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Home My WebLink About111621-08.1 ACFRTOWN OF DANVILLE, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 TOWN COUNCIL Renee Morgan, Mayor Newell Arnerich, Vice Mayor David Fong, Councilmember Karen Stepper Councilmember Robert Storer, Councilmember TOWN STAFF Joseph A. Calabrigo, Town Manager Lani Ha, Finance Director/Treasurer TOWN OF DANVILLE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2021 TOWN COUNCIL Renee Morgan, Mayor Newell Arnerich, Vice Mayor David Fong, Councilmember Karen Stepper, Councilmember Robert Storer, Councilmember TOWN MANAGER Joseph A. Calabrigo Prepared by the Finance Division Lani Ha, Finance Director/Treasurer Danville, CA (Cover Photo - by Engineering Division) This page intentionally left blank. Town of Danville Comprehensive Annual Financial Report For the Year Ended June 30, 2021 Table of Contents INTRODUCTORY SECTION (Unaudited) Page Letterof Transmittal..........................................................................................................................................................i OrganizationalChart ...................................................................................................................................................... xii Directory of Public Officials ........................................................................................................................................ xiii Certificate of Achievement for Excellence in Financial Reporting — Government Finance Officers Association................................................................................................................xiv Statementof Purpose......................................................................................................................................................xv FINANCIAL SECTION Independent Auditors' Reports: Report on Financial Statements ................. 1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.............................................................................................5 Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) .............................7 Basic Financial Statements: Government -Wide Financial Statements: Statementof Net Position...........................................................................................................................20 Statementof Activities................................................................................................................................21 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet.............................................................................................................................................28 Reconciliation of Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position.............................................................................31 Statement of Revenues, Expenditures and Changes in Fund Balances.......................................................32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to Government -Wide Statementof Activities.........................................................................................................................34 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position............................................................................................................38 Statement of Changes in Fiduciary Net Position.........................................................................................39 Index to Notes to the Basic Financial Statements....................................................................................................42 Notes to the Basic Financial Statements...................................................................................................................43 Town of Danville Comprehensive Annual Financial Report For the Year Ended June 30, 2021 Table of Contents (Continued) FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited): Budgetary Information..................................................................... Budgetary Comparison Schedules: GeneralFund....................................................................... Lighting and Landscaping Special Revenue Fund .............. Regional Traffic Impact Fees Special Revenue Fund ......... Modified Approach for Town Street Infrastructure Capital Assets.. Supplemental Information: Non -Major Governmental Funds: Page ............................................... 72 ...................................................................... 73 ...................................................................... 74 ...................................................................... 75 ...................................................................... 76 CombiningBalance Sheet..................................................................................................................................85 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances............................................91 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual: PEGSpecial Revenue Fund.........................................................................................................................96 GasTax Special Revenue Fund..................................................................................................................97 Building and Planning Special Revenue Fund............................................................................................98 Development Engineering Special Revenue Fund...................................................................................... 99 ChildCare Special Revenue Fund.............................................................................................................100 Stormwater Pollution Control Program (SPCP) Special Revenue Fund...................................................101 Measure C/J Special Revenue Fund..........................................................................................................102 Donations and Contributions Special Revenue Fund................................................................................103 General Development Impact Fees Special Revenue Fund.......................................................................104 Public Safety Special Revenue Fund.........................................................................................................105 Old Town Parking In -Lieu Special Revenue Fund...................................................................................106 Solid Waste Vehicle Impact Fee Special Revenue Fund..........................................................................107 Low and Moderate Income Housing Special Revenue Fund....................................................................108 Town of Danville Comprehensive Annual Financial Report For the Year Ended June 30, 2021 Table of Contents (Continued) STATISTICAL SECTION (Unaudited) Financial Trends: Page NetPosition by Component...............................................................................................................................110 Changesin Net Position.....................................................................................................................................112 Governmental Activities Tax Revenues by Source............................................................................................117 Fund Balances of Governmental Funds.............................................................................................................118 Changes in Fund Balances of Governmental Funds..........................................................................................120 Revenue Capacity Assessed Value ............................................ Direct and Overlapping Property Tax Rates Property Tax Levies and Collections .......... Debt Capacity: ........................................................................................123 ........................................................................................124 ........................................................................................125 Ratios of Outstanding Debt by Type..................................................................................................................126 Ratios of General Bonded Debt Outstanding......................................................................................................127 Direct and Overlapping Governmental Activities Debt......................................................................................128 PrincipalProperty Taxpayers..............................................................................................................................129 LegalDebt Margin Information......................................................................................................................... 130 Pledged -Revenue Coverage................................................................................................................................132 Demographic and Economic Information: Demographic and Economic Statistics..............................................................................................................133 Principal Employers in the Town of Danville....................................................................................................134 Operating Information: Full -Time Equivalent Town Government Employees by Function................................................................... 135 OperatingIndicators by Function......................................................................................................................136 Capital Asset Statistics by Function....................................................................................................................137 This page intentionally left blank. INTRODUCTORY SECTION (Unaudited) This page intentionally left blank. November 16, 2021 Mayor and Town Council Town of Danville Subject: Fiscal Year 2020/21 Annual Comprehensive Financial Report "Small Town Atmosphere Outstanding Quality of Life" The Annual Comprehensive Annual Financial Report (ACFR) of the Town of Danville for the fiscal year (FY) ended June 30, 2021, is submitted in compliance with laws of the State of California and as prescribed by the Government Accounting Standards Board (GASB) Statement 34. This report was prepared by the Town of Danville Finance Department, and the responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge, the data included in the report is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town's financial activities have been included. The ACFR represents the culmination of all budgeting and accounting activities of the Town during FY 2020/21. GENERAL INFORMATION ABOUT THE TOWN OF DANVILLE Incorporated in 1982, Danville is located in Contra Costa County, approximately 30 miles east of San Francisco and lies in the center of the San Ramon Valley. The Town comprises 18.5 square miles and has 43,906 residents. Danville began as a small rural village during the 1850s. The first post office was established in 1860. Although the Town is suburban, it still retains its small-town character. Older well- maintained neighborhoods coexist with new subdivisions and their modern amenities. The community enjoys natural creeks, hiking and biking trails, and dedicated open space. Mt. Diablo, at an elevation of 3,849 feet, rises to the east and Las Trampas Regional Wilderness, elevation 2,049 feet, creates the Town's western boundary. Danville's primary commercial district lies in the center of the community and offers resident -serving commercial businesses, boutique shopping, and fine dining. The Old Town area is the historical center of the Town. It is a source of pride to our residents and is the site of many holiday and special events which attract visitors throughout the year from 510 LA GONDA WAY, DANVILLE, CALIFORNIA 94526 Administration Building Engineering & Planning Transportation Maintenance Police Parks and Recreation (925)314-3388 (925)314-3330 (925)314-3310 (925)314-3320 (925)314-3450 (925)314-3700 (925)314-3400 around the Bay Area. While Danville has remained residential, neighboring cities have developed job centers including major commercial and light industrial business parks located within minutes from the Town. The Town operates under the Council -Manager form of government and is governed by a five -member Town Council elected at large and serving staggered four-year terms. Council elections are held in November of even -numbered years. The Town Manager and the City Attorney are appointed by the Town Council. The Town Manager appoints all Department Directors and through them all other employees of the Town. Areas of service delivery for the Town include General Government, Police Services, Administrative Services, Development Services, Maintenance Services and Recreation, Arts and Community Services. The Town contracts with the Contra Costa County Sheriff's Office to provide police services. Additional services are provided by other agencies: fire service by the San Ramon Valley Fire Protection District, water service by the East Bay Municipal Utility District, wastewater service by the Central Contra Costa Sanitary District, and primary and secondary education by the San Ramon Valley Unified School District. The Town also contracts with private companies and individuals to provide portions of its building inspection and recreation and maintenance services. REPORTING ENTITY A preliminary step in preparing the ACFR for the Town was the identification of the reporting entity. In accordance with Government Accounting Standards Board Statement No. 14, related governmental entities were evaluated to determine if the Town was financially accountable for its operations. This report includes all fund types and account groups of the Town of Danville. The former Community Development Agency (CDA) of the Town of Danville was dissolved by AB x126 on January 31, 2012. As a result, all assets and debt liabilities of the former CDA were transferred to a Fiduciary Trust Fund, the Successor Agency (SA) to the former Community Development Agency of the Town of Danville, in FY 2011/12. On June 27, 2012, cleanup legislation AB 1484 was passed and directed that the Low and Moderate Income Housing assets be transferred from the SA to the Town. The SA does not meet the definition of a "component unit," and its financial activities and assets are therefore not included in the Town's financial statements. Although the SA is legally a separate entity, the governing board of the SA has the same membership as the Town Council. The Town is responsible for day-to-day activities, including the ability to appoint, hire, reassign or dismiss management. An Oversight Board consisting of seven members was appointed to the SA for the purpose of overseeing the dissolution and winding down of the CDA. The Town of Danville Financing Authority (a joint powers authority of the Town of Danville and the former CDA) is not included as a component unit since it is financially independent. in ECONOMIC CONDITION AND OUTLOOK Current Economic Condition As of June 30, 2021, the Town of Danville's financial condition continues to be sound. An indicator of the Town's financial condition is the level of fund balance, reserved and unreserved, in its Governmental Funds, which include General, Special Revenue, Debt Service and Capital Projects. The Town has a policy of retaining a minimum of 20% of the coming year's operating expenditures as an operating reserve against the General Fund fund balance. As of June 30, 2021, $13,809,768 or 42.94% is designated for this purpose. Additional reserves against the General Fund include various future operating costs, including General Fund purchase order encumbrance carryovers; reserves for Certificate of Participation debt issued by the Town in 2001 and 2005; a contingency for unforeseen expenditures; compensated absences/ personnel; reward funds to help recover Town property; a reserve for the receivable for the funds loaned to the former CDA and funds to be used for maintenance of Town's rental property. An additional $9,306,773 has been designated as a transfer to the Capital Improvement Program Project Fund. The Town's conservative Investment Policy and practices continue to protect the principal of the Town's investment portfolio. The Town's portfolio is invested in U.S. Treasury bonds; U.S. Agency bonds; the State of California's pooled fund; LAIF; and U.S. Corporate Notes with ratings of AA- or higher. The total General Fund fund balance of $34,535,724 represents 151.57% of total FY 2020/21 General Fund operating expenditures and 107.40% of operating expenditures from all funds. Additionally, the Town has $31,474,749 of Special Revenue funds, and $30,013,137 in Capital Projects funds. The Town's five largest revenue sources account for 84.19% of all Town revenues. These include Property Tax providing 40.45% of revenues; Sales Tax providing 15.63%; Other Taxes and Intergovernmental providing 12.70%; Special Assessments providing 8.49% and Development Impact Fees providing 6.91 % of revenues. Property Tax increased by $1,185,251 (7.40%) compared to FY 19-20, as assessed values were increased and the median sales price for a single-family residential home increased. Revenue trends from the past four years illustrate strong growth in assessed valuation. December 31, 2015 marked the sunset of the sales tax for property tax swap known as "the triple flip" that was enacted by the passage of Proposition 57 in 2004. Charges for Services decreased by $525,609 (26.00%), as Recreation classes and programs were significantly scaled back. Decreases in Recreation Fees and Charges were somewhat offset by an increase in Building and Planning fees and Development Engineering fees. Sales Tax increased by $912,683 (15.90%) largely attributable to a steep increase in on line sales activity and brick and mortar businesses (restaurant and retail) exceeding expectations in weathering the pandemic. Other Taxes and Intergovernmental Fund Revenues increased n a net of $555,602 (11.45%), reflecting the receipt of Coronavirus Local Fiscal Recovery Funds (CLFRF) and Federal Emergency Management Agency (FEMA) from the federal government, lower revenues from Gas Tax and Measure J funds and a slight increase in SPCP Special Assessments. LLAD Special Assessments remained essentially flat. The increase in Development Fees of $470,754 (19.05%), reflects an increase in the permitting activity. Danville's jobless rate as of June 2021 was 4.7% as compared to 5.9% nationwide, 7.9% in California, and 6.7% in Contra Costa County. Outlook for the Future The Town uses a multi-year financial planning process that includes estimates of future revenue and operating expenditure growth as well as capital needs to be financed from all funds over the next 10 years. The annual update of this model, the 2021/22 Operating Budget and Capital Improvement Program, was completed in May 2021 and adopted on June 15, 2021. General Fund revenues are projected to increase 9.38% from FY 2020/21 to FY 2021/22, largely attributable to a 4.79% increase in property tax revenue, 20.98% increase in sales tax revenue and 11.00% increase in Recreations. Special Purpose revenues are projected to increase 17.90%, mostly due to an increase in 20.46% in Building and Planning revenue, an increase in 71.79% in Gas Tax revenue, an increase in 23.23% in Measure J revenue and an increase in 44.76% in Solid Waste VIF revenue; and slight increase or no increase in other Special Revenues funds. Looking forward 10 years, General Purpose revenues are projected to increase 9.38% in FY 2021/22 and an average of 1.84% thereafter. Special Purpose revenues are projected to increase 17.90% in FY 2021/22, and an average of 1.34% through FY 2030/31. The 10 -year projection includes cost increases that average 2.4% annually, reflecting anticipated adjustments to service demands as well as changes in the Consumer Price Index. The Town continues to evaluate the impact of current decisions on the long term fiscal stability of the Town. By FY 2023/24, all four zones in the Lighting and Landscape Assessment District will require General Fund subsidies, or an increase in assessments, in order to maintain current service levels. Despite the passage of Senate Bill 1- The Road Repair and Accountability Act of 2017, which significantly increased the local streets and roads funds allocated back to Danville, Gas Tax revenues alone will not support all of the costs associated with maintaining the Town's street system over the next 10 years. Additional General Purpose and Special Purpose revenue resources, will continue to be needed to maintain the current Pavement Condition Index (PCI) and street maintenance service levels. iv Furthermore, the Town's Capital Improvement Program will continue to require an annual infusion from the General Fund and other available resources in order to maintain the Town's practice of paying cash for capital projects. The Town's current funding of service delivery, capital projects, local streets and roads and long-term fiscal health depends on continued growth of the economy and avoidance of further negative fiscal actions by the State. The dissolution of the former Community Development Agency continues to have a major negative impact on the Town by eliminating a major annual funding source for downtown improvements. While the Town will be repaid $5.06 million in funds owed by the former Community Development Agency through annual payments, further action from the State could adversely affect the Town's fiscal condition. Additional financial information on the Town of Danville is provided in The Management Discussion and Analysis (MD&A). The Transmittal letter and MD&A are intended to provide complementary information to each other. MAJOR ACCOMPLISHMENTS AND INITIATIVES For Fiscal Year 2020/21 Major events took place in the Town during FY 2020/21 that had or will have significant financial effects on the Town in the years to come. The Town: 1. Received the distinction of "Safest City in California" with a population of 50,000 or less, in 2021, for the fourth year in a row by Safewise, an independent review website. 2. Developed a series of programs and outreach to support local businesses during the pandemic, including but not limited to, targeted marketing programs, developed the online Danville Business Directory, Issued $464,100 towards Forward Focus Grants , Served 68 businesses through the Business Assistance Program, Issued 58 Temporary Land Use Permits, erected 12 parklets downtown, established temporary 10 -min curbside pick-up zones, etc. 3. Completed the $12.6 million purchase of an office building at 500 La Gonda Way and began planning and construction work toward relocating the Danville Town Offices and Police Department to this new location. 4. Declared a local state of emergency in response to the COVID-19 pandemic which involved closing public facilities and implementing cost savings measures to reduce operating expenses by $2.2 million to offset estimated revenue losses. 5. Adopted and adhered to various COVID-19 related health Orders issued by the Contra Costa County Department of Public Health and the State of California. 6. Adopted a balanced post pandemic 2021/22 operating budget through reducing expenditures and fund transfers without the need to utulize Town reserve funds. 7. Completed the upgrades to the keycard access system at all town -maintained buildings and replace A.D.A. doors at the Library and Veterans Memorial buildings. 8. Continued the design work for the $6 million project to replace the La Gonda Way bridge at Danville Boulevard. 9. Continued the design of the storm drain trash racks at Starview Drive, Loch Lomond Way and Westridge, pending response from FEMA on the Town's grant applications. Construction phase to proceed after FEMA determination. 10. Completed design and constructed the new San Ramon Creek trail bridge creating a pedestrian connection from Diablo Road to the Town Green and Library. 11. Completed the Town -wide Bicycle Master Plan. 12. Completed Phase I of the Traffic Signal Controller Upgrade at 29 intersections. 13. Completed Diablo Road Bicycle Facility Improvements, 1.8 miles. 14. Secured 100% funding including $150K MTC grant for Diablo Road Trail. 15. Awarded $1.6M Federal grant for the SRVB (North/South) Improvements. 16. Awarded $240K State grant for Rectangular Flashing Beacons project. 17. Continued with various Transportation programs including: Street Smarts traffic safety education program, Neighborhood Traffic Management Program and participation in Danville's TRAFFIX Student Transportation Program. 18. Worked with Tri -Valley Cities Coalition, Contra Costa Mayors Conference and state legislators to advocate for changes to housing legislation in a manner that lessens their impacts to Danville. 19. Continued the Town's commitment of $1.45 million toward the San Ramon Valley High School Classroom Modernization project in order to fund 240 additional student parking spaces on campus and increasing the total supply of student on - campus parking spaces from 275 to 515 spaces, in order to alleviate parking congestion in adjacent neighborhoods and the north end of the downtown. 20. Expanded the Downtown Street Banner Program to include Railroad Avenue. 21. Continued implementation of the Community Marketing and Branding Plan, including publication of the Live Locally Guide, marketing material and rebranding of the Town's quarterly newsletter. 22. Increased efficiencies within the MUNIS Financial System by implementing internal paperless/ contactless/ electronic routing and approval of both credit card and paper check vendor payments. Greatly expanded and improved online permit application submission to the Energov Permitting & Land Management System for contractors and Danville homeowners. 23. Moved ALL public meetings to the remote (ZOOM) format while adhering to the revised Brown act requirements. Vi 24. Continued 10-8 program, a weekly live video podcast that allows for engagement and interaction with residents via Facebook and YouTube to replace in-person engagement due to the COVID-19 Pandemic. 25. Renovated the turf in the large dog park at Hap Magee Ranch Park for a total of $18,870. The dog park at Hap Magee Ranch Park is rated the best dog park in the area by Diablo Magazine. 26. Awarded new contract for park maintenance services in Lighting and Landscape Assessment District Zone D ($305,607). 27. Awarded new contract for fleet maintenance services ($85,000). 28. Repainted the Town Service Center exterior ($17,980). 29. Converted tennis court at Osage Station Park to two pickleball courts ($10,500). 30. Completed the annual creek cleaning through in-house and contract efforts ($14,950) which helps protect the community and prevent damage to public and private property. 31. Integration of arts into programs such as the Hearts Around Hearts Program, which included calling for artists to design and paint ceramic Hearts for display throughout the Town. Also, the Shrumen Lumen Exhibit which had 18 foot tall kenetic mushrooms on display at the Town Green and Art Gallery. 32. The Senior Advisory Commission along with Staff began work on an Age Friendly Road Map in an effort to make Danville more livable and better able to support people of all ages. 33. Continued efforts for the implementation of the Parks, Recreation and Arts Strategic Plan, with an emphasis on capital projects in parks, trails and public art. Specifically, the conversion of one tennis court into two pickleball courts. 34. Increased efficiency by implementing paperless digital routing and signature system for town agreements with vendors and contractors 35. Prepared a balance budget despite the pandemic. 