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“City Services” MSR & SOI Study (2nd Round) – Final

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Contra Costa Local Agency Formation Commission Municipal Service Review Update as Adopted June 12, 2019 Contra Costa LAFCO Members Commissioner Tom Butt, Chair, City Member Commissioner Candace Andersen, Vice Chair, County Member Commissioner Donald A. Blubaugh, Public Member Commissioner Federal Glover, County Member Commissioner Rob Schroder, City Member Commissioner Michael R. McGill, Special District Member Commissioner Igor Skaredoff, Special District Member Commissioner Diane Burgis, County Member, Alternate Commissioner Stanley Caldwell, Special District Member, Alternate Commissioner Charles R. Lewis, IV, Public Member, Alternate Commissioner Sean Wright, City Member, Alternate Prepared by: Lamphier-Gregory 1944 Embarcadero Oakland, CA 94606 and Berkson Associates San Anselmo, CA This page intentionally left blank. T C ABLE OF ONTENTS Page Chapter 1: Introduction and Municipal Service Review Summary ................................. 1-1 1.1 Overview .......................................................................................................................... 1-1 1.2 Services Reviewed and Focus Areas .................................................................................. 1-4 1.3 Organization of this Introduction and Summary ................................................................ 1-6 1.4 Sphere of Influence Determinations ................................................................................ 1-22 1.5 Sphere of Influence Recommendations ........................................................................... 1-23 1.6 Concluding Remarks ....................................................................................................... 1-24 Chapter 2: City of Antioch ............................................................................................ 2-1 2.1 Agency Overview ............................................................................................................. 2-1 2.2 Municipal Services Overview ........................................................................................... 2-4 2.3 Financial Overview ........................................................................................................... 2-9 2.4 Service Review Determinations ....................................................................................... 2-13 2.5 Sphere of Influence Review and Determinations ............................................................. 2-21 Chapter 3: City of Brentwood ....................................................................................... 3-1 3.1 Agency Overview ............................................................................................................. 3-1 3.2 Municipal Services Overview ........................................................................................... 3-4 3.3 Financial Overview ........................................................................................................... 3-9 3.4 Service Review Determinations ....................................................................................... 3-13 3.5 Sphere of Influence Review and Determinations ............................................................. 3-21 Chapter 4: City of Clayton ............................................................................................ 4-1 4.1 Agency Overview ............................................................................................................. 4-1 4.2 Municipal Services Overview ........................................................................................... 4-4 4.3 Financial Overview ........................................................................................................... 4-9 4.4 Service Review Determinations ....................................................................................... 4-12 4.5 Sphere of Influence Review and Determinations ............................................................. 4-19 Chapter 5: City of Concord ........................................................................................... 5-1 5.1 Agency Overview ............................................................................................................. 5-1 5.2 Municipal Services Overview ........................................................................................... 5-5 5.3 Financial Overview ......................................................................................................... 5-10 5.4 Service Review Determinations ....................................................................................... 5-14 5.5 Sphere of Influence Review and Determinations ............................................................. 5-22 Chapter 6: Town of Danville ......................................................................................... 6-1 6.1 Agency Overview ............................................................................................................. 6-1 6.2 Municipal Services Overview ........................................................................................... 6-4 6.3 Financial Overview ........................................................................................................... 6-9 Contra Costa LAFCO Municipal Service Review Update i 6.4 Service Review Determinations ....................................................................................... 6-12 6.5 Sphere of Influence Review and Determinations ............................................................. 6-20 Chapter 7: City of El Cerrito ......................................................................................... 7-1 7.1 Agency Overview ............................................................................................................. 7-1 7.2 Municipal Services Overview ........................................................................................... 7-5 7.3 Financial Overview ......................................................................................................... 7-10 7.4 Service Review Determinations ....................................................................................... 7-13 7.5 Sphere of Influence Review and Determinations ............................................................. 7-22 Chapter 8: City of Hercules .......................................................................................... 8-1 8.1 Agency Overview ............................................................................................................. 8-1 8.2 Municipal Services Overview ........................................................................................... 8-4 8.3 Financial Overview ........................................................................................................... 8-9 8.4 Service Review Determinations ....................................................................................... 8-12 8.5 Sphere of Influence Review and Determinations ............................................................. 8-21 Chapter 9: City of Lafayette .......................................................................................... 9-1 9.1 Agency Overview ............................................................................................................. 9-1 9.2 Municipal Services Overview ........................................................................................... 9-4 9.3 Financial Overview ........................................................................................................... 9-9 9.4 Service Review Determinations ....................................................................................... 9-12 9.5 Sphere of Influence Review and Determinations ............................................................. 9-20 Chapter 10: City of Martinez ...................................................................................... 10-1 10.1 Agency Overview ........................................................................................................... 10-1 10.2 Municipal Services Overview ......................................................................................... 10-4 10.3 Financial Overview ......................................................................................................... 10-9 10.4 Service Review Determinations ..................................................................................... 10-12 10.5 Sphere of Influence Review and Determinations ........................................................... 10-19 Chapter 11: Town of Moraga ...................................................................................... 11-1 11.1 Agency Overview ........................................................................................................... 11-1 11.2 Municipal Services Overview ......................................................................................... 11-4 11.3 Financial Overview ......................................................................................................... 11-9 11.4 Service Review Determinations ..................................................................................... 11-12 11.5 Sphere of Influence Review and Determinations ........................................................... 11-22 Chapter 12: City of Oakley ......................................................................................... 12-1 12.1 Agency Overview ........................................................................................................... 12-1 12.2 Municipal Services Overview ......................................................................................... 12-4 12.3 Financial Overview ......................................................................................................... 12-9 12.4 Service Review Determinations ..................................................................................... 12-12 12.5 Sphere of Influence Review and Determinations ........................................................... 12-20 Contra Costa LAFCO ii Municipal Service Review Update Chapter 13: City of Orinda ......................................................................................... 13-1 13.1 Agency Overview ........................................................................................................... 13-1 13.2 Municipal Services Overview ......................................................................................... 13-4 13.3 Financial Overview ......................................................................................................... 13-8 13.4 Service Review Determinations ..................................................................................... 13-12 13.5 Sphere of Influence Review and Determinations ........................................................... 13-19 Chapter 14: City of Pinole........................................................................................... 14-1 14.1 Agency Overview ........................................................................................................... 14-1 14.2 Municipal Services Overview ......................................................................................... 14-4 14.3 Financial Overview ......................................................................................................... 14-9 14.4 Service Review Determinations ..................................................................................... 