by investing activities - - -

Net increase (decrease) in cash and cash equivalents 1,662,187 526,796 (375,000)

CASH AND CASH EQUIVALENTS:

Beginning of year 10,978,132 7,348,536 375,000

End of year 12,640,319$ 7,875,332$ -$ - -


Operating income (loss) (300,037)$ 459,722$ -$ Adjustments to reconcile operating income (loss) to net

cash provided (used) by operating activities:Depreciation - - - Accounts receivable (5,349) (24,566) - Due from other funds (22,016) - - Prepaids (97) (28) - Accounts payable and accrued liabilities (12,775) 92,136 - Accrued payroll 1,574 208 - Accrued compensated absence - - - Accrued general liability claims - 81,985 - Accrued worker's compensation claims 983,167 - -

Net cash provided (used) by operating activities 644,467$ 609,457$ -$

City of Union City

166

City Garage

Operations Total

1,052,385$ 4,496,054$ (493,639) (2,556,687) (261,936) (388,633)

296,810 1,550,734

- 105,259

1,914,788 2,369,588

1,914,788 2,474,847

(139,712) (139,712) 18,576 18,576

(121,136) (121,136)

16,711 16,711

16,711 16,711

2,107,173 3,921,156

2,058,590 20,760,258

4,165,763$ 24,681,414$

19,237$ 178,922$

303,712 303,712 - (29,915)

(80,412) (102,428) (39) (164)

59,674 139,035 1,733 3,515

(7,095) (7,095) - 81,985 - 983,167

296,810$ 1,550,734$

167

General Fund

The General Fund is used to account for all financial resources except those required to be accounted for in another fund.Included in the General Fund , for reporting purposes, are funds that had been reported as specialrevenue funds prior to the implementation of GASB 54. The primary revenue source of these fundsare neither restricted nor committed.

Retirement/Benefits Fund that may be used to pay off the leave balances of employees separatingfrom service with the City.

Post-Employment Medical Benefits Fund used to pay for expenses related to post-employmentbenefits other than pension plans.

Southern Alameda County Major Crimes Task Force Fund to account for funds used for aregional major crimes task force.

Fire Equipment Acquisition Fund to account for monies received from developers of commercialproperties and certain residential structures to be used for the acquisition of fire equipment.

Leisure Revolving Fund to account for participant-paid activities offered through Leisure Servicesprograms.

Parent Project Fund to account for activities that provide parents with the tools to understand andwork with troubled or at-risk children.

Allied Waste Vehicle Impact Fund to account for activities that mitigate the impact of heavy trash collection vehicles on City street.

Code Enforcement Fund to account for activities associated with the remediation of properties inviolation of the City's municipal code. Recovery of costs incurred are made by placing liens on theaffected properties.

Corporation Yard and Fuel Facility Maintenance Fund to account for funds received from outside agencies for use of the City's Corporation Yard and fueling stations. The revenues collected are to be used for the maintenance and improvement of these facilities.

168

Balance SheetGeneral FundJune 30, 2016

General Fund Payroll Fund Trust/Agency

ASSETS

Cash and investments 11,733,376$ 511,796$ 1,320,373$ Restricted cash and investmentReceivables:

Taxes 4,644,670 - - Accounts 323,296 831 - Interest 76,926 - - Intergovernmental 171,448 - -

Due from other funds 286 - - Loans receivable 522,730 - - Prepaid items 320,044 - - Property held for resale, net of allowance for decline in value 34,892,267 - -

Total assets 52,685,043 512,627 1,320,373

LIABILITIES

Accounts payable 1,719,234 189 18,953 Accrued payroll 849,473 - - Other accrued liabilities 135,928 - - Due to other funds 100,641 - - Due to other agencies 1,394 - 40,885 Deposit payable 9,614 512,438 1,260,535 Unearned revenue 2,875

Total liabilities 2,819,159 512,627 1,320,373


Unavailable revenues 75,882 - -

Total deferred inflow of resources 75,882 - -

FUND BALANCE

Nonspendable: -

Prepaid item 320,044 - -

Loans receivable 522,730 - -

Restricted 34,903,166 - -

Assigned 6,611,311 - -

Unassigned 7,432,751 - -

Total fund balance 49,790,002 - -

Total liabilities, deferred inflow of resources and fund balances 52,685,043$ 512,627$ 1,320,373$

City of Union City

169

Retirement/Ben Post-Employment So Alameda Co Fire Equipment Leisure Parent Allied WasteReserve Medical Major Crime TF Acquisition Revolving Project Vehicle Impact

-$ 4,580,825$ -$ 108,989$ 1,377,791$ -$ 135,989$

- - - - - - - - - - - - - 24,376 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41,385 - - - - - - - -

- 4,580,825 - 108,989 1,419,176 - 160,365

- - - - 18,132 9,380 - - - - 86,141 4,792 - - - - 19,780 - - - - - 5,421 349 - - - - 186 - - - - - 69,747 -

- - - 528,539 -

- - - - 727,946 - 14,521

- - - - - - -

- - - - - - -

- - - 41,385 - -

- - - - - -

- - - - - -

- 4,580,825 - 108,989 649,845 - 145,844

- - - - - - -

- 4,580,825 - 108,989 691,230 - 145,844

-$ 4,580,825$ -$ 108,989$ 1,419,176$ -$ 160,365$

170

Balance SheetGeneral FundJune 30, 2016

Corporation Yard & TotalCode Fuel Facility General

Enforcement Maintenance Fund

ASSETS

Cash and investments 17,426$ 779,143$ 20,565,708$ Restricted cash and investment - Receivables:

Taxes - - 4,644,670 Accounts - 61,729 410,232 Interest - - 76,926 Intergovernmental - - 171,448

Due from other funds - - 286 Loans receivable - - 522,730 Prepaid items - 984 362,413 Property held for resale, net of allowance for decline in value - - 34,892,267

Total assets 17,426 841,856 61,646,680

LIABILITIES

Accounts payable - 37,824 1,803,712 Accrued payroll - 3,640 944,046 Other accrued liabilities - - 155,708 Due to other funds - 391 106,802 Due to other agencies - 1 42,466 Deposit payable - - 1,852,334 Unearned revenue - - 531,414

Total liabilities - 41,856 5,436,482


Unavailable revenues - - 75,882

Total deferred inflow of resources - - 75,882

FUND BALANCE

Nonspendable:

Prepaid item - 984 362,413

Loans receivable - - 522,730

Restricted - - 34,903,166

Assigned 17,426 799,016 12,913,256

Unassigned - - 7,432,751

Total fund balance 17,426 800,000 56,134,316

Total liabilities, deferred inflow of resources and fund balances 17,426$ 841,856$ 61,646,680$

171

Schedule of Revenues, Expenditures and Changes in Fund BalancesGeneral FundFor the year ended June 30, 2016

General Retirement/Ben Post-Employment

Fund Reserve Medical

REVENUES:

Taxes and special assessments 43,536,217$ -$ -$

Licenses, permits and fees 2,245,308 - -

Fines and forfeitures 494,467 - -

Intergovernmental 764,170 - -

Charges for services 2,546,240 - -

Investment income 185,090 - -

Other revenues 739,725 - -

Total revenues 50,511,217 - -

EXPENDITURES:

Current:

General government 9,269,932 - 106,768

Public safety 30,278,275 - 170,000

Community and recreation services 3,210,783 - -

Economic and community development 3,271,567 - -

Public works 3,762,903 - -

Capital outlay - - -

Debt service:

Principal repayment 249,985 -

Interest and fiscal charges 98,071 - -

Total expenditures 50,141,516 - 276,768

REVENUES OVER (UNDER) EXPENDITURES 369,701 - (276,768)


Debt Issuance 980,990 - -

Proceeds from sale of assets 7,520 - -

Transfers in 1,277,845 - 2,405,300

Transfers out (3,900,214) (561,844) -

Total other financing sources (uses) (1,633,859) (561,844) 2,405,300

Net change in fund balances (1,264,158) (561,844) 2,128,532

FUND BALANCES:

Beginning of year, as restated 51,054,160 561,844 2,452,293

End of year 49,790,002$ -$ 4,580,825$

City of Union City

172

So Alameda Co Fire Equipment Leisure Parent Allied Waste Code

Major Crime TF Acquisition Revolving Project Vehicle Impact Enforcement

-$ -$ -$ -$ -$ -$

- - - - - -

- - - - - -

- - - - - -

- 139,243 2,217,319 - 186,375 -

- - - - - -

- - 7,619 1,932 - -

- 139,243 2,224,938 1,932 186,375 -

- - - - - -

1,332 - - - - -

- - 2,038,250 - -

- - - - - -

- - - - 326,411 2,574

- 526,014 5,128 - - -

- - - - - -

- - - - - -

1,332 526,014 2,043,378 - 326,411 2,574

(1,332) (386,771) 181,560 1,932 (140,036) (2,574)

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

(1,332) (386,771) 181,560 1,932 (140,036) (2,574)

1,332 495,760 509,670 (1,932) 285,880 20,000

-$ 108,989$ 691,230$ -$ 145,844$ 17,426$

173

Schedule of Revenues, Expenditures and Changes in Fund BalancesGeneral FundFor the year ended June 30, 2016

Corporation Yard & Total

Fuel Facility General

Maintenance Fund

REVENUES:

Taxes and special assessments -$ 43,536,217$

Licenses, permits and fees - 2,245,308

Fines and forfeitures - 494,467

Intergovernmental - 764,170

Charges for services 1,395,713 6,484,890

Investment income - 185,090

Other revenues 97,075 846,351

Total revenues 1,492,788 54,556,493

EXPENDITURES:

Current:

General government - 9,376,700

Public safety - 30,449,607

Community and recreation services - 5,249,033

Economic and community development - 3,271,567

Public works 1,095,938 5,187,826

Capital outlay - 531,142

Debt service:

Principal repayment - 249,985

Interest and fiscal charges - 98,071

Total expenditures 1,095,938 54,413,931

REVENUES OVER (UNDER) EXPENDITURES 396,850 142,562


Debt Issuance - 980,990

Proceeds from sale of assets - 7,520

Transfers in - 3,683,145

Transfers out (1,914,788) (6,376,846)

Total other financing sources (uses) (1,914,788) (1,705,191)

Net change in fund balances (1,517,938) (1,562,629)

FUND BALANCES:

Beginning of year 2,317,938 57,696,945

End of year 800,000$ 56,134,316$

174

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualGeneral FundFor the year ended June 30, 2016

Variance with

Final Budget

Actual Positive


REVENUES:

Taxes and assessments 42,096,700$ 42,283,300$ 43,536,217$ 1,252,917$

Licenses and permits 2,004,300 2,110,900 2,245,308 134,408

Fines and forfeitures 549,900 529,600 494,467 (35,133)

Intergovernmental 957,900 1,108,676 764,170 (344,506)

Charges for services 2,273,300 2,352,500 2,546,240 193,740


Other 532,200 733,654 739,725 6,071

Total revenues 48,865,100 49,211,230 50,511,217 1,299,987

EXPENDITURES:

Current:

General government 8,179,526 8,740,593 9,269,932 (375,459)

Public safety 28,806,367 30,745,116 30,278,275 466,841

Community and recreation services 4,046,828 4,107,451 3,210,783 896,668

Economic and community development 3,387,705 3,720,553 3,271,567 448,986

Public works 3,787,040 5,018,945 3,762,903 1,256,042

Capital outlay - - - -

Debt service:


Interest and fiscal charges 95,537 98,071 98,071 -

Total expenditures 48,401,642 52,680,714 50,141,516 2,693,078

REVENUE OVER (UNDER) EXPENDITURES 463,458 (3,623,364) 369,701 3,993,065

OTHER FINANCING SOURCES (USES):Debt issuance - - 980,990 980,990

Proceeds from sale of assets - - 7,520 7,520 Transfers in 740,300 1,302,144 1,277,845 24,299

Transfers (out) (1,026,700) (3,900,214) (3,900,214) -

Total other financing sources (uses) (286,400) (2,598,070) (1,633,859) 1,012,809

Net change in fund balances 177,058$ (6,221,434)$ (1,264,158) 4,957,276$

FUND BALANCES:


End of year 49,790,002$

Budgeted Amounts

City of Union City

175

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualRetirement/Benefit Reserve Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES: -$ -$ -$ -$

Total revenues - - - -

EXPENDITURES:

Total expenditures - - - -

REVENUE OVER (UNDER) EXPENDITURES - - - -


Transfers (out) - (561,844) (561,844) -

Total other financing sources (uses) - (561,844) (561,844) -

Net change in fund balances -$ (561,844)$ (561,844) -$

FUND BALANCES:


End of year -$

Budgeted Amounts

City of Union City


176

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualPost-Employment Medical Benefits Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental -$ -$ -$ -$

Investment income - - - -

Total revenues - - - -

EXPENDITURES:

Current:


Public safety 170,000 170,000 170,000 - Total expenditures 252,422 252,422 276,768 (24,346)



Transfers in 1,026,700 2,405,300 2,405,300 -

Total other financing sources (uses) 1,026,700 2,405,300 2,405,300 -

Net change in fund balances 774,278$ 2,152,878$ 2,128,532 (24,346)$

FUND BALANCES:



Budgeted Amounts

City of Union City


177

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualFire Equipment Acquisition Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:


Total revenues 135,946 135,946 139,243 3,297

EXPENDITURES

Capital outlay 552,250 552,250 526,014 26,236



Net change in fund balances (416,304) (416,304) (386,771) 29,533


FUND BALANCES:



Budgeted Amounts

City of Union City


178

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualSouthern Alameda County Major Crimes Task Force Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Intergovernmental 242,035$ 242,035$ -$ (242,035)$ Other revenue - - - -

Total revenues 242,035 242,035 - (242,035)

EXPENDITURES:

Current:

Public safety 244,107 244,107 1,332 242,775


REVENUE OVER (UNDER) EXPENDITURES (2,072) (2,072) (1,332) 740

Net change in fund balances (2,072)$ (2,072)$ (1,332) 740$

FUND BALANCES:


End of year -$

Budgeted Amounts

City of Union City


179

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualLeisure Revolving Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for services 3,317,981$ 3,301,645$ 2,217,319$ (1,084,326)$

Other revenues 18,715 35,051 7,619 (27,432)

Total revenues 3,336,696 3,336,696 2,224,938 (1,111,758)

EXPENDITURES:

Current:

Community and recreation services 3,314,874 3,316,060 2,038,250 1,277,810

Capital outlay - 50,000 5,128 44,872

Total expenditures 3,314,874 3,366,060 2,043,378 1,322,682


Net change in fund balances 21,822$ (29,364)$ 181,560 210,924$

FUND BALANCES:



Budgeted Amounts

City of Union City


180

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualParent Project Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for service 41,065$ 41,065$ -$ (41,065)$

Total revenues 41,065 41,065 - (41,065)

EXPENDITURES:

Current:

General government 41,268 41,268 - 41,268

Total expenditures 41,268 41,268 - 41,268

REVENUE OVER (UNDER) EXPENDITURES (203) (203) - 203

Net change in fund balances (203)$ (203)$ - 203$

FUND BALANCES:


End of year (1,932)$

Budgeted Amounts

City of Union City


181

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualAllied Waste Vehicle Impact Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Charges for service 212,000$ 212,000$ 186,375$ (25,625)$

Total revenues 212,000 212,000 186,375 (25,625)

EXPENDITURES

Current:

Public works - 63,850 326,411 (262,561)

Capital outlay 250,000 516,150 - 516,150




FUND BALANCES:



Budgeted Amounts

City of Union City


182

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCode Enforcement Special Revenue Fund

Variance with

Final Budget

Actual Positive


REVENUES:

Total revenues -$ -$ -$ -$

EXPENDITURES:

Current:

Public works 10,000 10,000 2,574 7,426



Net change in fund balances (10,000)$ (10,000)$ (2,574) (7,426)$

FUND BALANCES:


End of year 17,426$

Budgeted Amounts

City of Union City


183

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualCorporation Yard and Fuel Facility Maintenance Special Revenue FundFor the year ended June 30, 2016



REVENUES:

Charges for services 1,766,000$ 1,766,000$ 1,395,713$ (370,287)$ Other revenues 55,000 55,000 97,075 42,075

Total revenues 1,821,000 1,821,000 1,492,788 (328,212)

EXPENDITURES:

Current:Public works 1,503,152 1,739,197 1,095,938 643,259

Capital outlay 410,000 410,000 - 410,000 Total expenditures 1,913,152 2,149,197 1,095,938 1,053,259

REVENUE OVER (UNDER) EXPENDITURES (1,913,152) (2,149,197) (1,095,938) 1,053,259

Net change in fund balances (92,152) (328,197) 396,850 725,047


Transfers (out) - (1,914,788) (1,914,788) -

Total other financing sources (uses) - (1,914,788) (1,914,788) -

Net change in fund balances (92,152)$ (2,242,985)$ (1,517,938) 725,047$

FUND BALANCES:



Budgeted Amounts

City of Union City

184

STATISTICAL SECTION INTRODUCTION

This part of the City of Union City’s Comprehensive Annual Financial Report presents detailed informationas a context for understanding what the information says about the City’s overall financial health.

Contents

Financial Trends InformationThis information is intended to assist users in understanding and assessing how a government’s financial position has changed over time.

Revenue Capacity InformationThis information is intended to assist users in understanding and assessing factors affecting a government’s ability to generate its own revenue.

Debt Capacity InformationThis information is intended to assist users in understanding and assessing a government’s debt burden and its ability to issue additional debt.

Demographic and Economic InformationThis information is intended to assist users in understanding socioeconomic environment with which a government operates and provide information that facilitates comparison of financial statement information over time and among governments.

Operating InformationThis information is intended to provide information about operations and resources to assist readers in using financial statement information to understand and asses a government’s economic condition.