36. Adhere to the order of the County Health Department. 37. Completed filing with and received fund from the Federal and State Agencies for COVID-19 related expenses reimbursed through FEMA and CRF (CARES Act). 38. American Rescue Plan Act: Reviewed guidelines, calculated revenue loss and identified an expenditure plan for use of CUR Funds received through the first tranche disbursement of $5,323,869. For Fiscal Year 2021/22 During the upcoming FY 2021/22 the Town will: 1. Complete the design of the $6 million project to replace the La Gonda Way bridge at Danville Boulevard. Vii 2. Complete the design of storm drain trash racks at Starview Drive, Loch Lomond Way and Westridge, pending response from FEMA on the Town's grant applications. Construction phase to proceed after FEMA determination. 3. Begin the process to update the Town's Downtown Master/ Beautification Plan. 4. Complete the Fiber Optic Cable Interconnect Master Plan. 5. Complete the Rectangular Rapid Flashing Beacons at four locations. 6. Complete Phase II of the Traffic Signal Controller Upgrades at 25 intersections. 7. Complete the Townwide Biennial Traffic Count Study. 8. Complete a Local Roadway Safety Plan. 9. Complete design of the Diablo Road Trail. 10. Begin the Downtown Traffic Signal Modernization Project. 11. Install high -visibility crosswalk markings at ten locations near schools and along Iron Horse Trail. 12. Continue the Neighborhood Traffic Management Program consisting of six active neighborhood applications. 13. Continue with various Transportation programs including: Street Smarts traffic safety education program, Neighborhood Traffic Management Program and participation in Danville's TRAFFIX Student Transportation Program. 14. Continue to work with Tri -Valley Cities Coalition, Contra Costa Mayors Conference and state legislators to advocate for changes to housing legislation in a manner that lessens their impacts to Danville. 15. Renovate the turf in the large dog park at Hap Magee Ranch Park The dog park at Hap Magee Ranch Park is rated the best dog park in the area by Diablo Magazine. 16. Renew the street sweeping services contract for $200,295 to continue providing clean and safe streets and prevent pollution of creeks. 17. Complete the annual creek cleaning through in-house and contract efforts (approximately $15,000), which helps prevent damage to public and private property. 18. Replace the gazebo at Hap Magee Ranch Park (approximately $80,000, with half the cost being paid by Contra Costa County). 19. Complete the design of the Diablo Vista Park playground equipment replacement project (replacement will cost approximately $700,000). 20. Continue the Disaster Preparedness Program to step up readiness efforts aimed at preparing for and responding to any natural or man-made disasters or emergencies that could befall the Town. 21. Research technology solutions to optimize law enforcement strategies. Viii 22. Continue to integrate arts into programs such as the Hearts Around Hearts Program, which included calling for artists to design and paint ceramic Hearts for display throughout the Town. Other opportunities are being explored with the funds raised by this successful event. 23. Continue to work with The Senior Advisory Commission, along with Staff began work on an Age Friendly Road Map in an effort to make Danville more livable and better able to support people of all ages. 24. Continued efforts for the implementation of the Parks, Recreation and Arts Strategic Plan, with an emphasis on capital projects in parks, trails and public art. Specifically, the conversion of one tennis court into two pickleball courts. 25. Continue to explore potential locations for the multi -use skate park as identified in the latest feasibility study. 26. Expand and improve eSignature (DocuSign) system for contracts and other legal documents. 27. Continued efforts by the IT Department to implement additional security measures as warranted and monitor cybersecurity issues to protect the Town from these ongoing types of attacks. 28. Plan and mitigate the transfer of Town's technologies in preparation of the move to the newly acquired Town Offices building at 500 La Gonda Way. 29. Continue to implement the American Rescue Plan Act: calculate revenue loss and identify an expenditure plan the use of CUR Funds for the second tranche disbursement of $5,323,869 for recommendation to the Town Council. FINANCIAL CONTROLS AND INFORMATION The Town's financial records for general governmental operations are maintained on a modified accrual basis with revenues recorded when available and measurable and expenditures recorded when the services or goods are received and the liability incurred. Town Management is responsible for establishing and maintaining an internal control structure designed to ensure that assets are protected from loss and theft or misuse; and for compiling accounting data which is adequate for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. ix Budgeting Controls The Town maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Town Council. Activities of all governmental type funds are included in the annual appropriated budget. For FY 2020/21, the budgetary level of control (that is the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget was at the fund level. For the capital improvement budget, the level of control was the individual capital improvement project. The Town also utilizes the encumbrance system as a management control technique to assist in controlling expenditures. All appropriations lapse at year-end. However, encumbrances and appropriations for unfinished capital and other projects are reviewed and, when warranted, are reappropriated ("carried over") as part of the following year's budget. Risk Management The Town is a member of the Municipal Pooling Authority (MPA), a consortium of 20 California cities, including 17 in Contra Costa County, one in San Mateo County, one in Santa Clara County and one in San Joaquin County. The Risk Management Authority is a risk -sharing, self-insured pool providing insurance benefits to its members. Insurance activities are financed by charges to member cities, and no long-term debt has been incurred by the Authority. The Town participates in the Authority's self-insured general and auto liability programs and purchases commercial property and earthquake insurance through MPA. Annual premiums are determined based on an actuarial study using a retrospective method. During FY 2020/21, the Town was responsible for the first $5,000 of general liability costs and $2,000 and $3,000 for Town and police auto liability respectively, for each of its own claims. The Town's limits of coverage per claim are $29 million for general liability and $250,000 for auto liability. The Town has established in the General Fund $34,510 in liability to finance anticipated settlement of claims. The Town is also a member of the Authority's workers' compensation pool. The Authority is responsible for the first $500,000, per claim. This program carries excess insurance above $500,000 per claim. The Town has implemented various risk control techniques and loss prevention and reduction programs, including employee training and education. X OTHER INFORMATION Independent Audit It is the policy of the Town of Danville to have an audit performed annually by an independent certified public accountant. The independent audit of the June 30, 2021 financial statements was performed by The Pun Group, LLP. Their opinion is included with the basic financial statements. Acknowledgments The development of this report would not have been possible without the dedication and efforts of the entire Finance Division team. We would like to express our appreciation to all staff members of the Town and our independent auditing firm who made this report possible. The Town's prudent fiscal management policies and practices are guided by the leadership and support of the Danville Town Council. We appreciate the Town Council's support and continued leadership. Respectfully submitted, z d J . Cdlal�r.�a Town Maciager Lacii Ha Ficiance Maciagcr jTreasurer Xi Town of Danville Organizational Chart Town of Danville Organizational Chart Town of Danville Citizens I]A DANVILLE CALIFORNIA Town Council Parks, Recreation & Heritage Resource Senior Advisory Planning Arts Commission Commission Commission Commission Arts Advisory Town City Design Review Board Manager Attorney Board General Police Administrative Development Maintenance Recreation, Arts & Government Services Services Services Services Community Services Town Council Administration Finance Planning Building Maintenance Sports & Fitness Town Manager Patrol Information Building Park Maintenance Facilities Technology Management City Attorney Traffic Code Enforcement Roadside Maint. Human Resources Cultural Arts City Clerk Investigations Engineering Street Maint. Economic Youth Services Community Youth Services Development Capital Project Street Light Maint. Teen Service Gutreach Management Adult Services Animal Control Risk Management Traffic Signal Senior Services Emergency Transportation Maintenance Preparedness Internal Services Library Service Clean Water Equipment Asset Replacement Program Maintenance Community Events xu Town of Danville Directory of Public Officials TOWN COUNCIL Renee Morgan Mayor Newell Arnerich Vice Mayor David Fong Councilmember Karen Stepper Councilmember Robert Storer Councilmember TOWN STAFF Joseph A. Calabrigo Town Manager Robert Ewing City Attorney Marie Sunseri City Clerk Tai Williams Assistant Town Manager Allan Shields Chief of Police Dave Casteel Maintenance Services Director Henry Perezalonso Recreation, Arts & Community Services Director Lani Ha Finance Director/Treasurer Town of Danville Certificate of Achievement for Excellence in Financial Reporting — Government Finance Officers Association Govertunenx Finance Officers Associ�tsott Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Dauville California For its Comprehenslye iml F=ruicial Report For tfie Fiscal Fear Ended Jule 30. 210210 ExecntLye Director CEO xiv Town of Danville Statement of Purpose DANVILLE IS A COMMUNITY DEDICATED TO PROVIDING AN EXCEPTIONAL QUALITY OF LIFE FOR ITS CITIZENS To achieve this level of excellence, Danville will: • Value and enhance its heritage and natural environment; • Build innovative processes for citizen involvement and stimulate active participation in local government decision making; • Foster personal responsibility, ethical standards and commitment among citizens; • Achieve high quality development in scale with the natural surroundings; • Deliver superior municipal and educational services; • Encourage the arts, cultural and recreation activities, and community celebrations; and • Exercise strong leadership in regional issues. These goals enhance a sense of positive "small town" values related to the family, neighborhood, and community. xv This page intentionally left blank. xvi FINANCIAL SECTION This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITORS' REPORT To the Mayor and Members of the Town Council of the Town of Danville Danville, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Danville, California (the "Town"), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the Town'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. Auditors' 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. 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, each major fund, and the aggregate remaining fund information of the Town, as of June 30, 2021, and the respective changes in financial position, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2121 North California Blvd., Suite 290, Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850 www.pungroup.cpa To the Mayor and Members of the Town Council of the Town of Danville Danville, California Page 2 Emphasis of a Matter Implementation of GASB Statement No. 84 As described in Note 2N to the basic financial statements, the Town implemented GASB Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Budgetary Information, Budgetary Comparison Schedules for General Fund, Lighting and Landscaping Special Revenue Fund, and Regional Traffic Impact Fee Special Revenue Fund, and Modified Approach for Town Street Infrastructure Capital Assets 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 Town's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, 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 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 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 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. To the Mayor and Members of the Town Council of the Town of Danville Danville, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 9, 2021, on our consideration of the Town'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 the Town's internal control over financial reporting and compliance. Walnut Creek, California November 9, 2021 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors' Report To the Mayor and Members of the Town Council of the Town of Danville Danville, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Danville, California (the "Town"), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated November 9, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2121 North California Blvd., Suite 290, Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850 www.pungroup.cpa To the Mayor and Members of the Town Council of the Town of Danville Danville, California Page 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 'r, Z-17, Walnut Creek, California November 9, 2021 MANAGEMENT'S DISCUSSION AND ANALYSIS The Town of Danville's Financial Statements are issued in the format prescribed by the provisions of Government Accounting Standards Board Statement 34 (GASB No. 34). This discussion and analysis of the Town's financial performance provides an overview of the Town's financial activities for the fiscal year ended June 30, 2021. Please read it in conjunction with the accompanying transmittal letter, the Basic Financial Statements and the accompanying notes to those financial statements. FINANCIAL HIGHLIGHTS • The Town's net position as of June 30, 2021 increased $9,240,708 or 3.5% from $263,589,115 to $272,829,823. • Total assets were $286,907,325 and total liabilities were $14,077,502, resulting in total net position of $272,829,823. Of this amount $65,882,561 is classified as unrestricted and, with the future receipt of $5,059,401 of loan receivable from the former Community Development Agency (CDA), may be used to provide ongoing services and capital projects to residents and creditors. • Governmental funds for the Town have combined fund balances of $96,023,610. Of this amount $29,438,411 is restricted by external parties, $58,171,955 is committed for ongoing and future activities and $4,064,888 is classified as nonspendable reflecting the future of receiving the loan proceeds from the cooperative agreement to the former Community Development Agency and fund received for services that has not been rendered by the Town, and $3,248,356 has been assigned for ongoing operations. • The Town's General Fund fund balance increased 30.0% from $26,574,948 to $34,535,724. The fund balance includes funds reserved or designated for debt service, future capital projects, ongoing operations, and an operating reserve of $13,809,768 (42.94% of FY 20/21 operating expenditures). In fiscal year 2015, the Sacramento County Superior Court issued a ruling on September 5, 2014, concluding that the reentered Cooperative Agreement between the Successor Agency and the Town of Danville was an enforceable obligation. The State appealed the Superior Court decision afterward, and in May 2015, the State dismissed its appeal, and at the same time, the Department of Finance accepted the Agreement as an enforceable obligation. The Town has decided to retain the amount that was approved by the Department of Finance, $5,059,401 as a loan receivable on its books, and reserve an offsetting amount in fund balance. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements, which consists of three components: 1) Government -wide Financial Statements, 2) Governmental Fund Financial Statements and 3) Notes to the Basic Financial Statements. This report also contains supplementary information in addition to the basic financial statements. Reporting the Town as a Whole - Government -Wide Financial Statements The Government -Wide Financial Statements provide a longer-term view of the financial position of the Town as a whole, including all capital assets and long–term liabilities on the full accrual basis. This presentation is similar to that of a private -sector business. Over time, increases or decreases in the Town's net assets may serve as one useful indicator of the Town's overall financial health. Other factors to consider are changes in the Town's property tax base and the condition of the Town's roads. The Statement of Activities and Changes in Net Position provides information on how the Town's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Therefore, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (for example, long term debt payments due and capital asset depreciation). There is an emphasis on measuring net revenues and expenses of each of the Town's programs. The Fiduciary Fund Financial Statements provide financial information about activities for which the Town acts solely as a trustee or agent for the benefit of those outside of the government. Fiduciary funds reported in the ACFR for Danville include the Deposits fund, Assessment District funds and the Successor Agency Trust Fund. In the Statement of Net Position and the Statement of Activities and Changes in Net Position, the Town's activities are separated as follows: Governmental Activities: All of the Town's basic services are considered to be governmental activities, including general government, police, maintenance, development, transportation and recreation services. Governmental activities are generally supported by taxes and intergovernmental revenues. Reporting the Town's Most Significant Funds - Governmental Fund Financial Statements The Fund Financial Statements provide detailed information about the most significant funds and group the remaining funds together under the column heading, "Non -Major Governmental Funds." Some funds are required to be established by State law and by bond covenants. In addition, the Town Council may establish other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. Governmental Funds—Most of the Town's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund Statements provide a detailed short-term view of the Town's general government operations and the basic services it provides. Governmental funds information help determine whether there are more or fewer financial resources that can be spent in the near future to finance the Town's programs. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities and Changes in Net Position) and Governmental Funds Financial Statements are explained in a reconciliation schedule following each Governmental Fund Financial Statement. Reporting the Town's Fiduciary Responsibilities The Town is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, assessment district bond holders, the Successor Agency and others. The Town's fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. The Town provides a Defined Contribution Pension Plan for all qualified employees. We exclude these activities from the Town's other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Notes to the Financial Statements The Notes provide additional information that is essential to a full understanding of the data provided in the Government -Wide and Governmental Fund Financial Statements. Other Information In addition to the Basic Financial Statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the Town's funding of its obligation to provide pension benefits to its employees, budgetary comparison schedules for the General Fund, each major Special Revenue Fund and schedules and disclosure of the modified approach for reporting the Town's infrastructure. THE TOWN AS A WHOLE - GOVERNMENT -WIDE FINANCIAL ANALYSIS The Town's combined Net Position for fiscal year ended June 30, 2021 and 2020 were: Table 1 Net Position Governmental Activities 2021 2020 Current and other assets $ 103,643,474 Capital Assets, net of depreciation 183,263,851 Total assets 286,907,325 Special projects Current liabilities 7,977,612 Long-term liabilities 6,099,890 Total liabilities 14,077,502 Net position: Net investment in capital assets 177,508,851 Restricted for: Debt service 1,623,438 Special projects 27,814,973 Unrestricted 65,882,561 Total net position $ 272,829,823 $ 95,583,374 181,223,722 276,807,096 6,523,952 6,694,029 13,217,981 174,968,722 1,629,404 25,331,768 61,659,221 $ 263,589,115 Increase Decrease $ 8,060,100 2,040,129 10,100,229 1,453,660 (594,139) 859.521 2,540,129 (5,966) 2,483,205 4,223,340 $ 9,240,708 The Town's Net Positions from Governmental Activities increased 3.5% from $263,589,115 to $272,829,823. This increase of $9,240,708 comes from the change in net assets as recorded in the Statement of Activities and flows through the Statement of Net Position. Program expenses by function, general revenues by major source, excess and/or deficiency of revenues over expenses before contributions to permanent fund principal, special, and extraordinary items, and total assets are presented in the Statement of Activities and Changes in Net Position. The following is an explanation of the changes between fiscal years as shown in Table 1: Total assets increased $10,100,229: Current and other assets increased $8,060,100 reflecting an increase in cash and investments. Capital assets, net of depreciation, increased $2,040,129 reflecting expenditures for capital projects during the year. Total liabilities increased $859,521: • Current liabilities increased by a net of $1,453,660, due largely to an increase in accounts payable, wages payable, retention (for capital projects), unearned revenue, and deposit payable. Non-current liabilities decreased a net of $(594,139) reflecting payment of long-term debt principal of $520,000 that was paid according to schedule, a decrease of $74,139 in compensated absences. Net Position: • Restricted net position increased a net of $2,477,239. Special Revenue funds were spent for capital projects as budgeted. Debt Service funds decreased by $(5,966) reflecting the net change in annual RPTTF funds received for scheduled debt service payments of the Town's COPS. Special Projects funds increased by $2,483,205 as funds were needed for operations or appropriated for capital expenditures. Unrestricted net position, which are designated by Council for specific future capital improvements or economic stability, increased by $4,223,340, reflecting solid revenues and controlled costs, which enabled the transfer of $2.27 million of General Fund funds to be transferred to Capital Improvement funds for future capital projects and Asset Replacement funds and LLAD funds for its operating expenses and Contingency fund. Capital improvements include park improvements, road maintenance, traffic control measures and general Town improvements. 10 Government Activities Table 2 presents the gross revenues and expenditures for the Town as whole. Revenues - Governmental Activities Program revenues: Charges for services Operating grants and contributions Capital grants and contributions Total program revenues General revenues: Taxes: Property Sales Motor vehicle Franchise Other Investment earnings Miscellaneous Gain on sale of capital assets Reimbursement from Successor Agency Total general revenues Total revenues Expenses - Governmental Activities General government Police services Maintenance services and Lighting and landscape Development services Administrative services Recreation, arts & community services Interest on long-term debt Total expenses Changes in Net Position Net Position: Beginning of year End of year Table 2 Revenues and Expenses Governmental Activities 2021 2020 $ 7,849,397 2,271,372 2,169,054 12,289,823 17,210,607 6,653,905 32,180 3,044,834 338,449 174,503 1,447,189 5,439 789,051 29,696,157 41,985,980 1,727,404 9,141,598 8,999,904 6,23 8,126 3,632,890 2,722,675 282,675 32.745.272 9,240,708 $ 8,188,723 1,873,835 1,358,781 11,421,339 16,025,356 5,753,805 35,829 2,836,124 367,376 3,183,434 1,838,208 345,523 812,456 31,198,111 42,619,450 1,988,737 9,824,261 9,400,476 5,769,904 3,816,145 3,794,136 322,951 34.916.610 7,702,840 Increase (Decrease) (339,326) 397,537 810.273 868,484 1,185,251 900,100 (3,649) 208,710 (28,927) (3,008,931) (391,019) (340,084) (23,405) (1,501,954) (633,470) (261,333) (682,663) (400,572) 468,222 (183,255) (1,071,461) (40,276) (2,171,343) 1,537,868 263,589,115 255,886,275 7,702,840 $ 272,829,823 $ 263,589,115 $ 9,240,708 M Variances shown above are reflected in the net numbers of Table 3 and are discussed following Table 3 Table 3 presents each program's net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the Town's taxpayers by each of these functions. The net cost of program services increased by $1,537,868 reflecting higher change in expenses compare to change in revenues. Revenues: General revenues Total general revenues Net Expenses: General government Police services Maintenance services and Lighting and landscape Development services Administrative services Recreation, arts, & community services Interest on long-term debt Total net expenses Net Cost of Program Services Table 3 Cost of Services Governmental Activities 2021 2020 Increase (Decrease) $ 29,696,157 $ 31,198,111 $ (1,501,954) 29,696,157 31,198,111 (1,501,954) (1,727,404) (8,758,536) (5,858,363) 1,076,353 (3,028,954) (1,875,870) (282,675) (20,455,449) $ 9,240,708 (1,988,737) (9,341,933) (6,341,146) 650,972 (3,784,452) (2,367,024) (322,951) (23,495,271) $ 7,702,840 261,333 583,397 482,783 425,381 755,498 491,154 40,276 3,039,822 $ 1,537,868 Variances shown above are reflected in the net numbers of Tables 2 and 3 and are discussed following Table 3. Program revenues decreased by $(1,501,954). A decrease of $(339,326) in Charges for Services was largely due to Recreations classes were canceled due to the pandemic, decreased activity in Police Services, and net with the increase in the Development Services activity. Operating Grants increased a net of $397,537 as grants for Police and Development Services increased, and the Town received the CRF (Coronavirus Relief Fund) and FEMA (Federal Emergency Management Agency) in the amount of $575,791 from the federal government. Capital Grants and Contributions increased a net of $810,273 as grant funding for capital projects increased. General revenues decreased $1,501,954 reflecting the net reported an increase $1,185,251 in property tax revenues, an increase in net reported $900,100 in sales tax revenues, an increase $208,710 in franchise fees, a decrease of $3,008,931 in investment earning, and a decrease of $(391,019) in miscellaneous revenues and a decrease of $(340,084) in gain on sale of capital assets . The Net Direct Cost of Program Services indicates that the overall cost of government is well below the available general revenues and transfers. This shows that the Town's ongoing revenues cover its operational and capital expenditures. The services provided by the Town are provided in an cost effective manner and the Town is efficient in recovering the cost of these services with program revenues from user fees and other contributions. See the Statement of Activities for further detail on program revenues and general revenues. 