14-13 14.5 Sphere of Influence Review and Determinations ........................................................... 14-20 Chapter 15: City of Pittsburg ...................................................................................... 15-1 15.1 Agency Overview ........................................................................................................... 15-1 15.2 Municipal Services Overview ......................................................................................... 15-4 15.3 Financial Overview ......................................................................................................... 15-9 15.4 Service Review Determinations ..................................................................................... 15-13 15.5 Sphere of Influence Review and Determinations ........................................................... 15-22 Chapter 16: City of Pleasant Hill ................................................................................. 16-1 16.1 Agency Overview ........................................................................................................... 16-1 16.2 Municipal Services Overview ......................................................................................... 16-4 16.3 Financial Overview ......................................................................................................... 16-9 16.4 Service Review Determinations ..................................................................................... 16-12 16.5 Sphere of Influence Review and Determinations ........................................................... 16-20 Chapter 17: City of Richmond .................................................................................... 17-1 17.1 Agency Overview ........................................................................................................... 17-1 17.2 Municipal Services Overview ......................................................................................... 17-5 17.3 Financial Overview ....................................................................................................... 17-10 17.4 Service Review Determinations ..................................................................................... 17-14 17.5 Sphere of Influence Review and Determinations ........................................................... 17-23 Chapter 18: City of San Pablo ..................................................................................... 18-1 18.1 Agency Overview ........................................................................................................... 18-1 18.2 Municipal Services Overview ......................................................................................... 18-4 18.3 Financial Overview ......................................................................................................... 18-9 18.4 Service Review Determinations ..................................................................................... 18-12 18.5 Sphere of Influence Review and Determinations ........................................................... 18-20 Chapter 19: City of San Ramon ................................................................................... 19-1 19.1 Agency Overview ........................................................................................................... 19-1 19.2 Municipal Services Overview ......................................................................................... 19-5 Contra Costa LAFCO Municipal Service Review Update iii 19.3 Financial Overview ....................................................................................................... 19-10 19.4 Service Review Determinations ..................................................................................... 19-14 19.5 Sphere of Influence Review and Determinations ........................................................... 19-21 Chapter 20: City of Walnut Creek ............................................................................... 20-1 20.1 Agency Overview ........................................................................................................... 20-1 20.2 Municipal Services Overview ......................................................................................... 20-5 20.3 Financial Overview ....................................................................................................... 20-11 20.4 Service Review Determinations ..................................................................................... 20-14 20.5 Sphere of Influence Review and Determinations ........................................................... 20-23 Chapter 21: Crockett Community Services District ..................................................... 21-1 21.1 Agency Overview ........................................................................................................... 21-1 21.2 Municipal Services Overview ......................................................................................... 21-3 21.3 Financial Overview ......................................................................................................... 21-8 21.4 Service Review Determinations ..................................................................................... 21-12 21.5 Sphere of Influence Review and Determinations ........................................................... 21-19 Chapter 22: Diablo Community Services District ........................................................ 22-1 22.1 Agency Overview ........................................................................................................... 22-1 22.2 Municipal Services Overview ......................................................................................... 22-3 22.3 Financial Overview ......................................................................................................... 22-8 22.4 Service Review Determinations ..................................................................................... 22-11 22.5 Sphere of Influence Review and Determinations ........................................................... 22-17 Chapter 23: Discovery Bay Community Services District ............................................ 23-1 23.1 Agency Overview ........................................................................................................... 23-1 23.2 Municipal Services Overview ......................................................................................... 23-3 23.3 Financial Overview ......................................................................................................... 23-8 23.4 Service Review Determinations ..................................................................................... 23-11 23.5 Sphere of Influence Review and Determinations ........................................................... 23-18 Chapter 24: Kensington Police Protection and Community Services District............... 24-1 24.1 Agency Overview ........................................................................................................... 24-1 24.2 Municipal Services Overview ......................................................................................... 24-3 24.3 Financial Overview ......................................................................................................... 24-7 24.4 Service Review Determinations ..................................................................................... 24-10 24.5 Sphere of Influence Review and Determinations ........................................................... 24-16 Chapter 25: Acronyms, Glossary, and Bibliography .................................................... 25-1 25.1 Acronyms ........................................................................................................................ 25-1 25.2 Glossary .......................................................................................................................... 25-3 25.3 Bibliography.................................................................................................................... 25-6 Contra Costa LAFCO iv Municipal Service Review Update Attachments Attachment A – Agriculture and Open Space Policies Attachment B – Service Level Statistics Attachment C – Agency Fiscal Profiles Attachment D – Response to Public Comments Figures Introduction and Municipal Service Review Summary 1.1: Contra Costa County ...................................................................................................... 1-3 1.2: Unincorporated Islands under 300 Acres in Contra Costa County ............................... 1-22 1.3: Disadvantaged Communities in Contra Costa County .................................................. 1-23 City of Antioch 2.1: City of Antioch Municipal Boundary and Sphere of Influence ........................................ 2-2 2.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Antioch ............................................................................................................. 2-14 City of Brentwood 3.1: City of Brentwood Municipal Boundary and Sphere of Influence ................................... 3-2 3.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Brentwood ........................................................................................................ 3-14 City of Clayton 4.1: City of Clayton Municipal Boundary and Sphere of Influence ........................................ 4-2 4.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Clayton ............................................................................................................. 4-13 City of Concord 5.1: City of Concord Municipal Boundary and Sphere of Influence ...................................... 5-2 5.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Concord............................................................................................................ 5-16 Town of Danville 6.1: Town of Danville Municipal Boundary and Sphere of Influence .................................... 6-2 6.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for Town of Danville ......................................................................................................... 6-14 City of El Cerrito 7.1: City of El Cerrito Municipal Boundary and Sphere of Influence ..................................... 7-2 7.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of El Cerrito ........................................................................................................... 7-15 Contra Costa LAFCO Municipal Service Review Update v City of Hercules 8.1: City of Hercules Municipal Boundary and Sphere of Influence ...................................... 8-2 8.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Hercules ........................................................................................................... 8-14 City of Lafayette 9.1: City of Lafayette Municipal Boundary and Sphere of Influence ...................................... 9-2 9.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Lafayette ........................................................................................................... 9-14 City of Martinez 10.1: City of Martinez Municipal Boundary and Sphere of Influence .................................... 10-2 10.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Martinez ......................................................................................................... 