185

FINANCIAL TRENDS INFORMATION

Net Position by Component - Last Five Fiscal Years

Changes in Net Assets - Last Five Fiscal Years

Fund Balances of Governmental Funds - Last Five Fiscal Years

Changes in Fund Balances of Governmental Funds - Last Five Fiscal Years

186

City of Union CityNet Position by ComponentLast Five Fiscal Years(accrual basis of accounting)

2012 2013 2014 2015 2016Governmental activities:

Net investment in capital assets $ 123,243,322 $ 141,266,031 $ 159,050,750 $ 167,010,239 $ 178,516,362 Restricted 27,468,879 18,692,747 18,576,385 16,211,001 69,601,834 Unrestricted 92,502,582 81,112,248 78,695,872 (368,669) 1,640,296

243,214,783 241,071,026 256,323,007 182,852,571 249,758,492

Business-type activities:Net investment in capital assets 6,212,877 8,634,945 8,124,141 7,435,554 8,846,717 Restricted - - - - - Unrestricted (28,406) (21,962) (31,359) 309,172 69,032

6,784,292 6,184,471 8,612,983 8,092,782 8,915,749

Primary government:Net investment in capital assets 129,456,199 149,900,976 167,174,891 174,445,793 187,363,079 Restricted 27,468,879 18,692,747 18,576,385 16,211,001 69,601,834 Unrestricted 92,474,176 81,090,286 78,664,513 (59,497) 1,709,328

249,399,254$ 249,684,009$ 264,415,789$ 190,597,297$ 258,674,241$

Source: Current and Prior Comprehensive Annual Financial Reports (CAFR). Statement of Net Position.

Footnotes: None

Total governmental activities net assets

Total business-type activities net assets

Total primary government net assets

FISCAL YEAR ENDING JUNE 30,

187

City of Union CityChanges in Net PositionLast Five Fiscal Years(accrual basis of accounting)

2012 2013 2014 2015 2016Expenses:

Governmental activities:General Government 23,031,426$ 18,634,095$ 15,425,287$ 15,699,047$ 17,173,274$ Public Safety 28,138,756 29,573,746 30,765,128 32,800,843 41,279,927 Housing and community development 2,336,714 1,253,344 856,384 2,896,503 701,903 Community and recreation services 4,017,804 4,693,940 4,456,105 4,407,560 6,353,792 Economic and community development and Public works 9,438,357 13,388,319 14,192,714 16,965,941 2,897,135 Interest, fiscal charges & bond issuance costs 3,698,863 1,755,956 1,646,887 1,718,981 1,667,571

Total governmental activities expense 70,661,920 69,299,400 67,342,505 74,488,875 70,073,602

Business-type activities:Transit 3,818,562 4,005,111 4,331,540 4,366,286 4,513,589 Paratransit 879,839 917,473 954,968 995,619 1,017,218 Total business type activities 4,698,401 4,922,584 5,286,508 5,361,905 5,530,807 Total primary government expenses 75,360,321 74,221,984 72,629,013 79,850,780 75,604,409

Program revenues:Governmental activities:

Charges for services:General Government 3,259,657 3,152,186 3,047,667 3,458,977 2,557,432 Public Safety 1,187,242 179,480 1,071,414 1,355,829 930,181 Housing and comm. develop. 16,166 24,778 12,600 41,106 1,294,087 Community and recreation services 2,135,891 2,597,869 2,291,125 2,395,894 2,652,355 Economic and community developmentand Public works 2,303,135 3,472,607 4,136,427 6,382,637 10,104,843

Operating grants & contributions 7,556,380 4,646,557 6,453,749 6,430,654 7,142,190 Capital grants and contributions 6,677,530 8,004,057 11,217,997 10,502,540 8,327,895

Total governmental activities program revenues 23,136,001 22,077,534 28,230,979 30,567,637 33,008,983

Business-type activitiesCharges for services:

Transit 461,771 450,450 409,950 363,323 335,339 Paratransit 46,412 49,383 51,722 60,329 51,629

Operating grants & contributions - - - - 4,315,658 Capital grants and contributions 91,857 3,208,587 339,087 475,831 1,997,110

Total business-type activities program revenues 600,040 3,708,420 800,759 899,483 6,699,736 Total primary government program revenues 23,736,041 25,785,954 29,031,738 31,467,120 39,708,719

Net revenues (expenses)Governmental activities (47,525,919) (47,221,866) (39,111,526) (43,921,238) (37,064,619) Business-type activities (4,098,361) (1,214,164) (4,485,749) (4,462,422) 1,168,929

Total net revenues (expenses) (59,707,946)$ (51,624,280)$ (48,436,030)$ (43,597,274)$ (35,895,690)$


188

City of Union CityChanges in Net Position, ContinuedLast Five Fiscal Years(accrual basis of accounting)

2012 2013 2014 2015 2016General revenues & other changes in net assets:

Governmental activities:Taxes:

Property taxes 35,331,998$ 27,635,637$ 28,782,282$ 30,407,957$ 31,556,903$ Transient occupancy taxes 767,451 1,066,772 1,378,653 2,085,245 2,321,649 Sales taxes 9,627,336 10,557,705 11,201,394 11,050,731 13,031,186 Franchise taxes 4,044,805 3,932,148 5,098,098 5,405,566 4,927,813 Business license tax 1,265,965 1,686,022 1,587,070 1,449,594 1,569,252 Real property transfer tax 197,206 204,820 203,267 254,136 407,546 Other taxes 117,944 - - - -

Unrestricted/Intergovernmental 21,162 40,401 - - - Gain (loss) on sale of assets 21,951 39,520 16,281 12,206 308,449 Investment earnings (loss) 282,257 (322,236) 464,430 223,478 201,801

Other revenues 1,823,335 585,083 210,452 867,107 116,158 Extraordinary item - - - 5,743,960 - Special item - - - - 19,219,507

Total governmental activities 53,501,410 45,425,872 48,941,927 57,499,980 73,660,264

Business-type activities:Unrestricted/Intergovernmental 3,494,770 3,637,386 3,956,098 4,110,793 - Gain (loss) on sale of assets - 751 - 180 - Investment income 3,770 4,539 9,450 3,393 2,094 Other revenues - - - - - Transfers - - - - -

Total business-type activities 3,498,540 3,642,676 3,965,548 4,114,366 2,094 Total primary government 56,999,950 49,068,548 52,907,475 61,614,346 73,662,358

Changes in net assetsGovernmental activities 6,279,544 6,314,347 23,390,920 13,578,742 36,595,645 Business-type activities 2,284,376 (843,073) (496,874) (348,056) 1,171,023

Total primary government 8,563,920$ 5,471,274$ 22,894,046$ 13,230,686$ 37,766,668$

Note: None

Source: Current and Prior Comprehensive Annual Financial Reports (CAFR). Statement of Activities and Changes in Net Position.

Footnotes: None


189

City of Union CityFund Balances of Governmental FundsLast Five Fiscal Years(modified accrual basis of accounting)

2012 2013 2014 2015 2016General fund:

Nonspendable 580,287$ 500,596$ 605,917$ 998,918$ 885,143$ Restricted - 1,128 4,166 5,751,363 34,903,166 Committed - - - - - Assigned 8,469,802 9,400,547 11,720,741 13,341,089 12,913,256 Unassigned 2,307,780 3,033,411 5,936,132 8,458,573 7,432,751

Total general fund 11,357,869 12,935,682 18,266,956 28,549,943 56,134,316

All other governmental fundsNonspendable 2,087,839 29,316 51,852 54,445 69,098 Restricted 25,029,575 18,691,619 18,560,914 47,745,549 63,771,686 Committed 988,790 6,632,902 5,959,601 7,434,842 9,979,986 Assigned 261,431 - 235,401 485,202 343,485 Unassigned (6,687,747) (3,777,338) (5,574,557) (8,151,300) (6,585,905)

Total all other governmental funds 21,679,888 21,576,499 19,233,211 47,568,738 67,578,350

All FundsNonspendable 2,668,126 529,912 657,769 1,053,363 954,241 Restricted 25,029,575 18,692,747 18,565,080 53,496,912 98,674,852 Committed 988,790 6,632,902 5,959,601 7,434,842 9,979,986 Assigned 8,731,233 9,400,547 11,956,142 13,826,291 13,256,741 Unassigned (4,379,967) (743,927) 361,575 307,273 846,846

Total All Funds 33,037,757$ 34,512,181$ 37,500,167$ 76,118,681$ 123,712,666$

Note: 2016 New* Public Improvement Capital Project Fund is reported under Balance Sheet- Governmental Funds Source: Current and Prior Comprehensive Annual Financial Reports (CAFR). Balance Sheet - Governmental Funds

Footnotes: None

190

City of Union CityChanges in Fund Balances of Governmental FundsLast Five Fiscal Years(modified accrual basis of accounting)

2012 2013 2014 2015 2016Revenues:

Taxes and assessments 54,762,947$ 47,705,636$ 51,741,191$ 53,973,339$ 57,250,194$ Licenses and permits 1,738,873 1,565,244 1,511,700 2,070,030 2,245,308 Fines and forfeitures 539,690 431,061 390,441 565,028 494,467 Intergovernmental 9,775,505 9,207,195 9,281,831 13,612,223 11,009,706 Charges for services 5,699,380 6,234,399 6,262,499 8,630,014 12,738,766 Investment income 322,219 (335,219) 579,659 301,976 299,177 Other 3,381,607 2,522,026 2,518,480 2,927,718 2,981,703

Total revenues 76,220,221 67,330,342 72,285,801 82,080,328 87,019,321

ExpendituresCurrent:

General government 14,182,750 9,078,010 8,702,109 10,345,289 10,546,760 Public safety 29,923,771 29,741,325 30,167,288 32,099,523 37,717,217 Housing and comm. develop. 9,274,695 1,059,736 863,071 3,847,144 772,200 Community and recreation services 3,766,994 4,181,992 4,130,279 4,353,228 6,307,968 Economic and community developmentand Public works 9,352,786 11,550,476 13,829,902 17,712,437 17,332,261 Agency pass through payments 3,873,049 - - - -

Capital Outlay 19,090,375 7,440,779 10,560,307 12,821,034 11,476,980 Debt service:

Principal repayment 2,026,921 1,059,053 1,326,206 1,529,555 1,860,663 Interest and fiscal charges 6,250,681 1,744,547 1,682,822 1,568,342 1,483,928 Cost of issuance - - 268,712 - -

Total expenditures 97,742,022 65,855,918 71,530,696 84,276,552 87,497,977

Excess (deficiency) of revenues over (under) expenditures (21,521,801) 1,474,424 755,105 (2,196,224) (478,656)

Other financing sources (uses):Debt issuance 1,311,313 - 5,760,000 - 980,990 Original issue premiums - - 6,554 - - Proceeds from sale of assets 21,951 39,520 - 6,636 789,358 Payment to escrow account - - (5,605,015) - - Transfers in 8,538,741 2,104,862 4,280,715 3,022,015 4,857,570 Transfers out (8,471,084) (2,144,382) (2,209,552) (1,450,852) (7,227,157)

Total other financing sources (uses) 1,400,921 - 2,232,702 1,577,799 (599,239)

Extraordinary Item (65,975,363) - - 5,743,960 - Special item - - - - 19,219,507 Net change in fund balances (86,096,243)$ 1,474,424$ 2,987,807$ 5,125,535$ 18,141,612$

Capital Expenditures 15,629,154$ 4,471,909$ 10,553,775$ 12,821,034$ 11,476,980$ Noncapital expenditures 82,112,868$ 61,384,009$ 60,976,921$ 68,357,621$ 76,020,997$ Debt Service 8,277,602$ 2,803,600$ 3,009,028$ 3,097,897$ 3,344,591$

Debt service as a % of noncapital expend. 10.08% 4.57% 4.93% 4.53% 4.40%

Note: NoneSource: Current and Prior Comprehensive Annual Financial Reports (CAFR). Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds. Also, Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position

Footnotes: None


191

REVENUE CAPACITY INFORMATION

Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years

Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years

Principal Property Tax Payers - Current and Nine Years Ago

Property Tax Levies and Collections - Last Ten Fiscal Years

Special Assessment Collections - Last Ten Fiscal Years

Property Values and Construction - Last Ten Fiscal Years

192

City of Union CityAssessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years(in thousands of dollars)

Fiscal Year TaxableEnded State Less Assessed

June 30, Secured Board Roll Unsecured Exemptions Value2007 7,148,759$ 3,661$ 288,859$ (320,302)$ 7,120,978$ 2008 7,699,546 2,385 293,009 (340,165) 7,654,776 2009 7,965,951 2,374 295,511 (302,047) 7,961,788 2010 7,569,956 2,374 326,511 (356,182) 7,542,659 2011 7,559,749 2,496 290,046 (359,547) 7,492,744 2012 7,571,723 2,496 286,496 (455,773) 7,404,942 2013 7,601,188 2,496 309,845 (449,525) 7,464,004 2014 7,953,941 2,496 321,487 (415,251) 7,862,673 2015 8,464,240 2,365 352,403 (397,251) 8,421,757 2016 8,941,595 2,365 401,765 (302,191) 9,043,534

TotalFiscal Year Taxable Total Direct &

Ended State Less Assessed City Direct Overlapping June 30, Secured Board Roll Unsecured Exemptions Value Tax Rate Rate

2007 2,065,486$ 1,163$ 76,353$ (82,226)$ 2,060,776$ 0.000% 1.135%2008 2,262,140 298 76,476 (100,942) 2,237,971 0.000% 1.162%2009 2,373,142 298 81,604 (107,134) 2,347,910 0.000% 1.183%2010 2,226,489 298 88,385 (107,326) 2,207,846 0.000% 1.181%2011 2,189,878 280 86,486 (107,843) 2,168,800 0.000% 1.169%2012 2,186,487 280 88,655 (116,481) 2,158,941 0.000% 1.188%2013 2,187,184 280 88,655 (110,060) 2,166,059 0.000% 1.195%2014 2,310,420 280 91,851 (81,799) 2,320,753 0.000% 1.210%2015 2,458,948 280 88,682 (121,638) 2,426,272 0.000% 1.226%2016 2,629,847 280 93,665 (99,043) 2,624,749 0.000% 1.226%

Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation date shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: Alameda County Auditor-Controller Agency

Footnotes: None

Redevelopment Agency

City

193

City of Union CityDirect and Overlapping Property Tax Rates(Rate per $100 of assessed value)Last Ten Fiscal Year

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Basic levy:

Basic rate 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Total City Direct Rate 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Overlapping Rates:Alameda County Water District 0.006 0.006 0.008 0.007 0.007 0.008 0.007 0.007 0.009 0.008 Bay Area Rapid Transit Dist. 0.005 0.008 0.009 0.008 0.003 0.004 0.004 0.008 0.005 0.003 Chabot Los Positas College Bond 0.016 0.016 0.018 0.020 0.021 0.021 0.022 0.021 0.022 0.020 East Bay Regional Park Dist. 0.009 0.008 0.010 0.018 0.008 0.007 0.005 0.008 0.009 0.007 Flood Zone 7 State Water 0.015 0.015 0.017 0.020 0.025 0.031 0.023 0.026 0.025 - Hayward Unified Bonds - - 0.060 0.071 0.057 0.056 0.055 0.049 0.053 - New Haven School Bonds 0.095 0.105 0.120 0.132 0.111 0.130 0.139 0.138 0.143 0.158 Ohlone College Bonds 0.018 0.018 0.018 0.019 0.019 0.040 0.038 0.040 0.038 - Washington Twn Hospital 0.006 0.018 0.019 0.006 0.019 0.019 0.018 0.029 0.017 0.031

Total Overlapping Rate 0.168 0.195 0.278 0.300 0.270 0.315 0.311 0.324 0.319 0.226 Total Direct & Overlapping Rate 1.168 1.195 1.278 1.300 1.270 1.315 1.311 1.324 1.319 1.226

Note: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of other agency bonds such as those held by the School Districts.


Footnotes: None


194

Percent of Percent ofTotal City Total City

Taxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed

Taxpayer Value Value Value Value

Masonic Homes of California 160,118$ 1.771% Not in Top 10 N/ARREEF America REIT II Corp 82,612 0.913% 71,459 1.003%Avalon Union City LP 80,453 0.890% Not in Top 10 N/AWesco IV LLC 72,043 0.797% Not in Top 10 N/ADyer Triangle LLC 69,092 0.764% 58,034 0.815%Union LLC 64,125 0.709% Not in Top 10 N/AWoodstock Bowers LLC etal 54,337 0.601% Not in Top 10 N/ACatellus Finance 1 LLC 49,668 0.549% 42,275 0.594%Greenhaven Apartments LLC 40,593 0.449% Not in Top 10 N/APappas Union City No 2 LP 28,306 0.313% 24,895 0.350%Hearst Communications Not in Top 10 N/A 52,416 0.736%Crossroads Technology Park LLC Not in Top 10 N/A 45,009 0.632%Teachers Insurance & Annuity Assoc. America Not in Top 10 N/A 37,909 0.532%Union Square Investments LP Not in Top 10 N/A 29,434 0.413%US Pipe Holdings Corporation Not in Top 10 N/A 25,860 0.363%Summerhill Talavera LLC Not in Top 10 N/A 25,860 0.363%Totals 701,347$ 7.755% 413,151$ 5.802%

Total City Taxable Assessed Value 9,043,534$ 7,120,978$

Note: None

Source: Alameda County Assessor's Office.

Footnotes: None

FISCAL YEAR ENDING JUNE 30, 2016 2007

City of Union CityPrincipal Property Tax PayersCurrent Year and Nine Years Ago(in thousands of dollars)

195

City of Union CityProperty Tax Levies and CollectionsLast Ten Fiscal Years

Delinquent Tax Levies to

Fiscal Taxes Levied be Collected in DelinquencyYear Ended for the Percent Subsequent Percentage

June 30, Fiscal Year Amount of Levy Years (%)2007 9,488,009$ 9,043,183$ 95.31% 444,826$ 4.69%2008 10,129,624 9,521,195 93.99% 608,430 6.01%2009 10,466,778 9,835,857 93.97% 630,922 6.03%2010 9,929,270 9,508,098 95.76% 421,172 4.24%2011 9,911,582 9,565,175 96.51% 346,407 3.49%2012 9,604,485 9,285,230 96.68% 319,254 3.32%2013 9,629,554 9,397,586 97.59% 231,969 2.41%2014 10,046,523 9,856,783 98.11% 189,741 1.89%2015 10,848,028 10,687,123 98.52% 160,905 1.48%2016 11,730,922 11,354,184 96.79% 376,738 3.21%

Note: Includes both secured and unsecured property tax collections


Footnotes: 1) Delinquent tax levies are usually collected in the following fiscal year. However, this is not always true andproperty owners have up to 5 years to pay their delinquent taxes. The County is unable to provide figuresfor delinquent payments made in subsequent years at this time.