12 FINANCIAL ANALYSIS OF THE TOWN'S FUNDS At year-end, the fund balance for the Town's General Fund was $34,535,724 a net increase of $7,960,776 over last year. Revenues exceeded expenditures by $10,238,463, and transfers out of $(2,825,240) were made for future capital projects and additional funding for parks and building maintenance in the Lighting and Landscape Assessment District. Major revenue sources that exceeded budget include property and transfer taxes of $2,210,547, sales taxes of $2,258,804, uses of money and property of $1,087,826, which reported rental revenues, and Investment earning, which also reflects actual earning and unrealized market adjustments and the effect of discounts and premiums recognized in the year. These were offset by Other taxes of $(23,461) and Charges for Services of $(419,874). Across the board, cost containment resulted in operating_expenditures below budget in all programs. Budget to actual cost savings totaled $4,249,688. Capital outlay for operations was budgeted within each program and is broken out for year-end reporting on a separate line. Additional detail comparing the budgeted and actual amounts for the General Fund can be found in the Required Supplementary Information, Budgetary Comparison Schedule, General Fund. The Lighting and Landscape Special Revenue Fund increased by $169,960, which compares favorably to the planned and previously projected reduction in this fund balance. Cost containment efforts and a budgeted transfer in from the General Fund of $900,000 and $300,000 from Regional Traffic Impact Fees Special Revenue Fund for park and building maintenance account for this increase in fund balance. The Regional Traffic Impact Fees fund balance is reported lower by $(325,973) reflecting the decrease in revenues, and increase in expenditures. The fund balance in the Capital Improvement Projects Fund decreased by a net of $(3,363,434), reflecting capital expenditures and a net transfer in of $1,675,240, helping to offset appropriated capital expenditures in excess of revenues. Non -major Special Revenue Funds increased by a net of $2,867,230, reflecting normal revenues and use of these funds for the operational or capital projects to which they are restricted. Non -major Special Revenue funds with major changes include: the increased of Gas Tax Fund increase by $374,608 due to higher revenues and no transfer to Capital Improvement Program; increase of the Building and Planning Fund by $621,939 due to higher revenues resulting from more building and planning activities and less expenditures; increase of Development Engineering Fund by $220,132 due to higher revenues resulting from higher volume of engineering services and less expenditures; increase in Stormwater Pollution Control Program Fund by $115,296 due to slightly higher revenues and less expenditures due to less use of consulting services compared to budget; increase of Measure J Fund by $549,724 due to higher revenues received from Contra Costa County Transportation and less expenditures, the Donation and Contributions Fund increase by $127,195 due to higher revenues resulting from a one-time special event from Recreations and less expenditures; the Public Safety Fund increase by $63,927 due to higher revenues received from the Contra Costa County and less expenditures; and the Solid Waste Vehicle Impact Fees Fund increase by $718,924 due to higher revenues and no transfer out to the Capital Improvement Program. The Non -Major Capital Improvement Funds, decreased by a net of $(696,337) due a decrease of $(665,693) in the Park Facilities Fund due to more expenditures and no transfer in from General Fund contributions; and a decrease of $(35,594) in the Northeast Road Improvements Special Assessment due to higher expenditures; offset by an increase in the Asset Replacement General Fund by $42,059 due to higher transfer in from PEG Fund and Building and Planning Fund than expenditures. All activity in the above funds reflects anticipated revenues and appropriated transfers and expenditures for these funds. General Fund Budgetary Highlights Actual revenues over expenditures exceeded the final budget by $10,120,778. This is primarily due to very conservative revenue projections, the absence of State raids on local revenues, steady sales tax, and actual 5% increase in average local property values. Final expenditures for the General Fund at year end were less than budgeted by $4,249,688. The budget to actual variance in appropriations reflects conservation efforts, leaving staffing positions vacant and postponement of some operational activities by management. These proactive fiscal measures enabled the Town to transfer $2,825,240 to fund future capital projects throughout the Town. 13 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of FY 2021, the Town had a book value of $183,263,851 invested in a broad range of capital assets, including land, buildings, furniture and equipment, park improvements and infrastructure. (See tables 4 and 5 below.) This amount represents an increase of $2,040,129 net of additions, retirements and depreciation, resulting in a 4.13% increase over last year. Changes reflect the construction of capital assets, offset by depreciation expenses. Depreciation on capital assets is recognized in the Government -Wide Financial Statements. The Town has elected to use the modified approach for their streets and roads, wherein the value is not depreciated but rather pavement condition and maintenance expenses are tracked. The pavement condition as of June 30, 2021 was 81, same as last year. This rating compares favorably with the target rating of 70. The average expense to maintain the streets is estimated by management to be a minimum of $3,000,000 per year for the next three years. Further detail may be found in Note 2E to the Financial Statements and in Note 3 of the Required Supplementary Information. Land Buildings and parking lots Park improvements Furniture and equipment Construction in progress Infrastructure Total Table 4 Capital Assets at June 30, 2021 (net of depreciation) Original Cost $ 31,221,867 39,958,769 24,041,510 4,963,876 25,429,776 167,832,677 Accumulated Depreciation (13,824,718) (21,956,927) (4,656,488) (69,746,491) Book Value $ 31,221,867 26,134,051 2,084,583 307,388 25,429,776 98,086,186 $ 293,448,475 $ (110,184,624) $ 183,263,851 Table 5 Comparative Capital Assets at June 30, 2021 vs. June 30, 2020 (net of depreciation) Governmental Activities Land Buildings and parking lots Park improvements Furniture and equipment Construction in progress Infrastructure Total 2021 2020 $ 31,221,867 26,134,051 2,084,583 307,388 25,429,776 98,086,186 S 183.263.851 14 $ 31,221,867 27,154, 816 2,356,143 430,982 21,660,504 98,399,410 Increase Decrease) (1,020,765) (271,560) (123,594) 3,769,272 (313,224) $ 181,223,722 $ 2,040,129 The Town's five-year Capital Improvement Plan projects will cost $28,641,726 through FY 2024/25. No debt financing is required for these projects. Funding will come from current fund balances and projected revenues over the next five years. The most significant projects include town -wide park renovations and enhancements with an emphasis on Town Office Improvements and infrastructure maintenance including $9,564,597 for pavement management. Additional details can be found in the Town's 2020/21 Operating Budget and Capital Improvement Program document available at www.danville.ca.gov/Council and Government/Departments/Finance/. Debt At year end, the Town had $6,729,890 in Certificates of Participation (COPS) and compensated absences outstanding versus $7,304,629 last year, a net decrease of $(574,739), as shown in Table 6 below. Table 6 Outstanding Debt at Year-end Governmental Activities 2001 & 2005 Certificates of Participation Compensated Absences Total 2021 $ 5,755,000 974,890 $ 6,729,890 2020 $ 6,255,000 1,049,629 $ 7,304,629 Increase Decrease $ (500,000) (74,739) $ (574,739) The $500,000 decrease in the COP amount is due to scheduled debt service payments, the $74,739 decrease in Compensated Absences is due to lower number of personnel compare to last year, and personnel earning less leaves hours than used. Additional information on outstanding debt is presented in Note 8 to the Basic Financial Statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The 2021/22 Operating Budget and Capital Improvement Program ("Budget and CIP") continue to reflect careful financial planning. All planned services address the Town's highest priorities. The Budget is balanced, prudent reserves continue to be maintained, and ten-year forecasts show that Danville is holding to a course that is fiscally sustainable. For 2021/22, total revenues of $38,048,880 are forecast, including $35,774,166 for the Town and $2,274,714 for the Town Successor Agency. Total operating expenditures of $34,424,678 are recommended, including $33,249,964 for the Town and $1,174,714 for the Successor Agency. Recommended capital appropriations for 2021/22 total $9,413,612. The global Coronavirus pandemic and the resultant Health Orders that began in mid-March 2020 created an immediate and significant financial impact upon the Town. Danville has operated in a continuous State of Emergency since March 17, 2020. The pandemic has presented budget planning challenges resulting from ongoing economic uncertainty and frequently changing state and county directives that impact how, and to what extent, services can be delivered. For 2020/21, the Town Council adopted a budget that forecast a net revenue loss of $5 million. Functionally, this has necessitated operating in a much more fluid manner, while adapting to changing conditions and increasing reliance upon virtual services and operations. Expenditures and staffing were reduced in all operating departments. The 2020/21 mid -year budget review showed that these adjustments were effectively mitigating pandemic -driven fiscal impacts and the Town's reserves remained intact. 15 Town businesses and the local economy have shown resilience in the face of operating limitations mandated by health orders. Though significantly impacted, the incidence of business failure has been limited. Initial concerns that consumers would react to by eliminating or reducing expenditures have been offset through a shift toward increased e-commerce. While this has helped to mitigate the fiscal impact upon the Town, it has accelerated the trend toward online commerce, which continues to pose an existential threat for all brick and mortar retail businesses. With the arrival of spring 2021, efforts to vaccinate the population were well underway and state and county health orders had been adjusted to allow for the resumption of certain indoor Town activities. In March 2021, the State announced that normal business operations could resume for all sectors on June 15, 2021. The 2021/22 Operating Budget continues to focus on the Town's highest priorities. The Budget is balanced, reserves funding for capital projects, and maintains strong reserves. With recovery expected to begin in 2021/22, forecast revenues are equivalent to 2018/19 levels while recommended expenditures are at levels equivalent to 2019/20. Despite the significant negative fiscal impacts associated with the Coronavirus pandemic, the Town's overall financial condition continues to be positive. The 2021/22 Budget is balanced, while providing quality municipal services that address the highest priority community needs. Recommended capital projects are funded with no debt, and appropriate operating and capital reserves are maintained. The Town has no unfunded future liabilities related to employee pension or medical costs, and ten-year forecasts for 2021/22 through 2030/31 illustrate that the Town is continuing on a course that continues to be fiscally sustainable while operating at minimally reduced service levels. American Rescue Plan Act of 2021 On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (ARPA), a $1.9 trillion economic stimulus bill intended to speed up the United States' recovery from the economic and health effects of the Coronavirus pandemic. The ARPA includes $65 billion for cities, to help bridge budget shortfalls and mitigate fiscal impacts resulting from the pandemic. These funds will assist the Town by offsetting pandemic -driven revenue losses and remediation costs. Based upon Treasury Department calculation, the Town was awarded $10.65 million in Coronavirus Local Fiscal Recovery (CLFR) Funds under the ARPA. The draft 2021/22 Budget and CIP did not include ARPA funding as cities awaited additional and more specific guidelines for how the CLFR Funds were permitted to be spent. Following adoption of the 2021/22 Budget and CIP, the Town engaged in a separate process to review and consider the allocation and use of CLFR Funds, and an expenditure plan for the first tranche of funds totaling $5.32 million was approved by the Town Council in September and October 2021. CONTACTING THE TOWN'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town's finances and to show the Town's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Town's Finance Department at the Town of Danville, 510 La Gonda Way, Danville, California 94526-1740 16 BASIC FINANCIAL STATEMENTS 17 This page intentionally left blank. 18 GOVERNMENT -WIDE FINANCIAL STATEMENTS 19 Town of Danville Statement of Net Position June 30, 2021 Governmental Activities ASSETS Current assets: Cash and investments $ 66,205,543 Receivables (net of allowances): Accounts 2,637,541 Due from Successor Agency within one year (Note 6) 1,100,000 Interest 197,091 Total receivables 3,934,632 Prepaid items 105,487 Total current assets 70,245,662 Noncurrent assets: Restricted cash and investments: Held with fiscal agent 1,623,438 Held by the Town 27,814,973 Total restricted cash and investments 29,438,411 Due from Successor Agency in more than one year (Note 6) 3,959,401 Capital assets: Nondepreciable 149,727,528 Depreciable, net 33,536,323 Total capital assets 183,263,851 Total noncurrent assets 216,661,663 Total assets 286,907,325 LIABILITIES Current liabilities: Accounts payable 5,738,383 Accrued wages payable 577,539 Retention payable 118,218 Deposit payable 159,183 Interest payable 84,246 Claims liabilities 56,514 Unearned revenue 613,529 Long-term debt - due within one year (Note 8) 630,000 Total current liabilities 7,977,612 Noncurrent liabilities: Long-term debt - due in more than one year: (Note 8) Certificates of participation 5,235,000 Compensated absences 864,890 Total noncurrent liabilities 6,099,890 Total liabilities 14,077,502 NET POSITION Net investment in capital assets 177,508,851 Restricted for: Debt service 1,623,438 Special projects and programs 27,814,973 Total restricted 29,438,411 Unrestricted 65,882,561 Total net position $ 272,829,823 See accompanying Notes to the Basic Financial Statements. 20 Town of Danville Statement of Activities For the Year Ended June 30, 2021 Functions/Programs Expenses Governmental activities: 187,548 General government $ 1,727,404 Police services 9,141,598 Maintenance services 3,738,947 and lighting and landscape 8,999,904 Development services 6,231,119 Administrative services 3,632,890 Recreation, arts, & community services 2,722,675 Interest expense 282,675 Total governmental activities $ 32,738,265 Net (Expense) Revenue and Changes in Program Revenues Net Position Operating Capital Charges for Grants and Grants and Governmental $ - $ - $ $ (1,727,404) 187,548 195,514 (8,758,536) 3,047,952 - 93,589 (5,858,363) 3,738,947 1,500,067 2,075,465 1,083,360 28,145 575,791 - (3,028,954) 846,805 - (1,875,870) - - - (282,675) $ 7,849,397 $ 2,271,372 $ 2,169,054 (20,448,442) General revenues: Taxes: Property 17,210,607 Sales 6,653,905 Motor vehicle license fee 32,180 Franchise 3,044,834 Other 338,449 Total taxes 27,279,975 Investment earnings 174,503 Miscellaneous 1,447,189 Loss on disposal of capital assets (1,568) Reimbursement from Successor Agency 789,051 Total general revenues 29,689,150 Change in net position 9,240,708 Net position - beginning of year 263,589,115 Net position - end of year $ 272,829,823 See accompanying Notes to the Basic Financial Statements. 21 This page intentionally left blank. 22 FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 GOVERNMENTAL FUND FINANCIAL STATEMENTS 25 This page intentionally left blank. 26 Town of Danville Governmental Fund Financial Statements General Fund The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this fund are property taxes, sales taxes, unrestricted revenues from the State, fines and forfeitures and interest income. Expenditures are made for administration, legislation, public safety, parks and recreation and other services. Lighting and Landscaping Special Revenue Fund Assessments paid by property owners who receive street lighting services and assessments paid by all property owners for landscape and park maintenance are received into this Fund. The income is used to pay energy costs for the street lighting system, community roadside, median and park landscape costs. Regional Traffic Impact Fees Fund Development impact fees are collected for local, sub -regional and regional traffic improvements. Sub -regional and regional fees are collected on behalf of other agencies and distributed to the lead agency for project construction. Capital Improvement Capital Projects Fund This Fund receives contributions from the General Fund for future capital improvements, in accordance with the Town's Capital Improvement Program. 27 Town of Danville Governmental Funds Balance Sheet June 30, 2021 (Continued) See accompanying Notes to the Basic Financial Statements. 28 Major Funds Regional Traffic Capital Lighting and Impact Fees Improvement Landscape Special Special Revenue Capital Projects General Fund Revenue Fund Fund Fund ASSETS Cash and investments $ 31,712,045 $ 5,045,960 $ 4,350,951 $ 22,066,576 Cash and investments with fiscal agent 809,518 - - - Receivables (net of allowances): Accounts 2,421,172 53,407 5,796 117,798 Due from Successor Agency of former CDA 5,059,401 - - - Interest 107,726 6,759 6,687 34,220 Prepaid items 105,487 - - - Total assets $ 40,215,349 $ 5,106,126 $ 4,363,434 $ 22,218,594 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 4,245,546 $ 506,702 $ 591 $ 535,901 Accrued wages payable 375,232 71,254 - 3,809 Retention payable - - - 109,423 Deposits payable 94,013 - - - Claims liabilities 56,514 - - - Unearned revenue 551,822 54,039 - - Total liabilities 5,323,127 631,995 591 649,133 Deferred Inflows of Resources: Unavailable revenue 356,498 - - - Total deferred inflows of resources 356,498 - - - Fund Balances: Nonspendable 4,064,888 - - - Restricted 809,518 1,628,275 4,362,843 - Committed 28,158,818 - - 21,569,461 Assigned 402,500 2,845,856 - - Unassigned 1,100,000 - - - Total fund balances 34,535,724 4,474,131 4,362,843 21,569,461 Total liabilities, deferred inflows of resources and fund balances $ 40,215,349 $ 5,106,126 $ 4,363,434 $ 22,218,594 (Continued) See accompanying Notes to the Basic Financial Statements. 28 Town of Danville Governmental Funds Balance Sheet (Continued) June 30, 2021 ASSETS Cash and investments Cash and investments with fiscal agent Receivables (net of allowances): Accounts Due from Successor Agency of former CDA Interest Prepaid items Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages payable Retention payable Deposits payable Claims liabilities Unearned revenue Total liabilities Deferred Inflows of Resources: Unavailable revenue Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying Notes to the Basic Financial Statements. 29 Non -Major Total Governmental Governmental Funds Funds $ 30,844,984 $ 94,020,516 813,920 1,623,438 39,368 2,637,541 - 5,059,401 41,699 197,091 - 105,487 $ 31,739,971 $ 103,643,474 $ 449,643 $ 5,738,383 127,244 577,539 8,795 118,218 65,170 159,183 - 56,514 7,668 613,529 658,520 7,263,366 - 356,498 - 356,498 - 4,064,888 22,637,775 29,438,411 8,443,676 58,171,955 - 3,248,356 - 1,100,000 31,081,451 96,023,610 $ 31,739,971 $ 103,643,474 (Concluded) This page intentionally left blank. 30 Town of Danville Reconciliation of Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2021 Total Fund Balances - Total Governmental Funds $ 96,023,610 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Non -depreciable capital assets 149,727,528 Depreciable capital assets, net 33,536,323 Total capital assets 183,263,851 Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (84,246) Unavailable revenues recorded in Governmental Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government -Wide Financial Statements. 356,498 Long-term liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet. Long-term debt due within one year (630,000) Long-term liabilities - due in more than one year: - Certificates of participation (5,235,000) - Compensated absences payable (864,890) Total long-term debt (6,729,890) Net Position of Governmental Activities $ 272,829,823 See accompanying Notes to the Basic Financial Statements. 31 Town of Danville Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2021 EXPENDITURES: Major Funds Current: Regional Traffic Capital General government Lighting and Impact Fees Improvement - Police services Landscape Special Special Revenue Capital Projects - General Fund Revenue Fund Fund Fund REVENUES: Lighting and landscape - 3,903,054 - Property taxes $ 17,210,607 $ - $ - $ - Sales taxes 6,652,729 - - - Special assessments - 3,036,793 - - Other taxes 2,280,557 - - - Charges for services 703,196 - - - Licenses and permits 331,206 - - - Development fees - - 441,393 - Intergovernmental 578,900 - - 12,847 Fines and forfeitures 86,104 - - - Use of money and property 1,679,369 35,070 - - Reimbursement from Successor Agency 789,051 - - - Miscellaneous 311,947 113,323 - - Total revenues 30,623,666 3,185,186 441,393 12,847 EXPENDITURES: Current: General government 1,716,334 - - - Police services 8,933,507 - - - Maintenance services 2,171,607 17,336 - 237,461 Lighting and landscape - 3,903,054 - - Development services 900,116 - - 1,580,141 Administrative services 3,531,194 2,797 2,747 17,230 Recreation, arts, & community services 2,333,428 - - 60,687 Capital outlay 9,966 - 464,619 3,156,002 Debt service: Principal 500,000 - - - Interest 289,051 - - - Total expenditures 20,385,203 3,923,187 467,366 5,051,521 REVENUES OVER (UNDER) EXPENDITURES 10,238,463 (738,001) (25,973) (5,038,674) OTHER FINANCING SOURCES (USES): Transfers in 547,553 1,200,000 - 1,925,240 Transfers out (2,825,240) (292,039) (300,000) (250,000) Total financing sources (uses) (2,277,687) 907,961 (300,000) 1,675,240 NET CHANGE IN FUND BALANCES 7,960,776 169,960 (325,973) (3,363,434) FUND BALANCES: Beginning of year 26,574,948 4,304,171 4,688,816 24,932,895 End of year $ 34,535,724 $ 4,474,131 $ 4,362,843 $ 21,569,461 (Continued) See accompanying Notes to the Basic Financial Statements. 32 Town of Danville Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) For the Year Ended June 30, 2021 REVENUES: Property taxes Sales taxes Special assessments Other taxes Charges for services Licenses and permits Development fees Intergovernmental Fines and forfeitures Use of money and property Reimbursement from Successor Agency Miscellaneous Total revenues EXPENDITURES: Current: General government Police services Maintenance services Lighting and landscape Development services Administrative services Recreation, arts, & community services Capital outlay Debt service: Principal Interest Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year See accompanying Notes to the Basic Financial Statements. 33 Non -Major Governmental Funds Total Governmental Funds $ - $ 17,210,607 - 6,652,729 574,643 3,611,436 2,547,556 4,828,113 792,757 1,495,953 7,243 338,449 2,500,424 2,941,817 1,067,696 1,659,443 - 86,104 57,128 1,771,567 - 789,051 162,160 587,430 7,709,607 41,972,699 16,352 1,732,686 132,292 9,065,799 1,389,716 3,816,120 - 3,903,054 3,585,423 6,065,680 52,385 3,606,353 76,262 2,470,377 280,770 3,911,357 - 500,000 - 289,051 5,533,200 35,360,477 2,176,407 6,612,222 125,000 3,797,793 (130,514) (3,797,793) (5,514) - 2,170,893 6,612,222 28,910,558 89,411,388 $ 31,081,451 $ 96,023,610 (Concluded) Town of Danville Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to Government -Wide Statement of Activities For the Year Ended June 30, 2021 Net Change in Fund Balances - Total Governmental Funds $ 6,612,222 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental Funds report capital outlay as expenditures. However, in the Government -Wide Statement of Activities the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period. 3,918,364 Depreciation expense on capital assets is reported in the Government -Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in Governmental Funds. (1,876,667) The net effect of various miscellaneous adjustments (i.e. sales and deletions) involving capital assets. (1,568) Revenues that have not met the revenue recognition criteria in the Fund Financial Statements are recognized as revenue in the Government -Wide Financial Statements. 7,842 Long-term compensated absences are reported in the Government -Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, long-term compensated absences are not reported as expenditures in Governmental Funds. The following amount represents the change in long-term compensated absences from the prior year. 74,139 Repayment of bond principal reduces long-term liabilities in the Government -Wide Statement of Net Position. Long-term debt repayments: - Certificates of participation 500,000 Interest expense on long-term debt is reported in the Government -Wide Statement of Activities but they do not require the use of current financial resources. Therefore, interest expense is not reported as expenditures in Governmental Funds. The following amount represents the change in accrued interest from the prior year. 6,376 Change in Net Position of Governmental Activities $ 9,240,708 See accompanying Notes to the Basic Financial Statements. 34 FIDUCIARY FUND FINANCIAL STATEMENTS 35 This page intentionally left blank. 36 Town of Danville Fiduciary Fund Financial Statements TRUST FUND Successor Agency Trust Fund The Successor Agency to the former Community Development Agency (CDA) of the Town of Danville was established as a result of the passage of Assembly Bill xl 26, which dissolved all Redevelopment Agencies in the State of California effective February 1, 2012. On January 10, 2012, pursuant to Health and Safety Code Section 34173, the Town Council declared that the Town of Danville would act in a special limited capacity as Successor Agency for the dissolved Community Development Agency of the Town of Danville, effective February 1, 2012. The Successor Agency is responsible for day to day administration of the former CDA, including identification and payment of enforceable and recognized obligations of the former CDA, and disbursement of available assets. An Oversight board, consisting of 7 members, was appointed to supervise the Successor Agency's wind down of the former CDA. CUSTODIAL FUNDS Deposits Custodial Fund This fund is comprised of money temporarily deposited with the Town. Examples of deposits include cash improvement bonds posted by developers, performance bonds posted by contractors, third party pass-through fees and employee benefit allocations. 37 Town of Danville Fiduciary Activities Statement of Fiduciary Net Position June 30, 2021 ASSETS Cash and investments Cash and investments with fiscal agents Total assets LIABILITIES Accounts payable Loan payable to Town (Note 6) Loan payable, due within one year Loan payable, due in more than one year Interest payable Total liabilities NET POSITION (DEFICIT) Restricted Unrestricted (deficit) Total net position See accompanying Notes to the Basic Financial Statements. 38 Successor Agency Private Purpose Deposits Trust Fund Custodial Fund $ 811,748 $ 1,101,764 375,017 261,232 1,186,765 1,362,996 3,080 12,343 5,059,401 - 195,000 - 1,910,000 - 435,814 - 7,603,295 12,343 1,350,653 (6,416,530) - $ (6,416,530) $ 1,350,653 Town of Danville Fiduciary Activities Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2021 ADDITIONS: Property tax receipts Miscellaneous Total additions DEDUCTIONS: Amount allocated to General Fund for principal payment Interest Other - staff expenses and miscellaneous Total deductions Changes in net position NET POSITION (deficit): Beginning of year, as restated (Note 13) End of year See accompanying Notes to the Basic Financial Statements. 