10-13 Town of Moraga 11.1: Town of Moraga Municipal Boundary and Sphere of Influence ................................... 11-2 11.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for Town of Moraga ......................................................................................................... 11-14 11.3: Area of Proposed Camino Pablo Annexation ............................................................. 11-18 City of Oakley 12.1: City of Oakley Municipal Boundary and Sphere of Influence ....................................... 12-2 12.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Oakley ............................................................................................................ 12-14 City of Orinda 13.1: City of Orinda Municipal Boundary and Sphere of Influence ....................................... 13-2 13.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Orinda ............................................................................................................ 13-13 City of Pinole 14.1: City of Pinole Municipal Boundary and Sphere of Influence ........................................ 14-2 14.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Pinole ............................................................................................................. 14-14 City of Pittsburg 15.1: City of Pittsburg Municipal Boundary and Sphere of Influence .................................... 15-2 15.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Pittsburg .......................................................................................................... 15-14 15.3: Orbisonia Heights and Keller Canyon Landfill Areas.................................................. 15-18 Contra Costa LAFCO vi Municipal Service Review Update City of Pleasant Hill 16.1: City of Pleasant Hill Municipal Boundary and Sphere of Influence .............................. 16-2 16.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Pleasant Hill ................................................................................................... 16-14 City of Richmond 17.1: City of Richmond Municipal Boundary and Sphere of Influence .................................. 17-2 17.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Richmond ....................................................................................................... 17-16 City of San Pablo 18.1: City of San Pablo Municipal Boundary and Sphere of Influence .................................. 18-2 18.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of San Pablo ........................................................................................................ 18-14 City of San Ramon 19.1: City of San Ramon Municipal Boundary and Sphere of Influence ................................ 19-2 19.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of San Ramon ..................................................................................................... 19-15 City of Walnut Creek 20.1: City of Walnut Creek Municipal Boundary and Sphere of Influence ............................ 20-2 20.2: Population, Jobs, and Household Growth Projections (2010 – 2040) for City of Walnut Creek.................................................................................................. 20-16 Crockett Community Services District 21.1: Crockett Community Services District Sphere of Influence .......................................... 21-2 Diablo Community Services District 22.1: Diablo Community Services District Sphere of Influence ............................................. 22-2 Town of Discovery Bay Community Services District 23.1: Town of Discovery Bay Community Services District Sphere of Influence ................... 23-2 Kensington Police Protection and Community Services District 24.1: Kensington Police Protection and Community Services District Sphere of Influence ...................................................................................................................... 24-2 Contra Costa LAFCO Municipal Service Review Update vii Tables Introduction and Municipal Service Review Summary 1.1: Service Provision Overview ........................................................................................... 1-5 1.2: Year 2010, 2017, and 2040 Population Estimates and Projections, Contra Costa County ................................................................................................................. 1-8 1.3: Jobs, Employed Residents, and Jobs per Employed Resident by Jurisdiction, Years 2010 and 2040 ................................................................................................... 1-10 1.4: Jobs, Housing Units, and Jobs/Housing Ratio for Contra Costa Jurisdictions, Years 2010 and 2040 .............................................................................. 1-11 1.5: Comparison of Selected City Revenue Enhancements, FY 2017 ................................... 1-13 1.6: Significant Financial Considerations by Jurisdiction ..................................................... 1-15 City of Antioch 2.1: Highest Staffing Levels by Service Area .......................................................................... 2-3 2.2: Joint Powers Authority Membership ............................................................................... 2-3 2.3: Municipal Services and Service Providers ...................................................................... 2-4 2.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 2-10 2.5: Housing Overview ....................................................................................................... 2-15 2.6: Programs and Services for an Aging Population ........................................................... 2-16 City of Brentwood 3.1: Highest Staffing Levels by Service Area .......................................................................... 3-3 3.2: Joint Powers Authority Membership ............................................................................... 3-3 3.3: Awards ........................................................................................................................... 3-4 3.4: Municipal Services and Service Providers ...................................................................... 3-4 3.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 3-10 3.6: Housing Overview ....................................................................................................... 3-15 City of Clayton 4.1: Highest Staffing Levels by Service Area .......................................................................... 4-3 4.2: Joint Powers Authority Membership ............................................................................... 4-3 4.3: Awards ........................................................................................................................... 4-4 4.4: Municipal Services and Service Providers ...................................................................... 4-4 4.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 4-10 4.6: Housing Overview ....................................................................................................... 4-14 City of Concord 5.1: Highest Staffing Levels by Service Area .......................................................................... 5-3 5.2: Joint Powers Authority Membership ............................................................................... 5-3 5.3: Awards ........................................................................................................................... 5-5 5.4: Municipal Services and Service Providers ...................................................................... 5-5 5.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 5-11 5.6: Housing Overview ....................................................................................................... 5-17 Contra Costa LAFCO viii Municipal Service Review Update Town of Danville 6.1: Highest Staffing Levels by Service Area .......................................................................... 6-3 6.2: Joint Powers Authority Membership ............................................................................... 6-3 6.3: Awards ........................................................................................................................... 6-4 6.4: Municipal Services and Service Providers ...................................................................... 6-5 6.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 6-10 6.6: Housing Overview ....................................................................................................... 6-15 City of El Cerrito 7.1: Highest Staffing Levels by Service Area .......................................................................... 7-3 7.2: Joint Powers Authority Membership ............................................................................... 7-3 7.3: Awards ........................................................................................................................... 7-4 7.4: Municipal Services and Service Providers ...................................................................... 7-6 7.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 7-11 7.6: Housing Overview ....................................................................................................... 7-16 7.7: Programs and Services for an Aging Population ........................................................... 7-17 City of Hercules 8.1: Highest Staffing Levels by Service Area .......................................................................... 8-3 8.2: Joint Powers Authority Membership ............................................................................... 8-3 8.3: Municipal Services and Service Providers ...................................................................... 8-4 8.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 8-10 8.5: Housing Overview ....................................................................................................... 8-15 City of Lafayette 9.1: Highest Staffing Levels by Service Area .......................................................................... 9-3 9.2: Joint Powers Authority Membership ............................................................................... 9-3 9.3: Awards ........................................................................................................................... 9-4 9.4: Municipal Services and Service Providers ...................................................................... 9-4 9.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 9-10 9.6: Housing Overview ....................................................................................................... 9-15 9.7: Programs and Services for an Aging Population ........................................................... 9-16 City of Martinez 10.1: Highest Staffing Levels by Service Area ........................................................................ 10-3 10.2: Joint Powers Authority Membership ............................................................................. 10-3 10.3: Municipal Services and Service Providers .................................................................... 10-4 10.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 10-10 10.5: Housing Overview ..................................................................................................... 10-14 Town of Moraga 11.1: Joint Powers Authority Membership ............................................................................. 11-3 11.2: Awards ......................................................................................................................... 