HomeMy WebLinkAbout110122-03.1 ACFRTOWN OF DANVILLE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
TOWN COUNCIL
Newell Arnerich, Mayor
Robert Storer, Vice Mayor
David Fong, Councilmember
Renee Morgan, Councilmember
Karen Stepper, Councilmember
TOWN STAFF
Joseph A. Calabrigo, Town Manager
Lani Ha, Finance Director/Treasurer
DR
A
F
T
10
.
2
7
.
2
0
2
2
DR
A
F
T
10
.
2
7
.
2
0
2
2
TOWN OF DANVILLE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022
TOWN COUNCIL
Newell Arnerich, Mayor
Robert Storer, Vice Mayor
David Fong, Councilmember
Renee Morgan, Councilmember
Karen Stepper, Councilmember
TOWN MANAGER
Joseph A. Calabrigo
Prepared by the
Finance Division
Lani Ha, Finance Director/Treasurer
Danville, CA
(Cover Photo - by Paige Green)
DR
A
F
T
10
.
2
7
.
2
0
2
2
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal .......................................................................................................................................................... i
Organizational Chart ...................................................................................................................................................... xii
Directory of Public Officials ........................................................................................................................................ xiii
Certificate of Achievement for Excellence in Financial Reporting –
Government Finance Officers Association ................................................................................................................ xiv
Statement of 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:
Statement of Net Position ........................................................................................................................... 20
Statement of Activities ................................................................................................................................ 21
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ............................................................................................................................................. 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
Statement of 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 .................................................................................................... 43
Notes to the Basic Financial Statements................................................................................................................... 45
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Information ............................................................................................................................................. 79
Budgetary Comparison Schedules:
General Fund ............................................................................................................................................... 80
Lighting and Landscaping Special Revenue Fund ...................................................................................... 82
Regional Traffic Impact Fees Special Revenue Fund ................................................................................. 83
American Rescue Plan Act Special Revenue Fund ..................................................................................... 84
Modified Approach for Town Street Infrastructure Capital Assets .......................................................................... 85
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet .................................................................................................................................. 93
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ............................................ 98
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
PEG Special Revenue Fund....................................................................................................................... 103
Gas Tax Special Revenue Fund ................................................................................................................ 104
Building and Planning Special Revenue Fund .......................................................................................... 105
Development Engineering Special Revenue Fund .................................................................................... 106
Child Care Special Revenue Fund ............................................................................................................. 107
Stormwater Pollution Control Program (SPCP) Special Revenue Fund ................................................... 108
Measure C/J Special Revenue Fund .......................................................................................................... 109
Donations and Contributions Special Revenue Fund ................................................................................ 110
General Development Impact Fees Special Revenue Fund ....................................................................... 111
Public Safety Special Revenue Fund ......................................................................................................... 112
Old Town Parking In-Lieu Special Revenue Fund ................................................................................... 113
Solid Waste Vehicle Impact Fee Special Revenue Fund .......................................................................... 114
Low and Moderate Income Housing Special Revenue Fund .................................................................... 115
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Financial Trends:
Net Position by Component ............................................................................................................................... 120
Changes in Net Position ..................................................................................................................................... 122
Fund Balances of Governmental Funds ............................................................................................................. 126
Changes in Fund Balances of Governmental Funds .......................................................................................... 128
Revenue Capacity
Governmental Activities Tax Revenues by Source ............................................................................................ 132
Assessed Value ................................................................................................................................................... 133
Direct and Overlapping Property Tax Rates ....................................................................................................... 134
Property Tax Levies and Collections ................................................................................................................. 135
Principal Property Taxpayers .............................................................................................................................. 136
Debt Capacity:
Ratios of Outstanding Debt by Type .................................................................................................................. 138
Ratios of General Bonded Debt Outstanding ...................................................................................................... 139
Direct and Overlapping Governmental Activities Debt ...................................................................................... 141
Legal Debt Margin Information ......................................................................................................................... 142
Pledged-Revenue Coverage ................................................................................................................................ 144
Demographic and Economic Information:
Demographic and Economic Statistics .............................................................................................................. 146
Principal Employers in the Town of Danville .................................................................................................... 147
Operating Information:
Full-Time Equivalent Town Government Employees by Function ................................................................... 150
Operating Indicators by Function ...................................................................................................................... 151
Capital Asset Statistics by Function.................................................................................................................... 152
DR
A
F
T
10
.
2
7
.
2
0
2
2
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
INTRODUCTORY SECTION
(Unaudited)
DR
A
F
T
10
.
2
7
.
2
0
2
2
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
“Small Town Atmosphere
Outstanding Quality of Life”
5 1 0 L A G O N D A W A Y , D A N V I L L E , C A L I F O R N I A 9 4 5 2 6
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
November 15, 2022
Mayor and Town Council
Town of Danville
Subject: Fiscal Year 2021/22 Annual Comprehensive Financial Report
The Annual Comprehensive Financial Report (ACFR) of the Town of Danville for the fiscal
year (FY) ended June 30, 2022, 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 Division, 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 2021/22.
GENERAL INFORMATION ABOUT THE TOWN OF DANVILLE
Incorporated in 1982, Danville is located in southern 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 43,352 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
around the Bay Area.
DR
A
F
T
10
.
2
7
.
2
0
2
2
ii
While Danville has remained predominantly residential, neighboring cities have developed
job centers including major business parks located within minutes from the Town.
The Town operates under the Council-Manager form of government, 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
Heads 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 certain 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 was dissolved by AB x1
26 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, 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 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 April 2017, the State Department of
Finance approved the Last and Final Recognized Obligation Payment Schedule (ROPS) for
the SA. This approval established the precise amount of each Redevelopment Property Tax
Trust Fund (RPTTF) payment due to the SA until all of its obligations are retired in 2035.
DR
A
F
T
10
.
2
7
.
2
0
2
2
iii
The SA also completed disposition of all assets in 2017. Taken together, these steps
eliminated the need for the Oversight Board and the preparation of any further ROPS.
ECONOMIC CONDITION AND OUTLOOK
Current Economic Condition
As of June 30, 2022, 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, 2022, $13,809,768 or 40.12% 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 $5,706,773 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 $27,676,880 represents 120.33% of total FY 2021/22
General Fund operating expenditures and 80.40% of operating expenditures from all funds.
Additionally, the Town has $37,440,303 of Special Revenue funds, and $35,607,368 in Capital
Projects funds.
The Town’s five largest revenue sources account for 96.07% of all Town revenues. These
include Property Tax providing 39.49% of revenues; Sales Tax providing 16.30%; Other
Taxes and Intergovernmental providing 26.68%; Special Assessments providing 7.91% and
Development Impact Fees providing 5.70% of revenues.
Property Tax increased by $823,241 (4.78%) compared to FY 20-21, as assessed values were
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 increased by $1,189,589 (79.32%), as Recreation classes and programs
increased. Recreation Fees and Charges, Building and Planning fees and Development
Engineering fees all increased compared to prior year.
DR
A
F
T
10
.
2
7
.
2
0
2
2
iv
Sales Tax increased by $789,997 (11.87%) largely attributable to a steep increase in online
sales activity and brick and mortar businesses (restaurant and retail) exceeding expectations
in weathering the pandemic. Other Taxes and Intergovernmental Fund Revenues increased
by a net of $6,775,164 (125.33%), reflecting the receipt of Coronavirus Local Fiscal Recovery
Funds (CLFRF) from the federal government, higher revenues from Gas Tax and Measure J
funds and a slight decrease in SPCP Special Assessments. LLAD Special Assessments
remained essentially flat.
The decrease in Development Fees of $340,117 (-11.56%), reflects a decrease in permitting
activity.
Danville’s jobless rate as of November 2021 was 3.1% as compared to 4.2% nationwide, 7.5%
in California, and 6.5% 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 2022/23 Operating
Budget and Capital Improvement Program, was completed in May 2022 and adopted on
June 8, 2022. General Fund revenues are projected to increase 9.37% from FY 2021/22 to FY
2022/23, largely attributable to a 6.58% increase in property tax revenue, 14.29% increase in
sales tax revenue and 35.60% increase in Recreation Fees and Charges. Special Purpose
revenues are projected to increase 2.76%, mostly due to increase of 8.12% in Gas Tax
revenue, 8.68% in Measure J revenue, 3.00% in Solid Waste VIF revenue, and slight to no
increases in other Special Revenues funds.
Looking forward 10 years, General Purpose revenues are projected to increase 9.37% in FY
2022/23 and an average of 1.55% thereafter. Special Purpose revenues are projected to
increase 2.76% in FY 2022/23, and an average of 1.74% through FY 2031/32.
The 10-year projection includes cost increases that average 2.17% 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 2028/29, all four zones in the Lighting and Landscape Assessment District will
require further 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
v
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 or voters. 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 $3.96 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 2021/22
Major events took place in the Town during FY 2021/22 that had or will have significant
financial effects on the Town in the years to come. The Town:
1. Completed the Forward Focus COVID Relief Business Grant Program supporting 140
+/- businesses.
2. 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.
3. Continued the multi-year update of the 2023-2031 Housing Element with significant
community outreach efforts that included the launch of a project-specific
communications portal, one general open house, 5 newsletter articles, 9 news articles
in local media outlets, 14 press releases, 31 community presentations and workshops,
and 51 social media postings. In addition, three interactive community engagement
tools were developed and released to solicit decision-making priorities.
4. Implemented the American Rescue Plan Act (ARPA), following the Department of
Treasury guidelines to report and implement expenditures from the Coronavirus
Local Fiscal Recovery Funds (CLFR) for the first tranche of $5,323,869.
5. Continued the development of the Downtown Master Plan Update, incorporating
community feedback in the form of nearly 1,500 survey responses into two catalyst
projects to complete using ARPA funding.
6. Converted all Town facilities to 100% carbon free electricity.
7. Completed a new Town-wide Bicycle Master Plan.
DR
A
F
T
10
.
2
7
.
2
0
2
2
vi
8. Appointed a new Town of Danville Bicycle Advisory Commission.
9. Continued construction of tenant improvements to the property at 500 La Gonda
Way toward relocating the Danville Town Offices and Police Department to this new
location.
10. Received the distinction of “Safest City in California” with a population of 50,000 or
less, in 2022, for the fifth year in a row by Safewise, an independent review website.
11. 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.
12. Completed the design for the $1.0 million Oak Hill Park playground replacement
project.
13. Installed new LED field lighting at Diablo Vista Park, valued at approximately
$500,000, which was fully funded by the Sports Alliance organization.
14. Rebuilt the gazebo at Hap Magee Ranch Park using in house staff after cost estimates
to replace it increased to over $200,000.
15. Renovated the turf in the large dog park at Hap Magee Ranch Park for a total of
$19,470. The dog park at Hap Magee Ranch Park is rated the best dog park in the area
by Diablo Magazine.
16. Awarded a new contract for building custodial maintenance services in Lighting and
Landscape Assessment District Zone D.
17. Awarded a new contract for roadside landscape maintenance services in Lighting
and Landscape Assessment District Zone A.
18. Awarded a new contract for street light maintenance services in Lighting and
Landscape Assessment District Zone C.
19. Completed the annual creek cleaning through in-house and contract efforts which
helps protect the community and prevent damage to public and private property.
20. 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.
21. Restarted various Police Services outreach efforts: Recess with the Cops, Coffee with
the Cops, in person Citizens Academies for adults and youths, Special Olympics
Events, and Toys Tots fundraisers.
22. Received a $350K Federal Grant for Iron Horse Trail Crossing Improvements Project.
23. Received a $40K State Grant for Automated Solar Permitting Project.
24. Received a $500k State Grant for Fiber Optic Interconnect Project.
25. Launched Danville Town Talks digital engagement platform.
26. Completed Phase II of the Traffic Signal Controller Upgrade at 25 intersections.
27. Received a $1.0M Federal grant for the Traffic Signal Modernization Project
DR
A
F
T
10
.
2
7
.
2
0
2
2
vii
28. Completed the Townwide Fiber Optic Cable Master Plan.
29. Began development of a Town of Danville Local Roadway Safety Plan.
30. Completed the Townwide Biennial Traffic Count Study.
31. Completed design of the Greenbrook Neighborhood Traffic Management Program
traffic calming plan.