39 Successor Agency Private Purpose Trust Fund Deposits Custodial Fund $ 2,290,330 $ - 39 19,951 2,290,369 19,951 680,000 255,812 21,063 956,875 1,333,494 19,951 (7,750,024) 1,330,702 $ (6,416,530) $ 1,350,653 This page intentionally left blank. 40 NOTES TO THE BASIC FINANCIAL STATEMENTS 41 Town of Danville Index to Notes to the Basic Financial Statements For the Year Ended June 30, 2021 Page Note1— Reporting Entity........................................................................................................................43 Note 2 — Summary of Significant Accounting Policies......................................................................................44 A. Basis of Presentation, Basis of Accounting, and Measurement Focus.....................................................44 B. Cash and Investments................................................................................................................................46 C. Cash and Investments with Fiscal Agent..................................................................................................47 D. Land Held for Redevelopment..................................................................................................................47 E. Capital Assets............................................................................................................................................48 F. Unearned Revenues...................................................................................................................................49 G. Compensated Absences.............................................................................................................................50 H. Long -Term Debt.......................................................................................................................................50 I. Fund Balance............................................................................................................................................50 J. Net Position...............................................................................................................................................51 K. Spending Policies......................................................................................................................................51 L. Property Taxes..........................................................................................................................................51 M. Use of Accounting Estimates....................................................................................................................51 N. Implementation of New GASB Pronouncements.....................................................................................52 Note3 — Cash and Investments...........................................................................................................................52 A. Demand Deposits................................................................... B. Investments............................................................................ C. External Investment Pool ....................................................... D. Restricted Cash and Investments Held with Fiscal Agent ..... E. Risk Disclosures..................................................................... .................................................................53 .................................................................54 .................................................................55 .................................................................56 .................................................................56 Note4 — Capital Assets........................................................................................................................................58 A. Governmental Activities...........................................................................................................................58 Note5 — Interfund Transactions.........................................................................................................................60 A. Transfers In/Out........................................................................................................................................60 Note 6 — Loans Receivable from Successor Agency to the FormerCommunity Development Agency......................................................................................60 A. Successor Agency (SA) Cooperative Agreement Loan Receivable.........................................................61 Note7 — Unearned Revenue................................................................................................................................61 Note8 — Long -Term Obligations........................................................................................................................62 A. Governmental Activities...........................................................................................................................62 B. Fiduciary Fund Financial Statements........................................................................................................64 Note9 — Defined Contribution Pension Plan.....................................................................................................65 A. Section 401(a) Qualified Defined Contribution Pension Plan..................................................................65 B. Section 415(m) Benefit Restoration Plan..................................................................................................65 Note 10 — Fund Balance Classification...............................................................................................................66 Note11 — Risk Management................................................................................................................................67 Note 12 — Commitments and Contingencies......................................................................................................68 Note13 — Prior Period Adjustments...................................................................................................................69 Note14 — Subsequent Events..............................................................................................................................69 42 Town of Danville Notes to the Basic Financial Statements For the Year Ended June 30, 2021 Note 1 — Reporting Entity The Town of Danville is a largely residential community located in the San Ramon Valley area of Contra Costa County, California. The Town was incorporated as a municipal corporation in 1982, and encompasses eighteen square miles with a population of 43,906. The Town operates under the Council -Manager form of government, with five elected Council members served by a full-time Town Manager and staff. The Town's staff of 131.25 employees, as well as 30 County Sheriff's Department employees under contract with the Town, are responsible for the following Town services: • Public Safety — The Town provides round-the-clock police services from a central station, using trained personnel provided under contract with the County Sheriff's Department. • Streets and Roads — The Town builds and maintains its streets, curbs, gutters and related public property using Town employees. Major projects may be contracted to reduce costs. • Parks and recreation, public improvements, planning, zoning and other services are provided by Town employees. • Maintenance — In addition to Town staff, the Town employs varying numbers of seasonal personnel for maintenance and recreation services. The accompanying financial statements include the financial activities of the Town (the primary government) and its component units. The component units discussed below are included in the Town's reporting entity because of the significance of their operational or financial relationships with the Town, including the Town Council, which acts as the governing board. In addition, Town staff performs all administrative and accounting functions for these entities, and these entities provide their services entirely to the Town. These blended component units, although legally separate entities, are, in substance, part of the Town's operations. Town of Danville Financing Authority — The Town of Danville Financing Authority (Authority) is a joint powers authority that was organized by the Town of Danville ("Town") and the former Danville Community Development Agency of the Town of Danville ("CDA") on December 7, 1993, under the laws of the State of California. The Authority was organized to provide financial assistance to the Town and former CDA for public improvements for the benefit of the residents of the Town and the surrounding areas. Administrative and related normal business expenditures incurred in the day-to-day operations of the Authority are provided by the Town. Town of Danville Lighting and Landscaping Assessment District - The Lighting and Landscape Assessment District Fund (District) of the Town of Danville (Town) was formed in 1983 to provide a funding source for the operation, maintenance and servicing of landscaping, street lighting and Town park facilities within the District. The District is responsible for Town improvements including future improvements located within incorporated limits of the Town. Because of varying degrees of operation and maintenance for each improvement type, the District is separated into four zones: landscaping improvements (Zones A and B), street lighting (Zone C) and Town parks (Zone D). The Town created a special revenue fund to account for each zone's assessment revenues and expenditures. The District is fully integrated within the Town, which performs all maintenance, administrative and accounting functions. 43 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies A. Basis of Presentation, Basis of Accounting, and Measurement Focus The basic financial statements of the Town have been prepared in conformity with accounting principles general accepted of the United States of America ("U.S. 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 accounts of the Town 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. The Statement of Net Position/Balance Sheet reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. Government — Wide Financial Statements The Town'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 activities for the Town. Fiduciary activities of the Town are not included in these statements. These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Town's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in 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. Certain types of transactions are reported as program revenues for the Town in three categories: Charges for services Operating grants and contributions Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated. The following interfund activities have been eliminated: • Due To/From Other Funds • Transfers In/Out 44 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) A. Basis of Presentation, Basis of Accounting, and Measurement Focus (Continued) Governmental Fund Financial Statements 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 recognized as soon as they are both "measurable" and "available." Revenues are considered to be available when they are collectible within the current period as soon as enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the Town, 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. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences. The Town reports the following major Governmental Funds: General Fund The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this fund are property taxes, sales taxes, unrestricted revenues from the State, licenses and permits, fines and forfeitures and interest income. Expenditures are made for administration, legislation, public safety, parks and recreation and other services. Lighting and Landscaping Special Revenue Fund Assessments paid by property owners who receive street lighting services and assessments paid by all property owners for landscape and park maintenance are received into this Fund. The income is used to pay energy costs for the street lighting system and community roadside, median and park landscape costs. Regional Traffic Impact Fees Special Revenue Fund Development impact fees are collected for local, sub -regional and regional traffic improvements. Sub - regional and regional fees are collected on behalf of other agencies and distributed to the lead agency for project construction. Capital Improvement Capital Projects Fund This Fund receives contributions from the General Fund for future capital improvements, in accordance with the Town's Capital Improvement Program. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The Town's Fiduciary Funds represent a Private Purpose Trust Fund and a Custodial Fund. The Fiduciary Funds are accounted for using the accrual basis of accounting. 45 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) A. Basis of Presentation, Basis of Accounting, and Measurement Focus (Continued) The Town reports the following Private Purpose Trust Fund: Successor Agency Trust Fund The Successor Agency to the former Community Development Agency ("CDA") of the Town of Danville was established as a result of the passage of Assembly Bill xl 26, which dissolved all Redevelopment Agencies in the State of California effective February 1, 2012. On January 10, 2012 pursuant to Health and Safety Code Section 34173, the Town Council declared that the Town would act in a special limited capacity as Successor Agency for the dissolved CDA, effective February 1, 2012. The Successor Agency is responsible for day to day administration of the former CDA, including identification and payment of enforceable and recognized obligations of the former CDA, and disbursement of available assets. An Oversight board, consisting of seven members, was appointed to supervise the Successor Agency's wind down of the former CDA. The Town reports the following Custodial Fund: Deposits Custodial Fund This Fund is comprised of money temporarily deposited with the Town. Examples of deposits include cash improvement bonds posted by developers, performance bonds posted by contractors, third party pass-through fees, and employee benefit allocations. B. Cash and Investments The Town pools its available cash for investment purposes. The Town'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 the date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments. Certain disclosure requirements for deposits and investment risks were made in the following areas: • Interest rate risk • Credit risk • Overall • Custodial credit risk • Concentrations of credit risk 46 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) B. Cash and Investments (Continued) 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. 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. U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows: Level 1 — Inputs are unadjusted, quoted prices for identical the asset or liability in active markets at the measurement date. Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Town maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the Town Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to each fund based on its average monthly cash and investment balances. The Town participates in an investment pool managed by the State of California titled Local Agency Investment Fund ("LAIF"), which has invested a portion of the pool funds in structured notes and asset-backed securities. 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 with changes in interest rates. C. Cash and Investments with Fiscal Agents Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. D. Land Held for Redevelopment The Successor Agency of the Town holds one parcel of land acquired by the former CDA as part of that entity's primary purpose before dissolution to develop or redevelop Town properties. The property was deeded to the Town on March 28, 2016 for capital projects. 47 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) E. Capital Assets Capital assets, which include lands, buildings, improvements, furniture, equipment and infrastructure assets (e.g., roads, bridges, signal systems and similar items) are reported in the applicable governmental activities in the Government -Wide Financial Statements. The Town defines infrastructure as the primary physical assets that allow the Town to conduct its business. The Town's infrastructure assets include: • Street system • Street signal system • Park and recreation lands and improvement systems • Storm water conveyance system • Bridges • Buildings combined with site amenities such as parking and landscaped areas Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into the following: • Pavement • Medians • Curb and gutters • Landscaping and land The detail of these subsystems is not presented in the basic financial statements. However, the operating departments maintain information regarding the subsystems. Capital assets are recorded at historical cost or estimated historical cost if actual cost was not available. Donated assets are valued at their estimated acquisition value on the date donated. Town policy has set the capitalization thresholds for reporting capital assets at the following: • All buildings (no threshold) • $20,000 for roads and bridges/box culverts • $10,000 for traffic signals and storm drain pipes • $5,000 for furniture, fixtures, equipment, catch basins and manholes Depreciation is recorded on a straight-line basis over the useful lives of all other assets, except for infrastructure, as follows: Building and parking lots 40 years Park improvements 5 years Furnitures and equipment 3 - 10 years Infrastructure 30 - 50 years 48 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) E. Capital Assets (Continued) The Town elected to use the Modified Approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets, concrete and asphalt pavements. This condition assessment will be performed every three years. Each homogeneous segment of Town -owned street was assigned a physical condition based on potential defects. A Pavement Condition Index (PCI) was assigned to each street segment. The PCI is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the physical characteristics of a new street. The following conditions were defined: Very good condition 70- 100 Good condition 50-69 Poor condition 26-49 Very poor condition 0-25 The Town's policy relative to maintaining the street assets is to achieve an average rating of 65-70 for all street segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure systems, the Town elected to use the Basic Approach as defined by GASB Statement No. 34. The Town appraised its own infrastructure as of July 1, 2001 and has completed an internal update for June 30, 2020. The 2001 appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: 1. Historical records; 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 from the date of construction/acquisition to the current date was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. F. Unearned Revenues For the Government -wide Financial Statements, unearned revenue is recognized in connection with a transaction before the earnings process is completed. For the Governmental Fund Financial Statements, unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues 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, unearned revenues are removed from the combined balance sheet and revenue is recognized. 49 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) G. Compensated Absences Compensated absences include general leave, which covers vacations up to the cap amount based on years of services and hire date, and is accounted for in accordance with U.S. GAAP. It is the policy of the Town to pay when an employee retires or terminates. This amount is funded at a level that recognizes each employee's ability to request leave during employment and is included as a liability in the Government -wide Financial Statements. Compensated absences liabilities of governmental activities are generally liquidated by the General Fund (74%), Building and Planning Special Revenue Fund (11%), and Other Special Revenue Funds (15%). H. Long -Term Debt In the Government -wide Financial Statements, long-term debt is reported as liabilities. Bonds payable are reported net of the applicable bond premium or discount. For Governmental Fund Financial Statements, bond premiums and discounts, as well as bond issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures. I. Fund Balance In the Governmental Fund Financial Statements, fund balances are classified in the following categories: NonsRendable — Items cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed — Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making (normally the governing body) and that remain binding unless removed in the same manner. The Town Council is considered the highest authority for the Town. A Town resolution is required to have fund balance committed. Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Town Council has authorized the Town Manager and the Finance Manager/Treasurer for that purpose. Unassigned — This category is for any balances that have no restrictions placed upon them. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. 50 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) J. Net Position For the Government -Wide Financial Statements, net position is classified in the following categories: Net Investment in Capital Assets component of net position consists of capital assets net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. K. Spending Policies For Government -Wide Financial Statements, when an expense is incurred for purposes for which both restricted and unrestricted net position are available, the Town's policy is to apply restricted net position first. For Governmental Fund Financial Statements, the Town's policy is to spend restricted fund balances first, before spending unrestricted fund balances, for expenditures incurred for purposes for which both restricted and unrestricted fund balances are available, except for instances wherein a Town ordinance or resolution specifies the funding source or a fund balance to use. The Town's policy is that committed and assigned fund balances are considered to have been spent first before unassigned fund balances have been spent, when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used, except for instances wherein a Town ordinance specifies the fund balance to use. L. Property Taxes Revenue is recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the Town and remits the full assessment regardless of the amounts received under a Teeter plan arrangement. Property Tax Lien Date Due Date Delinquent Date M. Use of Accounting Estimates Secured January 1 (Preceding fiscal year) November 1 & February 1 December 10 & April 10 Unsecured January 1 (Preceding fiscal year) August 31 September 1 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. 51 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 2 — Summary of Significant Accounting Policies (Continued) N. Implementation of New GASB Pronouncements During fiscal year ended June 30, 2021, the Town has implemented the following new GASB Pronouncements: • In January 2017, GASB issued Statement No. 84, Fiduciary Activities (GASB Statement No. 84), to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and local governments. It also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. • In August 2018, GASB issued Statement No. 90, Majority Equity Interests — an Amendment of GASB Statements No. 14 and No. 61 (GASB Statement No. 90), to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. This statement requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Implementation of this statement was not applicable because the Town did not have any majority equity interests. • In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report, to establish the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Implementation of this did not have a material effect on the financial statements. Note 3 — Cash and Investments The following is a summary of pooled cash and investments, including restricted cash and investments held by the Town, and cash and investments held by fiscal agents, at June 30, 2021: Cash and investments Restricted cash and investments: Held by Town Subtotal held by Town Held by fiscal agents Total cash and investments Primary Government Fiduciary Governmental Fund Financial Activities Statements Total $ 66,205,543 $ 1,913,512 $ 68,119,055 27,814,973 - 27,814,973 94,020,516 1,913,512 95,934,028 1,623,438 636,249 2,259,687 $ 95,643,954 $ 2,549,761 $ 98,193,715 At June 30, 2021, cash and investments, excluding restricted cash and investments held by fiscal agent, are reported at fair value based on quoted market prices. The following table presents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2021: 52 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 3 — Cash and Investments (Continued) Investment Type Fair Value Percentage of Investments Measurement Input Demand deposits $ 1,326,107 N/A N/A Investments: U.S. Securities: U.S. Treasury 22,216,256 23.48% Level Federal Securities 36,064,950 38.12% Level 2 Asset Backed Securities 3,406,141 3.60% Level Inter -American Dev Bank Note 1,114,157 1.18% Level 2 Int'l Bank Recon & Development 353,830 0.37% Level 2 U.S. CorporateNotes/FDIC: Apple Inc. Callable 750,057 0.79% Level 2 Berkshire Hathaway Note 1,023,651 1.08% Level 2 Paccar Financial Corp. Note 510,161 0.54% Level 2 Chevron Corp Callable Note 261,096 0.28% Level Toyota Motor Credit Corp 1,036,115 1.10% Level 2 US Bank NA Callable Note 778,034 0.82% Level 2 Bank of NY M ellon Corp Callable Note 779,597 0.82% Level 2 Apple Inc. Note 778,112 0.82% Level Wal-Mart Stores Callable Note 847,805 0.90% Level American Honda Finance Note 1,021,668 1.08% Level 2 John Deere Capital Corp Note 614,369 0.65% Level 2 Amazon.com Inc. Callable Note 568,934 0.60% Level 2 Caterpillar Financial Service Note 902,269 0.95% Level 2 John Deere Capital Corp Note 538,391 0.57% Level 2 JP Morgan Chase & Co. Callable Note 748,620 0.79% Level 2 Local Agency Investment Fund (LAIF) 20,151,592 21.30% N/A Money Market Funds 142,116 0.15% N/A Total investments 94,607,921 100.00% Total cash andinvestments $ 95,934,028 Investments securities classified in Level 2 of the fair value hierarchy are valued using prices determined by the use of matrix pricing techniques maintained by the pricining vendors for these securities. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. A. Demand Deposits The carrying amounts of the Town's cash deposits were $1,326,107 at June 30, 2021. Bank balances as of June 30, 2021, were $1,326,144 which were fully insured and collateralized with securities held by the pledging financial institutions in the Town's name as discussed in the following. The California Government Code (Code) requires California banks and savings and loan associations to secure the Town'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 Town's name. The market value of pledged securities must equal at least 110% of the Town's cash deposits. California law also allows institutions to secure Town deposits by pledging first trust deed mortgage notes having a value of 150% of the Town's total cash deposits. The Town has waived collateral requirements for cash deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. 