11-4 11.3: Municipal Services and Service Providers .................................................................... 11-4 Contra Costa LAFCO Municipal Service Review Update ix 11.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 11-10 11.5: Housing Overview ..................................................................................................... 11-15 City of Oakley 12.1: Highest Staffing Levels by Service Area ........................................................................ 12-3 12.2: Joint Powers Authority Membership ............................................................................. 12-3 12.3: Awards ......................................................................................................................... 12-4 12.4: Municipal Services and Service Providers .................................................................... 12-5 12.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 12-10 12.6: Housing Overview ..................................................................................................... 12-15 City of Orinda 13.1: Highest Staffing Levels by Service Area ........................................................................ 13-3 13.2: Joint Powers Authority Membership ............................................................................. 13-3 13.3: Municipal Services and Service Providers .................................................................... 13-4 13.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 13-9 13.5: Housing Overview ..................................................................................................... 13-14 City of Pinole 14.1: Highest Staffing Levels by Service Area ........................................................................ 14-3 14.2: Joint Powers Authority Membership ............................................................................. 14-3 14.3: Awards ......................................................................................................................... 14-4 14.4: Municipal Services and Service Providers .................................................................... 14-5 14.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 14-10 14.6: Housing Overview ..................................................................................................... 14-15 City of Pittsburg 15.1: Highest Staffing Levels by Service Area ........................................................................ 15-3 15.2: Joint Powers Authority Membership ............................................................................. 15-3 15.3: Awards ......................................................................................................................... 15-4 15.4: Municipal Services and Service Providers .................................................................... 15-5 15.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 15-10 15.6: Housing Overview ..................................................................................................... 15-15 City of Pleasant Hill 16.1: Highest Staffing Levels by Service Area ........................................................................ 16-3 16.2: Joint Powers Authority Membership ............................................................................. 16-3 16.3: Municipal Services and Service Providers .................................................................... 16-5 16.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 16-10 16.5: Housing Overview ..................................................................................................... 16-15 City of Richmond 17.1: Highest Staffing Levels by Service Area ........................................................................ 17-3 17.2: Joint Powers Authority Membership ............................................................................. 17-3 17.3: Awards ......................................................................................................................... 17-5 Contra Costa LAFCO x Municipal Service Review Update 17.4: Municipal Services and Service Providers .................................................................... 17-6 17.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 17-11 17.6: Housing Overview ..................................................................................................... 17-17 City of San Pablo 18.1: Highest Staffing Levels by Service Area ........................................................................ 18-3 18.2: Joint Powers Authority Membership ............................................................................. 18-3 18.3: Municipal Services and Service Providers .................................................................... 18-4 18.4: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 18-10 18.5: Housing Overview ..................................................................................................... 18-15 City of San Ramon 19.1: Highest Staffing Levels by Service Area ........................................................................ 19-3 19.2: Joint Powers Authority Membership ............................................................................. 19-3 19.3: Awards ......................................................................................................................... 19-5 19.4: Municipal Services and Service Providers .................................................................... 19-6 19.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 19-11 19.6: Housing Overview ..................................................................................................... 19-16 City of Walnut Creek 20.1: Highest Staffing Levels by Service Area ........................................................................ 20-3 20.2: Joint Powers Authority Membership ............................................................................. 20-3 20.3: Awards ......................................................................................................................... 20-5 20.4: Municipal Services and Service Providers .................................................................... 20-6 20.5: Summary of General Fund and Liquidity, 2015 – 2017 ............................................. 20-12 20.6: Housing Overview ..................................................................................................... 20-17 Crockett Community Services District 21.2: Municipal Services and Service Providers .................................................................... 21-3 21.2: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 21-9 21.3: Housing Overview ..................................................................................................... 21-13 Diablo Community Services District 22.1: Municipal Services and Service Providers .................................................................... 22-3 22.2: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 22-9 22.3: Housing Overview ..................................................................................................... 22-12 Town of Discovery Bay Community Services District 23.1: Municipal Services and Service Providers .................................................................... 23-3 23.2: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 23-9 23.3: Housing Overview ..................................................................................................... 23-13 Kensington Police Protection and Community Services District 24.1: Municipal Services and Service Providers .................................................................... 24-3 24.2: Summary of General Fund and Liquidity, 2015 – 2017 ............................................... 24-7 24.3: Housing Overview ..................................................................................................... 24-11 Contra Costa LAFCO Municipal Service Review Update xi This page intentionally left blank. C 1 HAPTER I M S NTRODUCTION AND UNICIPAL ERVICE R S EVIEW UMMARY 1.1 OVERVIEW Local agency formation commissions (LAFCOs) are countywide agencies created by the California State legislature to discourage urban sprawl and encourage the orderly formation and development of local government agencies. LAFCOs are unique to California and there is one LAFCO in each county. LAFCO’s efforts are directed at the provision of efficient and economical municipal services, logical and orderly development, and the preservation of agricultural and open space lands. LAFCOs are charged with regulating local agency spheres of influence (SOIs) and service boundaries, including annexations and detachments; city incorporations; district formations, consolidations, mergers and dissolutions; and extension of services outside jurisdictional boundaries. LAFCOs are also charged with preparing Municipal Service Reviews (MSRs). This MSR Update was prepared by Lamphier-Gregory and Berkson Associates for Contra Costa LAFCO. MSRs are state- mandated comprehensive analyses of specific services provided by municipalities and special districts that fall within the purview of LAFCOs. MSRs provide information about service delivery, evaluate how services are provided, and recommend actions to improve the provisions of services, and highlight best practices, risks and challenges facing the agencies. The MSR culminates in updating the sphere of influence (SOI) for each agency covered in the Review. SOIs are important as they designate an agency’s probable future boundary and service area. As part of the MSR process, LAFCOs must prepare written determinations for the following: • Growth and population projections for the affected area • Location and characteristics of Disadvantaged Unincorporated Communities within or contiguous to the SOI • Present and planned capacity of public facilities and adequacy of public service, including infrastructure needs and deficiencies • Financial ability of the agency to provide services • Status of and opportunities for shared facilities • Accountability for community service needs, including governmental structure and operational efficiencies Contra Costa LAFCO Municipal Service Review Update 1-1 Chapter 1 In accordance with the SOI updates, LAFCOs must prepare a written statement of determinations with respect to each of the following: • Present and planned land uses in the area, including agricultural and open-space lands • Present and probable need for public facilities and services • Present capacity of public facilities and adequacy of public services • Existence of any social or economic communities of interest if the commission determines that they are relevant to the agency. • For an update of an SOI of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, that occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. The information, recommendations, and determinations contained in an MSR are intended to guide and inform decisions regarding updates to SOIs, changes of organization and reorganizations, and service extension decisions. The Draft MSR and SOI determinations and recommendations are included in the individual agency chapters. Contra Costa LAFCO completed its first round MSRs in 2013. City services were covered in various first round MSRs (i.e., fire/emergency medical, law enforcement, library, parks and recreation, city services by sub region, water, and wastewater). To date, LAFCO has completed second round MSRs covering water, wastewater, reclamation, fire and emergency medical, and healthcare services. This is the