Collected within theFiscal Year of Levy

196

City of Union CitySpecial Assessment CollectionsLast Ten Fiscal Years

Fiscal Current Current Percent of TotalYear Ended Assessment Assessments Current Assessments Outstanding Current

June 30, Due Collected Collected Assessments2007 12,828,936$ 12,438,676$ 96.96% 390,260$ 2008 13,429,904 12,898,789 96.05% 531,115 2009 13,807,932 13,310,065 96.39% 497,867 2010 14,540,145 14,181,699 97.53% 358,446 2011 14,778,816 14,491,608 98.06% 287,208 2012 15,198,356 14,973,158 98.52% 225,198 2013 15,436,108 15,263,340 98.88% 172,768 2014 16,399,822 16,238,325 99.02% 161,497 2015 16,865,592 16,600,435 98.43% 265,157 2016 17,282,218 16,924,476 97.93% 357,742

Note: None


Footnotes: None

197

City of Union CityProperty Values and ConstructionLast Ten Fiscal Years(Value in Thousands of Dollars)

Fiscal YearEnded Non- Single Multiple

June 30, Residential Residential Total Family Family Total

2007 87,397$ 17,067$ 104,464$ 155 122 277 2008 89,233 15,445 104,678 42 453 495 2009 9,241 12,389 21,630 2 6 8 2010 34,819 11,108 45,927 2 6 8 2011 16,848 14,025 30,873 3 1 4 2012 11,163 15,276 26,439 2 - 2 2013 8,796 51,317 60,113 3 - 3 2014 9,261 46,215 55,476 1 - 1 2015 28,211 45,177 73,388 35 2 37 2016 24,623 55,834 80,457 14 243 257

Notes: None

Sources: 1) City of Union City Economic and community development

Footnotes: None

VALUENEW DWELLING UNITS (# OF

PERMITS)

198

DEBT CAPACITY INFORMATION

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years

Ratios of General Bonded Debt Outstanding - Last Ten Years

Schedule of Direct and Overlapping Debt - As of June 30, 2016

Legal Debt Margin Information - Last Ten Fiscal Years

Pledged-Revenue Coverage - Last Ten Fiscal Years

199

City of Union CityRatios of Outstanding Debt by TypeLast Ten Fiscal Years(In Thousands except Per Capita Items)

Fiscal Pension Tax Special Percent of TotalYear Ended Obligation Allocation Tax Capital Assessed Per Governmental

June 30, Bonds1 Bonds Bonds Leases Sub-Total Value2 Capita3 Other Activities2007 23,137$ 98,720$ 7,005$ 2,805$ 131,398$ 1.33% 1,849$ 9,810$ 131,398$ 2008 23,087 131,405 6,835 1,516 162,454 1.58% 2,254 8,351 162,454 2009 22,976 130,006 6,655 1,187 160,306 1.64% 2,167 7,842 160,306 2010 22,793 123,749 6,465 5,660 158,012 1.64% 2,134 12,125 158,012 2011 22,529 151,946 6,265 4,916 184,855 1.93% 2,646 11,181 184,855 2012 22,184 - 6,055 5,990 33,273 0.35% 477 12,045 33,273 2013 21,746 - 5,835 5,756 32,214 0.32% 457 11,591 32,214 2014 21,208 - 5,760 5,376 31,044 0.29% 435 11,136 31,044 2015 20,567 - 5,476 4,966 31,009 0.29% 434 10,442 31,009 2016 19,810 - 5,160 5,356 30,326 0.26% 421 10,516 30,326

Fiscal Certificates Total Total Percentage Total DebtYear Ended of Business-type Primary of Personal per

June 30, Participation Other Activities Government Income3 Capita3

2006 - - - 131,398$ 204.62% 1,867$ 2007 - - - 162,454 235.27% 2,286 2008 - - - 160,306 223.03% 2,224 2009 - - - 158,012 214.83% 2,136 2010 - - - 184,855 263.45% 2,497 2011 - - - 33,273 45.94% 476 2012 - - - 32,214 41.21% 462 2013 - - - 31,044 36.74% 440 2014 - - - 31,044 35.53% 435 2015 - - - 31,009 35.49% 434 2016 - - - 30,326 33.46% 421

Note: Details regarding the City's outstanding debt can be found in Long-Term Liabilities note in CAFR.

Sources: 1) Current and Prior Comprehensive Annual Financial Reports (CAFR)2) Alameda County Auditor-Controller Agency

Footnotes: 1) The City issued $22.998 million in pension obligations bonds during FISCAL YEAR ENDED JUNE 30, 2004.2) Assessed value has been used because the actual value of taxable property is not readily available in California.3) These ratios are calculated using personal income and population for the prior calendar year.4) As of January31, 2012, the outstanding balance of tax allocation bonds were retired from the governmental funds and restated as the opening balance in the City’s fiduciary fund for the Redevelopment Successor Agency.5) The City started separating business-type activity debt in its financial statements starting with the FISCAL YEAR ENDED JUNE, 30, 2003.

Governmental Activities

Business-type Activities5

200

City of Union CityRatios of General Bonded Debt OutstandingLast Ten Fiscal Years(In Thousands except Per Capita Items)

Accreted Interest Less: AmountsFiscal Pension Pension Available in Percent of

Year Ended Obligation Obligation Debt Service Assessed Per

June 30, Bonds Bonds Fund Total Value2 Capita3

2007 22,868$ 269$ 820$ 22,317$ 0.31% 310$ 2008 22,698 389 896 22,191$ 0.29% 300 2009 22,458 518 970 22,006$ 0.28% 297 2010 22,138 655 1,052 21,741$ 0.29% 311 2011 21,728 801 1,131 21,398$ 0.29% 307 2012 21,228 956 1,223 20,961$ 0.28% 297 2013 20,623 1,123 1,317 20,429$ 0.27% 286 2014 19,908 1,300 1,412 19,796$ 0.25% 275 2015 19,078 1,489 1,520 19,047$ 0.23% 262 2016 18,118 1,692 1,633 18,177$ 0.20% 249

Note: Details regarding the City's outstanding debt can be found in Long-Term Liabilities note in CAFR.

Sources: 1) Current and Prior Comprehensive Annual Financial Reports (CAFR)2) Alameda County Auditor-Controller Agency

Footnotes: 1) The City issued $22.998 million in pension obligations bonds during FISCAL YEAR ENDED JUNE 30, 2004.2) Assessed value has been used because the actual value of taxable property is not readily available in California.3) These ratios are calculated using personal income and population for the prior calendar year.

201

City of Union CitySchedule of Direct and Overlapping DebtAs of June 30, 2016

2015-16 City Assessed Valuation $9,118,434,296City's

Outstanding % Share ofDebt Applicable Debt

as of 6/30/16 to City(1) as of 6/30/16Direct and Overlapping Tax and Assessment Debt

Bay Area Rapid Transit District 527,065,000$ 1.501% 7,974,493$ Chabot-Las Positas Community College District 420,427,539 7.701% 32,856,412 Ohlone Community College District 405,166,857 2.087% 8,245,146 Hayward Unified School District 298,979,744 0.134% 376,714 New Haven Unified School District 214,828,428 85.201% 184,204,636 Washington Township Healthcare District 333,540,000 15.428% 51,848,793 East Bay Regional Park District 149,945,000 2.304% 3,475,725 City of Union City Dyer Street Community Facilities District 5,165,325 5,165,325

Total Direct and Overlapping Tax and Assessment Debt 2,355,117,893 294,147,244

Direct and Overlapping General Fund DebtAlameda County General Fund Obligations 852,027,000 3.838% $32,700,796Alameda County Pension Obligation Bonds 47,111,940 3.838% 1,808,124Alameda-Contra Costa Transit District Certificates of Participation 21,285,000 0.505% 107,489Hayward Unified School District Certificates of Participation 14,880,000 0.126% 18,749Hayward Area Recreation & Park District Certificates of Participation 16,100,000 0.090% 14,490City of Union City Build America Bonds Capital Lease 3,944,188 100.000% 3,944,188City of Union City Motorola Communications Equipment Capital Lease 582,631 100.000% 582,631City of Union City Key Government Finance Capital Lease 829,644 100.000% 829,644City of Union City Pension Obligation Bonds 19,809,826 100.000% 19,809,826

Total Direct and Overlapping General Fund Debt 976,570,229 59,815,938

OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 135,180,000 99.948% 135,109,706

TOTAL DIRECT DEBT 30,331,614 TOTAL OVERLAPPING DEBT 458,741,274

COMBINED TOTAL DEBT (2) $3,466,868,122 $489,072,888

Ratios to 2015-16 Adjusted Assessed Valuation::

Total Direct and Overlapping Tax and Assessment Debt 3.23%Total Direct Debt ($28,634,436) 0.33%Combined Total Debt 5.36%

Ratios to Redevelopment Successor Agency Incremental Valuation ($2,319,343,739) :Total Overlapping Tax Increment Debt 5.83%

Notes: None

Source: California Municipal Statistics

Footnotes: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.