53 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 3 — Cash and Investments (Continued) B. Investments The Town reviews and refines its Investment Policy (Policy) annually, with the most recent revision approved by the Town Council on November 19, 2019. The Policy states that the primary investment objective is safety with investments being legally permitted and sufficiently liquid to meet forecasted needs. Maximization of interest earnings is a secondary objective. Further, the Policy states that the Town Treasurer has the ultimate responsibility to protect, preserve and maintain cash and investments. The Policy also established internal controls and reporting requirements and stipulates "Permitted Investments and Limitation on Investments". The Town is authorized by State statutes (California Government Code 53601) and in accordance with the Town's Policy to invest in the following: • U.S. Treasury Securities • U.S. Government Federal Agencies • Certificates of Deposit • Bankers Acceptances • Commercial Paper (Corporations) • Medium -Term Corporate Notes • Repurchase Agreements collateralized by U.S. Securities or U.S. Government Federal Agencies • California Local Agency Investment Fund (LAIF) • U.S. Government Mortgage Pass -Through Securities • Collateralized Mortgage Obligations (CMOs) • Asset -Backed Securities (ABS) • Money Market Mutual Funds • Passbook Savings and Demand Deposits Accounts Additionally, the Town's Policy specifies the maximum percentage of the total investment portfolio that may be held in each of the aforementioned securities. In addition to State statutes, the Town establishes that funds on deposit in banks must be federally insured or collateralized and investments shall: (1) have maximum maturity not to exceed five years; (2) be laddered and based on cash flow forecasts; and (3) be subject to limitations to a certain percent of the portfolio for each of the authorized investments. Investments were stated at fair value using the aggregate method in all funds and component units, resulting in the following investment earnings in all funds and component units: Interest earnings $ 1,225,739 Unrealized gain (loss) on changes in fair value of investments (1,051,236) Total investment earnings $ 174,503 54 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 3 — Cash and Investments (Continued) B. Investments (Continued) The Town's investment practices are in compliance with California Government Code 53601 et seq., and the Town's Policy. Securities that are purchased and maintain their rating are held to maturity with no exception. Therefore, while GASB Statement No. 31 requires that investments be stated as "fair value" for annual financial reporting purposes, the Town cannot realize either gains or losses in this valuation of the investments. C. External Investment Pool The Town invests in the Local Agency Investment Fund (LAIF), a State of California external investment pool. The LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The Town's investments with the LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset -Backed Securities. These investments may include the following: Structured Notes which are debt securities (other than asset-backed securities) with cash flow characteristics (coupon rate, redemption amount, or stated maturity) that depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities, the bulk of which are mortgage-backed securities, entitle its 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 CMO's) or credit card receivables. As of June 30, 2021, the Town had $20,151,592 invested in the LAIF, which had invested 1.10% of the pool investment funds in structured notes and asset-backed securities. The fair value of the Town's position in the LAIF pool is the same as the value of the pool shares. The Pooled Money Investment Board provides oversight to the State Treasurer's pooled investment program. The purpose of the board is to design and administer an effective cash management and investment program, using all monies flowing through the State Treasurer's Office bank accounts and keeping all available funds invested in a manner consistent with the goals of safety, liquidity, and yield. The Pooled Money Investment Board is comprised of the State Treasurer as chair, the State Controller, and the Director of Finance. The investment program is not registered with the Securities and Exchange Commission as an investment company. The State Treasurer's Office reports its investments at fair value. The fair value of securities in the State Treasurer's pooled investment program generally is based off of quoted market prices. The value of deposits in the State Treasurer's pooled investment program, including the Local Agency Investment Fund, is equal to the dollars deposited in the program. Certain funds have elected to participate in the pooled investment program even though they have the authority to make their own investments. Others may be required by legislation to participate in the program; as a result, the deposits of these funds or accounts may be considered voluntary. However, these funds or accounts are part of the State's reporting entity. The remaining participation in the pool, the Local Agency Investment Fund, is voluntary. 55 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 3 - Cash and Investments (Continued) D. Restricted Cash and Investments Held with Fiscal Agent Restricted cash and investments with fiscal agents, which can be only used for specific capital outlays, payment of certain long-term debt and maintaining required reserves, consists of $1,623,438 in the Governmental -wide Statement of Net Position and $636,249 in the Statement of Fiduciary Net Position. These funds have been invested only as permitted by specific State statutes governing these investments or by applicable Town ordinance, resolution or bond indenture. E. Risk Disclosures Interest Rate Risk As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town's Policy provides that final maturities of securities limits as follows: Specific maturities of investments depend on liquidity needs. At June 30, 2021, the Town's pooled cash and investments had the following maturities: Investment Type Maximum Maturity Investment Up to six months 25% Six months to five years 75% Specific maturities of investments depend on liquidity needs. At June 30, 2021, the Town's pooled cash and investments had the following maturities: Investment Type Fair Value 1 year or less Maturities (in years) 1-2 years 2-3 years 3-4 years 4-5 years Demand deposits $ 1,326,107 $ 1,326,107 $ - $ - $ - $ Investments: U.S. Securities: U.S. Treasury 22,216,256 5,345,232 4,970,512 6,024,590 5,875,922 Federal Securities 36,064,950 5,550,990 16,769,719 13,744,241 - - Asset Backed Securities 3,406,141 15,679 102,641 700,643 1,309,759 1,277,419 Inter -American Dev Bank Note 1,114,157 1,114,157 - - - - Int'1 Bank Recon & Development 353,830 - 353,830 U.S. Corporate Notes/FDIC: AppleInc. Callable 750,057 750,057 - Berkshire Hathaway Note 1,023,651 1,023,651 - Paccar Financial Corp. Note 510,161 - 510,161 Chevron Corp Callable Note 261,096 261,096 Toyota Motor Credit Corp 1,036,115 1,036,115 US Bank NA Callable Note 778,034 778,034 Bank of NY Mellon Corp Callable Note 779,597 779,597 Apple Inc. Note 778,112 778,112 Wal-Mart Stores Callable Note 847,805 847,805 - American Honda Finance Note 1,021,668 - 1,021,668 John Deere Capital Corp Note 614,369 614,369 Amazon.com Inc. Callable Note 568,934 568,934 Caterpillar Financial Service Note 902,269 902,269 John Deere Capital Corp Note 538,391 538,391 - JP Morgan Chase & Co. Callable Note 748,620 - 748,620 Local Agency Investment Fund (LAIF) 20,151,592 20,151,592 - Money Market Funds 142,116 142,116 - - - Total investments 94,607,921 34,093,474 26,833,792 24,468,935 7,934,301 1,277,419 Total cash and investments $ 95,934,028 $ 35,419,581 $ 26,833,792 $ 24,468,935 $ 7,934,301 $ 1,277,419 56 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 3 — Cash and Investments (Continued) E. Risk Disclosures (Continued) Credit Risk Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. According to the Town's Policy, no more than 5% of the total portfolio may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentalities and the LAIF. If a security (other than the LAIF) is downgraded by either Moody's or S&P to a level below the minimum quality required by the Town, the Town will determine whether to retain or liquidate the security based upon criteria set forth in the Town's Policy. At June 30, 2021, the Town's investments are rated as follows: Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Town does not have any custodial credit risk. 57 Credit Quality Rating M oody's S&P Investments: U.S. Securities: U.S. Treasury Aaa AA+ Federal Securities Aaa AA+ Asset Backed Securities Aaa AAA Inter -American Dev Bank Note Aaa AAA Int'l Bank Recon & Development Aaa AAA U.S. CorporateNotes/FDIC: Apple Inc. Callable Aal AA+ Berkshire Hathaway Note Aa2 AA Paccar Financial Corp. Note Al A+ Chevron Corp Callable Note Aa2 AA - Toyota Motor Credit Corp Al A+ US Bank NA Callable Note Al AA - Bank of NY Mellon Corp Callable Note Al A Apple Inc. Note Aal AA+ Wal-Mart Stores Callable Note Aa2 AA American Honda Finance Note A3 A - John Deere Capital Corp Note A2 A Amazon.com Inc. Callable Note Al AA Caterpillar Financial Service Note A2 A John Deere Capital Corp Note A2 A JP Morgan Chase & Co. Callable Note A2 A - Local Agency Investment Fund (LAIF) Not Rated Not Rated Money Market Funds Aaa AAA Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Town does not have any custodial credit risk. 57 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 4 — Capital Assets A. Governmental Activities Summary of changes in capital assets for the year ended June 30, 2021 was as follows: 58 Balance Transfers/ Balance July 1, 2020 Additions Retirements Reclassifications June 30, 2021 Governmental Activities: Capital assets, not being depreciated Land $ 31,221,867 $ - $ $ $ 31,221,867 Construction in progress 21,660,504 3,860,934 (1,568) (90,094) 25,429,776 Infrastructure - streets, concrete & asphalt pavements 93,075,885 - 93,075,885 Total capital assets not being depreciated 145,958,256 3,860,934 (1,568) (90,094) 149,727,528 Capital assets being depreciated Buildings and parking lots/street 39,873,605 - (4,930) 90,094 39,958,769 Park improvements 24,041,510 - - 24,041,510 Furniture and equipment 4,978,441 57,430 (71,995) 4,963,876 Infrastructure: Drainage system 56,689,603 - 56,689,603 Bridges 11,069,233 11,069,233 Signal system 6,997,956 - 6,997,956 Total capital assets being depreciated 143,650,348 57,430 (76,925) 90,094 143,720,947 Accumulated depreciation Buildings and parking lots (12,718,789) (1,105,929) - (13,824,718) Park improvements (21,685,367) (271,560) - (21,956,927) Furniture and equipment (4,547,459) (185,954) 76,925 (4,656,488) Infrastructure: Drainage system (56,209,211) (23,728) - (56,232,939) Bridges (7,618,227) (162,390) (7,780,617) Signal system (5,605,829) (127,106) - (5,732,935) Total accumulated depreciation (108,384,882) (1,876,667) 76,925 - (110,184,624) Total capital assets, being depreciated, net 35,265,466 (1,819,237) - 90,094 33,536,323 Governmental activities capital assets, net $ 181,223,722 $ 2,041,697 $ (1,568) $ - $ 183,263,851 58 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 4 — Capital Assets (Continued) A. Governmental Activities (Continued) Depreciation expenses by program for capital assets for the year ended June 30, 2021, were as follows: Police Services Building Furniture & equipment (vehicle) Subtotal Maintenance Services Building Parking lots Park improvements Furniture & equipment (vehicle) Subtotal Development Services Furniture & equipment (vehicle) Infrastructure - drainage Infrastructure - bridge Subtotal Transportation Services Furniture & equipment (vehicle) Infrastructure - signal Subtotal Administrative Services Building Furniture & equipment (vehicle) Subtotal Parks and Recreation Services Building Park improvements Furniture & equipment (vehicle) Subtotal Total depreciation expense 59 $ 19,250 57,918 77,168 489,875 270,907 466,895 74,962 1,302,639 7,846 23,728 162,390 193,964 1,362 127,106 128,468 1,212 37,062 38,274 126,491 2,859 6,804 136,154 $ 1,876,667 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 5 — Interfund Transactions A. Transfers In/Out Transfers in/out for the year ended June 30, 2021, were as follows: Transfers Out General Fund Lighting & Landscape Special Revenue Fund Regional Traffic Impact Fees Special Revenue Fund Capital Improvement Capital Projects Fund Non -M ajor Governmental Fund Total Transfers In Lighting Capital Landscape Improvement Special Capital Non -Major General Revenue Projects Governmental Fund Fund Fund Fund (1)(4) (2) (2) (3) Total $ $ 900,000 S 1,925,240 $ - $ 2,825,240 292,039 - - 292,039 300,000 - - 300,000 250,000 - - 250,000 5,514 - - 125,000 130,514 $ 547,553 $ 1,200,000 $ 1,925,240 $ 125,000 $ 3,797,793 The following are explanations for the transfers in and out: (1) Transfers in to the General Fund were for overhead expenses chargeable to Special Revenue Funds. (2) Transfers in to the Capital Improvement Capital Projects Fund and Lighting and Landscape Special Revenue Fund were to fund various capital projects. (3) Transfers in to the Non -Major Governmental Funds from other Non -Major Governmental Funds were to fund various capital projects. (4) Transfers in to the General Fund from the Non -Major Governmental Funds were for reimbursements for administration. Note 6 — Loans Receivable from Successor Agency to the Former Community Development Agency In the fiscal year 2012, the Successor Agency Trust Fund was established to replace the Town's Community Development Agency. Below are the accounts and transactions as of and for the year ended June 30, 2021: Government -Wide Financial Statements Loans Receivable Cooperative Loan Agreement $ 5,059,401 Total $ 5,059,401 Reimbursements from Successor Agency $ 789,051 Funds Financial Statements General Fund Due from Successor Agency from Former Community Development Agency $ 5,059,401 Total 60 $ 5,059,401 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 6 — Loans Receivable from Successor Agency to the Former Community Development Agency (Continued) A. Successor Agency (SA) Cooperative Agreement Loan Receivable Prior to the State of California's (State) dissolution of all redevelopment agencies, the Town of Danville and the former Community Development Agency (CDA) had entered into a Cooperation Agreement (Agreement), under which the Town advanced funds to the former CDA that were subject to later repayment by the former CDA. The Successor Agency to the former CDA and the Successor Agency's Oversight Board approved re-entry into the Agreement, as provided for in AB 1X 26 (the Dissolution Act). The State Department of Finance determined that the Agreement was not an enforceable obligation, leading the Town to file a lawsuit in the Sacramento County Superior Court (Superior Court) against the State challenging that determination. The Town won its suit in Superior Court, leading to an appeal by the State. In May 2015, the State dismissed its appeal, and at the same time, the Department of Finance accepted the Agreement as an enforceable obligation. As a result, the Town received its first payment in June 2015 under the Agreement. The Agreement incorporated the following payment schedule, which the Successor Agency and the Town will follow when preparing future Recognized Obligation Payment Schedule (ROPS) statements. However, due to the fact that the State refused to allow payment for the first several years post -dissolution, those amounts will be paid in years subsequent to those shown in the Agreement. Therefore, an additional $3,195,604 was approved in addition to the original amount and was recognized as special item in the basic financial statements. Fiscal Year Amount 2021-2022 $ 1,100,000 2022-2023 1,100,000 2023-2024 1,100,000 2024-2025 1,100,000 2025-2026 659,401 Total $ 5,059,401 Note 7 — Unearned Revenue Unearned revenue in Government -Wide Financial Statements and governmental funds statements represents amounts for which revenues have not been earned. At June 30, 2021, unearned revenues in the Government -Wide Financial Statements and governmental funds statements were as follows: Governmental Activities Business Licenses $ 159,032 Other Town -reimbursed fees 205,845 Recreation program registration 248,652 Total $ 613,529 61 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 8 — Long -Term Obligations A. Governmental Activities A summary of changes in long-term debt for the year ended June 30, 2021 is as follows: Certificates of Participation — 2001 Issue The Town issued $6,700,000 principal amount of 2001 Certificates of Participation (2001 COPS) on October 1, 2001. The purpose of the 2001 COPS was to provide funds to refund the outstanding 1992 Certificates of Participation, to defease the 1994 Tax Allocation Bonds, and to provide funds for the lease of certain real property and improvements. The 2001 COPS in the amount of $3,745,000 matured on September 1, 2018, and bore interest rates ranging from 3.50% to 4.625%. The 2001 COPs in the amount of $635,000 mature through September 1, 2020, and bear interest at the rate of 4.75% per annum. The 2001 COPS in the amount of $2,320,000 mature through September 1, 2026, and bear interest at the rate of 5.00% per annum. In the event of default, there is no acceleration clause. The Town will only be liable for lease payments on an annual basis as they come due and the trustee woud be required to seek separate judgments for the annual lease payments. The 2001 COPs are payable semiannually on each March 1 and September 1, commencing March 1, 2002 and are subject to optional and mandatory early redemption provisions. The annual debt service requirements for the 2001 COPS outstanding at June 30, 2021 are as follows: For the Years Ending Classification Principal Interest Total 2022 Due Due in $ 447,500 Balance 355,000 Balance Within More than Description July 1, 2020 Additions Retirements June 30, 2021 One Year One Year Publicly offered COPs: 2026 415,000 32,125 447,125 2027 2001 issue $ 2,645,000 $ - $ (325,000) $ 2,320,000 $ 340,000 $ 1,980,000 2005 issue 3,610,000 - (175,000) 3,435,000 180,000 3,255,000 Compensated absences 1,049,029 740,013 (814,152) 974,890 110,000 864,890 Total $ 7,304,029 $ 740,013 $ (1,314,152) $ 6,729,890 $ 630,000 $ 6,099,890 Certificates of Participation — 2001 Issue The Town issued $6,700,000 principal amount of 2001 Certificates of Participation (2001 COPS) on October 1, 2001. The purpose of the 2001 COPS was to provide funds to refund the outstanding 1992 Certificates of Participation, to defease the 1994 Tax Allocation Bonds, and to provide funds for the lease of certain real property and improvements. The 2001 COPS in the amount of $3,745,000 matured on September 1, 2018, and bore interest rates ranging from 3.50% to 4.625%. The 2001 COPs in the amount of $635,000 mature through September 1, 2020, and bear interest at the rate of 4.75% per annum. The 2001 COPS in the amount of $2,320,000 mature through September 1, 2026, and bear interest at the rate of 5.00% per annum. In the event of default, there is no acceleration clause. The Town will only be liable for lease payments on an annual basis as they come due and the trustee woud be required to seek separate judgments for the annual lease payments. The 2001 COPs are payable semiannually on each March 1 and September 1, commencing March 1, 2002 and are subject to optional and mandatory early redemption provisions. The annual debt service requirements for the 2001 COPS outstanding at June 30, 2021 are as follows: For the Years Ending June 30, Principal Interest Total 2022 $ 340,000 $ 107,500 $ 447,500 2023 355,000 90,125 445,125 2024 380,000 71,750 451,750 2025 395,000 52,375 447,375 2026 415,000 32,125 447,125 2027 435,000 10,875 445,875 Total $ 2,320,000 $ 364,750 $ 2,684,750 62 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 8 — Long -Term Obligations (Continued) A. Governmental Activities (Continued) Certificates ofPar-ticipation — 2005 Issue The Town issued $5,600,000 principal amount of 2005 Certificates of Participation (2005 COPS) on March 1, 2005. The purpose of the 2005 COPS was to provide funds to finance the acquisition and improvement of certain property for use as a public parking facility and other capital improvements with the Town. The 2005 COPS in the amount of $3,155,000 mature through March 1, 2026, and bear interest rates ranging from 4.000% to 4.625%. The 2005 COPS in the amount of $965,000 mature through March 1, 2030, and bear interest at the rate of 4.625% per annum. In the event of default, there is no acceleration clause, however, the Town may be forced to relinquish possession and use of the property until the curing of such default. The 2005 COPS in the amount of $1,480,000 mature through March 1, 2035, and bear interest at the rate of 4.625% per annum. The 2005 COPs are payable semiannually on each March 1 and September 1, commencing September 1, 2005. The 2005 COPS are subject to optional and mandatory early redemption provisions. The annual debt service requirements for the 2005 COPS outstanding at June 30, 2021, are as follows: For the Years Ending June 30, Principal Interest Total 2022 $ 180,000 $ 157,676 $ 337,676 2023 190,000 149,800 339,800 2024 200,000 141,250 341,250 2025 205,000 132,250 337,250 2026 215,000 123,025 338,025 2027-2031 1,235,000 456,488 1,691,488 2032-2035 1,210,000 143,375 1,353,375 Total $ 3,435,000 $ 1,303,864 $ 4,738,864 In accordance with the final Recognized Obligation Payment Schedule (ROPS) approved for the Successor Agency to the the former Community Development Agency by the State Department of Finance, the Town receives annual repayments from the Successor Agency in an amount equivalent to the annual principal and interest payments for the 2001 and 2005 COPS. Compensated Absences The Town's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been accrued and amounts to $974,890 at June 30, 2021. It is estimated that $110,000 will be needed to cover employees who leave employment within one year. 63 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 8 — Long -Term Obligations (Continued) B. Fiduciary Fund Financial Statements Summary of changes in long-term obligations for the year ended June 30, 2021 was as follows: Balance Balance Description July 1, 2020 Additions Retirements June 30, 2021 Loans payable $ 2,285,000 $ - $ (180,000) $ 2,105,000 Classification Due Due in Within More than One Year One Year $ 195,000 $ 1,910,000 Total $ 2,285,000 $ - $ (180,000) $ 2,105,000 $ 195,000 $ 1,910,000 Loan Payable The Authority issued $3,570,000 principal amount of Taxable Revenue Bonds, 2001 Series A (Bonds) on December 1, 2001. The proceeds of the Bonds were loaned to the former CDA pursuant to a Loan Agreement, dated as of December 1, 2001 and used to finance low and moderate income housing project within the project area. The Bonds in the amount of $35,000 matured through August 1, 2006, and bore interest at the rate of 6.15% per annum. The Bonds in the amount of $260,000 mature through August 1, 2011, and bear interest at the rate of 7.25% per annum. The Bonds in the amount of $1,170,000 mature through August 1, 2020, and bear interest at the rate of 8.15% per annum. The Bonds in the amount of $2,105,000 mature through August 1, 2028, and bear interest at the rate of 8.50% per annum. The Bonds are payable seminannually on each February 1 and August 1, commencing August 1, 2002. The Bonds are subject to optional and mandatory early redemption provisions. The Bonds are special obligations of the Authority payable from and secured by loan payments made by the former CDA under the Loan Agreement and certain other amounts on deposit in the funds and accounts established under the Indenture. The Loan Agreement is secured by the tax increment revenues of the former CDA. This loan has been transferred to the Successor Agency Trust Fund. The annual debt service requirements for the Bonds outstanding at June 30, 2021 are as follows: For the Years Ending June 30, 2022 2023 2024 2025 2026 2027-2029 Total Principal Interest Total $ 195,000 $ 170,638 $ 365,638 210,000 153,425 363,425 230,000 134,725 364,725 250,000 114,325 364,325 270,000 92,225 362,225 950,000 125,801 1,075,801 $ 2,105,000 $ 791,139 $ 2,896,139 64 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 9 — Defined Contribution Pension Plan A. Section 401(a) Qualified Defined Contribution Pension Plan All qualified Town employees participate in the Section 401(a) qualified defined contribution pension plan as allowed under the Internal Revenue Code. The plan type sponsored by the Town is the Money Purchase Plan (Plan), which was last amended on July 1, 2010. The Plan is a defined contribution retirement plan in which the employer's contribution is nondiscretionary and is based on a formula that is not related to profits. The Plan sponsor guarantees no benefit and bears no investment risk while the Plan participants bear all investment risk and have no guaranteed level of benefits. An administrative committee comprised of Town personnel governs the Plan. The Town Council has the authority to establish or amend the Plan's provisions. The Plan's provisions and contribution requirements are established and may be amended by Town Council resolution. Eligible employees begin participating the first day of the month following their employment date of work. The Plan is entirely funded by Town contributions of 15% of the participants' gross pay for employees who contribute 5% of their salary to the deferred compensation plan. The Town's contributions vest at 20% per plan year of uninterrupted employment. Participants are eligible to begin receiving benefits at age 55 and are required to begin receiving benefits no later than April after age 70-1/2. The employees may also roll their funds to another retirement plan upon separation of service. The Town's payroll for employees covered by the Plan for the year ended June 30, 2021, was $8,163,615. Total employee contributions paid by the Town amounted to $1,219,788 or 15.18% of covered payroll and of total payroll. The Plan's assets are invested with Lincoln National Life, a mutual fund company that offers participants multiple mutual fund category selections from which they can choose. As of June 30, 2021, the Plan had 159 participants and the market value of the Plan amounted to $27,485,176. B. Section 415(m) Benefit Restoration Plan Qualified Town employees may participate in a Section 415(m) benefit restoration plan (415 Plan) as allowed under the Internal Revenue Code. The 415 Plan is a qualified governmental excess benefit arrangement for employees who are not able to receive their entire contribution to the Section 401(a) Plan because of the application of Internal Revenue Code Section 415. The 415 Plan is a defined contribution retirement plan in which the employer's contribution is nondiscretionary and is based on a formula that is not related to profits. The Plan sponsor guarantees no benefit and bears no investment risk while the Plan participants bear all investment risk and have no guaranteed level of benefits. Participants are eligible to begin receiving benefits at age 55 and are required to begin receiving benefits no later than April after age 70-1/2. The Plan's assets are invested with a mutual fund company that offers participants multiple mutual fund category selections from which they can choose. Total employee contributions paid by the Town amounted to $57,030. As of June 30, 2021, the Plan had two participants and the market value of the Plan amounted to $358,103. The Defined Contribution Pension Plan and the Benefit Restoration Plan are not included in the accompanying financial statements. 