second round MSR covering city services and includes a review of municipal services provided by all 19 municipalities in Contra Costa County and four of the six Community Service Districts (CSDs). Figure 1.1 shows the location of these entities within Contra Costa County. Contra Costa LAFCO 1-2 Municipal Service Review Update City Boundaries, City Spheres of Influence, and select Community Service Districts in Contra Costa County Grizzly C M o a u r n i t n y S C o P o n B S a u o a a b n m n y l t o y a Mo M nt a a n lv o in r V B i a e y w T H a il r l a s Rod H eo ERCU C §¨¦ L 88 C A r 00 o E r r e C o c S a c k SD k e e tt tt C A o C S P r s e o o t o a a rt l u a C ÄÅ n a n r 44 t q o y uinezSt §¨¦ 6 r 8 a 0 it Vie M w t V H in il e l Su B i a s y un B C a ly y de P B o a in y H t o B n a k y er PITTSBUR ÄÅ 44 G C S o o W l u Is a l n i a n n n t t e o y d r Sacra mento ÄÅ 11 R S 6600 a iv n er Joaqu B in B re i R J g a Is e i k l v a rs e n e r d y S B a r Is a c C l d a r o f n a o u d r m d n B Is e e t la t y n h n e d t l o W Tr e a F b T c r b r t a a n c k t s Qui I m s by R N ic . h SAN R -w ol o li o n d g Sob E r lante PINOLE MARTINEZ Pacheco ÄÅ 224422 CONCORD ANTIOCH OAKLEY O J C o o S a u a q n n u t i y n PABLO Alhambra ld §¨¦ 580 RICHMOND EL E H . e R i i g c h h ts Briones Valley V Re a l l i l e e z y PLE H A I S L A L NT CLAYTON ÄÅ 44 Knightsen R iv e r CERRITO C C o o n st t a ra WALNUT BRENTWOOD §¨¦ Centre CREEK 680 Fra S n a c n isco §¨¦ ( K in e n El s i C n e g r t r o it n o C SO SD I) ORINDA LAFAYET A T c E a R la id n g e e s Saranap Migu S e a l n R S id h g e e ll N G o a r t t e h ÄÅ 44 Disc C B o a S v D y ery Bay 8800 Castle Hill Byron ÄÅ 2244 Alamo Diablo Clifton MORAGA CSD Court Canyon Los Forebay Vaqueros DANVILLE Reservoir Legend Blackhawk City Boundaries Alameda C Ta a s m sa i j n a o ra County City Sphere of Influence SAN RAMON Community Service District * Alameda County Contra Costa County Norris Canyon County Urban Limit Line §¨¦ * All Community Services Districts shown 680 have coterminous Spheres of Influence ® This map or dataset was created by the Contra Costa County Department of Conservation Co b n y s 3 e C 3 0 r 7 o v M : n a 5 u t M t 9 r i i o a r : a 4 n R p C 1 a o . o c 7 n a s r 9 d e d ta 1 a , D N t M C e e d o a v 1 u e r 0 2 t n l i 3 2 o n t / y : p e 1 0 m z D 4 7 , / e : e 2 C 0 n p 0 3 A t a 1 , . 7 r 9 G 9 t 5 m 4 I 6 S 5 e W 5 n G 3 t r o o f up its r t e a a p x b c a r a c r c o a a s u c d n e t e r u d e a p d c c D a t e a y r e t d t e . h a v a T e i , e n s h p l C . o i i r s t W i p o s m m u m c h a n u a e i r t l r e i p n y l r y t e o o c w n C o f b t C i n l i t i t s h g y t o a t a a d n L i t n t a t e i e m r s t a d a i i c f t C t s o f o t r , h o p o u e i y s m s s r t s a i e d g o t e h h d t u h r e t i r i s e i v c s C c d e e l d a o d in i a i n s m f f t t r o a c r o e a r i m m t r t e h C o a d e t o f h . t C i l s e U o ia t o n a s C b u e i a C A n l r i n t s o t y y S d u o f t a n m a o f s t r t t y a e s h g y u i G B s e m n I o o m S o e g a t a s r r P a d b p n r p e o o o a h g f a g i r r c E l e r a t e e s q i m n e r p u e f . o o a t d o n r l S . i m z s r o e a i I a b t m a t t i i m i l o d e o it n a n y a ' y . s n f o d b r e 0 2.5 Mi 5 les 10 Figure 1.1. Contra Costa County June 2019 Chapter 1 1.2 SERVICES REVIEWED AND FOCUS AREAS Municipalities and CSDs can provide a range of services. For this MSR Update, Contra Costa LAFCO chose to focus on some but not all the services jurisdictions provide including: • Animal Control • Parks and Recreation • Broadband • Solid Waste • Building/Planning • Streets • Law Enforcement • Stormwater • Library • Utilities (gas, electricity/community • Lighting choice aggregation) This MSR Update has four focus areas: • Updating profile data including growth and population, jobs/housing, finances (expenses, revenues, debt, reserves, related fiscal health indicators), and staffing • Shared services (i.e., joint powers and joint use agreements, contracts between public agencies, public-private partnerships) • Infill development/sprawl prevention/islands • Agricultural/open space preservation There is substantial variation among jurisdictions regarding what services they provide directly and what services are provided by others. When a service provider other than the city itself is used, the outside provider is often the County. Examples include County library services and animal control. In other situations, a special district (e.g., Central Contra Costa Sanitary District) provides the services and the City has no financial role. Table 1.1 shows services provided by the cities and CSDs, as well as under contract with other service providers. This report fulfills Contra Costa LAFCO’s responsibility to conduct an MSR prior to or in conjunction with SOI updates for those jurisdictions that provided enough information for this report. The MSR serves as a resource to help the public better understand how municipal services are provided. Contra Costa LAFCO 1-4 Municipal Service Review Update Introduction and Municipal Service Review Summary TABLE 1.1 SERVICE PROVISION OVERVIEW CITY / CSD ANIMAL BROADBAND BUILDING / LAW LIBRARY LIGHTING PARKS & SOLID STREETS STORMWATER UTILITIES CONTROL PLANNING ENFORCEMENT RECREATION WASTE Antioch City SP City City SP City City SP City City SP Brentwood SP SP City City SP SP City City City City SP Clayton SP SP City City SP City/SP City SP City City SP Concord SP SP City City SP City City SP City City SP Danville SP SP Town SP SP Town Town SP Town Town SP El Cerrito SP SP City City SP City City City/SP City City/SP SP Hercules SP SP City/SP City SP City City City/SP City City SP Lafayette SP SP City/SP SP SP City City/SP SP City City SP Martinez SP SP City City SP City City SP City City SP Moraga SP SP Town Town/SP SP Town Town SP Town Town SP Oakley SP SP City City SP City/SP City/SP SP City City SP Orinda SP SP City/SP SP SP City City SP City City SP Pinole SP SP City City SP City City SP City City SP Pittsburg SP SP City City SP City/SP City SP City City SP Pleasant Hill SP SP City City SP City SP SP City City SP Richmond SP SP City City City City City SP City City SP San Pablo SP SP City City SP City City SP City City SP San Ramon SP SP City City SP City/SP City SP City City SP Walnut Creek SP SP City City SP City City SP City City SP COMMUNITY SERVICES DISTRICTS Crockett SP SP SP SP SP SP CSD CSD/SP SP SP SP Diablo SP SP SP CSD/SP SP CSD/SP CSD SP CSD SP SP Discovery SP SP SP SP SP SP CSD SP SP SP SP Bay Kensington SP SP SP CSD SP SP CSD SP SP SP SP SP = other service provider Contra Costa LAFCO Municipal Service Review Update 1-5 Chapter 1 1.3 ORGANIZATION OF THIS INTRODUCTION AND SUMMARY This summary has the following sections. Key conclusions in each section are presented below. Methodology Summary This MSR Update was prepared by the MSR consultants under direction of the LAFCO Executive Officer using input provided by the cities and CSDs. The work began in mid-2018. Draft chapters were distributed to each subject agency and their comments are incorporated where relevant. The Public Review Draft MSR was released on March 27, 2019, initiating a 30-day public comment period. A public hearing was held at the Contra Costa LAFCO meeting on April 17 and the public comment period closed on April 25, 2019. This final MSR Update incorporates minor changes related to the comments received from the Commissioners, municipalities, and public stakeholders during the review period. On June 12, the Commission will discuss the final draft and will be asked to accept the MSR, make required findings and determinations, and approve the SOI updates. Growth and Population Update Population in the County is expected to increase from an estimated 1,132,140 in 2017 to approximately 1,387,000 by 2040. Growth projections are not distributed evenly across the jurisdictions and Concord, Richmond, and Antioch are expected to grow the most. Jobs, Employed Residents and Housing Most jurisdictions in Contra Costa have jobs/employed residents and jobs/housing units ratios that are lower than many inner-Bay counties. These low values indicate that Contra Costa serves as a bedroom area for those counties that attract most employment. Until conditions change, this situation causes longer commute times, results in wasted off-peak capacity in the transportation network, and increases the amount of pollutants emitted by transportation. Financial Status of Municipalities and CSDs Financial conditions vary among jurisdictions. Several jurisdictions have a healthy financial condition. A few jurisdictions face heavy debt loads compared with their revenue and many have large unfunded pension and to a lesser extent other post-employment benefit (OPEB) liabilities. Short-term financial conditions are only severe in El Cerrito, where this report recommends further analysis before any future SOI adjustment is considered. Many cities are improving their financial condition and outlook. Shared Services Probably all jurisdictions participate in some shared services, either directly through a contract with another jurisdiction or through participation in a joint powers agreement. Shared services provide efficiencies and economies for jurisdictions and their citizens. Contra Costa LAFCO 1-6 Municipal Service Review Update Introduction and Municipal Service Review Summary Infill Development/Sprawl Prevention/Islands LAFCO encourages jurisdictions to pursue infill development before adding new land to either the SOI or boundary. Achieving this goal is supported by the existence of voter approved Urban Limit Lines (ULLs) and Urban Growth Boundaries (UGBs) covering all jurisdictions in the County, and by Contra Costa LAFCOs Agricultural and Open Space Preservation Policy (AOSPP). These policies also discourage sprawl. There are 16 small “city” islands in the County, and Contra Costa LAFCO has a policy to discourage the creation of islands and encourage annexation of small islands. Several of the islands include disadvantaged communities that would benefit from annexation to an adjacent city. Sphere of Influence Recommendations This report recommends that Contra Costa LAFCO maintain and reaffirm the SOIs for the 23 jurisdictions studied in this report. The report also recommends that no changes to the SOIs of six jurisdictions be approved until further analysis is completed. 