32. Completed replacement of batteries and inverters at 8 intersections as part of the
Battery Backup Replacement for Traffic Signals project.
33. Completed installation of high-visibility crosswalk markings at ten locations near
schools and along Iron Horse Trail.
34. Continued design and environment analysis phases of the Diablo Road Trail project.
35. Continued design of replacement of signal heads and pedestrian crossing signals as
part of the Townwide Traffic Signal Modernization.
36. 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.
37. Continued the design work for the $6 million project to replace the La Gonda Way
bridge at Danville Boulevard.
38. Completed the Brookside Drive ADA Improvements Project installing 34 ADA access
curb ramps.
39. Completed the Town-wide Bridge Preventative Maintenance Plan.
40. Continued the design for the Camino Ramon Improvements project.
41. Continued the design and secured a FEMA grant for the Loch Lomond, Starview,
and Westridge Trash Rack projects.
42. Continued the inventory and condition assessment of the Town’s storm drainage
system for the Town-wide Storm Drain Master Plan.
43. Continued the design for the San Ramon Valley Boulevard Improvements project.
44. Constructed the 2021/22 Rubberized Cape Seal project.
45. Completed the design of the Sycamore Valley Road Park & Ride bioretention and
pedestrian improvements.
46. Procured and implemented next generation technologies in the new Town Offices
and throughout the organization.
47. Continue improving technology security as threats evolve.
48. Hosted 7 Large Scale Community Events after a two-year hiatus.
49. Funded the development of the “Keep Danville Merry and Bright” Marketing
Campaign and Holiday Gift Guide, which supported businesses during 4th quarter.
DR
A
F
T
10
.
2
7
.
2
0
2
2
viii
50. Populated data and marketed the Danville Business Directory year-round which
features over 780 +/- local businesses.
51. Secured $62,906 in SB 1383 local assistance grant funding.
52. Processed 181 planning applications, ranging from variances and land use permits to
subdivisions and development plans.
53. Issued 2,852 building permits (80-percent of which were received online), conducted
3,539 plan checks and 9,730 building inspections.
54. Processed 566 encroachment permits for private or utility-related construction
activity within the public right-of-way.
55. Opened and facilitated the resolution of 370 code enforcement cases, more than
doubling the case load from the prior year.
For Fiscal Year 2022/23
During the upcoming FY 2022/23 the Town will:
1. Complete and adopt the 2023 – 2031 Housing Element.
2. Complete the relocation to the new Town offices at 500 La Gonda Way.
3. Continue to work with Tri-Valley Cities Coalition and state legislators to advocate
for changes to legislation in a manner that benefits Danville.
4. Complete design and begin construction of the Diablo Road Trail project.
5. Complete the schematic design work of the Diablo Vista Park playground and multi-
use skate park.
6. Continue to implement the American Rescue Plan Act: reporting and implementing
approved expenditures for the use of CLRF for the first tranche of $5,323,869 received
in July 2021, and the second tranche disbursement of $5,323,869 in July 2022.
7. Begin design of the Downtown Master Plan Catalyst projects using ARPA Funds.
8. Begin design of the Town Green Master Plan projects.
9. Continue the design of the Diablo Vista Park Multi-Sport Skate Park and playground
replacement.
10. Construct the Camino Ramon Improvements project.
11. Construct the San Ramon Valley Boulevard Improvements project.
12. Construct the Loch Lomond, Starview, and Westridge Trash Rack projects.
13. Complete the Town-wide Storm Drain Master Plan.
14. Complete design of the El Pintado Loop Drainage and Pavement Improvements.
15. Construct the Sycamore Valley Road Park & Ride bioretention and pedestrian
improvements.
16. Complete the Oak Hill Park playground replacement project.
DR
A
F
T
10
.
2
7
.
2
0
2
2
ix
17. Complete design work and replace five acres of synthetic turf athletic fields at
Sycamore Valley Park.
18. Complete design and begin construction of the Townwide Fiber Optic Cable
Interconnect project.
19. Adopt Design Guidelines for the Temporary Outdoor Expanded Dining Program for
restaurants
20. 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.
21. Renew the street sweeping services contract to continue providing clean and safe
streets and prevent pollution of creeks.
22. Complete the annual creek cleaning through in-house and contract efforts which
helps prevent damage to public and private property.
23. Complete design and construction of the Rectangular Rapid Flashing Beacons at four
locations.
24. Complete Phase I of the Townwide Traffic Signal Modernization project and begin
design of Phase II consisting of the federal-funded portion of the project.
25. Complete a Local Roadway Safety Plan.
26. Complete design of the Iron Horse Trail Crossing Improvements project.
27. Continue the Neighborhood Traffic Management Program consisting of seven active
neighborhood applications.
28. Complete installation of radar speed display signs at 8 locations as part of the
Neighborhood Traffic Management Program.
29. Complete installation of the Greenbrook Drive traffic calming improvements as part
of the Neighborhood Traffic Management Program.
30. 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.
31. Continue the design work for the $6 million project to replace the La Gonda Way
bridge at Danville Boulevard.
32. Construct Camino Tassajara and Sycamore Valley Road Sound Wall Improvements
33. Continue Information Technology efforts to implement additional security measures
and monitor cybersecurity issues to protect the Town from these ongoing types of
attacks.
34. Work to improve network bandwidth to the various Town business locations and the
Internet.
35. Implement an entirely new telephony system with security alerting.
DR
A
F
T
10
.
2
7
.
2
0
2
2
x
36. Develop the fifth Annual “Danville Picks” Holiday Gift Guide and associated
regional marketing campaign
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.
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 2021/22, 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 2021/22, the Town was responsible for the first $5,000 of general
DR
A
F
T
10
.
2
7
.
2
0
2
2
xi
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 set aside $34,510 in the General Fund to offset a liability and
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.
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, 2022
financial statements was performed by The Pun Group, LLP. Their opinion is included with
the general purpose 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,
Joseph A. Calabrigo Lani Ha
Town Manager Finance Director/Treasurer
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Organizational Chart
xii
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Directory of Public Officials
xiii
TOWN COUNCIL
Newell Arnerich Mayor
Robert Storer Vice Mayor
David Fong Councilmember
Renee Morgan Councilmember
Karen Stepper 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
Lani Ha Finance Director/Treasurer
Dave Casteel Maintenance Services Director
Henry Perezalonso Recreation, Arts & Community Services Director
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Certificate of Achievement for Excellence in Financial Reporting –
Government Finance Officers Association
xiv
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Statement of Purpose
xv
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
xvi
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
FINANCIAL SECTION
DR
A
F
T
10
.
2
7
.
2
0
2
2
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
INDEPENDENT AUDITORS’ REPORT
To the Mayor and Members of the Town Council
of the Town of Danville
Danville, California
Opinions
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, 2022, 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.
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, 2022, 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.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America
(“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the Town, and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of a Matter
Implementation of GASB Statement No. 87
As described in Notes 2O and 4 to the basic financial statements, the Town implemented GASB Statement No. 87,
Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
To the Mayor and Members of the Town Council
of the Town of Danville
Danville, California
Page 2
2
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
exercise professional judgment and maintain professional skepticism throughout the audit.
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
obtain an understanding of internal control relevant to the audit 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
Town’s internal control. Accordingly, no such opinion is expressed.
evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified
during the audit.
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, Regional Traffic Impact Fee Special Revenue Fund, and American Rescue Plan
Act 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
To the Mayor and Members of the Town Council
of the Town of Danville
Danville, California
Page 3
3
Supplementary Information
Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Town’s basic financial statements. The combining and individual nonmajor fund financial statements are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The 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 GAAS and Government Auditing Standards. 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audits of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2022, 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 15, 2022
DR
A
F
T
10
.
2
7
.
2
0
2
2
4
This page intentionally left blank
DR
A
F
T
10
.
2
7
.
2
0
2
2
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, 2022, 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 15, 2022.
Report on 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 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 or significant deficiencies may exist that were not
identified.
DR
A
F
T
10
.
2
7
.
2
0
2
2
To the Mayor and Members of the Town Council
of the Town of Danville
Danville, California
Page 2
6
Report on 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.
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 Town’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.
Walnut Creek, California
November 15, 2022
DR
A
F
T
10
.
2
7
.
2
0
2
2
17
BASIC FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
18
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
19
GOVERNMENT-WIDE FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
Governmental
Activities
ASSETS
Current assets:
Cash and investments (Note 3)65,188,388$
Receivables (net of allowances):
Accounts 2,091,367
Due from Successor Agency within one year (Note 7)1,100,000
Leases (Note 4)375,368
Interest 248,177
Total receivables 3,814,912
Prepaid items 117,017
Total current assets 69,120,317
Noncurrent assets:
Restricted cash and investments (Note 3):
Held with fiscal agent 1,623,569
Held by the Town 35,628,391
Total restricted cash and investments 37,251,960
Due from Successor Agency in more than one year (Note 7) 2,859,401
Leases receivable (Note 4)1,868,985
Capital assets (Note 5):
Nondepreciable 153,918,439
Depreciable, net 34,742,193
Total capital assets 188,660,632
Total noncurrent assets 230,640,978
Total assets 299,761,295
LIABILITIES
Current liabilities:
Accounts payable 5,577,435
Accrued wages payable 687,010
Retention payable 493,861
Deposit payable 160,312
Interest payable 75,592
Claims liabilities (Note 12)45,214
Unearned revenue (Note 8)848,102
Long-term debt - due within one year (Note 9)655,000
Total current liabilities 8,542,526
Noncurrent liabilities:
Long-term debt - due in more than one year: (Note 9)
Certificates of participation 4,690,000
Compensated absences 969,468
Total noncurrent liabilities 5,659,468
Total liabilities 14,201,994
DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources (Note 4)2,206,276
Total deferred inflows of resources 2,206,276
NET POSITION
Net investment in capital assets 183,425,632
Restricted for:
Debt service 1,623,569
Special projects and programs 34,004,805
Total restricted 35,628,374
Unrestricted 64,299,019
Total net position 283,353,025$
Town of Danville
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements.
20
DR
A
F
T
10
.
2
7
.
2
0
2
2
Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Governmental activities:
General government 2,773,284$ 10$ 5,323,869$ -$ 2,550,595$
Police services 9,972,541 179,616 177,767 - (9,615,158)
Maintenance services
and lighting and landscape 8,990,730 3,050,308 - 166,863 (5,773,559)
Development services 7,246,100 4,471,835 1,920,931 1,312,415 459,081
Administrative services 3,558,462 570,388 - 62,906 (2,925,168)
Recreation, arts, & community services 3,137,966 1,378,764 - - (1,759,202)
Interest expense 256,521 - - - (256,521)
Total governmental activities 35,935,604$ 9,650,921$ 7,422,567$ 1,542,184$ (17,319,932)
General revenues:
Taxes:
Property 18,033,848
Sales 7,443,450
Motor vehicle license fee 50,723
Franchise 3,252,012
Other 340,497
Total taxes 29,120,530
Investment earnings (losses) (Note 3)(2,626,475)
Miscellaneous 563,904
Reimbursement from Successor Agency 785,175
Total general revenues 27,843,134
Change in net position 10,523,202
Net position - beginning of year 272,829,823
Net position - end of year 283,353,025$
Program Revenues
Town of Danville
Statement of Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements.
21
DR
A
F
T
10
.
2
7
.
2
0
2
2
22
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
23
FUND FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
24
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
25
GOVERNMENTAL FUND FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
26
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Governmental Fund Financial Statements
27
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.
American Rescue Plan Act Special Revenue Fund
This fund is used to track the revenues and expenditures of the American Rescue Plan Act funding received by the
Town.