65 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 10 — Fund Balance Classification At June 30, 2021, fund balances are classified as follows: Fund Balances: Nonspendable Due from Successor Agency of Former CDA Prepaid items Total nonspendable Restricted Special revenue Debt services Total restricted Committed Capital projects Operating reserve Contingency Reward fund Compensated absences/personnel Total committed Assigned Townwide bonus program Town Council Emergency preparedness COVID-19 Finance consulting services Information technology consulting services Human resources temporary salaries ED retail incentive program ED retail consultant Transportation equipment maintenance Townwide special events equipment Lighting and landscaping Total assigned Unassigned Total fund balance Operating Reserve 26,000 - - - 26,000 5,000 - - - 5,000 78,256 - - - 78,256 40,000 - - - 40,000 20,000 - - - 20,000 40,000 - - - 40,000 153,229 - - - 153,229 13,015 - - - - 13,015 22,000 - - - - 22,000 5,000 - - - - 5,000 - 2,845,856 - - - 2,845,856 402,500 2,845,856 - - - 3,248,356 1,100,000 - - - - 1,100,000 $ 34,535,724 $ 4,474,131 $ 4,362,843 $ 21,569,461 $ 31,081,451 $ 96,023,610 The Town maintains a minimum operating reserve of 20% of the fiscal year operating budget, which may only be used in the event of a financial emergency, subject to Town Council authorization. Town Resolution No. 35-98 defines the purpose and uses of the General Fund operating reserve. 66 Major Funds Regional Traffic Lighting Impact Fee Capital and Special Improvement Non -Major General Landscape Revenue Project Governmental Fund Fund Fund Fund Funds Total $ 3,959,401 $ $ $ $ $ 3,959,401 105,487 105,487 4,064,888 4,064,888 - 1,628,275 4,362,843 22,637,775 28,628,893 809,518 - - - 809,518 809,518 1,628,275 4,362,843 22,637,775 29,438,411 12,308,924 - - 21,569,461 8,443,676 42,322,061 13,809,768 - - - 13,809,768 834,787 - 834,787 10,000 - 10,000 1,195,339 - 1,195,339 28,158,818 21,569,461 8,443,676 58,171,955 26,000 - - - 26,000 5,000 - - - 5,000 78,256 - - - 78,256 40,000 - - - 40,000 20,000 - - - 20,000 40,000 - - - 40,000 153,229 - - - 153,229 13,015 - - - - 13,015 22,000 - - - - 22,000 5,000 - - - - 5,000 - 2,845,856 - - - 2,845,856 402,500 2,845,856 - - - 3,248,356 1,100,000 - - - - 1,100,000 $ 34,535,724 $ 4,474,131 $ 4,362,843 $ 21,569,461 $ 31,081,451 $ 96,023,610 The Town maintains a minimum operating reserve of 20% of the fiscal year operating budget, which may only be used in the event of a financial emergency, subject to Town Council authorization. Town Resolution No. 35-98 defines the purpose and uses of the General Fund operating reserve. 66 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 11 — Risk Management The Town participates in the Municipal Pooling Authority (MPA), a joint powers agreement between 19 cities, which provides insurance coverage for liability, auto, property and workers' compensation claims. Claim liabilities are accrued when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. The MPA covers claims in an amount up to $29,000,001. The Town has a deductible of $5,000 per claim for liability cases and up to these pay for workers' compensation claims. The MPA is self-insured up to $1,000,000 per claim and has excess coverage to a maximum of $29,000,000. The MPA is governed by a board consisting of representatives from each member municipality. The Board, which controls the operations of the MPA, including the selection of management and the approval of operating budgets, is independent of any influence by member municipalities beyond their representation on the Board. The Town's net general liability premium payments to the MPA in the amount of $596,291 for fiscal year 2020/2021 are in accordance with formulas established by the MPA. 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. Estimates of deductibles for incurred, but not reported, (IBNR) liability claims are included in the Town's claims estimates and are based upon historical experiences as calculated by the MPA. During the year, the Town did not receive a dividend from the MPA based on the results of prior years' actitivites. The following provides a reconciliation of the amount accrued for estimated out of pocket amounts to be paid for IBNR deductibles: The Town has had no settlements that exceeded insurance coverage in the last three fiscal years, and no changes in insurance coverage from the prior year. Because dividends cannot be guaranteed and may fluctuate significantly, these types of results should not be used to forecast future years' results. Insurance cost Less: dividend received Net insurance cost 67 576,291 $ 576,291 Beginning Claims and Payments for End of Year Changes in Current and of Year Fiscal Year Liability Estimates Prior Years Liability 2018-2019 $ 41,919 $ 3,072 $ (10,481) $ 34,510 2019-2020 34,510 33,060 (13,580) 53,990 2020-2021 53,990 8,013 (5,489) 56,514 The Town has had no settlements that exceeded insurance coverage in the last three fiscal years, and no changes in insurance coverage from the prior year. Because dividends cannot be guaranteed and may fluctuate significantly, these types of results should not be used to forecast future years' results. Insurance cost Less: dividend received Net insurance cost 67 576,291 $ 576,291 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 11 — Risk Management (Continued) The MPA's audited condensed financial information as of and for the year ended June 30, 2020, are as follows: Total assets $ 81,547,292 Total deferred outflows of resources $ 626,506 Total liabilities $ 52,525,196 Total deferred inflows of resources $ 77,680 Total net position $ 29,570,922 Total operating revenues $ 31,902,314 Totaloperatingexp ens es $ 32,043,707 Net operating (loss) $ (141,393) Non-operating revenues (expenses) $ 3,699,141 Change in net position $ 3,557,748 Detailed financial information may be obtained from the Municipal Pooling Authority (MPA) in Walnut Creek, California. Note 12 — Commitments and Contingencies Lawsuits The Town is a defendant in a number of lawsuits which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the Town Attorney, these actions, when finally adjudicated, will not have a material adverse effect on the financial position of the Town. Annual Appropriations Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the Town is restricted as to the amount of annual appropriations, and if certain proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or refunded to the taxpayers through revised tax rates or revised fee schedules. For the fiscal year ended June 30, 2021, the Town's appropriations limit totals $43,684,464 and the Town's appropriations subject to limitation were $20,120,533. 68 Town of Danville Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 Note 12 — Commitments and Contingencies (Continued) 2021 ADDrODriation Limit Proposition 4, passed by the voters in 1978, requires that the Town Council adopt an annual appropriation limit for proceeds of taxes. This limit fixes the amount of general tax revenue that can be appropriated in a given fiscal year. Any excess must be returned to the taxpayers. The limit is adjusted each year by established adjustment factors. Proposition 111, passed by the voters in June 1990, allows each local agency's governing body to annually choose which adjustment factors are to be used. The Town Council has the discretion to choose one of two inflation factors: (1) population growth in California per capita income or (2) growth in nonresidential assessed valuation from new construction within the Town. Additionally, the Town Council may choose from one of two population adjustment factors: population growth within the Town or population growth within Contra Costa County. The Town chose to use the population growith within Contra Costa County. The chosen population adjustment factor is multiplied by the growth in California per capita income. Construction Commitments The Town has several outstanding or planned construction projects as of June 30, 2021. These projects are evidenced by contractual commitments with contractors. As of June 30, 2021, the Town's outstanding contractual commitments amount were $5,406,643. Note 13 — Prior Period Adjustments In order to implement GASB Statement No. 84 — Fiduciary Activities, the Town made the following prior period adjustments to beginning net position in the Fiduciary Activities Deposits Custodial Fund as follows: Deposits Custodial Fund Net position July 1, 2020 $ Restatement for GASB 84 1,330,702 Restated net postion July 1, 2020 $ 1,330,702 Note 14 — Subsequent Events American Rescue Plan Act of 2021 On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (ARPA), a $1.9 trillion economic stimulus bill intended to speed up the United States' recovery from the economic and health effects of the Coronavirus pandemic. The ARPA includes $65 billion for cities, to help bridge budget shortfalls and mitigate fiscal impacts resulting from the pandemic. These funds will assist the Town by offsetting pandemic -driven revenue losses and remediation costs. Based upon Treasury Department calculation, the Town was awarded $10.65 million in Coronavirus Local Fiscal Recovery (CLFR) Funds under the ARPA. 69 This page intentionally left blank. 70 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 71 Town of Danville Required Supplementary Information (Unaudited) For the Year Ended June 30, 2021 Note 1— Budgetary Information The Town follows these procedures in establishing the budgetary data for all governmental funds except for capital projects funds: • Town Council determines community needs, priorities and opportunities for the upcoming year commencing July 1. • By June 30, the Town Manager submits to the Town Council a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. • Public hearings are conducted to obtain taxpayer comments. • The budget is legally enacted through passage of a resolution during a Town Council meeting in the month of June. • The Town Manager is authorized to transfer budgeted amounts within an activity, for example, within a program (legal, finance, etc.). The Town Manager is able to authorize the purchase of office equipment instead of the original budgeted for expense to pay for consultants, for example. However, any revisions that alter the total expenditures (increase/decrease budget for a program) must be approved by the Town Council. • Formal budgeting is employed as a management control device during the year. • Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Town Council. Individual amendments were not material in relation to the original appropriations. 72 Town of Danville Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2021 Note 2 - Budgetary Comparison Schedule General Fund OTHER FINANCING SOURCES (USES): Transfers in 547,553 547,553 Transfers out (4,085,422) (4,085,422) (2,825,240) 1,260,182 Total other financing sources (uses) (4,085,422) (4,085,422) (2,277,687) 1,807,735 NET CHANGE IN FUND BALANCE $ (2,907,736) $ (3,967,737) 7,960,776 $ 11,928,513 FUND BALANCE: Beginning of year 26,574,948 End of year $ 34,535,724 73 Variance Original Final From Final Budget Budget Actual Budget REVENUES: Property taxes $ 15,000,060 $ 15,000,060 $ 17,210,607 $ 2,210,547 Sales taxes 4,393,925 4,393,925 6,652,729 2,258,804 Other taxes 2,304,018 2,304,018 2,280,557 (23,461) Charges for services 1,123,070 1,123,070 703,196 (419,874) Licenses and permits 146,060 146,060 331,206 185,146 Intergovernmental 1,010 1,010 578,900 577,890 Fines and forfeitures 141,400 141,400 86,104 (55,296) Use of money and property 591,543 591,543 1,679,369 1,087,826 Reimbursement from Successor Agency 789,051 789,051 789,051 - Miscellaneous 262,439 262,439 311,947 49,508 Total revenues 24,752,576 24,752,576 30,623,666 5,871,090 EXPENDITURES: Current: General government 1,836,661 2,029,828 1,716,334 313,494 Police services 10,072,889 10,131,647 8,933,507 1,198,140 Maintenance services 2,371,738 2,494,955 2,171,607 323,348 Development services 871,194 887,481 900,116 (12,635) Administrative services 3,733,471 4,357,360 3,531,194 826,166 Recreation, arts, & community services 3,884,286 3,928,969 2,333,428 1,595,541 Capital outlay 15,600 15,600 9,966 5,634 Debt service: Principal 500,000 500,000 500,000 - Interest 289,051 289,051 289,051 - Total expenditures 23,574,890 24,634,891 20,385,203 4,249,688 REVENUES OVER (UNDER) EXPENDITURES 1,177,686 117,685 10,238,463 10,120,778 OTHER FINANCING SOURCES (USES): Transfers in 547,553 547,553 Transfers out (4,085,422) (4,085,422) (2,825,240) 1,260,182 Total other financing sources (uses) (4,085,422) (4,085,422) (2,277,687) 1,807,735 NET CHANGE IN FUND BALANCE $ (2,907,736) $ (3,967,737) 7,960,776 $ 11,928,513 FUND BALANCE: Beginning of year 26,574,948 End of year $ 34,535,724 73 Town of Danville Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2021 Note 2 — Budgetary Comparison Schedule (Continued) Lighting and Landscape Special Revenue Fund REVENUES: Special assessments Use of money and property Miscellaneous Total revenues EXPENDITURES: Current: Maintenance services Lighting and landscape Development services Administrative services Recreation, arts, & community services Capital outlay Total expenditures REVENUES OVER(UNDER)EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (1,375,230) (1,531,429) (738,001) 793,428 - 1,200,000 1,200,000 (292,039) (292,039) (292,039) - (292,039) (292,039) 907,961 1,200,000 $ (1,667,269) $ (1,823,468) 169,960 $ 1,993,428 74 Variance Original Final From Final Budget Budget Actual Budget $ 3,031,853 $ 3,031,853 $ 3,036,793 $ 4,940 8,999 8,999 35,070 26,071 88,898 88,898 113,323 24,425 3,129,750 3,129,750 3,185,186 55,436 305,021 305,021 17,336 287,685 3,878,570 4,034,769 3,903,054 131,715 291,209 291,209 - 291,209 2,426 2,426 2,797 (371) 27,504 27,504 - 27,504 250 250 - 250 4,504,980 4,661,179 3,923,187 737,992 (1,375,230) (1,531,429) (738,001) 793,428 - 1,200,000 1,200,000 (292,039) (292,039) (292,039) - (292,039) (292,039) 907,961 1,200,000 $ (1,667,269) $ (1,823,468) 169,960 $ 1,993,428 74 Town of Danville Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2021 Note 2 — Budgetary Comparison Schedule (Continued) Regional Traffic Impact Fees Special Revenue Fund REVENUES: Development fees Intergovernmental M iscellaneous Total revenues EXPENDITURES: Current: Administrative services Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES) Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance Original Final From Final Budget Budget Actual Budget $ - $ $ 441,393 $ 441,393 114,632 - - 4,735 4,735 - (4,735) 119,367 4,735 441,393 436,658 10,398 10,398 2,747 7,651 1,391,049 1,180,001 464,619 715,382 1,401,447 1,190,399 467,366 723,033 (1,282,080) (1,185,664) (25,973) 1,159,691 (300,000) (300,000) (300,000) (300,000) $ (1,282,080) $ (1,185,664) (325,973) $ 859,691 75 � Y,J VL,UYJ Town of Danville Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2021 Note 3 — Modified Approach for Town Street Infrastructure Capital Assets The Town defines infrastructure as the basic physical assets including the street system; traffic control improvements; park and recreation lands and improvement system; storm water conveyance systems; and site amenities such as parking and landscaped areas used by the Town in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into asphalt pavements, concrete curb and gutters, medians, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these Basic Financial Statements; however, the Town maintains detailed information on these subsystems. The Town has elected to use the "Modified Approach" for infrastructure reporting for its Streets Pavement System. Eligible infrastructure capital assets are not required to be depreciated under the following requirements: • The Town manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. • The Town documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. In April 2020, the Town commissioned a study to update the physical condition assessment of the arterials and collector for residential streets. The prior assessment study was completed in December 2017. The streets, primarily asphalt pavements, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. Town owned streets are classified based on land use, access and traffic utilization into the following four classifications: arterial/major, secondary, collector and local. This condition assessment will be performed at least every three years. Street assessments have historically been funded with grants and performed approximately every three years. Each street was assigned a physical condition based on potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to the physical characteristics of a new street. The following conditions were defined: PCI Conditions PCI Rating Very Good 70-100 Good 50-69 Poor 26-49 Very Poor 0-25 76 Town of Danville Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2021 Note 3 — Modified Approach for Town Street Infrastructure Capital Assets (Continued) The Town's policy is to achieve a minimum average rating of 70 for all streets, which is a "very good" rating. As of June 30, 2021, the Town's street system was rated at a PCI index of 81 on the average with the detail condition as follows: Street Condition %of Streets Very Good (PCI 70-100) 80% Good (PCI 50-69) 17% Poor (PCI 26-49) 3% Very Poor (PCI 0-25) 0% 100% The Town's streets are constantly deteriorating as a result of following four factors: (1) traffic using the streets; (2) the sun's ultra -violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development interests trenching operations; and (4) water damage from natural precipitation and other urban runoff. The Town is continuously taking actions to arrest the deterioration through short-term maintenance activities such as pothole patching, street sweeping, and sidewalk repairs. The Town expended $1,792,695 of the General Fund monies on street maintenance for the fiscal year ended June 30, 2021. These expenditures delayed deterioration. The Town has estimated that the amount of annual expenditures required to maintain the Town's streets at the average PCI rating of 70 through the year 2021 is a minimum of $3,000,000. A schedule of estimated annual amount calculated to maintain and preserve its streets at the current level compared to actual expenditures for street maintenance for the last ten years is presented below. The availability and use of other funds has enabled the Town to maintain the underlying drainage, associated curbs and gutters and to repair small but costly pavement areas needing complete replacement. Fiscal Year General Fund Final Budget Actual Other Funds Actual Total Actual PCI Rating 2011-12 $ 2,000,000 $ 332,348 S 1,767,382 $ 2,099,730 70 2012-13 2,000,000 3,219,853 1,269,507 4,489,360 72 2013-14 3,000,000 914,271 583,827 1,498,098 74 2014-15 3,000,000 2,800,816 1,359,695 4,160,511 74 2015-16 3,000,000 684,250 708,280 1,392,530 76 2016-17 3,000,000 1,417,001 2,986,762 4,403,763 75 2017-18 3,000,000 6,184,143 1,906,277 8,090,420 80 2018-19 3,000,000 3,629,281 3,865,363 7,494,644 78 2019-20 3,000,000 966,845 140,711 1,107,556 81 2020-21 - 1,792,695 256,185 2,048,880 81 The Town also has an on-going street rehabilitation program funded in the Capital Improvement Program that is intended to improve the condition rating of Town streets. The rehabilitation program is formulated based on deficiencies identified as a part of its Pavement Management System. As of June 30, 2021, approximately 20% of the Town's streets were rated below the average standard of 70. The Town will continue to rehabilitate these segments of the streets. Total deficiencies (deferred maintenance) identified in the Pavement Management System amounted to approximately $16,500,000 for all streets. 77 This page intentionally left blank. 78 SUPPLEMENTARY INFORMATION 79 This page intentionally left blank. 80 NON -MAJOR GOVERNMENTAL FUNDS 81 Town of Danville Non -Major Governmental Funds SPECIAL REVENUE FUNDS PEG Fund Any state video franchisee offering service within the Town pays sixty cents ($0.60) per month per subscriber to support Public, Educational and Governmental ("PEG") channel facilities. This fund is restricted to capital expenditures allowing the Town to provide PEG programming to residents. Gas Tax Fund This fund is used to account for the portion of the taxes paid on the purchase of gasoline, which the Town receives from the State of California. Use of the fund is restricted to street and related improvements and maintenance costs. Building/Planning Fund This fund receives fees for planning applications and permits and building inspection and plan review fees collected during the building permit process. Use of this fund is restricted to offsetting the costs of providing building and planning services to permittees. Development Engineering Fund This fund receives fees for permits and plan review for engineering and subdivision applications. Use of this fund is restricted to offsetting the costs of providing these services. Child Care Fund This Fund receives child care fees paid by new developments. All funds are restricted to the development or promotion of child care facilities within Danville. Stormwater Pollution Control Program (SPCP) Fund This Fund is used to account for National Pollution Discharge Elimination Services (NPDES) assessments paid by property owners for administration, inspection and maintenance of storm drain systems, including street sweeping, necessary to comply with the stormwater pollution permits issued by the Regional Water Quality Control Board. Measure C/J Fund Since 1988, Contra Costa County voters have paid a one-half cent sales tax for transportation purposes to be collected through 2034. Eighteen percent of the funds collected throughout the County are distributed back to each local jurisdiction on the basis of population and road miles. Receipt of these funds is tied to compliance with the Town's General Plan Growth Management Element. Use of this fund is restricted to street and pavement management and transportation planning. Donations and Contributions Fund The Town receives donations and contributions for selected programs such as the police K-9 program and downtown beautification. Use of these funds is restricted to the specific terms of the individual donation. General Development Impact Fees Fund The Town levies a number of development impact fees to mitigate the impacts of new development, primarily transportation impact fees. The use of these funds is limited by the specific purpose of the individual fee and the impact to be mitigated. 82 Town of Danville Non -Major Governmental Funds SPECIAL REVENUE FUNDS Public Safety Fund Special revenues for police programs are reported in this fund. Included are Supplemental Law Enforcement Services Funds (SLESF) funds provided by the State, Abandoned Vehicle and Asset Seizure revenues. The use of these funds is limited to use by the Police Department by the specific purpose of the fee. Old Town Parking In -Lieu Fund A development impact mitigation fee imposed on new developments in the Downtown Business District which rely, at least in part, on off-site public parking. Use of the Fund is restricted to the provision of additional Town -owned parking. Solid Waste Vehicle Impact Fee Fund This fund receives impact fees collected through the solid waste franchise to partially offset the impacts associated with solid waste, recycling and yard waste refuse vehicles using Town streets. The use of this Fund is restricted to street and pavement rehabilitation. Low and Moderate Income Housing Fund Prior to the State of California's dissolution of redevelopment agencies in 2011, the Town's Community Development Agency (CDA) maintained a Low and Moderate -Income Housing Fund as required by the law. Upon dissolution, the Town opted to create a Successor Housing Agency to assume all of the housing assets and liabilities of the former CDA. The use of this Fund is restricted to the creation, rehabilitation or addition of low or moderate - income housing within the Town. CAPITAL PROJECTS FUNDS Asset Replacement General Fund Contributions are made into this Fund from the General Fund for the eventual replacement and refurbishment of fixed assets. Asset Replacement Library Fund Contributions are made into this Fund from private donations and the General Fund for the eventual replacement and refurbishment of Library equipment. Civic Facilities Capital Projects Fund This Fund receives contributions from the General Fund and is used to account for the construction of community facilities such as the Danville Library, Community Center, Town Offices, Oak Hill Park Community Center and future new park and recreation facilities. Park Facilities Fund Contributions are made into this Fund from the General Fund for the construction and renovation of parks within the Town. Northeast Road Improvements Assessment District Fund During the period from 1985 to 1990, the Northeast Road Improvements Assessment District (NERIAD) were formed within the Town of Danville to construct improvements in these areas. 83 Town of Danville Non -Major Governmental Funds Tassajara Road Improvements Assessment District Fund Assessment District formed for the Tassajara Ranch developments to fund the development of Diablo Vista Park, traffic improvements to mitigate project related impacts, and maintenance of existing improvements for the benefit of district properties. Sycamore Valley Assessment District Fund Development impact fees are collected on residential units in excess of the original 278 units located within the Sycamore Valley Benefit District. Funds are used for traffic mitigation, projects and maintenance of existing improvements for the benefit of the benefit district properties. Technology Fund This Fund was created in FY 2011/12 and receives contributions from the General Fund for the implementation of the Town's five-year Technology Master Plan. 84 ASSETS Cash and investments Cash and investments with fiscal agent Receivables (net of allowances): Accounts Interest Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued wages Retention payable Deposits payable Unearned revenue Total liabilities Fund Balances: Restricted Committed Total fund balances Total liabilities and fund balances Town of Danville Non -Major Governmental Funds Combining Balance Sheet June 30, 2021 Special Revenue Building/ Development PEG Gas Tax Planning Engineering Child Care $ 273,089 $ 3,689,221 $ 4,061,264 $ 1,843,882 $ 297,459 19,088 - 100 - 663 5,610 - - 524 $ 292,840 $ 3,694,831 $ 41061,364 $ 11843,882 $ 297,983 15,578 88,667 60,188 - - 35,112 77,480 6,057 - 65,170 - - 7,668 - 15,578 123,779 145,336 71,227 47 47 277,262 3,571,052 3,916,028 1,772,655 297,936 277,262 3,571,052 3,916,028 1,772,655 297,936 $ 292,840 $ 3,694,831 $ 4,061,364 $ 11843,882 $ 297,983 (Continued) 85 ASSETS Cash and investments Cash and investments with fiscal agent Receivables (net of allowances): Accounts Interest Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued wages Retention payable Deposits payable Unearned revenue Total liabilities Fund Balances: Restricted Committed Total fund balances Total liabilities and fund balances Town of Danville Non -Major Governmental Funds Combining Balance Sheet (Continued) June 30, 2021 Special Revenue Stormwater Pollution Donation General Control and Development Public Program Measure C/J Contributions Impact Fees Safety $ 2,310,163 $ 2,590,263 $ 305,152 $ 4,003,256 $ 546,761 11,269 2,288 - - 6,623 4,221 4,538 579 6,223 1,168 $ 2,325,653 $ 2,597,089 $ 305,731 $ 4,009,479 $ 554,552 27,506 22,335 3,301 112,259 105 523 7,801 - - 271 - - - 8,615 - 28,029 30,136 3,301 120,874 376 2,297,624 2,566,953 302,430 3,888,605 554,176 6,zy/,b64 6,Jbb,yJ.3 �VG,4.JV .),666,OVD JJ4,1/0 $ 2,325,653 $ 2,597,089 $ 305,731 $ 4,009,479 $ 554,552 (Continued) 86 Town of Danville Non -Major Governmental Funds Combining Balance Sheet (Continued) June 30, 2021 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 96 - 275 40,846 10,535 Accrued wages - - - - Retention payable - - - - - Deposits payable - - - - - Unearned revenue - - - - - Total liabilities 96 - 275 40,846 10,535 Fund Balances: Restricted 610,286 1,338,122 1,244,646 - - Committed - - - 2,903,028 844,321 Total fund balances 610,286 1,338,122 1,244,646 2,903,028 844,321 Total liabilities and fund balances $ 610,382 $ 1,338,122 $ 1,244,921 $ 21943,874 $ 854,856 (Continued) 87 Special Revenue Capital Projects Low and Old Town Solid Waste Moderate Asset Asset Parking In- Vehicle Impact Income Replacement Replacement Lieu Fees Housing General Library ASSETS Cash and investments $ 609,316 $ 1,338,122 $ 1,242,520 $ 2,939,550 $ 853,573 Cash and investments with fiscal agent - - - - - Receivables (net of allowances): Accounts - - - - Interest 1,066 - 2,401 4,324 1,283 Total assets $ 610,382 $ 1,338,122 $ 1,244,921 $ 21943,874 $ 854,856 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 96 - 275 40,846 10,535 Accrued wages - - - - Retention payable - - - - - Deposits payable - - - - - Unearned revenue - - - - - Total liabilities 96 - 275 40,846 10,535 Fund Balances: Restricted 610,286 1,338,122 1,244,646 - - Committed - - - 2,903,028 844,321 Total fund balances 610,286 1,338,122 1,244,646 2,903,028 844,321 Total liabilities and fund balances $ 610,382 $ 1,338,122 $ 1,244,921 $ 21943,874 $ 854,856 (Continued) 87 Town of Danville Non -Major Governmental Funds Combining Balance Sheet (Continued) June 30, 2021 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 70 52,740 12,792 1 2 Accrued wages - - - - - Retention payable 180 - - - - Deposits payable - - - - - Unearned revenue - - - - - Total liabilities 250 52,740 12,792 1 2 Fund Balances: Restricted - - - - - Committed 380,824 2,201,224 1,248,923 35,516 16,718 Total fund balances 380,824 2,201,224 1,248,923 35,516 16,718 Total liabilities and fund balances $ 381,074 $ 2,253,964 $ 1,261,715 $ 35,517 $ 16,720 (Continued) 88 Capital Projects Northeast Road Tassajara Sycamore Improvements Ranch Valley Civic Park Special Assessment Assessment Facilities Facilities Assessment District District ASSETS Cash and investments $ 380,301 $ 2,250,142 $ 443,377 $ 35,448 $ 16,703 Cash and investments with fiscal agent - - 813,920 - - Receivables (net of allowances): Accounts - - - - - Interest 773 3,822 4,418 69 17 Total assets $ 381,074 $ 2,253,964 $ 11261,715 $ 35,517 $ 16,720 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 70 52,740 12,792 1 2 Accrued wages - - - - - Retention payable 180 - - - - Deposits payable - - - - - Unearned revenue - - - - - Total liabilities 250 52,740 12,792 1 2 Fund Balances: Restricted - - - - - Committed 380,824 2,201,224 1,248,923 35,516 16,718 Total fund balances 380,824 2,201,224 1,248,923 35,516 16,718 Total liabilities and fund balances $ 381,074 $ 2,253,964 $ 1,261,715 $ 35,517 $ 16,720 (Continued) 88 ASSETS Cash and investments Cash and investments with fiscal agent Receivables (net of allowances): Accounts Interest Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued wages Retention payable Deposits payable Unearned revenue Total liabilities Fund Balances: Restricted Committed Total fund balances Total liabilities and fund balances Town of Danville Non -Major Governmental Funds Combining Balance Sheet (Continued) June 30, 2021 89 Capital Projects Total Non -Major Technology Governmental Fund Funds $ 815,422 $ 30,844,984 - 813,920 - 39,368 - 41,699 $ 815,422 $ 31,739,971 2,300 449,643 - 127,244 - 8,795 - 65,170 - 7,668 2,300 658,520 - 22,637,775 813,122 8,443,676 813,122 31,081,451 $ 815,422 $ 31,739,971 (Concluded) This page intentionally left blank. 