1.3.1 METHODOLOGY The municipal services reviewed as part of this MSR Update were identified at the outset of the process; as well as types of data required, a timeline for data collection, and criteria to be used when making the MSR and SOI determinations required as part of this report. In May 2018, the LAFCO Executive Officer and lead MSR consultant attended the monthly Public Managers Association meeting to kick-off the MSR Update process. In June 2018, questionnaires were sent to City/District Managers and Finance Directors. In addition to agency questionnaires, the MSR team conducted a comprehensive review of publicly available documents from existing, readily available sources (e.g., US Census, Association of Bay Area Governments, State Department of Finance, city, district, and county websites). To assist in the data gathering process, an Agency Profile (partially pre-populated by MSR team) was distributed to each city and CSD with a request to verify and supplement the data. Agency profiles focused on MSR-related issues (i.e., agency overview; agency services, finances, growth and population; boundaries, islands, disadvantaged communities). For each of the agencies being reviewed, a list of service level statistics was compiled to help determine the adequacy of public services provided by each city and CSD. These agency-specific service level statistics are provided in Attachment B. Following the verification and augmentation of the Agency Profile data, a draft profile chapter was prepared and sent to each city and CSD for review, verification, and comments. In some cases, the requested data was not provided in time to be included in this MSR. Upon release of the Public Review Draft MSR, each subject agency was notified by email, and each agency was encouraged to place the Draft MSR on their meeting agenda for public discussion. The public comment period ended April 25, 2019. A public hearing was held on April 17, 2019 to discuss the draft MSR. This final MSR Update incorporates minor changes related to the comments received from the Commissioners, Contra Costa LAFCO Municipal Service Review Update 1-7 Chapter 1 municipalities, and public stakeholders during the review period. Attachment D to this MSR presents a compilation of the comments received and responses. On June 12, 2019, Contra Costa LAFCO will hold a public hearing on the Final Draft MSR at which time the Commission will be asked to accept the MSR, make the required findings and determinations, and approve the SOI updates. 1.3.2 GROWTH AND POPULATION UPDATE In 2018, Contra Costa County’s population was estimated by the California Department of Finance at 1,149,363 placing it as the ninth largest county in California.1 The Association of Bay Area Governments (ABAG) forecasts city and County populations as shown in Table 1.2.2 Forecast 2010- 2040 growth ranges from less than 600 in Clayton to more than 76,000 in Concord while percentage growth over the same period ranges from 5.5% in Clayton to 62.8% in Concord. TABLE 1.2 YEAR 2010, 2017, AND 2040 POPULATION ESTIMATES AND PROJECTIONS CONTRA COSTA COUNTY JURISDICTION 2010 20171 2040 Antioch 101,695 113,061 130,725 Brentwood 52,020 63,042 84,460 Clayton 10,665 11,431 11,255 Concord 122,155 129,159 198,850 Danville 42,470 44,396 47,350 El Cerrito 23,550 24,939 29,075 Hercules 23,680 26,317 28,700 Lafayette 23,995 25,655 26,815 Martinez 35,995 38,097 40,035 Moraga 16,035 16,991 18,080 Oakley 35,280 41,742 54,435 Orinda 17,300 19,199 18,745 Pinole 18,940 19,236 21,930 Pittsburg 63,415 72,647 91,615 Pleasant Hill 32,990 35,068 35,925 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ 2 ABAG. Projections 2017. Contra Costa LAFCO 1-8 Municipal Service Review Update Introduction and Municipal Service Review Summary JURISDICTION 2010 20171 2040 Richmond 103,050 119,067 164,220 San Pablo 29,730 31,593 34,090 San Ramon 71,295 82,643 84,165 Walnut Creek 64,920 70,667 81,265 Crockett CSD 2,562 Diablo CSD 807 Discovery Bay CSD 14,765 Kensington CSD 5,602 Unincorporated County 162,645 172,513 199,105 Contra Costa County Total2 1,051,830 1,149,363 1,387,300 1 California Department of Finance, January 1, 2018 estimate for cities; American Community Survey, 2016 estimate for CSDs. 2 Total reflects total of incorporated areas and balance of unincorporated County. 1.3.3 JOBS, EMPLOYED RESIDENTS, AND HOUSING Historically, jurisdictions in Contra Costa County have provided more housing than they have jobs. This leads to suboptimal use of transportation resources, increases travel times and costs for residents, produces more pollutants than would occur if commuting distances were shorter, and allows residents less time to spend with their families and in their communities. The jobs/employed residents’ ratio measures the balance between where people work and where they live. Jobs/employed resident ratios close to 1.0 imply that those who work in an area are likely to be employed in the same area, although a 1.0 ratio does not necessarily mean that the people who live in a municipality work there or that those who work in a municipality live there. As the size and population of the area being considered increases, the ratio will move towards 1.0, i.e., the ratio is more likely to be close to 1.0 for the nine-county Bay Area than for a single jurisdiction. Higher ratios suggest more jobs than employed residents while lower ratios suggest more employed residents than jobs. Table 1.3 shows jobs compared with employed persons for the municipalities in Contra Costa County. Several jurisdictions have ratios of less than 0.5, indicating a jobs/ employed resident imbalance. Several of these jurisdictions are in eastern Contra Costa County. The overall ratio of 0.70 for Contra Costa shows the County serves as a bedroom for people who work elsewhere. For purposes of comparison, a similar analysis conducted for Santa Clara County in 2015 showed a county-wide Jobs/Employed Resident ratio of 1.18. Contra Costa LAFCO Municipal Service Review Update 1-9 Chapter 1 TABLE 1.3 JOBS, EMPLOYED RESIDENTS, AND JOBS PER EMPLOYED RESIDENT BY JURISDICTION YEARS 2010 AND 2040 JOBS EMPLOYED RESIDENTS JOBS PER EMPLOYED RESIDENT JURISDICTION 2010 2040 2010 2040 2010 2040 Antioch 20,115 25,745 48,385 61,020 0.42 0.42 Brentwood 11,625 11,990 18,095 29,030 0.64 0.41 Clayton 1,995 2,095 6,245 6,975 0.32 0.30 Concord 54,275 95,455 61,520 93,480 0.88 1.02 Danville 11,840 13,120 21,280 26,630 0.56 0.49 El Cerrito 5,315 5,910 12,590 16,170 0.42 0.37 Hercules 4,955 5,420 12,370 15,300 0.40 0.35 Lafayette 8,990 9,940 12,185 15,030 0.74 0.66 Martinez 20,710 26,085 19,565 22,000 1.06 1.19 Moraga 4,570 5,725 7,620 9,400 0.60 0.61 Oakley 3,410 5,365 15,425 23,080 0.22 0.23 Orinda 4,835 5,500 8,275 10,435 0.58 0.53 Pinole 6,700 8,485 9,345 10,665 0.72 0.80 Pittsburg 11,835 15,615 27,185 39,380 0.44 0.40 Pleasant Hill 16,360 19,800 17,420 19,550 0.94 1.01 Richmond 30,685 61,815 44,610 70,010 0.69 0.88 San Pablo 7,430 9,100 10,970 12,840 0.68 0.71 San Ramon 47,950 71,775 36,240 46,940 1.32 1.53 Walnut Creek 50,855 58,090 32,075 42,240 1.59 1.38 Unincorporated County 35,790 41,085 76,035 95,700 0.47 0.43 Contra Costa County Total 360,230 498,115 497,445 665,875 0.72 0.75 Source: ABAG Projections 2017 Another frequently used measure of whether the number of housing units can meet demand is the jobs/housing ratio. This measures the number of jobs as a fraction of the number of housing units. This ratio will differ from the jobs/employed resident ratio because the number of employed residents per housing unit will differ from 1.0 and many housing units are occupied only by residents who are not employed (e.g., retirees). Table 1.4 shows the jobs/housing ratio for municipalities in Contra Costa. There is a close to 1:1 match between jobs and housing units countywide, but there is much variation among jurisdictions. The ratio in several jurisdictions is expected to move further away from 1.0 which implies an imbalance. For purposes of comparison, a similar analysis of the cities in Santa Clara County completed in 2014 found a jobs housing ratio of 1.63, a level exceeded by only three of Contra Costa’s 19 jurisdictions. Contra Costa LAFCO 1-10 Municipal Service Review Update Introduction and Municipal Service Review Summary TABLE 1.4 JOBS, HOUSING UNITS, AND JOBS/HOUSING RATIO FOR CONTRA COSTA JURISDICTIONS YEARS 2010 AND 2040 JOBS HOUSING UNITS JOBS/HOUSING RATIO JURISDICTION 2010 2040 2010 2040 2010 2040 Antioch 20,115 25,745 34,849 41,830 0.58 0.62 Brentwood 11,625 11,990 17,523 27,550 0.66 0.44 Clayton 1,995 2,095 4,086 4,205 0.49 0.50 Concord 54,275 95,455 47,125 67,145 1.15 1.42 Danville 11,840 13,120 15,934 16,300 0.74 0.80 El Cerrito 5,315 5,910 10,716 12,355 0.50 0.48 Hercules 4,955 5,420 8,553 9,835 0.58 0.55 Lafayette 8,990 9,940 9,651 10,165 0.93 0.98 Martinez 20,710 26,085 14,796 15,640 1.40 1.67 Moraga 4,570 5,725 5,754 6,020 0.79 0.95 Oakley 3,410 5,365 11,484 17,050 0.30 0.31 Orinda 4,835 5,500 6,804 6,935 0.71 0.79 Pinole 6,700 8,485 7,158 7,430 0.94 1.14 Pittsburg 11,835 15,615 21,126 27,525 0.56 0.57 Pleasant Hill 16,360 19,800 14,321 14,550 1.14 1.36 Richmond 30,685 61,815 39,328 56,310 0.78 1.10 San Pablo 7,430 9,100 9,571 10,010 0.78 0.91 San Ramon 47,950 71,775 26,222 30,920 1.83 2.32 Walnut Creek 50,855 58,090 32,681 38,650 1.56 1.50 Unincorporated County 35,790 41,085 – 69,530 – 0.59 Contra Costa County Total 360,230 498,115 – 489,955 – 1.02 Sources: ABAG Projections 2017; Bay Area Census housing unit data for 2010 In addition to the ABAG projections, there are other regional planning and policymaking efforts to help guide development in Contra Costa County. For over a decade, local governments and regional agencies have been working together to encourage the growth of jobs and production of housing in areas supported by amenities and infrastructure. Plan Bay Area, developed and approved by ABAG and the Metropolitan Transportation Commission (MTC), is a long-range integrated transportation and land use/housing strategy for the San Francisco Bay Area, including Contra Costa County. 3 Plan Bay Area was first adopted in 2013 and updated four years later as required by law. In August 2019, ABAG and MTC will embark on another update. 3 ABAG and MTC, Plan Bay Area 2040, Regional Transportation Plan and Sustainable Communities Strategy for the San Francisco Bay Area, 2013, as amended July 2017. Contra Costa LAFCO Municipal Service Review Update 1-11 Chapter 1 Plan Bay Area is the regional response to California Senate Bill 375 – the California Sustainable Communities and Climate Protection Act of 2008, which requires the state’s metropolitan areas to reduce greenhouse gas emissions from cars and light trucks. Plan Bay Area directs new growth within existing urban footprints, locally adopted urban growth boundaries, and along major transit corridors, which is anticipated to provide more development in pedestrian- and bike-friendly areas that are close to public transit, jobs, schools, shopping, recreation, and other amenities.4 Directing growth to these areas has the ancillary effect of protecting farmland, open space, and natural resources in the Bay Area, and is in line with the goals of LAFCOs. As part of the Plan Bay Area development process, local jurisdictions have identified Priority Development Areas (PDAs) and Priority Conservation Areas (PCAs), forming the implementing framework. PDAs are areas where new development will support the day-to-day needs of residents and workers in a pedestrian-friendly environment served by transit. PCAs are areas of regionally significant open space facing development pressure and for which there is a broad consensus for long-term protection. Promoting development within PDAs reduces development pressure on open space and agricultural lands—a key interest of LAFCOs. Municipalities in Contra Costa County (except for Brentwood and Clayton) have identified at least one PDA within their boundaries. Contra Costa County has also identified PDAs within urbanized unincorporated areas. Other regional plans that help guide development and preserve agricultural and open space land including the East Contra Costa Habitat Conservation Plan and various land use compacts (e.g., Briones Hills Agricultural Preservation Area compact). 