202

City of Union CityLegal Debt Margin InformationLast Ten Fiscal Years(In thousands of dollars)

2007 2008 2009 2010 2011

Assessed valuation 7,364,957$ 7,918,152$ 8,185,676$ 7,820,380$ 7,774,658$

Conversion percentage 25% 25% 25% 25% 25%

Adjusted assessed valuation 1,841,239 1,979,538 2,046,419 1,955,095 1,943,665

Debt limit percentage 15% 15% 15% 15% 15%

Debt limit 276,186 296,931 306,963 293,264 291,550

Total net debt applicable to limit:General obligation bonds 23,087 22,976 22,793 22,138 21,728

Legal debt margin 253,099$ 273,955$ 284,170$ 271,126$ 269,822$

Total debt applicable to limitas a percentage of debt limit 8.4% 7.7% 7.4% 7.5% 7.5%


203

CITY OF UNION CITYLegal Debt Margin Information, ContinuedLast Ten Fiscal Years(In thousands of dollars)

2012 2013 2014 2015 2016

Assessed valuation 7,783,635$ 7,837,213$ 8,202,478$ 8,819,008$ 9,270,823$

Conversion percentage 25% 25% 25% 25% 25%

Adjusted assessed valuation 1,945,909 1,959,303 2,050,619 2,204,752 2,317,706

Debt limit percentage 15% 15% 15% 15% 15%

Debt limit 291,886 293,896 307,593 330,713 347,656

Total net debt applicable to limit:General obligation bonds 21,228 20,623 19,908 19,078 19,810

Legal debt margin 270,658$ 273,273$ 287,685$ 311,635$ 327,846$

Total debt applicable to limitas a percentage of debt limit 7.3% 7.0% 6.5% 5.8% 5.7%

Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation based upon 25% of market value. Effective with the 1981-82 fiscal year, each each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source:City Finance DepartmentAlameda County Assessor's Office

Footnotes: None


204

City of Union CityPledged-Revenue CoverageLast Ten Fiscal Years

FiscalYear Ended Tax

June 30, Increment Principal Interest Coverage2007 19,402,452$ 1,265,000$ 5,048,211$ 3.07 2008 20,879,395 1,305,000 5,026,189 3.30 2009 21,472,015 1,355,000 6,743,413 2.65 2010 19,368,486 33,620,000 (1) 6,328,709 0.48 2011 19,329,856 1,040,000 6,057,643 2.72 2012 9,144,104 1,080,000 8,191,046 0.99 2013 18,857,035 2,695,000 7,686,364 1.82 2014 19,511,162 2,145,000 7,596,973 2.00 2015 10,692,499 2,390,000 7,481,881 1.08 2016 11,564,280 85,095,000 (2) 6,414,440 (3) 0.13

FiscalYear Ended Special Tax

June 30, Revenues Principal Interest Coverage2007 659,064$ 160,000$ 402,785$ 1.17 2008 624,083 170,000 394,616 1.11 2009 588,075 180,000 385,775 1.04 2010 597,468 190,000 383,158 1.04 2011 599,812 200,000 366,005 1.06 2012 596,934 210,000 355,035 1.06 2013 593,442 220,000 343,095 1.05 2014 560,658 230,000 296,206 1.07 2015 566,710 290,000 227,731 1.09 2016 560,563 310,000 215,731 1.07

Notes: 1) Includes repayment of long-term debt.2) Includes Defeased: 2005 TAB $31,725,000 and 2010 TAB of,$27,165,0003) Net Reduction from interest from 2005, 2010 TAB defeased and new 2015 Refunding TABDetails regarding the city's outstanding debt can be found in the notesto the financial statements. Operating expenses do not include interestor depreciation expenses.

Source: City Financial Department

Footnotes: None

Debt Service

Tax Allocation Bonds

Community Facilities District Special Tax Bonds

Debt Service

205

DEMOGRAPHIC AND ECONOMIC INFORMATION

Bank Deposit Summary - Last Ten Fiscal Years

General Fund Expenditures by Function - Last Ten Fiscal Years

General Fund Revenues by Function - Last Ten Fiscal Years

Taxable Sales Transactions - Last Ten Calendar Years

Taxable Sales Transactions - by Type of Business

Adopted and Final Budget for 2015-16 and 2016-17 Adopted Budget for Unrestricted General Fund

Summary of Revenues, Expenditures, and Changes in Fund Balance General FundMunicipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

Pooled Investment Portfolio - As of June 30, 2016Municipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

Demographic and Economic Statistics - Last Ten Calendar Years

Principal Employers - Current and Nine Years Ago

Full-time and Part-time City Employees (Full-Time Equivalent FTE's) by Department - Last Ten Fiscal Years

206

City of Union CityBank Deposit SummaryLast Ten Fiscal Years(Deposits in Thousands of Dollars)

Fiscal YearEnded Savings Savings

June 30, Banks and Loans Total Banks and Loans Total

2007 821,976$ 32,211 854,187$ 10 1 11 2008 843,827 51,073 894,900 10 1 11 2009 998,468 - 998,468 11 - 11 2010 1,032,647 - 1,032,647 11 - 11 2011 1,193,196 - 1,193,196 11 - 11 2012 1,190,099 - 1,190,099 11 - 11 2013 1,344,512 - 1,344,512 11 - 11 2014 1,402,438 - 1,402,438 11 - 11 2015 1,559,239 - 1,559,239 11 - 11 2016 1,761,042 - 1,761,042 11 - 11

Notes: None

Source: Federal Deposit Insurance Corporation (FDIC) - Summary of Deposits Report

DEPOSITS # OF INSTITUTIONS

207

City of Union CityGeneral Fund Expenditures by FunctionLast Ten Fiscal Years

Fiscal Economic Year & community

Ended General development Capital Public Community and DebtJune 30, Government and Public works Outlay Subtotal Safety recreation services Service Total

2007 5,544,967$ 5,558,917$ 1,738,396$ 12,842,280$ 23,500,877$ 2,036,277$ 520,000$ 38,899,434$

2008 5,799,875 5,374,181 125,432 11,299,488 24,653,240 2,540,455 129,306 38,622,489

2009 5,834,702 5,159,559 354,326 11,348,587 27,633,165 2,581,083 131,494 41,694,329

2010 5,707,134 4,568,806 29,746 10,305,686 25,710,298 2,059,338 131,496 38,206,818

2011 5,842,145 4,243,421 72,741 10,158,307 24,256,005 3,409,615 131,497 37,955,424

2012 9,718,068 4,925,689 538,114 15,181,871 25,127,938 3,766,994 296,444 44,373,247

2013 6,583,560 5,995,195 282,183 12,860,938 25,426,828 4,181,992 180,853 42,650,611

2014 6,469,382 6,631,693 1,521,642 14,622,717 25,964,991 4,129,349 185,342 44,902,399

2015 7,797,774 7,783,581 639,402 16,220,757 27,795,258 4,353,228 189,727 48,558,970

2016 9,376,700 8,459,393 531,142 18,367,235 30,449,607 5,249,033 348,056 54,413,931

Note: None

Source: Current and Prior Comprehensive Annual Financial Reports (CAFRS). Statement of Revenues, Expenditures,and Changes in Fund Balances.

Footnotes: None

208

City of Union CityGeneral Fund Revenues by FunctionLast Ten Fiscal Years

Fiscal Taxes Licenses Fines ChargesYear Ended and Special and and Inter- for Investment Other

June 30, Assessments Permits Forfeitures governmental Services Income Revenue TOTAL

2007 27,991,594$ 2,268,896$ 818,384$ 1,805,312$ 2,024,588$ 1,310,984$ 1,559,113$ 37,778,871$

2008 30,153,769 1,944,094 997,566 1,596,980 2,623,115 800,834 696,072 38,812,430

2009 30,182,461 1,717,201 917,853 1,198,588 4,175,520 613,405 1,557,882 40,362,910

2010 28,311,274 1,689,832 831,574 1,344,512 2,473,334 121,022 393,000 35,164,548

2011 29,585,300 1,546,781 612,057 1,240,396 4,147,445 102,334 496,100 37,730,413

2012 33,200,420 1,738,873 539,690 1,054,046 4,833,857 (3,749) 919,449 42,282,586

2013 35,374,339 1,565,244 431,061 1,284,517 5,753,940 (423,577) 370,800 44,356,324

2014 38,311,405 1,511,700 390,441 1,318,008 5,708,774 428,629 410,453 48,079,410

2015 40,424,438 2,070,030 565,028 1,385,531 6,041,796 199,786 893,541 51,580,150

2016 43,536,217 2,245,308 494,467 764,170 6,484,890 185,090 846,351 54,556,493

Note: Includes General and Special Revenue Funds only.

Source: Current and Prior Comprehensive Annual Financial Reports (CAFRS). Statement of Revenues, Expenditures,and Changes in Fund Balances.

Footnotes: 1) Motor Vehicle In-Lieu revenues are now mainly received through Property Taxes as of FISCAL YEAR ENDING, JUNE 30, 2005. This is the reason for the large drop in revenues reported under this category for FISCAL YEAR ENDING, JUNE 30, 2006. FISCAL YEAR ENDING, JUNE 30, 2005 would have seen similar revenues had it not been for a one-time $1.2 million MVLF loan settlement payment from the State of California.