90 Town of Danville Non -Major Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2021 REVENUES: Special assessments Other taxes Charges for services License and permits Development fees Intergovernmental Use of money and property Miscellaneous Total revenues EXPENDITURES: Current: 77,533 4,080 1,751,099 30,794 Special Revenue Building/ Development Planning Engineering 412,259 7,243 2,320,143 370,082 1,546 1,572 251,()1-1 1,/61,25y.i L,/JV, 04D J/1,0/-6 I'D /Z General government 16,352 (50,000) Police services - - Maintenance services (600) 820,720 - - Development services - 581,982 2,067,706 151,496 - Administrative services 270 4,583 - - 236 Recreation, arts & community services - - - Capital outlay 15,519 - - - - Total expenditures 32,141 1,407,285 2,067,706 151,496 236 REVENUES OVER (UNDER) EXPENDITURES 49,472 374,608 671,939 220,132 1,336 OTHER FINANCING SOURCES (USES): Transfers in Transfers out (75,000) (50,000) (600) Total other financing sources (uses) (75,000) - (50,000) (600) NET CHANGE IN FUND BALANCES (25,528) 374,608 621,939 220,132 736 FUND BALANCES: Beginning of year 302,790 3,196,444 3,294,089 1,552,523 297,200 End of year $ 277,262 $ 3,571,052 $ 3,916,028 $ 1,772,655 $ 297,936 (Continued) 91 Town of Danville Non -Major Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) For the Year Ended June 30, 2021 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES 115,296 549,724 127,195 9,269 63,927 FUND BALANCES: Beginning of year 2,182,328 2,017,229 175,235 3,879,336 490,249 End ofyear $ 2,297,624 $ 2,566,953 $ 302,430 $ 3,888,605 $ 554,176 (Continued) 92 Special Revenue Stormwater Pollution Donation General Control Measure and Development Public Program C/J Contributions Impact Fees Safety REVENUES: Special assessments $ 574,643 $ $ $ $ Other taxes - Charges for services 10,416 License and permits - Development fees 131,615 Intergovernmental - 889,182 - 178,514 Use of money and property 24,309 20,577 3,487 7,462 Miscellaneous - - 135,112 - - Total revenues 609,368 909,759 138,599 131,615 185,976 EXPENDITURES: Current: General government - - - - - Police services - - 10,715 - 121,577 Maintenance services 7,184 84,264 493 3,000 - Development services 481,559 274,134 - 17,946 - Administrative services 1,714 1,637 196 2,992 472 Recreation, Arts & Community Services - - - 65,662 - Capital outlay 3,615 - - 32,746 - Total expenditures 494,072 360,035 11,404 122,346 122,049 REVENUES OVER (UNDER) EXPENDITURES 115,296 549,724 127,195 9,269 63,927 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES 115,296 549,724 127,195 9,269 63,927 FUND BALANCES: Beginning of year 2,182,328 2,017,229 175,235 3,879,336 490,249 End ofyear $ 2,297,624 $ 2,566,953 $ 302,430 $ 3,888,605 $ 554,176 (Continued) 92 Town of Danville Non -Major Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) For the Year Ended June 30, 2021 OTHER FINANCING SOURCES (USES): Transfers in 125,000 Transfers out - Total other financing sources (uses) - - - 125,000 NET CHANGE IN FUND BALANCES 49,185 718,924 41,823 42,059 (17,086) FUND BALANCES: Beginning of year 561,101 619,198 1,202,823 2,860,969 861,407 End ofyear $ 610,286 $ 1,338,122 $ 1,244,646 $ 2,903,028 $ 844,321 (Continued) 93 Special Revenue Capital Projects Low and Old Town Solid Waste Moderate Asset Asset Parking In- Vehicle Impact Income Replacement Replacement Lieu Fees Housing General Library REVENUES: Special assessments $ $ - $ $ $ Other taxes 718,924 Charges for services - License and permits Development fees 47,120 Intergovernmental - Use of money and property 2,513 16,530 (49,183) (6,098) Miscellaneous - - 27,048 Total revenues 49,633 718,924 43,578 (49,183) (6,098) EXPENDITURES: Current: General government - - - Police services - Maintenance services 10,420 Development services - - - - Administrative services 448 1,755 25,008 568 Recreation, arts & community services - - - - Capital outlay - - 8,750 - Total expenditures 448 - 1,755 33,758 10,988 REVENUES OVER (UNDER) EXPENDITURES 49,185 718,924 41,823 (82,941) (17,086) OTHER FINANCING SOURCES (USES): Transfers in 125,000 Transfers out - Total other financing sources (uses) - - - 125,000 NET CHANGE IN FUND BALANCES 49,185 718,924 41,823 42,059 (17,086) FUND BALANCES: Beginning of year 561,101 619,198 1,202,823 2,860,969 861,407 End ofyear $ 610,286 $ 1,338,122 $ 1,244,646 $ 2,903,028 $ 844,321 (Continued) 93 Town of Danville Non -Major Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) For the Year Ended June 30, 2021 REVENUES: Special assessments Other taxes Charges for services License and permits Development fees Intergovernmental Use of money and property Miscellaneous Total revenues Capital Projects Northeast Road Tassajara Sycamore Improvements Ranch Valley Civic Park Special Assessment Assessment 3,472 3,091 547 (6,025) .3, -ria .3,v7i EXPENDITURES: Current: General government Police services - Maintenance services 463,635 Development services - 10,600 - - - Administrative services 339 1,463 1,071 4 9 Recreation, arts & community services - 10,600 - - - Capital outlay 8,045 179,395 32,700 - Total expenditures 8,384 665,693 33,771 4 9 REVENUES OVER (UNDER) EXPENDITURES (4,912) (665,693) (30,680) 543 (6,034) OTHER FINANCING SOURCES (USES): Transfers in Transfers out (4,914) Total other financing sources (uses) (4,914) NET CHANGE IN FUND BALANCES (4,912) (665,693) (35,594) 543 (6,034) FUND BALANCES: Beginning of year 385,736 2,866,917 1,284,517 34,973 22,752 End of year $ 380,824 $ 2,201,224 $ 1,248,923 $ 35,516 $ 16,718 (Continued) 94 Town of Danville Non -Major Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) For the Year Ended June 30, 2021 Capital Projects EXPENDITURES: Current: General government Total Police services Non -Major Maintenance services Technology Governmental Development services Fund Funds REVENUES: 9,620 52,385 Special assessments $ $ 574,643 Other taxes 2,547,556 Charges for services 792,757 License and permits 7,243 Development fees 2,500,424 Intergovernmental 1,067,696 Use of money and property 57,128 Miscellaneous 162,160 Total revenues 7,709,607 EXPENDITURES: Current: General government 16,352 Police services 132,292 Maintenance services 1,389,716 Development services - 3,585,423 Administrative services 9,620 52,385 Recreation, arts & community services - 76,262 Capital outlay - 280,770 Total expenditures 9,620 5,533,200 REVENUES OVER (UNDER) EXPENDITURES (9,620) 2,176,407 OTHER FINANCING SOURCES (USES): Transfers in 125,000 Transfers out (130,514) Total other financing sources (uses) (5,514) NET CHANGE IN FUND BALANCES (9,620) 2,170,893 FUND BALANCES: Beginning of year 822,742 28,910,558 End ofyear $ 813,122 $ 31,081,451 (Concluded) 95 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PEG Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Othertaxes Use of money and property Total revenues EXPENDITURES: Current: General government Administrative services Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 92,217 $ 92,217 $ 77,533 $ (14,684) - - 4,080 4,080 92,217 92,217 81,613 (10,604) 16,352 16,352 16,352 - 514 514 270 244 276,566 276,566 15,519 261,047 293,432 293,432 32,141 261,291 (201,215) (201,215) 49,472 250,687 (100,000) (100,000) (75,000) 25,000 (100,000) (100,000) (75,000) 25,000 $ (301,215) $ (301,215) 96 (25,528) $ 275,687 302,790 $ 277,262 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Othertaxes Use of money and property Total revenues EXPENDITURES: Current: Maintenance services Development services Administrative services Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted 856,764 820,720 Variance From Original Final Actual Final Budget 4,903 4,903 4,583 320 $ 954,252 $ 954,252 $ 1,751,099 $ 796,847 14,828 14,828 30,794 15,966 969,080 969,080 1,781,893 812,813 798,511 856,764 820,720 36,044 1,979,929 2,019,932 581,982 1,437,950 4,903 4,903 4,583 320 500 500 - 500 2,783,843 2,882,099 1,407,285 1,474,814 $ (1,814,763) $ (1,913,019) 97 374,608 $ 2,287,627 3,196,444 $ 3,571,052 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Building and Planning Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Charges for services Licenses and permits Development fees Miscellaneous Total revenues EXPENDITURES: Current: Development services Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES) Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 351,200 $ 351,200 $ 412,259 $ 61,059 - - 7,243 7,243 1,431,258 1,431,258 2,320,143 888,885 5,000 5,000 - (5,000) 1,787,458 1,787,458 2,739,645 952,187 1,927,944 2,368,801 2,067,706 301,095 1,927,944 2,368,801 2,067,706 301,095 (140,486) (581,343) 671,939 1,253,282 (100,000) (100,000) (50,000) 50,000 (100,000) (100,000) (50,000) 50,000 $ (240,486) $ (681,343) 98 621,939 $ 1,303,282 3,294,089 $ 3,916,028 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Development Engineering Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Charges for services Development fees Total revenues EXPENDITURES: Current: Development services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 260,035 $ 260,035 $ 370,082 $ 110,047 500 500 1,546 1,046 260,535 260,535 371,628 111,093 180,336 190,336 151,496 38,840 180,336 190,336 151,496 38,840 $ 80,199 $ 70,199 99 220,132 $ 149,933 1,552,523 $ 1,772,655 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Child Care Special Revenue Fund For the Year Ended June 30, 2021 REVENUES Use of money and property Total revenues EXPENDITURES Current: Administrative services Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES) Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 1,199 $ 1,199 $ 1,572 $ 373 1,199 1,199 1,572 373 207 207 236 (29) 207 207 236 (29) 992 992 1,336 344 (600) (600) (600) - (600) (600) (600) - $ 392 $ 392 736 $ 344 100 297,200 $ 297,936 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Stormwater Pollution Control Program (SPCP) Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Special assessments Charges for services Intergovernmental Use of money and property Total revenues EXPENDITURES: Current: Maintenance services Development services Administrative services Recreation, arts & community services Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted 21,393 7,184 Variance From Original Final Actual Final Budget 1,383 1,383 1,714 (331) $ 562,154 $ 562,154 $ 574,643 $ 12,489 1,010 11,725 10,416 (1,309) (11,780) (11,780) - 11,780 9,536 9,536 24,309 14,773 560,920 571,635 609,368 37,733 16,393 21,393 7,184 14,209 547,826 570,931 481,559 89,372 1,383 1,383 1,714 (331) 3,651 3,651 - 3,651 162,600 162,600 3,615 158,985 731,853 759,958 494,072 265,886 $ (170,933) $ (188,323) 101 115,296 $ 303,619 2,182,328 $ 2,297,624 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure C/J Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Intergovernmental Use of money and property Total revenues EXPENDITURES: Current: Maintenance services Development services Administrative services Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted 376,103 84,264 Variance From Original Final Actual Final Budget 1,518 1,518 1,637 (119) $ 6,470,532 $ 6,495,532 $ 889,182 $ (5,606,350) 10,139 10,139 20,577 10,438 6,480,671 6,505,671 909,759 (5,595,912) 396,103 376,103 84,264 291,839 3,654,295 3,771,795 274,134 3,497,661 1,518 1,518 1,637 (119) 3,722,907 3,722,907 - 3,722,907 7,774,823 7,872,323 360,035 7,512,288 (1,294,152) (1,366,652) 549,724 1,916,376 $ (1,294,152) $ (1,366,652) 102 549,724 $ 1,916,376 2,017,229 $ 2,566,953 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Donations and Contributions Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Use of money and property Miscellaneous Total revenues EXPENDITURES: Current: General government Police services Maintenance services Administrative services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 974 $ 974 $ 3,487 $ 2,513 3,760 3,760 135,112 131,352 4,734 4,734 138,599 133,865 1,500 1,500 - 1,500 - 9,142 10,715 (1,573) 35,084 35,368 493 34,875 275 275 196 79 36,859 46,285 11,404 34,881 $ (32,125) $ (41,551) 103 127,195 $ 168,746 175,235 $ 302,430 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Development Impact Fees Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Development fees Intergovernmental Use of money and property Miscellaneous Total revenues EXPENDITURES: Current: Maintenance services Development services Administrative services Recreation, Arts & Community Services Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ - $ - $ 131,615 $ 131,615 4,732 4,732 - (4,732) 40,670 93,170 - (93,170) 45,402 97,902 131,615 33,713 656,289 708,789 3,000 705,789 376,177 393,177 17,946 375,231 3,371 3,371 2,992 379 341,239 498,739 65,662 433,077 709,650 709,650 32,746 676,904 2,086,726 2,313,726 122,346 2,191,380 $ (2,041,324) $ (2,215,824) 104 9,269 $ 2,225,093 3,879,336 $ 3,888,605 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Safety Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Intergovernmental Use of money and property Total revenues EXPENDITURES: Current: Police services Administrative services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted 140,000 121,577 Variance From Original Final Actual Final Budget 140,275 140,275 122,049 18,226 $ 119,000 $ 119,000 $ 178,514 $ 59,514 1,246 1,246 7,462 6,216 120,246 120,246 185,976 65,730 140,000 140,000 121,577 18,423 275 275 472 (197) 140,275 140,275 122,049 18,226 $ (20,029) $ (20,029) 105 63,927 $ 83,956 490,249 $ 554,176 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Old Town Parking In -Lieu Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Development fees Use of money and property Total revenues EXPENDITURES: Current: Administrative services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ - $ - $ 47,120 $ 47,120 - - 2,513 2,513 - - 49,633 49,633 512 512 448 64 512 512 448 64 $ (512) $ (512) 106 49,185 $ 49,697 561,101 $ 610,286 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Solid Waste Vehicle Impact Fee Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Othertaxes Total revenues EXPENDITURES: Current: Development services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ 585,000 $ 585,000 $ 718,924 $ 133,924 585,000 585,000 718,924 133,924 475,000 475,000 - 475,000 475,000 475,000 - 475,000 $ 110,000 $ 110,000 107 718,924 $ 608,924 619,198 $ 1,338,122 Town of Danville Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Low and Moderate Income Housing Special Revenue Fund For the Year Ended June 30, 2021 REVENUES: Use of money and property Miscellaneous Total revenues EXPENDITURES: Current: Administrative services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Variance From Original Final Actual Final Budget $ - $ - $ 16,530 $ 16,530 - - 27,048 27,048 - - 43,578 43,578 800 1,418 1,755 (337) 800 1,418 1,755 (337) $ (800) $ (1,418) 41,823 $ 43,241 108 1,202,823 $ 1,244,646 STATISTICAL SECTION (Unaudited) 109 Town of Danville Net Position by Component Last Ten Fiscal Years Accrual Basis of Accounting Fiscal Year 2012 2013 2014 2015 2016 Governmental Activities: Net investment in capital assets $ 142,812,475 $ 144,710,384 $ 145,858,981 $ 149,697,964 $ 154,909,051 Restricted 49,692,031 50,198,481 48,477,964 23,655,107 26,812,236 Unrestricted 46,716,135 46,009,779 51,728,377 69,968,657 68,822,679 Total Governmental Activities Net Position $ 239,220,641 $ 240,918,644 $ 246,065,322 $ 243,321,728 $ 250,543,966 Primary Government: Net investment in capital assets $ 142,812,475 $ 144,710,384 $ 145,858,981 $ 149,697,964 $ 154,909,051 Restricted 49,692,031 50,198,481 48,477,964 23,655,107 26,812,236 Unrestricted 46,716,135 46,009,779 51,728,377 69,968,657 68,822,679 Total Primary Governmental Net Position $ 239,220,641 $ 240,918,644 $ 246,065,322 $ 243,321,728 $ 248,532,815 110 Town of Danville Net Position by Component (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2017 2018 2019 2020 2021 Governmental Activities: C 200 ¢. .{x M. .x D.: Xx 150 Net investment in capital assets $ 155,792,439 $ 162,998,663 $ 166,215,901 $ 174,968,722 $ 177,508,851 Restricted 24,437,153 23,784,733 24,398,492 26,961,172 29,438,411 Unrestricted 72,257,190 64,907,258 65,271,882 61,659,221 65,882,561 Total Governmental Activities Net Position $ 252,486,782 $ 251,690,654 $ 255,886,275 $ 263,589,115 $ 272,829,823 Primary Government: Net investment in capital assets $ 155,792,439 $ 162,998,663 $ 166,215,901 $ 174,968,722 $ 177,508,851 Restricted 24,437,153 23,784,733 24,398,492 26,961,172 29,438,411 Unrestricted 72,257,190 64,907,258 65,271,882 61,659,221 65,882,561 Total Primary Governmental Net Position $ 252,486,782 $ 251,690,654 $ 251,690,654 $ 263,589,115 $ 272,829,823 250 N C C 200 ¢. .{x M. .x D.: Xx 150 T +! Z u 100 M c 50 c L O Q 2012 2013 Net Position by Component 2014 2015 20162017 2018 2019 2020 Fiscal Year ■ Net investment in capital assets A Restricted ■ Unrestricted Note: The Town of Danville does not have any business -type activities. iu 2021 pAIYVILLE Expenses: Governmental activities: General Government Police Services Maintenance Services & Lighting & Landscape Development Services Administrative Services Recreation Services Interest on long-term debt Total governmental activities expenses Total primary government expenses Program Revenues: Governmental Activities: Charges for Services: General Government Police Services Maintenance Services, Lighting & Landscape Development Services Administrative Services Recreation, Arts & Community Services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Total Primary Government, Net Expenses Town of Danville Changes in Net Position Last Ten Fiscal Years Accrual Basis of Accountil Fiscal Year 2012 2013 2014 2015 2016 $ 1,672,908 $ 1,657,519 $ 1,707,946 $ 1,527,466 $ 1,592,763 7,518,544 7,592,846 7,192,736 8,565,667 8,914,297 6,284,672 7,803,026 6,136,448 7,589,476 8,262,373 8,909,136 10,298,111 7,545,035 14,348,084 5,233,296 2,105,205 2,461,355 2,301,375 3,244,813 4,080,262 3,373,081 3,360,852 3,711,977 3,877,829 3,847,434 367,482 430,191 415,129 369,274 364,866 30,231,028 33,603,900 29,010,646 39,522,609 32,295,291 $ 30,231,028 $ 33,603,900 $ 29,010,646 $ 39,522,609 $ 32,295,291 $ - $ - $ - $ - $ 10 323,053 312,873 499,517 429,625 424,470 3,040,340 3,021,029 3,110,836 3,033,384 3,036,737 3,028,929 3,757,908 3,686,295 4,196,817 4,285,454 - - - 35,186 1,754,367 1,810,376 2,178,636 2,433,110 2,079,801 804,432 748,772 933,466 1,110,167 950,437 2,492,782 1,877,029 1,936,672 1,676,661 1,276,567 $ 11,443,903 $ 11,527,987 $ 12,345,422 $ 12,879,764 $ 12,088,662 $ 11,443,903 $ 11,527,987 $ 12,345,422 $ 12,879,764 $ 12,088,662 $ (18,787,125) $ (22,075,913) $ (16,665,224) $ (26,642,845) $ (20,206,629) $ (18,787,125) $ (22,075,913) $ (16,665,224) $ (26,642,845) $ (20,206,629) Notes: 1. Depreciation was netted against program expenditures beginning in 2004. 2. The Town of Danville does not have any business -type activities. *FY 2008-09 Transportation Services program was combined with Development Services program **FY 2014-15: Legislative, Town Manager and Legal Services programs were combined with General Government Community Development program was combined with Development Services 112 Expenses: Governmental activities: General Government Police Services Maintenance Services & Lighting & Landscape Development Services Administrative Services Recreation, Arts & Community Services Interest on long-term debt Total governmental activities expenses Total primary government expenses Program Revenues Governmental Activities: Charges for Services: General Government Police Services Maintenance Services, Lighting & Landscape Development Services Administrative Services Recreation, Arts & Community Services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Total Primary Government, Net Expenses Town of Danville Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2017 2018 2019 2020 2021 314,597 295,805 308,210 296,126 187,548 $ 1,658,023 $ 1,821,906 $ 1,648,107 $ 1,988,737 $ 1,727,404 9,107,939 9,668,148 9,908,945 9,824,261 9,141,598 7,963,358 7,824,106 8,512,749 9,400,476 8,999,904 8,568,817 12,113,185 12,589,561 5,769,904 6,231,119 3,690,675 3,511,181 3,625,899 3,816,145 3,632,890 4,129,417 4,016,368 4,273,896 3,794,136 2,722,675 345,931 345,473 325,210 325,210 282,675 35,464,160 39,300,367 40,884,367 34,916,610 32,738,265 G 25a(,a1(,n 52 2QInn Q(,7 G doSN11U,7 52 2dQ1(,rIn G Z'?7'252'W; $ 30 $ 30 $ 1,126 $ - $ - 314,597 295,805 308,210 296,126 187,548 3,142,080 3,060,686 3,046,475 3,059,330 3,047,952 3,575,751 3,792,303 4,473,140 3,374,462 3,738,947 36,308 36,400 38,126 31,693 28,145 2,196,610 2,058,014 2,041,182 1,427,112 846,805 911,003 1,205,123 2,132,610 1,873,835 2,271,372 2,591,351 2,521,475 3,880,922 1,358,781 2,169,054 $ 12,767,730 $ 12,969,836 $ 15,921,791 $ 11,421,339 $ 12,289,823 $ 12,767,730 $ 12,969,836 $ 15,921,791 $ 11,421,339 $ 12,289,823 $ (22,696,430) $ (22,696,430) $ (24,962,576) $ (23,495,271) $ (20,448,442) $ (22,696,430) $ (22,696,430) $ (24,962,576) $ (23,495,271) $ (20,448,442) Notes: 1. Depreciation was netted against program expenditures beginning in 2004. 2. The Town of Danville does not have any business -type activities. *FY 2008-09 Transportation Services program was combined with Development Services program **FY 2014-15: Legislative, Town Manager and Legal Services programs were combined with General Government Community Development program was combined with Development Services 113 General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes Sales taxes Motor Vehicle taxes Franchise Taxes Other taxes Investment earnings Miscellaneous Gain (loss) on sale of capital assets Transfers from Successor Agency Special item Total governmental activities Total primary government Change in Net Position Governmental activities Total primary government Town of Danville Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2012 2013 2014 2015 2016 $ 12,967,656 $ 12,242,443 $ 12,716,297 $ 13,593,483 $ 14,153,561 3,835,342 3,897,260 3,947,577 4,098,412 4,569,470 21,557 22,337 18,486 17,857 17,629 2,067,703 2,098,137 2,155,691 2,215,165 2,299,491 366,926 374,354 385,044 391,856 404,744 915,317 251,901 900,451 636,474 1,265,876 1,470,094 2,360,129 1,514,199 1,559,647 741,674 795,191 790,542 769,972 780,818 6,956,544 1,732,164 - - 3,195,604 $ 28,601,139 $ 23,773,916 $ 22,428,287 $ 23,282,866 $ 27,428,867 $ 28,601,139 $ 23,773,916 $ 22,428,287 $ 23,282,866 $ 27,428,867 $ 6,525,226 $ 7,108,692 $ (4,214,558) $ 3,076,237 $ 4,732,437 $ 6,525,226 $ 7,108,692 $ (4,214,558) $ 3,076,237 $ 4,732,437 Note: The Town of Danville does not have any business -type activities. 114 General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes Sales taxes Motor Vehicle taxes Franchise Taxes Other Taxes Investment earnings Miscellaneous Gain (loss) on sale of capital assets Transfers from Successor Agency Special item Total governmental activities Total primary government Change in Net Position Governmental activities Total primary government Town of Danville Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2018 2019 2020 2021 $ 13,978,818 $ 14,629,253 $ 15,354,728 $ 16,025,356 $ 17,210,607 5,546,298 5,914,835 6,126,449 5,753,805 6,653,905 19,203 22,821 21,310 35,829 32,180 2,419,118 2,588,989 2,609,820 2,836,124 3,044,834 371,237 362,196 390,562 367,376 338,449 296,610 368,995 3,028,554 3,183,434 174,503 1,235,646 854,998 834,318 1,838,208 1,447,189 - - - 345,523 (1,568) 772,316 792,316 792,456 812,456 789,051 $ 24,639,246 $ 25,534,403 $ 29,158,197 $ 31,198,111 $ 29,689,150 $ 24,639,246 $ 25,534,403 $ 29,158,197 $ 31,198,111 $ 29,689,150 $ 1,942,816 $ (7,796,128) $ 4,195,621 $ 7,702,840 $ 9,240,708 $ 1,942,816 $ (7,796,128) $ 4,195,621 $ 7,702,840 $ 9,240,708 Note: The Town of Danville does not have any business -type activities. 115 This page intentionally left blank. 116 Town of Danville Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (Accrual Basis of AccountinO Note: 1. The State shifted revenues from motor vehicle fees/tax and sales tax to property tax beginning 2005. 2. The former Community Development Agency was dissolved by AB xl 26 on January 31, 2012. 117 Community Development Agency Tax Property Motor Business Fiscal Property Sales Increment Franchise Transfer Vehicle License & Year Tax (1) Tax (2) Tax Tax Tax Other Taxes Total 2012 $ 11,243,968 $ 3,835,342 $ 1,371,457 $ 2,067,703 $ 352,231 $ 21,557 $ 366,926 $ 19,415,557 2013 11,809,390 3,897,260 - 2,098,137 433,053 22,337 374,354 19,259,184 2014 12,221,986 3,947,577 - 2,155,691 494,311 18,486 385,044 18,634,531 2015 13,076,172 4,098,412 - 2,215,165 517,311 17,857 391,856 19,223,095 2016 12,534,667 4,569,470 - 2,299,491 568,870 17,629 404,744 20,316,773 2017 13,392,392 5,546,298 - 2,419,118 586,426 19,203 371,237 20,394,871 2018 13,980,610 5,914,835 - 2,588,989 648,643 22,821 362,196 22,334,674 2019 14,740,670 6,126,449 - 2,609,820 614,058 21,310 390,562 24,502,869 2020 16,360,607 5,753,805 - 2,836,124 850,000 35,829 367,376 26,203,741 2021 16,360,607 6,653,905 - 3,044,834 850,000 32,180 338,449 27,279,975 Note: 1. The State shifted revenues from motor vehicle fees/tax and sales tax to property tax beginning 2005. 