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
General Fund
Lighting and
Landscape Special
Revenue Fund
Regional Traffic
Impact Fees
Special Revenue
Fund
American Rescue
Plan Act
Special Revenue
Fund
ASSETS
Cash and investments $ 26,685,552 $ 4,990,718 $ 4,400,982 $ 3,977,376
Cash and investments with fiscal agent 809,649 - - -
Receivables (net of allowances):
Accounts 1,800,554 37,330 3,766 -
Leases 2,244,353 - - -
Due from Successor Agency of former CDA 3,959,401 - - -
Interest 114,090 10,095 6,588 -
Prepaid items 117,017 - - -
Total assets $ 35,730,616 $ 5,038,143 $ 4,411,336 $ 3,977,376
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 4,119,837 $ 349,909 $ 518 $ (930)
Accrued wages payable 466,660 81,842 - -
Retention payable - - - -
Deposits payable 117,642 - - -
Claims liabilities 45,214 - - -
Unearned revenue 740,210 48,045 - -
Total liabilities 5,489,563 479,796 518 (930)
Deferred Inflows of Resources:
Unavailable revenue 357,897 - - -
Lease-related deferred inflows of resources 2,206,276 - - -
Total deferred inflows of resources 2,564,173 - - -
Fund Balances:
Nonspendable 2,976,418 - - -
Restricted 809,649 1,936,769 4,410,818 3,978,306
Committed 22,299,041 - - -
Assigned 491,770 2,621,578 - -
Unassigned 1,100,002 - - -
Total fund balances 27,676,880 4,558,347 4,410,818 3,978,306
Total liabilities, deferred inflows of resources and
fund balances $ 35,730,616 $ 5,038,143 $ 4,411,336 $ 3,977,376
(Continued)
Major Funds
Town of Danville
Governmental Funds
Balance Sheet
June 30, 2022
See accompanying Notes to the Basic Financial Statements.
28
DR
A
F
T
10
.
2
7
.
2
0
2
2
Major Funds
Capital
Improvement
Capital Projects
Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments $ 26,258,111 $ 34,504,040 $ 100,816,779
Cash and investments with fiscal agent - 813,920 1,623,569
Receivables (net of allowances):
Accounts 19,532 230,185 2,091,367
Leases - - 2,244,353
Due from Successor Agency of former CDA - - 3,959,401
Interest 52,760 64,644 248,177
Prepaid items - - 117,017
Total assets $ 26,330,403 $ 35,612,789 $ 111,100,663
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 614,614 $ 493,487 $ 5,577,435
Accrued wages payable 4,328 134,180 687,010
Retention payable 396,995 96,866 493,861
Deposits payable - 42,670 160,312
Claims liabilities - - 45,214
Unearned revenue - 59,847 848,102
Total liabilities 1,015,937 827,050 7,811,934
Deferred Inflows of Resources:
Unavailable revenue - - 357,897
Lease-related deferred inflows of resources - - 2,206,276
Total deferred inflows of resources - - 2,564,173
Fund Balances:
Nonspendable - - 2,976,418
Restricted - 24,492,832 35,628,374
Committed 25,314,466 10,292,907 57,906,414
Assigned - - 3,113,348
Unassigned - - 1,100,002
Total fund balances 25,314,466 34,785,739 100,724,556
Total liabilities, deferred inflows of resources and
fund balances $ 26,330,403 $ 35,612,789 $ 111,100,663
(Concluded)
June 30, 2022
Balance Sheet (Continued)
Governmental Funds
Town of Danville
See accompanying Notes to the Basic Financial Statements.
29
DR
A
F
T
10
.
2
7
.
2
0
2
2
30
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Total Fund Balances - Total Governmental Funds $ 100,724,556
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 153,918,439
Depreciable capital assets, net 34,742,193
Total capital assets 188,660,632
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. (75,592)
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. 357,897
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 (655,000)
Long-term liabilities - due in more than one year:
- Certificates of participation (4,690,000)
- Compensated absences payable (969,468)
Total long-term debt (6,314,468)
Net Position of Governmental Activities 283,353,025$
Town of Danville
Reconciliation of Governmental Funds Balance Sheet to the
Government-Wide Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements.
31
DR
A
F
T
10
.
2
7
.
2
0
2
2
General Fund
Lighting and
Landscape Special
Revenue Fund
Regional Traffic
Impact Fees
Special Revenue
Fund
American Rescue
Plan Act
Special Revenue
Fund
REVENUES:
Property taxes $ 18,033,848 $ - $ - $ -
Sales taxes 7,442,726 - - -
Special assessments - 3,038,336 - -
Other taxes 2,375,066 - - -
Charges for services 1,322,717 - - -
Licenses and permits 334,590 - - -
Development fees - - 17,245 -
Intergovernmental 65,598 - - 5,323,869
Fines and forfeitures 76,848 - - -
Use of money and property (2,283,982) 37,078 33,358 -
Reimbursement from Successor Agency 785,175 - - -
Miscellaneous 620,939 120,244 - -
Total revenues 28,773,525 3,195,658 50,603 5,323,869
EXPENDITURES:
Current:
General government 1,859,243 - - 900,000
Police services 9,785,821 - - -
Maintenance services 2,338,283 27,174 - -
Lighting and landscape - 4,181,235 - -
Development services 914,983 - - -
Administrative services 3,376,999 3,033 2,145 39,854
Recreation, arts, & community services 2,718,694 - - -
Capital outlay 25,000 - 483 405,709
Debt service:
Principal 520,000 - - -
Interest 265,175 - - -
Total expenditures 21,804,198 4,211,442 2,628 1,345,563
REVENUES OVER (UNDER) EXPENDITURES 6,969,327 (1,015,784) 47,975 3,978,306
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property 13,843 - - -
Transfers in - 1,100,000 - -
Transfers out (13,842,014) - - -
Total financing sources (uses) (13,828,171) 1,100,000 - -
NET CHANGE IN FUND BALANCES (6,858,844) 84,216 47,975 3,978,306
FUND BALANCES:
Beginning of year 34,535,724 4,474,131 4,362,843 -
End of year $ 27,676,880 $ 4,558,347 $ 4,410,818 $ 3,978,306
(Continued)
Major Funds
Town of Danville
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements.
32
DR
A
F
T
10
.
2
7
.
2
0
2
2
Major Funds
Capital
Improvement
Capital Projects
Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
REVENUES:
Property taxes $ - $ - $ 18,033,848
Sales taxes - - 7,442,726
Special assessments - 571,886 3,610,222
Other taxes - 2,848,301 5,223,367
Charges for services - 1,359,993 2,682,710
Licenses and permits - 5,907 340,497
Development fees - 2,554,174 2,571,419
Intergovernmental 117,798 1,450,536 6,957,801
Fines and forfeitures - - 76,848
Use of money and property 27,545 178,150 (2,007,851)
Reimbursement from Successor Agency - - 785,175
Miscellaneous (98,267) 88,465 731,381
Total revenues 47,076 9,057,412 46,448,143
EXPENDITURES:
Current:
General government - 4,936 2,764,179
Police services - 123,947 9,909,768
Maintenance services 212,579 959,303 3,537,339
Lighting and landscape - - 4,181,235
Development services 432,832 5,323,500 6,671,315
Administrative services 16,379 64,755 3,503,165
Recreation, arts, & community services 23,910 124,242 2,866,846
Capital outlay 6,151,612 959,214 7,542,018
Debt service:
Principal - - 520,000
Interest - - 265,175
Total expenditures 6,837,312 7,559,897 41,761,040
REVENUES OVER (UNDER) EXPENDITURES (6,790,236) 1,497,515 4,687,103
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property - - 13,843
Transfers in 10,535,241 2,331,773 13,967,014
Transfers out - (125,000) (13,967,014)
Total financing sources (uses) 10,535,241 2,206,773 13,843
NET CHANGE IN FUND BALANCES 3,745,005 3,704,288 4,700,946
FUND BALANCES:
Beginning of year 21,569,461 31,081,451 96,023,610
End of year $ 25,314,466 $ 34,785,739 $ 100,724,556
(Concluded)
Town of Danville
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements.
33
DR
A
F
T
10
.
2
7
.
2
0
2
2
Net Change in Fund Balances - Total Governmental Funds 4,700,946$
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.7,185,733
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. (1,784,373)
The net effect of various miscellaneous adjustments (i.e. sales and deletions) involving capital assets.(4,579)
Revenues that have not met the revenue recognition criteria in the Fund Financial Statements are recognized as revenue in
the Government-Wide Financial Statements.1,399
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. (104,578)
Repayment of bond principal reduces long-term liabilities in the Government-Wide Statement of Net Position.
Long-term debt repayments:
- Certificates of participation 520,000
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.8,654
Change in Net Position of Governmental Activities 10,523,202$
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, 2022
See accompanying Notes to the Basic Financial Statements.
34
DR
A
F
T
10
.
2
7
.
2
0
2
2
35
FIDUCIARY FUND FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
36
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Fiduciary Fund Financial Statements
37
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 x1 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
Custodial Fund
This Fund is comprised of assets that are not held in a trust or equivalent arrangement that are held temporarily by the
Town on behalf of others.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Successor
Agency
Private Purpose
Trust Fund Custodial Fund
ASSETS
Cash and investments 816,358$ 1,724,649$
Cash and investments with fiscal agents 375,036 274,879
Total assets 1,191,394 1,999,528
LIABILITIES
Accounts payable - 40,707
Loan payable to Town (Note 7)3,959,401 -
Loan payable, due within one year 210,000 -
Loan payable, due in more than one year 1,700,000 -
Interest payable 393,350 -
Deposits - 623,592
Total liabilities 6,262,751 664,299
NET POSITION (DEFICIT)
Restricted - 1,335,229
Unrestricted (deficit)(5,071,357) -
Total net position (5,071,357)$ 1,335,229$
Town of Danville
Fiduciary Activities
Statement of Fiduciary Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements.
38
DR
A
F
T
10
.
2
7
.
2
0
2
2
Successor
Agency
Private Purpose
Trust Fund Custodial Fund
ADDITIONS:
Property tax receipts 2,521,453$ -$
Miscellaneous 96 628,119
Total additions 2,521,549 628,119
DEDUCTIONS:
Amount allocated to General Fund for principal payment 715,000 -
Amount allocated to General Fund for interest payment 70,175 -
Interest 365,638 -
Other 25,563 643,543
Total deductions 1,176,376 643,543
Changes in net position 1,345,173 (15,424)
NET POSITION (deficit):
Beginning of year (6,416,530) 1,350,653
End of year (5,071,357)$ 1,335,229$
Town of Danville
Fiduciary Activities
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements.
39
DR
A
F
T
10
.
2
7
.
2
0
2
2
40
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
41
NOTES TO THE BASIC FINANCIAL STATEMENTS
DR
A
F
T
10
.
2
7
.
2
0
2
2
42
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
43
Page
Note 1 – Reporting Entity……………………………… .................................................................................... 45
Note 2 – Summary of Significant Accounting Policies ...................................................................................... 46
A. Basis of Presentation, Basis of Accounting, and Measurement Focus ..................................................... 46
B. Cash and Investments ................................................................................................................................ 48
C. Cash and Investments with Fiscal Agent .................................................................................................. 49
D. Leases Receivable ..................................................................................................................................... 49
E. Land Held for Redevelopment .................................................................................................................. 50
F. Capital Assets ............................................................................................................................................ 50
G. Unearned Revenues ................................................................................................................................... 52
H. Compensated Absences ............................................................................................................................. 52
I. Long-Term Debt ....................................................................................................................................... 53
J. Fund Balance ............................................................................................................................................ 53
K. Net Position ............................................................................................................................................... 54
L. Spending Policies ...................................................................................................................................... 54
M. Property Taxes .......................................................................................................................................... 54
N. Use of Accounting Estimates .................................................................................................................... 54
O. Implementation of New GASB Pronouncements ..................................................................................... 55
P. Upcoming GASB Pronouncements........................................................................................................... 56
Note 3 – Cash and Investments ........................................................................................................................... 57
A. Demand Deposits ...................................................................................................................................... 58
B. Investments ............................................................................................................................................... 59
C. External Investment Pool .......................................................................................................................... 60
D. Restricted Cash and Investments Held with Fiscal Agent ........................................................................ 61
E. Risk Disclosures ........................................................................................................................................ 61
Note 4 – Leases Receivable and Related Deferred Inflows of Resources ........................................................ 63
Note 5 – Capital Assets ........................................................................................................................................ 64
A. Governmental Activities ........................................................................................................................... 64
Note 6 – Interfund Transactions ......................................................................................................................... 66
A. Transfers In/Out ........................................................................................................................................ 66
Note 7 – Loans Receivable from Successor Agency to the
Former Community Development Agency ...................................................................................... 66
A. Successor Agency (SA) Cooperative Agreement Loan Receivable ......................................................... 67
Note 8 – Unearned Revenue ................................................................................................................................ 67
Note 9 – Long-Term Obligations ........................................................................................................................ 68
A. Governmental Activities ........................................................................................................................... 68
B. Fiduciary Fund Financial Statements ........................................................................................................ 70
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Index to Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
44
Page
Note 10 – Defined Contribution Pension Plan ................................................................................................... 71
A. Section 401(a) Qualified Defined Contribution Pension Plan .................................................................. 71
B. Section 415(m) Benefit Restoration Plan .................................................................................................. 71
Note 11 – Fund Balance Classification ............................................................................................................... 72
Note 12 – Risk Management ................................................................................................................................ 73
Note 13 – Commitments and Contingencies ...................................................................................................... 74
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45
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 43,352.