209

City of Union CityTaxable Sales TransactionsLast Ten Calendar Years(Sales Transactions in Thousands of Dollars)

2006 2007 2008 2009 2010

Motor Vehicle and Parts Dealers 14,362$ 14,824$ 12,546$ 10,649$ 10,600$ Home Furnishings and Appliance Stores1 19,523 17,818 Unavail. Unavail. Unavail.Bldg. Matrl. and Garden Equip. and Supplies 101,424 72,055 58,604 52,933 57,992 Food and Beverage Stores 26,531 26,920 26,746 30,418 30,950 Gasoline Stations 44,358 52,685 59,565 43,307 46,155 Clothing and Clothing Accessories Stores 4,400 2,593 3,005 4,219 4,383 General Merchandise Stores1 Unavail. Unavail. Unavail. Unavail. Unavail.Food Services and Drinking Places 78,681 82,837 82,497 77,096 79,520 Other Retail Group1 204,869 206,844 210,114 183,522 180,932 All Other Outlets 270,231 328,832 344,211 285,514 321,275

Totals 764,379$ 805,408$ 797,288$ 687,658$ 731,807$

Number of sales tax permits 1,164 1,193 1,177 1,112 1,144

2011 2012 2013 2014 20152

Motor Vehicle and Parts Dealers 10,943$ 11,445$ 11,424$ 11,945$ Unavail.Home Furnishings and Appliance Stores1 50,076 52,769 54,411 57,986 Unavail.Bldg. Matrl. and Garden Equip. and Supplies 115,638 105,020 112,758 131,198 Unavail.Food and Beverage Stores 32,182 32,971 33,215 34,205 Unavail.Gasoline Stations 56,258 61,369 61,369 59,987 Unavail.Clothing and Clothing Accessories Stores 4,547 4,704 3,958 4,027 Unavail.General merchandise stores1 Unavail. Unavail. Unavail. Unavail. Unavail.Food Services and Drinking Places 82,421 89,412 94,451 103,186 Unavail.Other Retail Group1 127,529 123,293 122,090 122,862 Unavail.All Other Outlets 274,158 278,383 300,614 301,006 Unavail.

Totals 753,752$ 759,366$ 794,290$ 826,402$ Unavail.

Number of sales tax permits 1,127 1,139 1,137 1,108 Unavail.

Source: California State Board of Equalization, Annual Reports - Taxable Sales in California (Sales & Use Tax)

Footnotes: 1) Sales omitted because their publication would result in the disclosure of confidential information. These are included with "Other retail stores" when possible per California State Board of Equalization.2) Data for Calendar Year 2015 not available when CAFR produced.

CALENDAR YEAR

Type of BusinessCALENDAR YEAR

210

City of Union CityTaxable Sales Transactionsby Type of Business(Sales Transactions in Thousands of Dollars)

Number of Sales TaxPermits Transactions

Motor Vehicle and Parts Dealers 22 11,945$ Home Furnishings and Appliance Stores 49 57,986 Bldg. Matrl. and Garden Equip. and Supplies 14 131,198 Food and Beverage Stores 48 34,205 Gasoline Stations 11 59,987 Clothing and Clothing Accessories Stores 47 4,027 General merchandise stores1 13 Unavail.Food Services and Drinking Places 126 103,186 Other Retail Group1 336 122,862

Total Retail and Food Services 666 525,396

All Other Outlets 442 301,006

Total All Outlets 1,108 826,402$

Source: California State Board of Equalization, 49th Annual Report - Taxable Sales in California (Sales & Use Tax)

Footnotes: 1) Sales omitted because their publication would result in the disclosure of confidential information. These are included with "Other retail stores" when possible per California State Board of Equalization.2) Data for Calendar Year 2015 not available when CAFR produced.

Calendar Year 20142

Municipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

Type of Business

211

City of Union CityAdopted and FinalBudget 2015-16 and 2016-17 Adopted Budget forUnrestricted General Fund

2015-16 2015-16 2016-17Adopted Final Adopted

General Fund General Fund General FundBudget Budget Budget

REVENUES:Taxes and assessments 42,096,700$ 42,283,300$ 43,515,100$ Licenses, permits and fees 2,004,300 2,110,900 2,064,400 Fines and forfeitures 549,900 529,600 566,500 Intergovernmental 957,900 1,108,676 957,900 Charges for services 2,273,300 2,352,500 2,341,600 Investment income 450,800 92,600 467,600 Other 532,200 733,654 512,200

Total Revenues 48,865,100 49,211,230 50,425,300

EXPENDITURESGeneral government 8,179,526 8,740,593 9,585,467 Public safety 28,806,367 30,745,116 30,400,128 Community and recreation services 4,046,828 4,107,451 3,801,988 Economic and community development 3,387,705 3,720,553 3,325,274 Public works 3,787,040 5,018,945 3,960,471 Capital outlay 726,717 - 39,423 Debt service:

Principal repayment 98,639 249,985 262,612 Interest and fiscal charges 95,537 98,071 89,954

Total Expenditures 49,128,359 52,680,714 51,465,317

Excess (deficiency) of Revenues over Expenditures (263,259) (3,469,484) (1,040,017)

Other Financing Sources (Uses):Gain (loss) on disposal of capital assetsTransfers In 740,300 1,302,144 740,300 Transfers Out (1,026,700) (3,900,214) (1,026,700)

Total Other Sources (Uses) (286,400) (2,598,070) (286,400)

Excess (deficiency) of Revenues and Other SourcesOver Expenditures and Other Uses (549,659) (6,067,554) (1,326,417)

Fund Balance, beginning of year as reported 13,265,883 9,197,742 3,130,188

Fund Balance, end of year 12,716,224$ 3,130,188$ 1,803,771$

Notes: None

Source: City Finance Department. Adopted Budget and Finance System.

Footnotes: None

Municipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

212

City of Union CitySummary of Revenues, Expenditures, and Changes in Fund BalanceGeneral FundMunicipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

2012 2013 2014 2015 2016REVENUES:

Taxes and assessments 33,200,420$ 35,374,339$ 38,311,405$ 40,424,438$ 43,536,217$ Licenses and permits 1,738,873 1,565,244 1,511,700 2,070,030 2,245,308 Fines and forfeitures 539,690 431,061 390,441 565,028 494,467 Intergovernmental 1,054,046 1,284,517 1,318,008 1,385,531 764,170 Charges for services 4,833,857 5,753,940 5,708,774 6,041,796 6,484,890 Investment income (3,749) (423,577) 428,629 199,786 185,090 Other 919,449 370,800 410,453 893,541 846,351

Total Revenues 42,282,586 44,356,324 48,079,410 51,580,150 54,556,493

EXPENDITURESGeneral government 9,718,068 6,583,560 6,469,382 7,797,774 9,376,700 Public safety 25,127,938 25,426,828 25,964,991 27,795,258 30,449,607 Community and recreation services 3,766,994 4,181,992 4,129,349 4,353,228 5,249,033

Planning and public works 1 4,925,689 5,995,195 - - - Economic and community development - - 2,218,378 3,370,951 3,271,567 Public works - - 4,413,315 4,412,630 5,187,826 Capital outlay 538,114 282,183 1,521,642 639,402 531,142 Debt service:

Principal repayment 124,275 71,804 80,205 89,139 249,985 Interest and fiscal charges 172,169 109,049 105,137 100,588 98,071

Total Expenditures 44,373,247 42,650,611 44,902,399 48,558,970 54,413,931

Excess (deficiency) of Revenues over Expend. (2,090,661) 1,705,713 3,177,011 3,021,180 142,562

Other Financing Sources (Uses):Issuance of capital leases - - - - 980,990 Gain (loss) on disposal of capital assets 21,951 39,520 - 6,636 7,520 Transfers In 1,881,256 1,644,862 3,190,963 2,722,963 3,683,145 Transfers Out (1,555,951) (1,812,282) (1,036,700) (1,211,752) (6,376,846)

Total Other Sources (Uses) 347,256 (127,900) 2,154,263 1,517,847 (1,705,191)

Excess (deficiency) of Revenues & Other SourcesOver Expenditures and Other Uses (1,743,405) 1,577,813 5,331,274 4,539,027 (1,562,629)

EXTRAORDINARY ITEMAsset transfer fr Redevelopment Property Tax Trust Fund - - - 5,743,960 -

SPECIAL ITEMAsset transfer fr Redevelopment Property Tax Trust Fund - - - - 19,219,507

Fund Balance, beginning of year as previously reported 13,588,450 12,338,268 12,935,682 18,266,956 28,549,943 Change in accounting principle 493,223 (980,399) - - - Fund Balance, beginning of year as restated 14,081,673 11,357,869 12,935,682 18,266,956 57,696,945

Fund Balance, end of year 12,338,268$ 12,935,682$ 18,266,956$ 28,549,943$ 56,134,316$

Notes: None

Source: Current and Prior Comprehensive Annual Financial Reports (CAFRS). Statement of Revenues, Expenditures,and Changes in Fund Balances.Footnotes: 1) Beginning FY 2014, expenditures for Planning and Public Works were segregated into Community and Economic Development and Public Works

213

City of Union CityPooled Investment PortfolioAs of June 30, 2016Municipal Debt Continuing Disclosure S.E.C. Rule 15c2-12(b)(5)

Percent Yield/360 DayAt Fair Value At Par/Cost of Portfolio Year Equivalent

LOCAL AGENCY INVESTMENT FUND (LAIF)LAIF-GENERAL 57,453,003$ 57,417,334$ 73.22% 0.576%

FEDERAL HOME LOAN MORTGAGE 2,001,060 2,000,000 2.55% 0.750%FEDERAL HOME LOAN MORTGAGE 2,001,120 2,000,000 2.55% 1.100%FEDERAL HOME LOAN MORTGAGE 1,001,020 1,000,000 1.28% 1.000%FEDERAL HOME LOAN MORTGAGE 1,001,210 1,000,000 1.28% 0.750%FEDERAL HOME LOAN MORTGAGE 1,001,580 1,000,000 1.28% 1.000%FEDERAL HOME LOAN MORTGAGE 2,000,000 2,000,000 2.55% 1.000%FEDERAL HOME LOAN BANK 2,000,020 2,000,000 2.55% 0.740%FEDERAL HOME LOAN BANK 2,000,240 2,000,000 2.55% 1.350%FEDERAL HOME LOAN BANK 1,000,130 1,000,000 1.28% 1.550%FEDERAL NAT'L MORTGAGE ASSN 1,001,280 1,000,000 1.28% 1.200%FEDERAL NAT'L MORTGAGE ASSN 2,000,380 2,000,000 2.55% 1.000%FEDERAL NAT'L MORTGAGE ASSN 2,000,360 2,000,000 2.55% 1.000%FEDERAL NAT'L MORTGAGE ASSN 2,000,000 2,000,000 2.55% 1.200%

TOTALS 78,461,403$ 78,417,334$ 100.00%

Note: The investment listing above excludes investments in mutual funds and local obligation bonds held by fiscal agents.