1.3.4 FINANCIAL STATUS OF CITIES, TOWNS AND CSDS In the first decade of this millennium, several jurisdictions in Contra Costa were growing rapidly and their budgets benefitted from the increases in assessed valuation, sales tax receipts, and other taxes and fees associated with new development. The economic slowdown that began in 2008 hit Contra Costa local government agencies hard, especially those municipalities that had a large share of new housing stock. Several of these jurisdictions saw their assessed valuation, which drives property tax revenue, decline significantly due to rampant home foreclosures and vacancies. Jurisdictions with older housing stock saw a smaller percentage decline in assessed values because Proposition 13 caps had kept assessed valuations below market values and even as market values declined, they did not dip below Proposition 13 assessed valuation caps. In addition, sales tax declined significantly as did other sources of revenue. Jurisdictions responded by cutting spending where possible. Some also raised fees as permissible under state law and went to their voters to ask them to approve additional taxes. The result is that even if one ignores the unequal allocation of base property taxes which can be the result of several factors, jurisdictions are funded unevenly as is shown in Table 1.5. 4 Local jurisdictions maintain control of all decisions to adopt plans and permit or deny development projects. Contra Costa LAFCO 1-12 Municipal Service Review Update Introduction and Municipal Service Review Summary TABLE 1.5 COMPARISON OF SELECTED CITY REVENUE ENHANCEMENTS FY 2017 PROPERTY TAX 1% SALES TOTAL PROPERTY TAX % OF GENERAL PARCEL TAX TAX ADDITIONAL LOCAL ADDITIONAL LOCAL UTILITY USERS % RATE CITY % RATE (1) FUND SPEC. ASSESS. % OF GF SALES TAX % RATE SALES TAX EXPIRES TAX (2) (3) Antioch 11.4% 34% n/a 37% 0.50% 2021 n/a 10.0% Brentwood 13.4% 27% n/a 18% n/a n/a n/a 10.0% Clayton 0.7% 54% $1,100,000 10% n/a n/a n/a 4.0% Concord 10.6% 15% n/a 45% 0.50% 2025 n/a 10.0% Danville 7.6% 55% $580,000 22% n/a n/a n/a 6.5% El Cerrito 22.2% 27% n/a 22% 1.00% 2026 8% 10.0% Hercules 5.4% 7% n/a 13% 0.50% n/a 8% 10.0% Lafayette 6.7% 28% n/a 18% n/a n/a n/a 9.5% Martinez 15.9% 37% n/a 21% 0.50% 2031 n/a 10.0% Moraga 5.3% 26% n/a 12% 1.00% 2033 n/a n/a Oakley 7.1% 46% n/a 14% n/a n/a n/a 10.0% Orinda 7.4% 48% $514,000 15% 0.50% 2022 n/a 10.0% Pinole 18.8% 20% n/a 44% 1.00% n/a 8% 10.0% Pittsburg 18.3% 8% n/a 32% n/a n/a n/a 12.0% Pleasant 5.7% 25% $560,000 35% 0.50% 2037 1% (intrastate 10.0% Hill tel) Richmond 28.5% 22% n/a 25% 1.00% n/a 9.5%-10% 10.0% San Pablo 9.8% 2% n/a 9% 0.50% 2022 (.25%) 4% 12.0% San Ramon 9.6% 39% $6,900,000 20% n/a n/a n/a 7.25% Walnut 9.5% 27% n/a 24% n/a n/a n/a 8.5% Creek (1) Increment Factor (% share of tax growth) for TRA with the majority of agency assessed value (Report: EA3281-01_2017_18; fund codes from Report: DG3876 Chart of Funds; Property Tax Division Contra Costa County Office of the Auditor-Controller). (2) Utility Users Tax, CaliforniaCityFinance.com, Michael Coleman 530.758.3952, file: "UUT15p.xlsx", 2015. (3) Transient Occupancy Tax, CaliforniaCityFinance.com, Michael Coleman 530.758.3952, file: "TOT15p.xlsx", 2015. Contra Costa LAFCO Municipal Service Review Update 1-13 Chapter 1 While many jurisdictions face fiscal challenges, all the subject municipalities and CSDs believe they can meet their obligations and provide necessary services over the next five years. Several jurisdictions have used reserves to offset revenue declines rather than relying solely on service reductions; and as a result, their fund balances have not returned to their locally established goals. Detailed findings can be found in the analyses of each local agency. There are several fiscal challenges facing many jurisdictions. • The cost of pensions and OPEBs are increasing and are likely to consume an increasing share of jurisdictions’ expenditures. Barring new revenue sources or changes to pension laws, there is no easy fix. The establishment of pension and OPEB trusts can help agencies increase earnings on their deposits, and manage contributions towards growing pension and OPEB payments when needed to mitigate impacts on funding of agency services. • Stormwater control requirements mandated by regional and state agencies are increasing the cost of treating stormwater without providing compensating new revenue sources. In addition, there are other unfunded mandates facing jurisdictions. • The incremental sales taxes approved by voters in some jurisdictions will expire and to date voters have not been asked to approve extensions. • Many cities used redevelopment to fund capital projects deemed necessary to the revitalization of most cities in Contra Costa County. The importance of redevelopment varied by city and in some cases included only a small portion of a city and in others covered much of the incorporated area. Redevelopment funds also represented the largest source of public funding produced by cities that was channeled into affordable housing. Redevelopment was canceled in 2011 and obligations incurred by that time are being funded. There are some successor programs for redevelopment but those have not been used extensively to date. • Many activities of jurisdictions involve providing capital infrastructure including roads and signalization, stormwater drains, sidewalks, parks and recreation facilities, other public buildings, and water and sewerage systems in some cities. Many cities do not spend enough on capital facilities to offset the effects of depreciation and changes in technology. There is some funding available from county, regional, state, and federal sources for roads and signalization but this is often insufficient compared with the need. Some jurisdictions seek voter approval for special taxes and fees to cover these costs. Many, but not all of these initiatives have been successful, but a capital funding shortfall remains. Because reinvestment in capital facilities is often less than depreciation, many jurisdictions are recording a decline in net assets. Highlights of finance issues for each jurisdiction are listed in Table 1.6. Contra Costa LAFCO 1-14 Municipal Service Review Update Introduction and Municipal Service Review Summary TABLE 1.6 SIGNIFICANT FINANCIAL CONSIDERATIONS BY JURISDICTION JURISDICTION NET WORTH/RESERVES REVENUES AND OTHER EXPENDITURES Antioch • Stable net position and • Local sales tax expires • Require funds for road improving liquidity in 2021 repair ratio • Increasing pension and OPEB liabilities Brentwood • Improving net position – – and improving liquidity ratio Clayton • Improving net position – • Low tax and and stable liquidity expenditure rates ratio • Increasing pension and OPEB liabilities Concord • Stable net position and • Foresees growing • Supplemental sales tax liquidity ratio structural budget expires in 2025 deficit • Increasing pension and OPEB liabilities Danville • High unrestricted – • Defined contribution funds balance retirement plan • Improving liquidity ratio El Cerrito • Stable net position and • Local sales tax expires • Low reserves low liquidity ratio in 2026 • Increasing pension and OPEB liabilities Hercules • Low but stable – • High debt burden liquidity ratio given city size Lafayette • Stable net position and • Multiple failed local tax • Defined contribution declining liquidity elections retirement plan ratio Martinez • Improving liquidity • Local sales tax expires – ratio in 2033 • Increasing pension liability Moraga • Stable liquidity ratio • Local sales tax expires • Inadequate reserves in 2033 • Increasing pension liabilities Contra Costa LAFCO Municipal Service Review Update 1-15 Chapter 1 JURISDICTION NET WORTH/RESERVES REVENUES AND OTHER EXPENDITURES Oakley • Improving liquidity – – ratio • Low pension and no OPEB liability Orinda • Declining liquidity • Local sales tax expires • Defined contribution ratio in 2022 retirement plan Pinole • Improving liquidity • Projecting shortfalls – ratio due to pension costs • Increasing pension liability and stable OPEB liability Pittsburg • Decreasing liquidity • Using reserves to offset – ratio shortfalls • Increasing pension liability Pleasant Hill • Decreasing liquidity – • Low debt per capita ratio • Increasing pension liability Richmond • Low liquidity ratio • High expenditures per • Voters have approved capita multiple additional • Low fund balances taxes given budget size • Increasing pension liability San Pablo • Decreasing but high • Half of local sales tax – liquidity ratio expires in 2022 • Increasing pension liability San Ramon • Fluctuating liquidity – • Expenditures for new ratio civic center affect trends Walnut Creek • Fluctuating liquidity – • Low debt per capita ratio • Increasing pension liability Crockett CSD • Relatively small agency – • Enterprise activities larger than general • Increasing pension government activities liability Contra Costa LAFCO 1-16 Municipal Service Review Update Introduction and Municipal Service Review Summary JURISDICTION NET WORTH/RESERVES REVENUES AND OTHER EXPENDITURES Diablo CSD • Relatively small agency – • Defined contribution retirement plan • Declining liquidity ratio Discovery Bay • Stable liquidity ratio – • Enterprise activities CSD larger than general government activities • Defined contribution retirement plan Kensington • Stable liquidity ratio – – CSD • Increasing pension liability POSITIVE FISCAL INDICATORS Several cities and districts covered in this MSR Update have made positive strides to enhance fiscal health including maintaining strong liquidity ratios (i.e., most agencies covered in this MSR), reducing debt obligation, maintaining a positive net position, implementing successful local revenue measures, and preparing timely financial planning reports. Some examples are presented below. • Cities of Clayton and Pleasant Hill, as well as Crockett, Diablo and Discovery Bay CSDs report having no outstanding debt obligations • Cities/towns of Danville, Lafayette, and Orinda, as well as Diablo and Discovery Bay CSDs have no unfunded pension liabilities • Many cities have minimal or no OPEB unfunded liabilities • Most of the subject cities and CSDs regularly update their capital improvement programs to plan for funding future improvements • All the subject cities and CSDs prepare annual financial reports reviewed by independent auditors and issue Certified Annual Financial Reports; and with a few exceptions, these reports area prepared in a timely manner While cities and CSDs can take steps to stabilize and improve financial conditions, over the longer- term, state legislation is needed to address many of the issues, such as changes to the pension system, state funding of infrastructure, and unfunded state mandates. 1.3.5 SHARED SERVICES Probably all jurisdictions participate in some shared services, either directly through a contract with another jurisdiction, participation in a joint powers agreement such as for solid waste management (e.g., Central Contra Costa Solid Waste Authority) or in a voter approved entity including the Contra Costa Transportation Authority. Shared services are valuable. Examples of shared services are shown below and are discussed further in the individual agency profiles Contra Costa LAFCO Municipal Service Review Update 1-17 Chapter 1 • Many cities have shared agreements with Contra Costa County for library facilities and services. • The City of San Pablo’s shared Police Dispatch and Records Management System is a shared joint function with the cities of Pinole and Hercules; and the City of San Pablo has joint use arrangements with the West Contra Costa Unified School District. • The San Ramon Police Department (PD) participates in the Central County SWAT Team with Martinez, Walnut Creek, Pleasant Hill, and Bay Area Rapid Transit Police to safely resolve critical incidents. The San Ramon PD also uses a joint-use 911 Communications Center for all emergency and non-emergency calls for service. The City of San Ramon shares capital facilities with San Ramon Unified School District for school parks, the aquatic center, and the Dougherty Valley Performing Arts Center. Additionally, the two San Ramon libraries are shared with the County library system. • The City of Walnut Creek owns several facilities which are leased by other agencies (i.e., Lindsay Wildlife Experience, Gardens at Heather Farm, UC Master Gardeners, Walnut Creek Historical Society, Assistance League of Diablo Valley, Walnut Creek Model Railroad Society, Walnut Creek Downtown, Walnut Creek Library). Walnut Creek also provides street sweeping services to Lafayette under a contract. • The Discovery Bay CSD leases an old fire house station from East Contra Costa Fire Protection District for landscaping services (i.e., crew and equipment). 