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 128 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
46
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 assets) 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 assets) 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
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
47
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.
American Rescue Plan Act Special Revenue Fund
This fund is used to record the revenues and expenditures of proceeds from the American Rescue Plan Act.
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48
Note 2 – Summary of Significant Accounting Policies (Continued)
A. Basis of Presentation, Basis of Accounting, and Measurement Focus (Continued)
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.
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 x1 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:
Custodial Fund
This Fund is comprised of assets that are not held in a trust or equivalent arrangement that are held temporarily
by the Town on behalf of others.
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
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49
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. Leases Receivable
Lessor
The Town is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of
resources in the financial statements. Variable payments based on future performance or usage of the underlying
asset are not included in the measurement of the lease receivable.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50
Note 2 – Summary of Significant Accounting Policies (Continued)
D. Leases Receivable (Continued)
Lessor (Continued)
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to
be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease
payments received. The deferred inflows of resources are initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational
method.
Key estimates and judgments include how the Town determines (1) the discount rate it uses to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The Town uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by our
financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be
exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the
lessee.
The Town monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
E. 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.
F. 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
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51
Note 2 – Summary of Significant Accounting Policies (Continued)
F. Capital Assets (Continued)
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
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
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52
Note 2 – Summary of Significant Accounting Policies (Continued)
F. Capital Assets (Continued)
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, 2022. 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.
G. 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.
H. 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 (75%),
Building and Planning Special Revenue Fund (11%), and Other Special Revenue Funds (14%).
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53
Note 2 – Summary of Significant Accounting Policies (Continued)
I. 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.
J. Fund Balance
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:
Nonspendable – 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54
Note 2 – Summary of Significant Accounting Policies (Continued)
K. 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.
L. 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.
M. 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 Secured Unsecured
Lien Date January 1 January 1
(Preceding fiscal year) (Preceding fiscal year)
Due Date November 1 & February 1 August 31
Delinquent Date December 10 & April 10 September 1
N. Use of Accounting Estimates
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55
Note 2 – Summary of Significant Accounting Policies (Continued)
O. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2022, the Town has implemented the following new GASB Pronouncements:
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No.
87), to better meet the information needs of financial statement users by improving accounting and financial
reporting for leases by governments. This statement increases the usefulness of governments’ financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or outflows of resources based on the
payment provisions of the contract. It also establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Implementation of
this Statement had a significant effect on the Town’s financial statements for the fiscal year ended
June 30, 2022.
GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost
Incurred before the End of a Construction Period. This Statement establishes accounting requirements for
interest cost incurred before the end of a construction period. Such interest cost includes all interest that
previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62,
Codification of Accounting and Financial Reporting Guidance Contained in Pre–November 30, 1989 FASB
and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest
cost incurred before the end of a construction period be recognized as an expense in the period in which the
cost is incurred for financial statements prepared using the economic resources measurement focus. As a
result, interest cost incurred before the end of a construction period will not be included in the historical cost
of a capital asset reported in a business–type activity or enterprise fund. Implementation of this Statement did
not have a significant effect on the Town’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary
objectives of this Statement are to enhance comparability in accounting and financial reporting and to
improve consistency of authoritative literature by addressing practice issues that have been identified during
implementation and application of certain GASB Statements. Implementation of this Statement did not have
a significant effect on the Town’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 93 – In March 2020, GASB issued Statement No. 93, Replacement of Interbank
Offered Rates. Some governments have entered into agreements in which variable payments made or
received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate
(LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form
at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of
replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing
fallback provisions related to the reference rate. The objective of this Statement is to address those and other
accounting and financial reporting implications that result from the replacement of an IBOR. Implementation
of this Statement did not have a significant effect on the Town’s financial statements for the fiscal year ended
June 30, 2022.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56
Note 2 – Summary of Significant Accounting Policies (Continued)
O. Implementation of New GASB Pronouncements (Continued)
GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria,
and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No.
32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the
reporting of fiduciary component units in circumstances in which a potential component unit does not have a
governing board and the primary government performs the duties that a governing board typically would
perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans,
defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than
pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund
financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and
financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457
plans) that meet the definition of a pension plan and for benefits provided through those plans.
Implementation of this Statement did not have a significant effect on the Town’s financial statements for the
fiscal year ended June 30, 2022.
P. Upcoming Government Accounting Standards Implementation
In the next three years, the Town will implement the following GASB Pronouncements:
GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The
primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by
issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2)
arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement
achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a
conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial
reporting of additional commitments and voluntary commitments extended by issuers and arrangements
associated with conduit debt obligations; and improving required note disclosures. Application of this
statement is effective for the Town’s fiscal year ending June 30, 2023.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public–Private and Public–
Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to
improve financial reporting by addressing issues related to public–private and public–public partnership
arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the
transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services
by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital
asset (the underlying PPP asset), for a period of time in an exchange or exchange–like transaction.
Application of this statement is effective for the Town’s fiscal year ending June 30, 2023.
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription–Based Information
Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription–based information technology arrangements (SBITAs) for government end users
(governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right–to–use
subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the
capitalization criteria for outlays other than subscription payments, including implementation costs of a
SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for
the Town’s fiscal year ending June 30, 2023.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57
Note 2 – Summary of Significant Accounting Policies (Continued)
P. Upcoming Government Accounting Standards Implementation (Continued)
GASB Statement No. 99 – In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of
this Statement are to enhance comparability in accounting and financial reporting and to improve the
consistency of authoritative literature by addressing (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and financial reporting for
financial guarantees. Application of this statement is effective for the Town’s fiscal year ending
June 30, 2023.
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to
enhance accounting and financial reporting requirements for accounting changes and error corrections to
provide more understandable, reliable, relevant, consistent, and comparable information for making decisions
or assessing accountability. Application of this statement is effective for the Town’s fiscal year ending
June 30, 2024.
GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The
objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. That objective is achieved by aligning
the recognition and measurement guidance under a unified model and by amending certain previously
required disclosures. Application of this statement is effective for the Town’s fiscal year ending
June 30, 2025.
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, 2022:
Primary
Government Fiduciary
Governmental Fund Financial
Activities Statements Total
Cash and investments 65,188,388$ 2,541,007$ 67,729,395$
Restricted cash and investments:
Held by Town 35,628,391 - 35,628,391
Subtotal held by Town 100,816,779 2,541,007 103,357,786
Held by fiscal agents 1,623,569 649,915 2,273,484
Total cash and investments 102,440,348$ 3,190,922$ 105,631,270$
At June 30, 2022, 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, 2022:
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58
Note 3 – Cash and Investments (Continued)
Percentage of Measurement
Investment Type Fair Value Investments Input
Demand deposits 2,537,888$ N/A N/A
Investments:
U.S. Securities:
U.S. Treasury 33,534,119 32.53% Level 2
Federal Securities 29,717,340 28.83% Level 2
Commercial paper - 0.00% Level 2
Asset Backed Securities 5,599,583 5.43% Level 2
Inter-American Dev Bank Note 1,182,200 1.15% Level 2
Int'l Bank Recon & Development 342,359 0.33% Level 2
International Finance Corp Note 963,328 0.93% Level 2
U.S. Corporate Notes/FDIC:
Amazon.com Inc. Callable Note 951,569 0.92% Level 2
American Honda Finance Note 951,944 0.92% Level 2
Apple Inc. Callable 469,760 0.46% Level 2
Apple Inc. Note 746,478 0.72% Level 2
Bank of NY Mellon Corp Callable Note 749,254 0.73% Level 2
Berkshire Hathaway Note - 0.00% Level 2
Caterpillar Financial Service Note 857,893 0.83% Level 2
Charles Schwab Corp Callable Note 959,814 0.93% Level 2
Chevron Corp Callable Note 254,774 0.25% Level 2
John Deere Capital Corp Note 1,100,556 1.07% Level 2
JP Morgan Chase & Co. Callable Note 701,458 0.68% Level 2
MasterCard Inc. Callable Note 965,140 0.94% Level 2
Paccar Financial Corp. Note 861,652 0.84% Level 2
State Street Bank Callable Note 250,380 0.24% Level 2
Toyota Motor Credit Corp 996,923 0.97% Level 2
US Bank NA Callable Note 749,792 0.73% Level 2
Wal-Mart Stores Callable Note 802,444 0.78% Level 2
Local Agency Investment Fund (LAIF) 16,877,330 16.37% N/A
Money Market Funds 2,507,292 2.43% N/A
Total investments 103,093,382 100.00%
Total cash and investments 105,631,270$
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 $2,537,888 at June 30, 2022. Bank balances as of
June 30, 2022, were $2,583,684 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59
Note 3 – Cash and Investments (Continued)
A. Demand Deposits (Continued)
The Town has waived collateral requirements for cash deposits that are fully insured up to $250,000 by the
Federal Deposit Insurance Corporation.
B. Investments
The Town reviews and refines its Investment Policy (Policy) annually, with the most recent revision approved by
the Town Council on November 16, 2021. 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 325,906$
Unrealized gain (loss) on changes in fair value
of investments (2,952,381)
Total investment earnings (2,626,475)$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60
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 LAIF at June 30, 2022, 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, 2022, the Town had $16,877,330 invested in LAIF, which had invested 1.88% 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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61
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 $1,623,569 in the Governmental-wide
Statement of Net Position and $649,915 in the Statement of Fiduciary Net Position. These funds have been
invested only as permitted by specific State statutes governing these investments or by applicable Town
ordinance, resolution or bond indenture.
E. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s Policy
provides that final maturities of securities limits as follows:
Maturity
Maximum
Investment
Up to six months 25%
Six months to five years 75%
Specific maturities of investments depend on liquidity needs. At June 30, 2022, the Town's pooled cash and
investments had the following maturities:
Investment Type Fair Value 1 year or less 1-2 years 2-3 years 3-4 years 4-5 years
Demand deposits 2,537,888$ 2,537,888$ -$ -$ -$ -$
Investments:
U.S. Securities:
U.S. Treasury 33,534,119 3,333,739 5,763,009 15,602,784 8,834,587 -
Federal Securities 29,717,340 11,817,615 13,234,278 3,746,075 919,372 -
Asset Backed Securities 5,599,583 - 143,025 1,422,231 2,418,886 1,615,441
Inter-American Dev Bank Note 1,182,200 - - 1,182,200 - -
Int'l Bank Recon & Development 342,359 - 342,359 - - -
International Finance Corp Note 963,328 - - 963,328 - -
U.S. Corporate Notes/FDIC:
Amazon.com Inc. Callable Note 951,569 - 951,569 - - -
American Honda Finance Note 951,944 - 951,944 - - -
Apple Inc. Callable 469,760 - - 469,760 - -
Apple Inc. Note 746,478 746,478 - - - -
Bank of NY Mellon Corp Callable Note 749,254 749,254 - - - -
Caterpillar Financial Service Note 857,893 - 857,893 - - -
Charles Schwab Corp Callable Note 959,814 - 959,814 - - -
Chevron Corp Callable Note 254,774 254,774 - - - -
John Deere Capital Corp Note 1,100,556 - 1,100,556 - - -
JP Morgan Chase & Co. Callable Note 701,458 - - 701,458 - -
MasterCard Inc. Callable Note 965,140 - - 965,140 - -
Paccar Financial Corp. Note 861,652 499,157 - 362,495 - -
State Street Bank Callable Note 250,380 - - - 250,380 -
Toyota Motor Credit Corp 996,923 996,923 - - - -
US Bank NA Callable Note 749,792 749,792 - - - -
Wal-Mart Stores Callable Note 802,444 802,444 - - - -
Local Agency Investment Fund (LAIF) 16,877,330 16,877,330 - - - -
Money Market Funds 2,507,292 2,507,292 - - - -
Total investments 103,093,382 39,334,798 24,304,447 25,415,471 12,423,225 1,615,441
Total cash and investments 105,631,270$ 41,872,686$ 24,304,447$ 25,415,471$ 12,423,225$ 1,615,441$
Maturities (in years)
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62
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 LAIF. If a security (other than 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, 2022, the Town's investments are rated as follows:
Moody'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
International Finance Corp Note Aaa AAA
U.S. Corporate Notes/FDIC:
Amazon.com Inc. Callable Note A1 AA
American Honda Finance Note A3 A-
Apple Inc. Callable Aaa A+
Apple Inc. Note Aaa AA+
Bank of NY Mellon Corp Callable Note A1 A
Caterpillar Financial Service Note A2 A
Charles Schwab Corp Callable Note A2 A
Chevron Corp Callable Note Aa2 AA-
John Deere Capital Corp Note A2 A
JP Morgan Chase & Co. Callable Note A2 A-
MasterCard Inc. Callable Note A1 A+
Paccar Financial Corp. Note A1 A+
State Street Bank Callable Note A1 A
Toyota Motor Credit Corp A1 A+
US Bank NA Callable Note A1 AA-
Wal-Mart Stores Callable Note Aa2 AA
Local Agency Investment Fund (LAIF) Not Rated Not Rated
Money Market Funds Aaa AAA
Credit Quality Rating
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63
Note 4 – Leases Receivable and Related Deferred Inflows of Resources
The Town leases various types of property including land, buildings and easements. Lease receivable consists of
agreements with other for the right–to–use of the underlying assets at various locations owned by the Town. The
remaining terms of the agreements range from 5 to 30 years. The calculated interest rates used vary depending on the
length of the lease.
For the fiscal year ended June 30, 2022, the Town recognized $468,581 in lease revenue and $67,164 in interest
revenue, and the outstanding receivable amount is $2,244,353.
A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:
Amounts Amounts
Balance Balance due within due in more
July 1, 2021 Additions Reductions June 30, 2022 one year than one year
2,674,857$ -$ (430,504)$ 2,244,353$ 375,368$ 1,868,985$
As of June 30, 2022, the required payments for these leases, including interest, are:
Year Ending Leases
June 30 Receivable Interest Total
2023 375,368$ 61,177$ 436,545$
2024 216,039 52,217 268,256
2025 133,531 47,447 180,978
2026 138,548 43,400 181,948
2027 135,026 39,254 174,280
2028-2032 664,136 136,462 800,598
2033-2037 467,682 45,755 513,437
2038-2042 114,023 4,034 118,057
2,244,353$ 429,746$ 2,674,099$
As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as
follows:
Year Ending
June 30 Total
2023 401,546$
2024 237,219
2025 154,298
2026 154,298
2027 146,293
2028-2032 653,339
2033-2037 387,159
2038-2042 72,124
2,206,276$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64
Note 5 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for the year ended June 30, 2022 was as follows:
Balance Transfers/ Balance
July 1, 2021 Additions Retirements Reclassifications June 30, 2022
Governmental Activities:
Capital assets, not being depreciated
Land 31,221,867$ -$ -$ -$ 31,221,867$
Construction in progress 25,429,776 6,950,673 - (2,759,762) 29,620,687
Infrastructure - streets, concrete & asphalt pavements 93,075,885 - - - 93,075,885
Total capital assets not being depreciated 149,727,528 6,950,673 - (2,759,762) 153,918,439
Capital assets being depreciated
Buildings and parking lots/street 39,958,769 - - 1,450,000 41,408,769
Park improvements 24,041,510 - - 225,928 24,267,438
Furniture and equipment 4,963,876 235,060 (213,071) - 4,985,865
Infrastructure:
Drainage system 56,689,603 - - - 56,689,603
Bridges 11,069,233 - - 1,083,834 12,153,067
Signal system 6,997,956 - - - 6,997,956
Total capital assets being depreciated 143,720,947 235,060 (213,071) 2,759,762 146,502,698
Accumulated depreciation
Buildings and parking lots (13,824,718) (910,839) - - (14,735,557)
Park improvements (21,956,927) (416,579) - - (22,373,506)
Furniture and equipment (4,656,488) (156,444) 208,492 - (4,604,440)
Infrastructure:
Drainage system (56,232,939) (23,728) - - (56,256,667)
Bridges (7,780,617) (160,563) - - (7,941,180)
Signal system (5,732,935) (116,220) - - (5,849,155)
Total accumulated depreciation (110,184,624) (1,784,373) 208,492 - (111,760,505)
Total capital assets, being depreciated, net 33,536,323 (1,549,313) (4,579) 2,759,762 34,742,193
Governmental activities capital assets, net 183,263,851$ 5,401,360$ (4,579)$ -$ 188,660,632$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65
Note 5 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation expenses by program for capital assets for the year ended June 30, 2022, were as follows:
Police Services
Building $ 19,250
Furniture & equipment (vehicle) 41,591
Subtotal 60,841
Maintenance Services
Building 489,956
Parking lots 273,929
Park improvements 413,720
Furniture & equipment (vehicle) 63,647
Subtotal 1,241,252
Development Services
Furniture & equipment (vehicle) 4,959
Infrastructure - drainage 23,728
Infrastructure - bridge 160,564
Subtotal 189,251
Transportation Services
Furniture & equipment (vehicle) 1,362
Infrastructure - signal 116,220
Subtotal 117,582
Administrative Services
Building 1,212
Furniture & equipment (vehicle) 38,081
Subtotal 39,293
Parks and Recreation Services
Building 126,491
Park improvements 2,859
Furniture & equipment (vehicle) 6,804
Subtotal 136,154
Total depreciation expense $ 1,784,373 DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66
Note 6 – Interfund Transactions
A. Transfers In/Out
Transfers in/out for the year ended June 30, 2022, were as follows:
Lighting Capital
Landscape Improvement
Special Capital Non-Major
Revenue Projects Governmental
Fund Fund Fund
Transfers Out (1) (1) (2) Total
General Fund 1,100,000$ 10,535,241$ 2,206,773$ 13,842,014$
Lighting & Landscape
Special Revenue Fund - - - -
Regional Traffic Impact Fees
Special Revenue Fund - - - -
Capital Improvement
Capital Projects Fund - - - -
Non-Major Governmental Fund - - 125,000 125,000
Total 1,100,000$ 10,535,241$ 2,331,773$ 13,967,014$
Transfers In
The following are explanations for the transfers in and out:
(1) Transfers in to the Capital Improvement Capital Projects Fund and Lighting and Landscape Special
Revenue Fund were to fund various capital projects.
(2) Transfers in to the Non-Major Governmental Funds from other Non-Major Governmental Funds
were to fund various capital projects.
Note 7 – 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, 2022:
Government-Wide Financial Statements
Loans Receivable
Cooperative Loan Agreement $ 3,959,401
Total $ 3,959,401
Reimbursements from Successor Agency $ 785,175
Funds Financial Statements
General Fund
Due from Successor Agency from
Former Community Development Agency 3,959,401$
Total 3,959,401$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67
Note 7 – 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 $3,195,604 was approved in
addition to the original amount and was recognized as special item in the basic financial statements.
Fiscal Year Amount
2022-2023 1,100,000$
2023-2024 1,100,000
2024-2025 1,100,000
2025-2026 659,401
Total 3,959,401$
Note 8 – 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, 2022, unearned revenues in the Government-Wide Financial
Statements and governmental funds statements were as follows:
Governmental
Activities
Business Licenses $ 167,326
Other Town-reimbursed fees 428,384
Recreation program registration 252,392
Total $ 848,102
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68
Note 9 – Long-Term Obligations
A. Governmental Activities
A summary of changes in long-term debt for the year ended June 30, 2022 is as follows:
Due Due in
Balance Balance Within More than
Description July 1, 2021 Additions Retirements June 30, 2022 One Year One Year
Publicly offered COPs:
2001 issue 2,320,000$ -$ (340,000)$ 1,980,000$ 355,000$ 1,625,000$
2005 issue 3,435,000 - (180,000) 3,255,000 190,000 3,065,000
Compensated absences 974,890 806,882 (702,304) 1,079,468 110,000 969,468
Total 6,729,890$ 806,882$ (1,222,304)$ 6,314,468$ 655,000$ 5,659,468$
Classification
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, 2022 are as follows:
For the Years Ending
June 30, Principal Interest Total
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 $ 1,980,000 $ 257,250 $ 2,237,250
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69
Note 9 – Long-Term Obligations (Continued)
A. Governmental Activities (Continued)
Certificates of Participation – 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, 2022, are as follows:
For the Years Ending
June 30, Principal Interest Total
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 225,000 113,082 338,082
2028-2032 1,290,000 399,370 1,689,370
2033-2035 930,000 87,412 1,017,412
Total $ 3,255,000 $ 1,146,189 $ 4,401,189
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 $1,079,468 at June 30, 2022. It is estimated that $110,000 will be needed to cover
employees who leave employment within one year.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70
Note 9 – Long-Term Obligations (Continued)
B. Fiduciary Fund Financial Statements
Summary of changes in long-term obligations for the year ended June 30, 2022 was as follows:
Due Due in
Balance Balance Within More than
Description July 1, 2021 Additions Retirements June 30, 2022 One Year One Year
Loans payable 2,105,000$ -$ (195,000)$ 1,910,000$ 210,000$ 1,700,000$
Total 2,105,000$ -$ (195,000)$ 1,910,000$ 210,000$ 1,700,000$
Classification
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, 2022 are as follows:
For the Years Ending
June 30, Principal Interest Total
2023 $ 210,000 $ 153,425 $ 363,425
2024 230,000 134,725 364,725
2025 250,000 114,325 364,325
2026 270,000 92,225 362,225
2027 290,000 68,425 358,425
2028-2029 660,000 57,376 717,376
Total $ 1,910,000 $ 620,501 $ 2,530,501
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71
Note 10 – 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, 2022, was $8,355,454. Total
employee contributions paid by the Town amounted to $1,184,290 or 14.74% 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, 2022, the Plan had 163
participants and the market value of the Plan amounted to $24,912,215.
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 $43,797. As
of June 30, 2022, the Plan had two participants and the market value of the Plan amounted to $403,159.
The Defined Contribution Pension Plan and the Benefit Restoration Plan are not included in the accompanying
financial statements.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72
Note 11 – Fund Balance Classification
At June 30, 2022, fund balances are classified as follows:
Regional Traffic
Lighting Impact Fee ARPA Capital
and Special Special Improvement Non-Major
General Landscape Revenue Revenue Project Governmental
Fund Fund Fund Fund Fund Funds Total
Fund Balances:
Nonspendable
Due from Successor Agency of Former CDA $ 2,859,401 $ - $ - $ - $ - $ - $ 2,859,401
Prepaid items 117,017 - - - - - 117,017
Total nonspendable 2,976,418 - - - - - 2,976,418
Restricted
Special revenue - 1,936,769 4,410,818 3,978,306 - 24,492,832 34,818,725
Debt services 809,649 - - - - - 809,649
Total restricted 809,649 1,936,769 4,410,818 3,978,306 - 24,492,832 35,628,374
Committed
Capital projects 6,239,977 - - - 25,314,466 10,292,907 41,847,350
Operating reserve 13,809,768 - - - - - 13,809,768
Contingency 782,066 - - - - - 782,066
Reward fund 10,000 - - - - - 10,000
Compensated absences/personnel 1,457,230 - - - - - 1,457,230
Total committed 22,299,041 - - - 25,314,466 10,292,907 57,906,414
Assigned
Townwide bonus program 26,000 - - - - - 26,000
Town Council 5,000 - - - - - 5,000
Emergency preparedness COVID-19 78,256 - - - - - 78,256
Finance consulting services - - - - - - -
Information technology consulting services 24,000 - - - - - 24,000
Human resources temporary salaries 60,000 - - - - - 60,000
Police management equipment 50,000 - - - - - 50,000
ED retail incentive program 224,514 - - - - - 224,514
ED retail consultant - - - - - - -
Transportation equipment maintenance 24,000 - - - - - 24,000
Townwide special events equipment - - - - - - -
Lighting and landscaping - 2,621,578 - - - - 2,621,578
Total assigned 491,770 2,621,578 - - - - 3,113,348
Unassigned 1,100,002 - - - - - 1,100,002
Total fund balance 27,676,880$ 4,558,347$ 4,410,818$ 3,978,306$ 25,314,466$ 34,785,739$ 100,724,556$
Major Funds
Operating Reserve
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73
Note 12 - 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 $667,191 for fiscal year 2021/2022
are in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a
formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective
rating.