Sources: City of Union City Finance Department

Footnotes: None

Investment

214

City of Union CityDemographic and Economic StatisticsLast Ten Calendar Years

PerPersonal Capita

Calendar Population Population Income Personal UnemploymentYear Population Change % Population Change % (in thousands) Income Rate2007 72,072 1.42% 1,527,809 1.08% 71,875,220 47,045 4.7%2008 73,977 2.64% 1,550,552 1.49% 73,551,917 47,436 6.2%2009 74,030 0.07% 1,568,903 1.18% 70,167,805 44,724 10.5%2010 69,850 -5.65% 1,582,420 0.86% 72,428,377 45,771 11.3%

2011 69,746 -0.15% 1,525,655 -3.59% 78,173,256 51,239 10.3%

2012 70,554 1.16% 1,530,176 0.30% 84,503,175 55,224 9.0%

2013 71,396 1.19% 1,550,119 1.30% 87,373,095 56,365 7.4%

2014 72,109 1.00% 1,574,497 1.57% 90,631,392 57,562 5.9%20152,3 72,744 0.88% 1,594,569 1.27% 94,256,648 59,111 4.4%

2016 72,952 0.29% 1,627,865 2.09% 98,026,914 60,218 4.3%

Note: None

Source: 1) California State Department of Finance2) U.S. Bureau of Economic Analysis3) California Employment Development Department

Footnotes: 1) City population and unemployment figures are readily available, however personal income is not. Thus, the City of Union City has chosen to show County figures.2) Personnal Income only known for 2014. Using estimate for 2015, and 2016 based on average growth rates of 4%.3) Unemployment rate for 2016 is through Oct 2016

COUNTY1CITY1

215

City of Union CityPrincipal EmployersCurrent Year and Nine Years Ago

Number of Percent of TotalRank Employer Employees Employment

Average Annual Employment133,400 100.00%

1 Southern Wine and Spirits 1226 3.67%2 New Haven Unified School District 1036 3.10%3 City of Union City 423 1.27%4 Wal-Mart 400 1.20%5 Abaxis, Inc. 400 1.20%6 Corning Life Sciences – Axygen Inc. 370 1.11%7 Kaiser Permanente 330 0.99%8 Ajax Custom Manufacturing 300 0.90%9 Mizuho OSI, Inc. 300 0.90%

10 Blommer Chocolate, Inc. 290 0.87%

Number of Percent of TotalRank Employer Employees Employment

Total Employment132,400 100.00%

1 New Haven Unified School District 1,353 4.18%2 Southern Wine & Spirits 1,150 3.55%3 Wal-Mart 780 2.41%4 City of Union City 361 1.11%5 Axygen Scientific 350 1.08%6 Kaiser Permanente 300 0.93%7 OSI, Inc. 300 0.93%8 Blommer Chocolate 290 0.90%9 Kerry Sweet Ingredients 270 0.83%

10 Jatco 263 0.81%

Note: None1) Employement data is shown on a Calender Year Basis.

Sources: 1) Union City Chamber of Commerce2) New Haven Unified School District3) City of Union City Personnel Department4) State of California Employment Development Department5) Harris InfoSource6) Finance Dept. Southern Wine and Spirit

Footnotes: None

FISCAL YEAR ENDING JUNE 30, 2007

2016FISCAL YEAR ENDING JUNE 30,

216

City of Union CityFull-time and Part-time City Employees (Full-Time Equivalent FTE's)by DepartmentLast Ten Fiscal Years

Department 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 4.00 4.00 4.00 4.00 4.00 5.00 5.00 6.00 8.00 12.00

City Attorney1 - - - - - - - - - - City Clerk 2.50 2.50 2.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Admin. Services 15.40 15.40 15.40 14.90 15.40 16.40 16.40 17.00 17.00 14.00 Economic and community development

18.50 19.00 19.38 15.86 17.00 18.50 17.50 17.33 17.05 25.00

Fire2 53.00 55.00 54.62 50.00 - - - - - Community and recreation services

79.46 82.13 84.13 93.68 95.33 99.56 98.06 97.36 102.13 193.00

Police 122.05 123.65 121.65 110.94 114.25 118.55 118.05 118.05 118.55 113.00 Public Works 61.04 61.31 60.31 56.95 55.95 56.95 56.95 56.81 56.81 59.00

TOTAL 360.95 367.99 366.99 353.32 308.93 321.96 318.96 319.55 326.54 423.00

Notes:

Source: City Personnel Office and Annual Budgets

Footnotes:1) City Attorney is a contractual position.2) Fire services provided by Alameda County Fire Department (ACFD) on a contractual basis

FTE's FOR FISCAL YEAR ENDING JUNE 30,

217

OPERATING INFORMATION

Operating Indicators by Function – Last Ten Fiscal Years

Capital Asset Statistics by Function – Last Ten Fiscal Years

Miscellaneous Statistics - Last Ten Four Years

218

City of Union CityOperating Indicatorsby FunctionLast Ten Fiscal Years

Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Police

Arrests 2,658 2,271 2,219 1,181 2,517 2,334 2,332 2,495 2,332 2,253 Traffic citations issued 8,430 5,300 5,783 8,754 8,929 5,081 4,737 7,135 5,494 6,517

FireCalls for Service 5,008 4,901 5,230 4,202 4,500 4,730 4,783 4,381 4,629 4,660

Public Works:Street resurfacing (miles) 3 3 3 2 3 4 3 8 7 4

Economic and community development# of building permits issued 1,861 1,168 911 1,011 953 1,057 1,090 1,196 1,376 1,536 # of building inspections 13,132 7,045 10,363 9,262 5,398 6,396 4,238 4,001 4,133 5,703

Community and recreation services# of recreation classes 3,139 3,045 2,310 1,676 2,303 1,792 1,365 3,437 2,190 2,066 # of facility rentals 187 154 171 215 500 176 197 238 274 277

Notes: None

Source: City departments

Footnotes: None


219

City of Union CityCapital Asset Statisticsby FunctionLast Ten Fiscal Years

Function 2003 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016General Government

City Halls 1 1 1 1 1 1 1 1 1 1 1 1

PoliceStations 1 1 1 1 1 1 1 1 1 1 1 1 Community resource centers

3 3 3 3 3 3 3 3 3 3 3 3

Fire

Fire Stations14 4 4 4 4 4 4 4 4 4 4 4

Public Works:Streets (miles) 135 137 137 137 137 137 137 137 137 137 137 137 Streetlights 3,718 3,787 4,078 4,078 4,087 4,170 4,170 4,170 4,170 4,170 4,175 4,175 Traffic signals 52 57 57 57 57 57 57 65 65 65 65 67

Community and recreation servicesParks 31 31 33 33 33 33 33 33 33 33 33 33 Community centers 3 3 3 3 3 3 3 3 3 3 3 3 Senior centers 1 1 1 1 1 1 1 1 1 1 1 1 Teen centers 2 2 2 2 2 2 2 2 2 2 2 2 Multicourt tennis complexes 2 2 2 2 2 2 2 2 2 2 2 2 Sports Centers - - 1 1 1 1 1 1 1 1 1 1

Summer Camp Modular Buildings

- - - - - - - - - 3 3

Notes: None

Source: City departments

Footnotes: 1) Fire service provided by of the Alameda County Fire Department (ACFD).


220

City of Union CityMiscellaneous StatisticsLast Five Fiscal Years

Date incorporated January 26, 1959Type of city General lawForm of government Council/ManagerArea in square miles 18.1

2012 2013 2014 2015 2016Police protection

Stations 1 1 1 1 1 Sworn personnel 77 77 77 77 75

Fire protection1

Stations 4 4 4 4 4 Sworn personnel 37 37 37 37 37

Community and recreation servicesParks 33 33 33 33 33 Multicourt tennis complexes 2 2 2 2 2 Community centers 3 3 3 3 3 Teen centers 2 2 2 2 2 Senior centers 1 1 1 1 1 Sports centers 1 1 1 1 1

City employees (FTE's) 319.55 319.55 319.55 326.54 423.00

Population2 70,554 71,396 72,109 72,744 72,952

Households2 20,541 21,431 21,431 21,435 21,306

Number of registered voters 31,174 33,423 33,574 33,574 36,379

Number of public schoolsElementary schools 7 7 7 7 7 Middle schools 2 2 2 2 2 High schools 1 1 1 1 1 Adult schools 1 1 1 1 1

Number of students enrolled in public school 12,400 12,400 12,300 12,508 12,600

Note: None

Sources: City of Union City Finance DepartmentCalifornia Department of FinanceAlameda County Registar of Voters

Footnotes: 1) Fire protection has been provided by Alameda County Fire District since FY 2010-11. FTE's onlyinclude personnel fully assigned to Union City and does not include shared positions.2) Figures are for beginning of calendar year January 1st.


221

city of union city, california

Documents