2. The former Community Development Agency was dissolved by AB xl 26 on January 31, 2012. 117 General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Special revenue funds Restricted Assigned Debt service fund Restricted Capital projects funds Restricted Committed Assigned Total all other Governmental Funds Total Governmental Funds Town of Danville Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 2012 2013 2014 2015 2016 - Note: Information presented according to GAS13 54 which was implemented in 2010 118 10,42/,966 809,519 809,536 809,635 809,718 809,504 17,697,557 17,670,672 17,118,585 17,067,689 18,374,622 8,430,419 9,247,992 9,482,365 9,397,184 344,844 26,937,495 27,728,200 27,410,585 27,274,591 29,956,956 28,429,093 27,540,889 28,492,880 24,215,659 26,129,555 808,787 811,282 811,448 813,511 - - - 356,953 356,953 - 40,669,255 39,639,637 42,268,737 39,887,688 38,430,064 - - - 2,183,781 2,364,889 69,907,135 67,991,808 71,930,018 67,457,592 66,924,508 $ 96,844,630 $ 95,720,008 $ 99,340,603 $ 94,732,183 $ 96,881,464 Note: Information presented according to GAS13 54 which was implemented in 2010 118 General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Special revenue funds Restricted Assigned Debt service fund Restricted Capital projects funds Restricted Committed Assigned Total all other Governmental Funds Total Governmental Funds Town of Danville Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 2017 2018 2019 2020 2021 $ 9,427,986 $ 8,427,986 $ 7,325,019 $ 5,167,108 $ 4,064,888 809,820 813,965 820,547 815,484 809,518 17,249,253 17,868,716 19,005,310 20,401,468 28,158,818 313,036 169,060 117,735 190,888 402,500 - - - - 1,100,000 27,800,095 27,279,727 27,268,611 26,574,948 34,535,724 23,594,077 22,970,768 23,577,945 26,145,688 28,628,893 - - 2,469,321 2,617,844 2,845,856 42,743,649 36,532,398 37,060,728 34,072,908 30,013,137 2,507,297 2,574,079 - - - 68,845,023 62,077,245 63,107,994 62,836,440 61,487,886 $ 96,645,118 $ 89,356,972 $ 90,376,605 $ 89,411,388 $ 96,023,610 Note: Information presented according to GAS13 54 which was implemented in 2010 119 Town of Danville Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Modified Accrual Basis of AccountinLjl OTHER FINANCING SOURCES (USES): Proceeds from sale of assets - - - - Transfers in 7,385,966 5,272,109 6,248,451 6,300,714 8,710,450 Transfers out (7,385,966) (5,272,109) (6,248,451) (6,300,714) (8,710,450) Total other financing sources (uses) - - - Extraordinary/Special item* 7,757,281 11,847 - 3,195,604 NET CHANGE IN FUND BALANCES $ 6,884,729 $ (1,124,622) $ 3,620,595 $ (7,408,586) $ 3,392,326 Debt service as a percentage of noncapital expenditures 3.39% 0.00% 0.00% 0.00% 0.00% Notes: 1. Revenues & expenditures were categorized differently prior to the implementation of GASB 34 in 2002. 2. Assets transferred from the former Community Development Agency (CDA) of the Town of Danville to the Successor Agency Trust Fund 120 Fiscal Year 2012 2013 2014 2015 2016 REVENUES: Property Taxes $ 12,967,656 $ 12,242,443 $ 12,716,297 $ 13,593,483 $ 14,153,561 Sales Taxes 3,835,342 3,897,260 3,943,899 4,080,378 4,558,712 Gas & Other Taxes 3,818,359 3,731,881 3,999,378 4,033,766 3,270,354 Special assessments 3,572,176 3,580,120 3,579,918 3,574,570 3,590,353 Charges for services 3,641,623 4,602,791 2,455,673 2,792,321 2,752,180 Licenses and permits 366,886 374,354 385,033 391,856 404,744 Development fees 144,416 1,207,211 2,926,192 3,166,893 3,705,128 Intergovernmental 1,276,852 155,815 181,003 547,347 1,026,474 Fines and forfeitures 190,982 237,209 248,965 242,325 267,732 Uses of money and property 1,463,143 870,157 1,507,294 1,379,939 2,024,361 Miscellaneous 1,802,671 972,999 1,060,380 1,589,780 1,155,013 Reimbursement from Successor Agency - - - - - Total Revenues 33,080,106 31,872,240 33,004,032 35,392,658 36,908,612 EXPENDITURES: Current: General Government 1,667,416 1,658,489 1,708,465 1,526,324 1,591,047 Police services 7,300,734 7,374,868 6,980,859 8,356,060 8,691,261 Maintenance services 2,403,824 4,362,329 2,547,337 3,728,641 4,381,322 Lighting and landscape 3,288,256 2,991,535 3,043,620 3,105,346 3,127,403 Development services 7,458,197 9,588,981 6,920,225 14,097,237 4,986,759 Administrative services 1,901,419 2,446,641 2,207,468 3,362,284 4,000,431 Recreation, Arts & Community services 3,245,655 3,242,901 3,593,125 3,523,333 3,467,371 Capital outlay 5,763,393 1,342,965 2,382,338 5,102,019 6,466,296 Debt service: Principal 420,000 - - - - Interest and fiscal charges 503,764 - - - Total Expenditures 33,952,658 33,008,709 29,383,437 42,801,244 36,711,890 REVENUES OVER (UNDER) EXPENDITURES (872,552) (1,136,469) 3,620,595 (7,408,586) 196,722 OTHER FINANCING SOURCES (USES): Proceeds from sale of assets - - - - Transfers in 7,385,966 5,272,109 6,248,451 6,300,714 8,710,450 Transfers out (7,385,966) (5,272,109) (6,248,451) (6,300,714) (8,710,450) Total other financing sources (uses) - - - Extraordinary/Special item* 7,757,281 11,847 - 3,195,604 NET CHANGE IN FUND BALANCES $ 6,884,729 $ (1,124,622) $ 3,620,595 $ (7,408,586) $ 3,392,326 Debt service as a percentage of noncapital expenditures 3.39% 0.00% 0.00% 0.00% 0.00% Notes: 1. Revenues & expenditures were categorized differently prior to the implementation of GASB 34 in 2002. 2. Assets transferred from the former Community Development Agency (CDA) of the Town of Danville to the Successor Agency Trust Fund 120 Town of Danville Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) OTHER FINANCING SOURCES (USES): Proceeds from sale of assets - - - 3,274,939 - Transfers in 9,937,410 7,276,333 8,765,719 11,932,028 3,797,793 Transfers out (9,937,410) (7,276,333) (8,765,719) (11,932,028) (3,797,793) Total other financing sources (uses) - - 3,274,939 - Extraordinary/Special item* - - - NET CHANGE IN FUND BALANCES $ 1,551,566 $ (8,135,322) $ 1,019,633 $ (965,217) $ 6,612,222 Debt service as a percentage of noncapital expenditures 0.00% 0.00% 0.00% 2.50% 2.57% Notes: 1. Revenues & expenditures were categorized differently prior to the implementation of GASB 34 in 2002. 2. Assets transferred from the former Community Development Agency (CDA) of the Town of Danville to the Successor Agency Trust Fund 121 Fiscal Year 2017 2018 2019 2020 2021 REVENUES: Property Taxes $ 13,978,818 $ 14,629,253 $ 15,354,728 $ 16,025,356 $ 17,210,607 Sales Taxes 5,535,422 5,910,069 6,124,320 5,740,046 6,652,729 Gas & Other Taxes 3,264,713 3,645,895 3,581,582 3,594,673 3,611,436 Special assessments 3,554,065 3,775,380 4,310,196 4,722,089 4,828,113 Charges for services 2,859,100 2,874,896 2,867,332 2,021,562 1,495,953 Licenses and permits 371,237 362,196 396,710 367,376 338,449 Development fees 3,096,371 3,275,723 4,286,391 2,471,063 2,941,817 Intergovernmental 1,918,820 1,735,441 2,853,143 1,208,170 1,659,443 Fines and forfeitures 163,825 167,822 187,979 128,312 86,104 Uses of money and property 995,448 1,054,042 3,924,193 4,265,728 1,771,567 Miscellaneous 897,019 279,040 424,954 944,642 587,430 Reimbursement from Successor Agency - - - 812,456 789,051 Total Revenues 36,634,838 37,709,757 44,311,528 42,301,473 41,972,699 EXPENDITURES: Current: General Government 1,622,521 1,830,739 1,624,096 1,922,014 1,732,686 Police services 8,881,254 9,426,989 9,690,883 9,658,510 9,065,799 Maintenance services 3,686,266 3,339,317 3,305,068 4,411,816 3,816,120 Lighting and landscape 3,374,354 3,644,177 4,067,377 3,703,613 3,903,054 Development services 8,186,500 11,741,330 12,346,910 5,549,402 6,065,680 Administrative services 3,536,546 3,472,727 3,555,297 3,777,435 3,606,353 Recreation, Arts & Community services 3,693,259 3,697,618 3,920,497 3,508,153 2,470,377 Capital outlay 2,102,572 8,692,182 4,781,767 13,198,230 3,911,357 Debt service: Principal - - - 480,000 500,000 Interest and fiscal charges - - - 332,456 289,051 Total Expenditures 35,083,272 45,845,079 43,291,895 46,541,629 35,360,477 REVENUES OVER (UNDER) EXPENDITURES 1,551,566 (8,135,322) 1,019,633 (4,240,156) 6,612,222 OTHER FINANCING SOURCES (USES): Proceeds from sale of assets - - - 3,274,939 - Transfers in 9,937,410 7,276,333 8,765,719 11,932,028 3,797,793 Transfers out (9,937,410) (7,276,333) (8,765,719) (11,932,028) (3,797,793) Total other financing sources (uses) - - 3,274,939 - Extraordinary/Special item* - - - NET CHANGE IN FUND BALANCES $ 1,551,566 $ (8,135,322) $ 1,019,633 $ (965,217) $ 6,612,222 Debt service as a percentage of noncapital expenditures 0.00% 0.00% 0.00% 2.50% 2.57% Notes: 1. Revenues & expenditures were categorized differently prior to the implementation of GASB 34 in 2002. 2. Assets transferred from the former Community Development Agency (CDA) of the Town of Danville to the Successor Agency Trust Fund 121 This page intentionally left blank. 122 Town of Danville Assessed Value Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year Assessed Value Less: Total Taxable Total Ended Real Property Personal Property Tax Exempt Assessed Direct June 30 Secured Unsecured Secured Unsecured Property Value Rate 2012 $ 9,170,986,676 $ 50,217,076 $ 2,604,516 $ 47,076,779 $ 173,327,421 $ 9,097,557,626 0.10319% 2013 9,236,967,610 52,627,724 2,468,870 41,018,620 172,442,279 9,160,640,545 0.10323% 2014 9,812,406,625 52,547,546 2,315,399 39,737,234 171,279,730 9,735,727,074 0.07827% 2015 10,526,929,712 44,289,615 2,298,728 45,995,923 169,288,561 10,450,225,417 0.07752% 2016 11,231,575,805 49,320,732 3,732,903 42,680,915 170,375,283 11,156,935,072 0.07758% 2017 11,904,105,603 47,645,411 3,290,428 43,296,151 172,930,520 11,825,407,073 0.07763% 2018 12,497,304,292 48,065,757 3,371,837 45,354,774 176,396,870 12,417,699,790 0.07767% 2019 13,131,043,886 53,546,262 5,685,542 48,122,854 184,522,193 13,053,876,351 0.07769% 2020 13,815,833,911 53,545,615 5,301,255 49,668,729 176,668,847 13,747,680,663 0.07772% 2021 15,100,093,985 50,900,862 5,470,622 51,204,460 188,744,738 15,018,925,191 0.00000% Note: In 1978 the voters of the State of California passed Proposition 13 which limited basic 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 increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At those times, the new assessed value is the purchase price. The estimated market value of taxable property is not available. 123 Town of Danville Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate Expressed in Percentage) Note: 1 Countywide rate of 1% is levied with the proceeds distributed to all taxing agencies according to formulas specified by State legislature. 2 Individual agencies' rates are for payments of voter approved indebtedness. 124 Total San Ramon Bay Area Fiscal Miscellaneous County Valley Unified Rapid Transit Year Danville Wide i School District (BART) 2012 0.10319% 1.00% 0.0664% 0.0041% 2013 0.10323% 1.00% 0.0705% 0.0043% 2014 0.07827% 1.00% 0.0696% 0.0075% 2015 0.07752% 1.00% 0.0651% 0.0045% 2016 0.07758% 1.00% 0.0624% 0.0026% 2017 0.07763% 1.00% 0.0652% 0.0080% 2018 0.07767% 1.00% 0.0552% 0.0084% 2019 0.07769% 1.00% 0.0750% 0.0070% 2020 0.07720% 1.00% 0.0750% 0.1200% 2021 0.07774% 1.00% 0.0750% 0.1390% Note: 1 Countywide rate of 1% is levied with the proceeds distributed to all taxing agencies according to formulas specified by State legislature. 2 Individual agencies' rates are for payments of voter approved indebtedness. 124 Total Direct & Overlapping Miscellaneous Rate 0.0217% 1.19943% 0.0214% 1.16917% 0.0138% 0.07827% 0.0121% 0.07752% 0.0125% 0.07758% 0.0152% 0.07763% 0.0135% 0.07767% 0.0131% 0.07769% 0.0282% 0.07720% 0.0175% 0.07774% Note: 1 Countywide rate of 1% is levied with the proceeds distributed to all taxing agencies according to formulas specified by State legislature. 2 Individual agencies' rates are for payments of voter approved indebtedness. 124 Town of Danville Property Tax Levies and Collections Last Ten Fiscal Years Note: 1. The data in this table includes basic and supplemental city property taxes, Redevelopment Agency tax increments, ERAF refunds, property tax in -lieu of motor vehicle license fees and the sales tax triple flip. 2. Contra Costa County assesses, bills, collects and distributes property taxes to all taxing entities including the Town. Under a State law, known as the Teeter Plan, the County remits the entire amount levied to the Town. The County handles all delinquencies and retains all interest and penalties. Source: County of Contra Costa 125 Collected Within the Fiscal Year of the Levy Total Collections To Date Fiscal Total Tax Year Levied and Delinquent Ended Collected for Percentage Tax Collected Percentage June 30 Fiscal Year of Levy Collections Amount of Levy 2012 $ 12,967,656 100% n/a $ 12,967,656 100% 2013 12,242,443 100% n/a 12,242,443 100% 2014 13,190,148 100% n/a 13,190,148 100% 2015 14,171,661 100% n/a 14,171,661 100% 2016 14,736,156 100% n/a 14,736,156 100% 2017 14,430,722 100% n/a 14,430,722 100% 2018 14,629,254 100% n/a 14,629,254 100% 2019 15,928,730 100% n/a 15,928,730 100% 2020 16,678,857 100% n/a 16,678,857 100% 2021 17,330,169 100% n/a 17,330,169 100% Note: 1. The data in this table includes basic and supplemental city property taxes, Redevelopment Agency tax increments, ERAF refunds, property tax in -lieu of motor vehicle license fees and the sales tax triple flip. 2. Contra Costa County assesses, bills, collects and distributes property taxes to all taxing entities including the Town. Under a State law, known as the Teeter Plan, the County remits the entire amount levied to the Town. The County handles all delinquencies and retains all interest and penalties. Source: County of Contra Costa 125 Town of Danville Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Taxable Total Percentage Revenue Bonds Primary of Personal Loan Payable Government Income - $ 9,590,000 - 9,230,000 - 8,860,000 - 8,860,000 - 8,055,000 - 7,635,000 - 7,195,000 - 6,735,000 - 6,255,000 - 5,755,000 Note: 1. COP is paid with property tax increment of the Property Tax Trust Fund. 2. Taxable Revenue Bonds Loan Payable was transferred to the Successor Agency Trust Fund. 3. Bank notes for child care facilities and capital leases. 4. Reliable information is not available. 126 Certificate Fiscal of Year Participation 2012 $ 9,590,000 2013 9,230,000 2014 8,860,000 2015 8,860,000 2016 8,055,000 2017 7,635,000 2018 7,195,000 2019 6,735,000 2020 6,255,000 2021 5,755,000 Taxable Total Percentage Revenue Bonds Primary of Personal Loan Payable Government Income - $ 9,590,000 - 9,230,000 - 8,860,000 - 8,860,000 - 8,055,000 - 7,635,000 - 7,195,000 - 6,735,000 - 6,255,000 - 5,755,000 Note: 1. COP is paid with property tax increment of the Property Tax Trust Fund. 2. Taxable Revenue Bonds Loan Payable was transferred to the Successor Agency Trust Fund. 3. Bank notes for child care facilities and capital leases. 4. Reliable information is not available. 126 Per Capita ** $ 226.98 * * 216.06 ** 205.35 * * 202.79 * * 187.92 ** 178.12 ** 167.85 ** 148.77 ** 140.16 ** 131.08 Town of Danville Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Outstanding General Bonded Debt General Tax Less: Amount Fiscal Obligation Allocation Available in Year Bonds Bonds Debt Service Fund 2012 $ - $ - $ - 2013 - - - 2014 - - - 2015 - - - 2016 - - - 2017 - - - 2018 - - - 2019 - - - 2020 - - - 2021 - - - Note: The Town of Danville does not have any General Bonded debt. 127 Total (net) Town of Danville Direct and Overlapping Governmental Activities Debt Current Year 2020/21 Assessed Valution: $13,939,583,737 after deducting $493,371,586 incremental value. Debt to assessed valuation ratios: Direct debt 0.040% Overlapping debt 2.060% Total debt 2.100% This report reflects debt which is being repaid through voter -approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of participation, unless provided by the Town. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is with the Town's boundaries and dividing it by each unit's total taxable assessed value. Source: HdL Coren & Cone, Contra Costa County Assessor and Auditor Combined 2020/21 lien date tax rolls. 128 Percent Gross Bonded Applicable Net Bonded Debt Balance To Town Debt Direct debt: 421600 Danville 2001 COPS $ 2,320,000 100.000% $ 2,320,000 421600 Danville 2005 COPS 3,435,000 100.000% 3,435,000 Total direct debt 5,755,000 Overlapping debt: 100300 CCC Pension Obligation Bond 44,925,000 6.375% 2,863,911 100300 CCC PEA 1998A LRB 6,435,000 6.375% 410,223 100300 CCC PEA 1999A LRB 6,310,000 6.375% 402,254 100300 CCC PEA 2002A LRB 4,065,000 6.375% 259,139 100300 CCC PEA 2003A LRB 3,445,000 6.375% 219,614 100300 CCC PEA 2007A LRB 61,030,000 6.375% 3,890,584 100300 CCC PEA 2009A LRB 6,407,008 6.375% 408,439 100300 CCC PEA 201OA-2 LRB 11,995,000 6.375% 764,666 100300 CCC PEA 201OA-3 LRB 20,700,000 6.375% 1,319,598 100300 CCC PEA 2010B LRB 6,055,000 6.375% 385,998 100300 CCC PEA 2012 LRB 6,212,865 6.375% 396,062 100300 CCC PEA 2015 A&B LRB 37,900,000 6.375% 2,416,076 100300 CCC PEA 2017A LRB 42,320,000 6.375% 2,697,845 100300 CCC PEA 2017B LRB 76,930,000 6.375% 4,904,188 400800 BART Bond 328,172,932 6.375% 20,920,602 402700 East Bay Regional Park Bond 125,395,149 6.375% 7,993,779 789600 San Ramon Unified 2002 Bond 431,415,000 26.544% 114,514,432 789700 San Ramon Unified 2012 Bond 235,950,000 26.544% 62,630,368 792100 Contra Costa Community College 2002 Bond 311,230,151 6.396% 19,907,135 792200 Contra Costa Community College 2006 Bond 354,509,849 6.396% 22,675,424 792300 Contra Costa Community College 2014 Bond 274,130,000 6.396% 17,534,108 Total overlapping debt 287,514,445 Total direct and overlapping debt $ 293,269,445 2020/21 Assessed Valution: $13,939,583,737 after deducting $493,371,586 incremental value. Debt to assessed valuation ratios: Direct debt 0.040% Overlapping debt 2.060% Total debt 2.100% This report reflects debt which is being repaid through voter -approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of participation, unless provided by the Town. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is with the Town's boundaries and dividing it by each unit's total taxable assessed value. Source: HdL Coren & Cone, Contra Costa County Assessor and Auditor Combined 2020/21 lien date tax rolls. 128 Town of Danville Principal Property Taxpayers Current Year and Nine Fiscal Years Ago Alamo Group Iron Horse LLC Davidon Homes Diablo Lodge GS Associates - Joint Venture Totals S 321,043,533 2012 Percentage of Taxable Percentage of Total Taxable Assessed Total Taxable Assessed Value Value Rank Assessed Value 0.38% 0.36% $ 41,495,850 2021 0.45% Taxable Assessed 0.29% Employer Value Rank 0.21% 22,314,153 MM Danville Apartments, LLC $ 54,252,589 1 Danville Livery & Mercantile 52,020,460 2 ROIC California, LLC 46,609,519 3 Reg8 Tassajara Crossing, LLC 41,399,094 4 Costco Wholesale Corporation 30,167,747 5 Rose Garden Associates Danville, LLC 28,587,872 6 Danville Park RE LLC 19,907,369 7 Rassier Properties Danville Medical Ctr. 17,161,597 8 Montair Associates, LLC 16,785,286 9 Danville Senior Living, LLC 14,152,000 10 Alamo Group Iron Horse LLC Davidon Homes Diablo Lodge GS Associates - Joint Venture Totals S 321,043,533 2012 Percentage of Taxable Percentage of Total Taxable Assessed Total Taxable Assessed Value Value Rank Assessed Value 0.38% 0.36% $ 41,495,850 1 0.45% 0.33% 0.29% 35,139,120 2 0.38% 0.21% 22,314,153 3 0.24% 0.20% 18,860,000 5 0.20% 0.14% 13,500,000 9 0.15% 0.12% 0.12% 14,328,376 8 0.10% 18,454,000 6 0.20% 18,397,561 7 0.20% 12,502,809 10 0.13% 21,868,748 4 0.24% 2.25% S 216,860,617 Note: The amounts shown above include assessed value data for both the Town and the Successor Agency. Because of the many ways a business or individual can hold title, the above list is an approximation of the top taxpayers within the Town of Danville. Source: HdL 129 2.19% Town of Danville Legal Debt Margin Information Last Ten Fiscal Years Note: The Government Code of the State of California provides for a legal debt limit of 3.75% of gross assessed valuation. Source: County of Contra Costa 130 Fiscal Year 2012 2013 2014 2015 2016 Debt Limit $ 341,158,411 $ 343,524,020 $ 365,089,765 $ 391,883,453 $ 418,385,065 Total net debt applicable to limit - - - - - Legal debt margin $ 341,158,411 $ 343,524,020 $ 365,089,765 $ 391,883,453 $ 418,385,065 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Note: The Government Code of the State of California provides for a legal debt limit of 3.75% of gross assessed valuation. Source: County of Contra Costa 130 Town of Danville Legal Debt Margin Information (Continued) Last Ten Fiscal Years Note: The Government Code of the State of California provides for a legal debt limit of 3.75% of gross assessed valuation. Source: County of Contra Costa 131 Fiscal Year 2017 2018 2019 2020 2021 Debt Limit $ 443,452,765 $ 465,663,742 $ 489,520,363 $ 515,538,025 $ 563,209,695 Total net debt applicable to limit - - - - - Legal debt margin $ 443,452,765 $ 465,663,742 $ 489,520,363 $ 515,538,025 $ 563,209,695 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2021 Assessed Value $ 15,018,925,191 Add back: exempt real property 188,744,738 Total assessed value $ 15,207,669,929 Debt Limit (3.75% of assessed value) $ 563,209,695 Total net debt applicable to limit - Legal Debt Margin $ 563,209,695 Note: The Government Code of the State of California provides for a legal debt limit of 3.75% of gross assessed valuation. Source: County of Contra Costa 131 Town of Danville Pledged -Revenue Coverage Last Ten Fiscal Years Note: 1. Fund balance used to cover debt service 132 Certificates of Participation Taxable Revenue Bond Fiscal Tax Debt Service Tax Debt Service Year Increment Principal Interest Coverage' Increment Principal Interest Coverage 2012 $ 1,099,265 $ 350,000 $ 449,391 1.38 $ 272,192 $ 70,000 $ 276,818 0.78 2013 1,188,645 360,000 435,192 1.49 404,571 80,000 271,020 1.15 2014 - 370,000 420,541 - - 95,000 263,889 - 2015 - 395,000 404,973 - - 105,000 255,739 - 2016 - 410,000 388,256 - - 120,000 246,570 - 2017 - 420,000 370,819 - - 130,000 236,383 - 2018 - 440,000 352,316 - - 140,000 225,380 - 2019 - 460,000 332,456 - - 155,000 213,359 - 2020 - 480,000 311,356 - - 165,000 200,289 - 2021 - 500,000 289,051 - - 180,000 186,261 - Note: 1. Fund balance used to cover debt service 132 Town of Danville Demographic and Economic Statistics Last Ten Fiscal Years Note: Per Capita Income and Personal Income is for County of Contra Costa since reliable Town specific data is not available Sources: 1. California State Department of Finance 2. For FY 2012: US Census Bureau, 2009-2011 American Community Survey: $133,888 +/- $10,705 3. U.S. Department of Commerce Census, Bureau American Community Surveys 4. California Department of Education (Schools within the San Ramon Valley Unified School District) 5. California State Employment Development Department "Figures not available 133 Unemployment Rate 5 4.9% 3.8% 3.3% 4.1% 3.9% 3.5% 2.9% 2.7% 10.0% 4.7% Median Persons per Per Personal Public Household Household Capita Income School Year Population 1 Income 2 Unit 3 Income 2 (in thousands) Enrollment 4 2012 42,450 133,888 2.73 $ 63,404 ** 29,884 2013 42,720 ** 2.75 ** ** 30,757 2014 43,146 ** 2.77 ** ** 31,398 2015 43,691 140,809 2.79 ** ** 31,954 2016 42,865 ** 2.97 ** ** 32,255 2017 43,355 ** ** ** ** 32,425 2018 44,396 ** ** ** ** 32,504 2019 45,270 ** ** ** ** 32,138 2020 44,626 ** ** ** ** 31,911 2021 43,906 ** ** ** ** 30,726 Note: Per Capita Income and Personal Income is for County of Contra Costa since reliable Town specific data is not available Sources: 1. California State Department of Finance 2. For FY 2012: US Census Bureau, 2009-2011 American Community Survey: $133,888 +/- $10,705 3. U.S. Department of Commerce Census, Bureau American Community Surveys 4. California Department of Education (Schools within the San Ramon Valley Unified School District) 5. California State Employment Development Department "Figures not available 133 Unemployment Rate 5 4.9% 3.8% 3.3% 4.1% 3.9% 3.5% 2.9% 2.7% 10.0% 4.7% Town of Danville Principal Employers in the Town of Danville Current Year and Previous Year Pacific Gas & Electric Total Employees: 1,208 1,145 Note: 1. Data complied from Town of Danville Business License Division. 134 2021 2020 Number of % of Number of % of Employer Employees 1 Rank Top 10 Employees 1 Rank Top 10 Costco 424 1 35.1% 204 2 17.8% Keller Williams Realty 213 2 17.6% 342 1 29.9% Safeway, Inc. 94 3 7.8% 98 3 8.6% Common Interest Management Services 85 4 7.0% Trader Joe's 85 5 7.0% 82 4 7.2% Lunardi's Market 81 6 6.7% 67 8 5.9% Danville Nursing & Rehabilitation Center 61 7 5.0% 66 9 5.8% Crow Canyon Management Corp. 60 8 5.0% 74 6 6.5% Sunrise Assisted Living of Danville 60 9 5.0% 60 10 5.2% Sereno Group, Inc. 45 10 3.7% Brookfield Calwest Builders 80 5 7.0% J. Rockcliff Realtors 72 7 6.3% Pacific Gas & Electric Total Employees: 1,208 1,145 Note: 1. Data complied from Town of Danville Business License Division. 134 Function Legislative Administration Legal Police Services* Development Services Transportation Services Community Services Maintenance Recreation, Arts & Community Services Finance Support Services Community Events** Human Resources Total Town of Danville Full -Time Equivalent Town Government Employees by Function Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 4.00 4.00 4.00 6.75 6.50 8.25 8.25 7.75 7.75 6.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 35.75 34.75 34.00 36.75 37.75 37.75 37.75 37.75 37.75 37.75 25.25 24.25 25.50 25.50 29.75 27.00 27.00 26.50 25.50 23.50 4.50 4.50 4.25 4.25 3.25 3.75 3.25 3.00 3.00 3.00 23.00 24.00 24.00 29.00 31.00 31.00 31.00 31.00 31.00 31.00 15.50 15.50 15.25 37.75 37.75 38.25 38.25 42.00 42.00 42.00 5.50 5.50 5.50 5.25 5.25 5.25 5.25 5.00 5.00 5.00 3.00 3.00 3.00 4.50 4.50 4.50 4.50 4.50 4.50 4.50 0.25 0.25 0.25 0.50 0.50 0.50 0.50 0.50 0.50 0.50 2.00 2.00 2.00 2.00 2.50 2.50 2.50 2.25 2.25 2.00 120.75 120.75 119.75 119.75 154.25 160.75 160.75 160.25 161.25 158.00 Source: Adopted Town Budgets * includes 30 County contract sworn officers in FY 2016/17 FY 2014-15: Legislative, Administration and Legal were combined with General Government **Community Services and Special Events were combined with Recreation, Arts & Community Services 135 Function Police: ' Arrests Traffic violations Parking violations Public works: Street resurfacing (miles) Pot holes repaired Parks and recreation: Course registration Facility rentals/permits 2 Picnic rentals Town of Danville Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 654 701 574 618 515 500 447 391 281 165 2,109 4,220 6,001 5,345 3,875 2,605 3,702 2,786 2,482 1,177 1,398 2,009 2,373 1,619 1,625 1,774 1,367 1,593 1,346 482 9.7 24 18.7 14.2 24 15.2 5.9 5.5 10.23 0 110 151 160 111 181 249 84 309 149 163 17,396 20,101 22,191 17,176 18,147 20,352 19,174 18,146 13,593 4,592 13,790 13,915 13,894 816 716 804 786 638 538 8 505 511 535 460 241 413 406 354 205 130 Note: 1. Police Statistics are reported end of calendar year 2. Facility rentals were previously tracked by the number of bookings, which may have included multiple bookings on one rental permit. As a result of the implementation of Active Network, a new registration software, rentals are now tracked only by rental permit. Source: Various Town departments 136 Function Police: Stations Patrol units Public works: Street (miles) Street lights Signalized intersections Parks and recreation: Parks acreage Parks Swimming pools Tennis courts Pickleball courts Community centers Town of Danville Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 1 1 1 1 16 14 12 13 12 13 13 13 13 13 Source: Various Town departments 144.6 144.6 144.6 144.6 144.6 144.6 144.6 157.89 158.15 158.15 3,449 1,417 1,417 1,417 1,417 1,417 1,158 1,158 1,158 1,158 51 51 51 52 51 52 54 54 54 54 312.5 312.5 312.5 312.5 312.5 312.5 312.5 312.5 312.5 312.5 5 5 5 5 5 5 5 5 5 5 0 0 0 0 0 0 0 0 0 0 7 10 10 10 10 10 10 10 10 10 0 0 0 0 0 0 0 0 0 2 3 3 3 3 3 3 3 3 3 3 137 This page intentionally left blank. 138