Estimates of deductibles for incurred, but not reported, (IBNR) liability claims are included in the Town's claims
estimates and are based upon historical experiences as calculated by the MPA. During the year, the Town did not
receive a dividend from the MPA based on the results of prior years' actitivites. The following provides a
reconciliation of the amount accrued for estimated out of pocket amounts to be paid for IBNR deductibles:
Beginning Claims and Payments for End
of Year Changes in Current and of Year
Fiscal Year Liability Estimates Prior Years Liability
2019-2020 34,510$ 33,060$ (13,580)$ 53,990$
2020-2021 53,990 8,013 (5,489) 56,514
2021-2022 56,514 18,323 (29,623) 45,214
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 667,191$
Less: dividend received -
Net insurance cost 667,191$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74
Note 12 – Risk Management (Continued)
The MPA's audited condensed financial information as of and for the year ended June 30, 2021, are as follows:
Total assets 83,618,107$
Total deferred outflows of resources 1,949,710$
Total liabilities 57,946,506$
Total deferred inflows of resources 121,143$
Total net position 27,500,168$
Total operating revenues 33,817,939$
Total operating expenses 36,758,539$
Net operating (loss)(2,940,600)$
Non-operating revenues (expenses)869,846$
Change in net position (2,070,754)$
Detailed financial information may be obtained from the Municipal Pooling Authority (MPA) in Walnut Creek,
California.
Note 13 – 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, 2022, the Town’s appropriations limit totals $46,349,240 and the
Town’s appropriations subject to limitation were $22,185,561.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75
Note 13 – Commitments and Contingencies (Continued)
2022 Appropriation 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, 2022. These projects are
evidenced by contractual commitments with contractors. As of June 30, 2022, the Town's outstanding contractual
commitments amount were $4,241,351.
DR
A
F
T
10
.
2
7
.
2
0
2
2
76
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
77
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
DR
A
F
T
10
.
2
7
.
2
0
2
2
78
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2022
79
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule
For the Year Ended June 30, 2022
80
Note 2 – Budgetary Comparison Schedule
General Fund
Variance
Original Final From Final
Budget Budget Actual
Budget
REVENUES:
Property taxes $ 15,850,000 $ 15,850,000 $ 18,033,848 $ 2,183,848
Sales taxes 5,375,000 5,375,000 7,442,726 2,067,726
Other taxes 2,254,434 2,254,434 2,375,066 120,632
Charges for services 1,275,023 1,275,023 1,322,717 47,694
Licenses and permits 325,150 325,150 334,590 9,440
Intergovernmental 1,010 1,010 65,598 64,588
Fines and forfeitures 150,000 150,000 76,848 (73,152)
Use of money and property 768,588 768,588 (2,283,982) (3,052,570)
Reimbursement from Successor Agency - 785,175 785,175 -
Miscellaneous 210,939 210,939 620,939 410,000
Total revenues 26,210,144 26,995,319 28,773,525 1,778,206
EXPENDITURES:
Current:
General government
Town Council 236,551 241,751 186,821 54,930
Town Manager 618,178 644,178 523,975 120,203
Town Attorney 425,982 446,950 597,519 (150,569)
Town Clerk 264,018 265,608 235,232 30,376
Community outreach 233,308 244,580 212,360 32,220
Emergency preparedness 138,192 216,448 103,336 113,112
Total general government 1,916,229 2,059,515 1,859,243 200,272
Police services
Administration 1,729,203 1,752,257 1,564,045 188,212
Patrol 5,928,012 6,034,679 5,626,442 408,237
Traffic 1,302,320 1,302,320 995,757 306,563
Investigations 971,595 971,595 971,142 453
PS Youth Services 522,374 522,374 330,517 191,857
Animal control 292,688 296,990 297,918 (928)
Total police services 10,746,192 10,880,215 9,785,821 1,094,394
Maintenance services
Building maintenance 960,764 984,092 935,376 48,716
Park maintenance 1,180,027 1,214,213 1,058,408 155,805
Equipment maintenance 326,700 417,786 344,499 73,287
Total maintenance services 2,467,491 2,616,091 2,338,283 277,808
Development services
Engineering 22,014 22,014 518 21,496
Capital project management 1,143,534 1,143,534 898,722 244,812
Transportation 13,790 40,077 15,743 24,334
Total development services 1,179,338 1,205,625 914,983 290,642
(Continued)
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
81
Note 2 – Budgetary Comparison Schedule (Continued)
General Fund (Continued)
Variance
Original Final From Final
Budget Budget Actual
Budget
EXPENDITURES (Continued):
Current (Continued):
Administrative services
Finance 866,286 906,864 776,185 130,679
Information technology 716,160 739,359 648,392 90,967
Human resources 294,265 348,600 238,202 110,398
Economic development 621,167 988,412 674,964 313,448
Risk management 759,200 767,673 790,635 (22,962)
Internal services 275,012 321,241 248,621 72,620
Total administrative services 3,532,090 4,072,149 3,376,999 695,150
Recreation, arts, and community services
Management 395,621 371,909 376,779 (4,870)
Sports and fitness 474,267 509,417 331,212 178,205
Facilities management 535,907 667,029 485,604 181,425
Culture arts 606,142 619,642 475,545 144,097
Youth services 417,549 469,549 209,233 260,316
Teen services 353,909 371,909 325,526 46,383
Adult services 98,917 116,917 88,665 28,252
Senior services 325,675 335,675 249,109 86,566
Library service 157,305 157,305 145,578 11,727
Special events 87,128 35,895 31,443 4,452
Total recreation, arts, and community services 3,452,420 3,655,247 2,718,694 941,423
Capital outlay 4,850 4,850 25,000 (20,150)
Debt service:
Principal - 520,000 520,000 -
Interest - 265,175 265,175 -
Total expenditures 23,298,610 25,278,867 21,804,198 3,479,539
REVENUES OVER (UNDER) EXPENDITURES 2,911,534 1,716,452 6,969,327 (1,701,333)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (4,085,422) (4,085,422) (13,842,014) (9,756,592)
Total other financing sources (uses) (4,085,422) (4,085,422) (13,828,171) (9,742,749)
NET CHANGE IN FUND BALANCE $ (1,173,888) $ (2,368,970) (6,858,844) $ (11,444,082)
FUND BALANCE:
Beginning of year 34,535,724
End of year $ 27,676,880
(Concluded)
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
82
Note 2 – Budgetary Comparison Schedule (Continued)
Lighting and Landscape Special Revenue Fund
Variance
Original Final From Final
Budget Budget Actual Budget
REVENUES:
Special assessments $ 3,031,853 $ 3,031,853 $ 3,038,336 $ 6,483
Use of money and property 8,999 8,999 37,078 28,079
Miscellaneous 88,898 88,898 120,244 31,346
Total revenues 3,129,750 3,129,750 3,195,658 65,908
EXPENDITURES:
Current:
Maintenance services
Capital project management 571,245 571,245 - 571,245
Building maintenance - - 27,174 (27,174)
Total maintenance services 571,245 571,245 27,174 544,071
Lighting and landscape
Building maintenance 525,944 534,107 802,952 (268,845)
Park maintenance 1,204,451 1,238,637 1,061,371 177,266
Roadside maintenance 1,941,653 1,960,378 1,722,296 238,082
Street light maintenance 705,993 757,379 594,616 162,763
Total lighting and landscape 4,378,041 4,490,501 4,181,235 309,266
Administrative services
Finance 2,426 2,426 3,033 (607)
Total administrative services 2,426 2,426 3,033 (607)
Capital outlay - - - -
Total expenditures 4,951,712 5,064,172 4,211,442 852,730
REVENUES OVER (UNDER) EXPENDITURES (1,821,962) (1,934,422) (1,015,784) 918,638
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,100,000 1,100,000
Transfers out (292,039) (292,039) - 292,039
Total other financing sources (uses) (292,039) (292,039) 1,100,000 1,392,039
NET CHANGE IN FUND BALANCE $ (2,114,001) $ (2,226,461) 84,216 $ 2,310,677
FUND BALANCE:
Beginning of year 4,474,131
End of year $ 4,558,347
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
83
Note 2 – Budgetary Comparison Schedule (Continued)
Regional Traffic Impact Fees Special Revenue Fund
Variance
Original Final From Final
Budget Budget Actual Budget
REVENUES:
Development fees -$ -$ 17,245$ 17,245$
Use of money and property - - 33,358 33,358
Miscellaneous 4,735 4,735 - (4,735)
Total revenues 4,735 4,735 50,603 45,868
EXPENDITURES:
Current:
Administrative services
Finance 10,398 10,398 2,145 8,253
Total administrative services 10,398 10,398 2,145 8,253
Capital outlay 715,382 715,382 483 714,899
Total expenditures 725,780 725,780 2,628 723,152
NET CHANGE IN FUND BALANCE (721,045)$ (721,045)$ 47,975 769,020$
FUND BALANCE:
Beginning of year 4,362,843
End of year 4,410,818$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
84
Note 2 – Budgetary Comparison Schedule (Continued)
American Rescue Plan Act Special Revenue Fund
Variance
Original Final From Final
Budget Budget Actual Budget
REVENUES:
Intergovernmental -$ -$ 5,323,869$ 5,323,869$
Total revenues - - 5,323,869 5,323,869
EXPENDITURES:
Current:
General government
Finance 900,000 900,000 900,000 -
Total general government 900,000 900,000 900,000 -
Administrative services
Finance 40,000 40,000 39,854 146
Economic development 500,000 500,000 - 500,000
Total administrative services 540,000 540,000 39,854 500,146
Capital outlay 3,033,869 3,033,869 405,709 2,628,160
Total expenditures 4,473,869 4,473,869 1,345,563 3,128,306
NET CHANGE IN FUND BALANCE (4,473,869)$ (4,473,869)$ 3,978,306 8,452,175$
FUND BALANCE:
Beginning of year -
End of year 3,978,306$
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
85
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
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
86
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, 2022, 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)76%
Good (PCI 50-69)20%
Poor (PCI 26-49)4%
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 $294,363 of the General Fund monies
on street maintenance for the fiscal year ended June 30, 2022. 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 2022 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.
Other Funds Total PCI
Fiscal Year Final Budget Actual Actual Actual Rating
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
2021-22 250,000 294,363 2,103,352 2,397,715 80
General Fund
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, 2022, approximately 24% 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 $18,000,000 for all streets.
DR
A
F
T
10
.
2
7
.
2
0
2
2
87
SUPPLEMENTARY INFORMATION
DR
A
F
T
10
.
2
7
.
2
0
2
2
88
This page intentionally left blank.
DR
A
F
T
10
.
2
7
.
2
0
2
2
89
NON-MAJOR GOVERNMENTAL FUNDS
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Non-Major Governmental Funds
90
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Non-Major Governmental Funds (Continued)
91
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Town of Danville
Non-Major Governmental Funds (Continued)
92
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.
DR
A
F
T
10
.
2
7
.
2
0
2
2
Building/ Development
PEG Gas Tax Planning Engineering Child Care
ASSETS
Cash and investments $ 267,905 $ 4,252,107 $ 4,720,141 $ 2,501,836 $ 300,073
Cash and investments with fiscal agent - - - - -
Receivables (net of allowances):
Accounts 1,922 82,002 200 - -
Interest 539 8,348 - - 596
Total assets $ 270,366 $ 4,342,457 $ 4,720,341 $ 2,501,836 $ 300,669
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 41 126,048 146,745 21,474 47
Accrued wages - 31,297 83,653 7,161 -
Retention payable - - - - -
Deposits payable - - - 42,670 -
Unearned revenue - 30,120 12,553 - -
Total liabilities 41 187,465 242,951 71,305 47
Fund Balances:
Restricted 270,325 4,154,992 4,477,390 2,430,531 300,622
Committed - - - - -
Total fund balances 270,325 4,154,992 4,477,390 2,430,531 300,622
Total liabilities and fund balances $ 270,366 $ 4,342,457 $ 4,720,341 $ 2,501,836 $ 300,669
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Balance Sheet
June 30, 2022
Special Revenue
93
DR
A
F
T
10
.
2
7
.
2
0
2
2
Stormwater
Pollution Donation General
Control and Development Public
Program Measure C/J Contributions Impact Fees Safety
ASSETS
Cash and investments $ 2,315,384 $ 2,398,016 $ 294,645 $ 3,265,545 $ 607,306
Cash and investments with fiscal agent - - - - -
Receivables (net of allowances):
Accounts 128,887 - - - -
Interest 4,678 4,903 611 6,319 1,508
Total assets $ 2,448,949 $ 2,402,919 $ 295,256 $ 3,271,864 $ 608,814
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 54,359 95,651 453 497 107
Accrued wages 5,954 6,115 - - -
Retention payable - 88,071 - 8,615 -
Deposits payable - - - - -
Unearned revenue - - - - -
Total liabilities 60,313 189,837 453 9,112 107
Fund Balances:
Restricted 2,388,636 2,213,082 294,803 3,262,752 608,707
Committed - - - - -
Total fund balances 2,388,636 2,213,082 294,803 3,262,752 608,707
Total liabilities and fund balances $ 2,448,949 $ 2,402,919 $ 295,256 $ 3,271,864 $ 608,814
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2022
Special Revenue
94
DR
A
F
T
10
.
2
7
.
2
0
2
2
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 $ 615,701 $ 2,192,291 $ 1,279,310 $ 2,794,669 $ 815,686
Cash and investments with fiscal agent - - - - -
Receivables (net of allowances):
Accounts - - - - -
Interest 1,215 - 2,789 4,825 19,364
Total assets $ 616,916 $ 2,192,291 $ 1,282,099 $ 2,799,494 $ 835,050
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 95 - 219 16,049 613
Accrued wages - - - - -
Retention payable - - - - -
Deposits payable - - - - -
Unearned revenue - - - - -
Total liabilities 95 - 219 16,049 613
Fund Balances:
Restricted 616,821 2,192,291 1,281,880 - -
Committed - - - 2,783,445 834,437
Total fund balances 616,821 2,192,291 1,281,880 2,783,445 834,437
Total liabilities and fund balances $ 616,916 $ 2,192,291 $ 1,282,099 $ 2,799,494 $ 835,050
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2022
Special Revenue Capital Projects
95
DR
A
F
T
10
.
2
7
.
2
0
2
2
Northeast
Road Tassajara Sycamore
Improvements Ranch Valley
Civic Park Special Assessment Assessment
Facilities Facilities Assessment District District
ASSETS
Cash and investments $ 361,517 $ 4,555,310 $ 401,372 $ 35,896 $ 16,807
Cash and investments with fiscal agent - - 813,920 - -
Receivables (net of allowances):
Accounts - 17,174 - - -
Interest 1,146 6,847 858 79 19
Total assets $ 362,663 $ 4,579,331 $ 1,216,150 $ 35,975 $ 16,826
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 2,248 25,798 237 1 1
Accrued wages - - - - -
Retention payable 180 - - - -
Deposits payable - - - - -
Unearned revenue - 17,174 - - -
Total liabilities 2,428 42,972 237 1 1
Fund Balances:
Restricted - - - - -
Committed 360,235 4,536,359 1,215,913 35,974 16,825
Total fund balances 360,235 4,536,359 1,215,913 35,974 16,825
Total liabilities and fund balances $ 362,663 $ 4,579,331 $ 1,216,150 $ 35,975 $ 16,826
(Continued)
Capital Projects
Town of Danville
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2022
96
DR
A
F
T
10
.
2
7
.
2
0
2
2
Capital Projects
Total
Non-Major
Technology Governmental
Fund Funds
ASSETS
Cash and investments $ 512,523 $ 34,504,040
Cash and investments with fiscal agent - 813,920
Receivables (net of allowances):
Accounts - 230,185
Interest - 64,644
Total assets $ 512,523 $ 35,612,789
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 2,804 493,487
Accrued wages - 134,180
Retention payable - 96,866
Deposits payable - 42,670
Unearned revenue - 59,847
Total liabilities 2,804 827,050
Fund Balances:
Restricted - 24,492,832
Committed 509,719 10,292,907
Total fund balances 509,719 34,785,739
Total liabilities and fund balances $ 512,523 $ 35,612,789
(Concluded)
Town of Danville
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2022
97
DR
A
F
T
10
.
2
7
.
2
0
2
2
Building/ Development
PEG Gas Tax Planning Engineering Child Care
REVENUES:
Special assessments -$ -$ -$ -$ -$
Other taxes 73,501 1,920,631 - - -
Charges for services - - 464,727 889,176 -
License and permits - - 5,907 - -
Development fees - - 2,461,681 8,730 -
Intergovernmental - - - - -
Use of money and property 2,663 33,913 - - 3,478
Miscellaneous - 366 - - -
Total revenues 76,164 1,954,910 2,932,315 897,906 3,478
EXPENDITURES:
Current:
General government 4,436 - - - -
Police services - - - - -
Maintenance services - 753,339 - - -
Development services - 613,065 2,320,953 240,030 -
Administrative services (85) 4,566 - - 792
Recreation, arts & community services - - - - -
Capital outlay 3,750 - - - -
Total expenditures 8,101 1,370,970 2,320,953 240,030 792
REVENUES OVER (UNDER) EXPENDITURES 68,063 583,940 611,362 657,876 2,686
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out (75,000) - (50,000) - -
Total other financing sources (uses)(75,000) - (50,000) - -
NET CHANGE IN FUND BALANCES (6,937) 583,940 561,362 657,876 2,686
FUND BALANCES:
Beginning of year 277,262 3,571,052 3,916,028 1,772,655 297,936
End of year 270,325$ 4,154,992$ 4,477,390$ 2,430,531$ 300,622$
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022
Special Revenue
98
DR
A
F
T
10
.
2
7
.
2
0
2
2
Stormwater
Pollution Donation General
Control Measure and Development Public
Program C/J Contributions Impact Fees Safety
REVENUES:
Special assessments 571,886$ -$ -$ -$ -$
Other taxes - - - - -
Charges for services 6,090 - - - -
License and permits - - - - -
Development fees - - - 83,763 -
Intergovernmental 22,270 1,094,886 - - 166,517
Use of money and property 20,909 16,844 3,531 51,610 8,175
Miscellaneous - - 14,203 - 2,435
Total revenues 621,155 1,111,730 17,734 135,373 177,127
EXPENDITURES:
Current:
General government - - 500 - -
Police services - - 1,776 - 122,171
Maintenance services 286,409 - 22,885 - -
Development services 237,624 1,463,569 - 236,592 -
Administrative services 1,521 2,032 200 2,102 425
Recreation, arts & community services - - - 90,527 -
Capital outlay 4,589 - - 432,005 -
Total expenditures 530,143 1,465,601 25,361 761,226 122,596
REVENUES OVER (UNDER) EXPENDITURES 91,012 (353,871) (7,627) (625,853) 54,531
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses)- - - - -
NET CHANGE IN FUND BALANCES 91,012 (353,871) (7,627) (625,853) 54,531
FUND BALANCES:
Beginning of year 2,297,624 2,566,953 302,430 3,888,605 554,176
End of year 2,388,636$ 2,213,082$ 294,803$ 3,262,752$ 608,707$
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2022
Special Revenue
99
DR
A
F
T
10
.
2
7
.
2
0
2
2
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 - 854,169 - - -
Charges for services - - - - -
License and permits - - - - -
Development fees - - - - -
Intergovernmental - - - - (11,089)
Use of money and property 6,928 - 16,227 (43,603) 24,245
Miscellaneous - - 23,233 31,687 -
Total revenues 6,928 854,169 39,460 (11,916) 13,156
EXPENDITURES:
Current:
General government - - - - -
Police services - - - - -
Maintenance services - - - - 22,085
Development services - - - - -
Administrative services 393 - 2,226 22,608 955
Recreation, arts & community services - - - - -
Capital outlay - - - 210,059 -
Total expenditures 393 - 2,226 232,667 23,040
REVENUES OVER (UNDER) EXPENDITURES 6,535 854,169 37,234 (244,583) (9,884)
OTHER FINANCING SOURCES (USES):
Transfers in - - - 125,000 -
Transfers out - - - - -
Total other financing sources (uses)- - - 125,000 -
NET CHANGE IN FUND BALANCES 6,535 854,169 37,234 (119,583) (9,884)
FUND BALANCES:
Beginning of year 610,286 1,338,122 1,244,646 2,903,028 844,321
End of year 616,821$ 2,192,291$ 1,281,880$ 2,783,445$ 834,437$
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2022
Special Revenue Capital Projects
100
DR
A
F
T
10
.
2
7
.
2
0
2
2
Northeast
Road Tassajara Sycamore
Improvements Ranch Valley
Civic Park Special Assessment Assessment
Facilities Facilities Assessment District District
REVENUES:
Special assessments -$ -$ -$ -$ -$
Other taxes - - - - -
Charges for services - - - - -
License and permits - - - - -
Development fees - - - - -
Intergovernmental - 177,952 - - -
Use of money and property 698 32,405 (447) 462 112
Miscellaneous - 16,541 - - -
Total revenues 698 226,898 (447) 462 112
EXPENDITURES:
Current:
General government - - - - -
Police services - - - - -
Maintenance services 20,988 (146,403) - - -
Development services - 211,667 - - -
Administrative services 299 2,804 798 4 5
Recreation, arts & community services - 33,715 - - -
Capital outlay - (3,247) 31,765 - -
Total expenditures 21,287 98,536 32,563 4 5
REVENUES OVER (UNDER) EXPENDITURES (20,589) 128,362 (33,010) 458 107
OTHER FINANCING SOURCES (USES):
Transfers in - 2,206,773 - - -
Transfers out - - - - -
Total other financing sources (uses)- 2,206,773 - - -
NET CHANGE IN FUND BALANCES (20,589) 2,335,135 (33,010) 458 107
FUND BALANCES:
Beginning of year 380,824 2,201,224 1,248,923 35,516 16,718
End of year 360,235$ 4,536,359$ 1,215,913$ 35,974$ 16,825$
(Continued)
Town of Danville
Non-Major Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2022
Capital Projects
101
DR
A
F
T
10
.
2
7
.
2
0
2
2
Capital Projects
Total
Non-Major
Technology Governmental
Fund Funds
REVENUES:
Special assessments -$ 571,886$
Other taxes - 2,848,301
Charges for services - 1,359,993
License and permits - 5,907
Development fees - 2,554,174
Intergovernmental - 1,450,536
Use of money and property - 178,150
Miscellaneous - 88,465
Total revenues - 9,057,412
EXPENDITURES:
Current:
General government - 4,936
Police services - 123,947
Maintenance services - 959,303
Development services - 5,323,500
Administrative services 23,110 64,755
Recreation, arts & community services - 124,242
Capital outlay 280,293 959,214
Total expenditures 303,403 7,559,897
REVENUES OVER (UNDER) EXPENDITURES (303,403) 1,497,515
OTHER FINANCING SOURCES (USES):
Transfers in - 2,331,773
Transfers out - (125,000)
Total other financing sources (uses)- 2,206,773
NET CHANGE IN FUND BALANCES (303,403) 3,704,288
FUND BALANCES:
Beginning of year 813,122 31,081,451
End of year 509,719$ 34,785,739$
(Concluded)
Town of Danville
Non-Major Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2022
102
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Other taxes 82,000$ 82,000$ 73,501$ (8,499)$
Use of money and property - - 2,663 2,663
Total revenues 82,000 82,000 76,164 (5,836)
EXPENDITURES:
Current:
General government
City Clerk 27,816 27,816 4,436 23,380
Total general government 27,816 27,816 4,436 23,380
Administrative services
Finance 514 514 (85) 599
Total administrative services 514 514 (85) 599
Capital outlay 261,047 261,047 3,750 257,297
Total expenditures 289,377 289,377 8,101 281,276
REVENUES OVER (UNDER) EXPENDITURES (207,377) (207,377) 68,063 275,440
OTHER FINANCING SOURCES (USES):
Transfers out (100,000) (100,000) (75,000) 25,000
Total other financing sources (uses)(100,000) (100,000) (75,000) 25,000
NET CHANGE IN FUND BALANCE (307,377)$ (307,377)$ (6,937) 300,440$
FUND BALANCE:
Beginning of year 277,262
End of year 270,325$
Budgeted
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, 2022
103
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Other taxes 1,650,000$ 1,650,000$ 1,920,631$ 270,631$
Use of money and property 14,828 14,828 33,913 19,085
Miscellaneous - - 366 366
Total revenues 1,664,828 1,664,828 1,954,910 290,082
EXPENDITURES:
Current:
Maintenance services
Street maintenance 652,753 655,575 538,969 116,606
Traffic signal maintenance 233,500 246,231 214,370 31,861
Total maintenance services 886,253 901,806 753,339 148,467
Development services
Management 37,734 37,734 60,885 (23,151)
Capital project management 1,421,227 1,951,227 303,591 1,647,636
Transportation 271,686 283,236 248,589 34,647
Total development services 1,730,647 2,272,197 613,065 1,659,132
Administrative services
Finance 4,903 4,903 4,566 337
Total administrative services 4,903 4,903 4,566 337
Total expenditures 2,621,803 3,178,906 1,370,970 1,807,936
NET CHANGE IN FUND BALANCE (956,975)$ (1,514,078)$ 583,940 2,098,018$
FUND BALANCE:
Beginning of year 3,571,052
End of year 4,154,992$
Budgeted
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, 2022
104
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Charges for services 281,200$ 281,200$ 464,727$ 183,527$
Licenses and permits - - 5,907 5,907
Development fees 1,690,000 1,690,000 2,461,681 771,681
Intergovernmental 177,000 177,000 - (177,000)
Miscellaneous 5,000 5,000 - (5,000)
Total revenues 2,153,200 2,153,200 2,932,315 779,115
EXPENDITURES:
Current:
Development services
Management 279,325 279,325 278,335 990
Planning 1,004,621 1,305,993 640,875 665,118
Building 1,347,958 1,497,958 1,315,043 182,915
Code enforcement 133,162 133,162 86,700 46,462
Total development services 2,765,066 3,216,438 2,320,953 895,485
Capital outlay - - - -
Total expenditures 2,765,066 3,216,438 2,320,953 895,485
REVENUES OVER (UNDER) EXPENDITURES (611,866) (1,063,238) 611,362 1,674,600
OTHER FINANCING (USES)
Transfers out (100,000) (100,000) (50,000) 50,000
Total other financing (uses)(100,000) (100,000) (50,000) 50,000
NET CHANGE IN FUND BALANCE (711,866)$ (1,163,238)$ 561,362 1,724,600$
FUND BALANCE:
Beginning of year 3,916,028
End of year 4,477,390$
Budgeted
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, 2022
105
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Charges for services 260,035$ 260,035$ 889,176$ 629,141$
Development fees 500 500 8,730 8,230
Total revenues 260,535 260,535 897,906 637,371
EXPENDITURES:
Current:
Development services
Engineering 181,474 272,898 240,030 32,868
Total development services 181,474 272,898 240,030 32,868
Total expenditures 181,474 272,898 240,030 32,868
NET CHANGE IN FUND BALANCE 79,061$ (12,363)$ 657,876 670,239$
FUND BALANCE:
Beginning of year 1,772,655
End of year 2,430,531$
Budgeted
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, 2022
106
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES
Use of money and property 1,199$ 1,199$ 3,478$ 2,279$
Total revenues 1,199 1,199 3,478 2,279
EXPENDITURES
Current:
Administrative services
Finance 207 207 792 (585)
Total administrative services 207 207 792 (585)
Total expenditures 207 207 792 (585)
REVENUES OVER (UNDER) EXPENDITURES 992 992 2,686 1,694
OTHER FINANCING (USES)
Transfers out (600) (600) - 600
Total other financing (uses)(600) (600) - 600
NET CHANGE IN FUND BALANCE 392$ 392$ 2,686 2,294$
FUND BALANCE:
Beginning of year 297,936
End of year 300,622$
Budgeted
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, 2022
107
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Special assessments 562,154$ 562,154$ 571,886$ 9,732$
Charges for services 1,010 1,010 6,090 5,080
Intergovernmental (11,780) (11,780) 22,270 34,050
Use of money and property 9,536 9,536 20,909 11,373
Total revenues 560,920 560,920 621,155 60,235
EXPENDITURES:
Current:
Maintenance services
Steet maintenance 341,095 357,662 286,409 71,253
Total maintenance services 341,095 357,662 286,409 71,253
Development services
Capital project management 166,588 166,588 - 166,588
Clean water program 218,000 226,193 237,624 (11,431)
Total development services 384,588 392,781 237,624 155,157
Administrative services
Finance 1,383 1,383 1,521 (138)
Total administrative services 1,383 1,383 1,521 (138)
Capital outlay 4,589 4,589 4,589 -
Total expenditures 731,655 756,415 530,143 226,272
NET CHANGE IN FUND BALANCE (170,735)$ (195,495)$ 91,012 286,507$
FUND BALANCE:
Beginning of year 2,297,624
End of year 2,388,636$
Budgeted
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, 2022
108
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Intergovernmental 10,266,843$ 8,746,058$ 1,094,886$ (7,651,172)$
Use of money and property 10,139 10,139 16,844 6,705
Total revenues 10,276,982 8,756,197 1,111,730 (7,644,467)
EXPENDITURES:
Current:
Development services
Management 57,433 57,433 (296,090) 353,523
Capital project management 2,541,233 2,326,280 - 2,326,280
Transportation 3,556,516 3,517,613 1,759,659 1,757,954
Total development services 6,155,182 5,901,326 1,463,569 4,437,757
Administrative services
Finance 1,518 1,518 2,032 (514)
Administrative services 1,518 1,518 2,032 (514)
Capital outlay 5,372,907 4,279,397 - 4,279,397
Total expenditures 11,529,607 10,182,241 1,465,601 8,716,640
REVENUES OVER (UNDER) EXPENDITURES (1,252,625) (1,426,044) (353,871) 1,072,173
NET CHANGE IN FUND BALANCE (1,252,625)$ (1,426,044)$ (353,871) 1,072,173$
FUND BALANCE:
Beginning of year 2,566,953
End of year 2,213,082$
Budgeted
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, 2022
109
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Use of money and property 974$ 974$ 3,531$ 2,557$
Miscellaneous 3,760 3,760 14,203 10,443
Total revenues 4,734 4,734 17,734 13,000
EXPENDITURES:
Current:
General government
Town Council 1,500 1,500 500 1,000
Total general government 1,500 1,500 500 1,000
Police services
Patrol - 8,489 1,776 6,713
Total police services - 8,489 1,776 6,713
Maintenance services
Park maintenance 3,000 3,284 22,885 (19,601)
Total maintenance services 3,000 3,284 22,885 (19,601)
Administrative services
Finance 275 275 200 75
Total administrative services 275 275 200 75
Recreation, arts & community services
Recreation management 30,500 116,012 - 116,012
Culture arts 2,000 2,000 - 2,000
Total recreation, arts & community services 32,500 118,012 - 118,012
Capital outlay - - - -
Total expenditures 37,275 131,560 25,361 106,199
NET CHANGE IN FUND BALANCE (32,541)$ (126,826)$ (7,627) 119,199$
FUND BALANCE:
Beginning of year 302,430
End of year 294,803$
Budgeted
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, 2022
110
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Development fees -$ -$ 83,763$ 83,763$
Intergovernmental 4,732 - - -
Use of money and property - - 51,610 51,610
Miscellaneous 93,170 165,670 - (165,670)
Total revenues 97,902 165,670 135,373 (30,297)
EXPENDITURES:
Current:
Development services
Capital project management 954,885 1,040,385 236,592 803,793
Total development services 954,885 1,040,385 236,592 803,793
Administrative services
Finance 3,371 3,371 2,102 1,269
Total administrative services 3,371 3,371 2,102 1,269
Recreation, arts & community services
Recreation management 563,212 740,712 90,527 650,185
Total recreation, arts & community services 563,212 740,712 90,527 650,185
Capital outlay 676,904 631,205 432,005 199,200
Total expenditures 2,198,372 2,415,673 761,226 1,654,447
NET CHANGE IN FUND BALANCE (2,100,470)$ (2,250,003)$ (625,853) 1,624,150$
FUND BALANCE:
Beginning of year 3,888,605
End of year 3,262,752$
Budgeted
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, 2022
111
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Intergovernmental 124,000$ 124,000$ 166,517$ 42,517$
Use of money and property 1,246 1,246 8,175 6,929
Total revenues 125,246 125,246 177,127 51,881
EXPENDITURES:
Current:
Police services
Youth services 140,000 140,000 122,171 17,829
Total police services 140,000 140,000 122,171 17,829
Administrative services
Finance 275 275 425 (150)
Total administrative services 275 275 425 (150)
Total expenditures 140,275 140,275 122,596 17,679
NET CHANGE IN FUND BALANCE (15,029)$ (15,029)$ 54,531 69,560$
FUND BALANCE:
Beginning of year 554,176
End of year 608,707$
Budgeted
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, 2022
112
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Use of money and property -$ -$ 6,928$ 6,928$
Total revenues - - 6,928 6,928
EXPENDITURES:
Current:
Administrative services
Finance 512 512 393 119
Total administrative services 512 512 393 119
Capital outlay - - - -
Total expenditures 512 512 393 119
NET CHANGE IN FUND BALANCE (512)$ (512)$ 6,535 7,047$
FUND BALANCE:
Beginning of year 610,286
End of year 616,821$
Budgeted
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, 2022
113
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Other taxes 846,851$ 846,851$ 854,169$ 7,318$
Total revenues 846,851 846,851 854,169 7,318
EXPENDITURES:
Current:
Development services
Capital project management 475,000 1,925,000 - 1,925,000
Total development services 475,000 1,925,000 - 1,925,000
Capital outlay - - - -
Total expenditures 475,000 1,925,000 - 1,925,000
NET CHANGE IN FUND BALANCE 371,851$ (1,078,149)$ 854,169 1,932,318$
FUND BALANCE:
Beginning of year 1,338,122
End of year 2,192,291$
Budgeted
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, 2022
114
DR
A
F
T
10
.
2
7
.
2
0
2
2
Variance From
Original Final Actual Final Budget
REVENUES:
Use of money and property -$ -$ 16,227$ 16,227$
Miscellaneous - - 23,233 23,233
Total revenues - - 39,460 39,460
EXPENDITURES:
Current:
Administrative services
Finance 2,800 2,861 2,226 635
Total administrative services 2,800 2,861 2,226 635
Total expenditures 2,800 2,861 2,226 635
NET CHANGE IN FUND BALANCE (2,800)$ (2,861)$ 37,234 40,095$
FUND BALANCE:
Beginning of year 1,244,646
End of year 1,281,880$
Budgeted
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, 2022
115
DR
A
F
T
10
.
2
7
.
2
0
2
2
This page intentionally left blank.
116
DR
A
F
T
10
.
2
7
.
2
0
2
2