1.3.6 INFILL DEVELOPMENT/SPRAWL PREVENTION/ISLANDS Pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act, LAFCO is charged with encouraging efficient development of existing vacant lands and infill properties within an agency’s boundary. This MSR reviews the sprawl prevention and infill development efforts of each city. There are a number of regional efforts that help guide orderly, efficient patterns of urban development, prevent urban sprawl, and help preserve agricultural and open space lands. Such plans and policies include the ABAG/MTC Plan Bay Area, the Regional Housing Need Plan, voter approved ULLs/UGBs, regional transportation plans, and habitat conservation plans, as well as local agency and LAFCO plans and policies. As part of the Plan Bay Area process, many cities have identified PDAs. The PDAs are intended to encourage the growth of jobs and production of housing in areas supported by amenities and infrastructure. Many Contra Costa cities are growing via infill development and do not anticipate that current or projected growth patterns will require expansion beyond their existing municipal boundaries or SOIs. As shown in this MSR Update, a majority of cities have identified undeveloped entitled residential acres in considering their anticipated future growth patterns, as well as a number of commercial and residential projects in the entitlement process. Plan Bay Area concentrates most growth in PDAs, all of which lie within existing urbanized areas. Contra Costa LAFCO 1-18 Municipal Service Review Update Introduction and Municipal Service Review Summary Each jurisdiction is assigned a Regional Housing Needs Allocation (RHNA) that covers an eight-year period. Each jurisdiction must zone land in a manner suitable for the number and types of housing required by its RHNA to receive state approval of its housing element.5 All Contra Costa jurisdictions have done so. Two additional regional policies discourage sprawl outside of existing urban boundaries and SOIs. First, Contra Costa voters approved an ULL that imposes financial penalties for the County and cities that approve development outside the ULL except in unusual circumstances. The County and 16 cities have adopted the countywide ULL. The cities of Antioch, Pittsburg, and San Ramon have their own voter approved UGBs. And while special districts and LAFCO are not bound by the ULL and UGBs, these agencies respect the growth boundaries. Second, in 2016, Contra Costa LAFCO approved an AOSPP that promotes LAFCO’s mission of supporting logical and orderly development and preserving agricultural and open space lands. LAFCO’s policy provides goals, policies, and guidelines for stakeholders, applicants, and LAFCO Commissioners relating to LAFCO applications. LAFCO’s AOSPP was developed to guide LAFCO’s decisions regarding agricultural and open space lands in Contra Costa County, as well as to clarify LAFCO’s expectations in reviewing applications that include agricultural and open space lands. Contra Costa County has adopted policies intended to strengthen the agricultural sector of the economy which will make agricultural land less attractive for conversion. Also, some cities have developed policies relating to agriculture and open space preservation (see Attachment A). Regarding islands, in 2012, Contra Costa LAFCO held a workshop on unincorporated islands in Contra Costa County; and subsequently developed a policy to discourage the creation of islands and encourage annexation of small islands. Islands create illogical boundaries and service challenges for residents and local agencies. There are currently 16 small “city” islands in Contra Costa County that can be annexed through an expedited LAFCO process. These islands are located throughout the County and within the SOIs of the cities of Antioch, Brentwood, Clayton, Concord, Oakley, Pleasant Hill, San Pablo, San Ramon, and Walnut Creek. Several of these islands are disadvantaged communities which could benefit from annexation to a city (Figure 1.2 and Figure 1.3). LAFCO encourages annexation of these small islands. 5 ABAG, Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO Municipal Service Review Update 1-19 Unincorporated "Islands" under 300 Acres in Contra Costa County }þ 29 §¨¦ §¨¦ 680 780 }þ 160 §¨¦ 80 Pittsburg R:73 Hercules S:108 P:195 93% Pinole Martinez D 8 : 9 5 % 1 }þ 242 Q:78 Antioch Oakley San A:132 Concord 85% Pablo C:5 E:37 M:189 U:151 B:97 T:140 98% Pleasant Richmond Hill N:58 Clayton Brentwood I:10 71% }þ 4 §¨¦ El O:48 580 Cerrito F:55 Walnut 61% 96% Creek G:190 Orinda }þ K:276 24 H:104 J:54 Lafayette 94% §¨¦ 80 }þ 80 §¨¦ }þ 980 §¨¦ 13 580 ¯ MapCreated01/23/2012 byContraCostaCountyDepartmentofConservationandDevelopment,GISGroup Unincorporated"Islands"under150Ac 651PineStreet,4thFloorNorthWing,Martinez,CA94553-0095 37:59:48.455N122:06:35.384W This D m e a v p elo w p a m s e c n re t a w te ith d d b a y t t a he fro C m on th tr e a C C o o n s t t r a a C C o o u s n ta ty C D o e u p n a ty rtm G e IS nt P o r f o C gr o a n m se . r S va o t m io e nand Unincorporated"Islands"under300Ac L:0.13 San basedata,primarilyCityLimits,isderivedfromtheCAStateBoardofEqualization's its ta a x cc ra u t r e ac a y re . a T s h . is W m h a ile p o co b n lig ta a i t n e s d c t o o p u y s ri e gh th te is d d in a f t o a r t m he at C io o n u a n n ty d a m s a s y um no e t s b n e o a r l e te s r p e o d n . si I b t i m lit a y y fo b r e NonCityLimitportionof"Island" Ramon Miles reproducedinitscurrentstateifthesourceiscited.Usersofthismapagreetoreadand (%SurroundedbyCity) accepttheCountyofContraCostadisclaimerofliabilityforgeographicinformation. 0 2 4 Figure 1.2. Unincorporated Islands under 300 Acres in Contra Costa County June 2019 Disadvantaged Communities (DAC) Determination American Community Survey 5-year Estimates (2013 - 2017) Pittsburg Pinole Hercules Martinez Richmond Oakley Antioch San Concord Pablo Pleasant Richmond Hill Richmond Clayton Brentwood El Walnut Cerrito Creek Lafayette Orinda Moraga Danville San Ramon Legend Disadvantaged Cities or Census Designated Places (CDPs) 2013-2017 DAC/DUC Comunities µ Disadvantaged Community includes Census Tracts, Block Groups, and Places where the median household income is less than 80% 0 2.25 4.5 9 of the statewide median household income Miles Figure 1.3. Location of Disadvantaged Communities in Contra Costa County June 2019 Chapter 1 1.4 SPHERE OF INFLUENCE DETERMINATIONS Government Code section 56425(e) requires LAFCO to prepare a written statement of determinations as part of the review of the existing SOI for each local agency. The SOI determinations in this MSR Update are summarized below. Present and Planned Land Uses (including agricultural and open space lands) – The cities and CSDs reviewed in this MSR Update plan for a variety of land uses within their boundaries, representing a continuation of the current mix of uses, including industrial, office, commercial, residential, transit oriented development, retail, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, as demonstrated in the local agency General Plans. Present and Probable Need for Public Facilities and Services – There are no anticipated changes in the type of public services and facilities required within the SOIs for the cities and CSDs reviewed in this MSR Update. The level of demand for these facilities and services, however, will increase commensurate with anticipated population and job growth over the next five years. Present and Probable Future Capacity of Public Facilities and Services – The present capacity of public facilities in the cities and CSDs reviewed in this MSR Update appears adequate. The cities and CSDs reviewed in this MSR Update anticipate they will continue to have adequate capacity during the next five years. Existence of any Social or Economic Communities of Interest – In general, communities of interest within the municipal boundaries of the cities and CSDs covered in this MSR Update are included within their SOIs. As part of this review, Contra Costa LAFCO has identified specific social or economic communities of interest relevant to the cities/towns of Danville, Lafayette, Pleasant Hill, San Pablo, and Walnut Creek. There are several communities located in the East Danville and Camino Tassajara areas that are within Danville’s SOI and are communities of interest. There has been some growth and development in and around these areas. Also, there has been interest by some of the residents in these areas for enhanced police services and annexation to the Town of Danville. This report recommends that the Town consider annexing these areas. In the past several years, there has been interest by neighborhood groups in the Newell Avenue/ Olympic Blvd and Reliez Valley areas to annex to the City of Lafayette. City officials have discussed potential annexation with these neighborhoods indicating that due to deficient infrastructure (e.g., roads, drainage); a special tax would be needed to support City services in these areas. Discussions continue with the interested parties. Contra Costa LAFCO has identified three islands within the City of Pleasant Hill’s SOI that potentially represent communities of interest that the City should consider annexing. Contra Costa LAFCO 1-22 Municipal Service Review Update Introduction and Municipal Service Review Summary The Rollingwood community is a community of interest and is a small island which can be annexed via an expedited process. LAFCO encourages the City of San Pablo to consider annexing the Rollingwood island. There are several communities of interest within the City of Walnut Creek’s SOI but not within the municipal boundary. Residents in these areas have Walnut Creek addresses, travel City streets, attend City schools, and are surrounded by the City of Walnut Creek. This report recommends that the City consider annexing these island and pocket areas. Present and Probable Need for Sewer, Municipal and Industrial Water, or Structural Fire Protection Public Facilities and Services of any Disadvantaged Unincorporated Communities Within the Existing SOI – There are disadvantaged communities within the boundary, SOI, or contiguous to the SOI of the cities of Antioch, Brentwood, Concord, El Cerrito, Martinez, Oakley, Pinole, Pittsburg, Pleasant Hill, Richmond, San Pablo, and Walnut Creek (see Figure 1.2). Bethel Island in its entirety is a disadvantaged unincorporated community. Most of Bethel Island does not have access to municipal water service. 1.5 SPHERE OF INFLUENCE RECOMMENDATIONS This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the following cities and CSDs reviewed in this MSR Update: • City of Antioch • City of Pinole • City of Brentwood • City of Pittsburg • City of Clayton • City of Pleasant Hill • City of Concord • City of Richmond • Town of Danville • City of San Pablo • City of El Cerrito • City of San Ramon • City of Hercules • City of Walnut Creek • City of Lafayette • Crockett CSD • City of Martinez • Diablo CSD • Town of Moraga • Town of Discovery Bay CSD • City of Oakley • Kensington Police Protection and • City of Orinda CSD This report also recommends that any future SOI changes for the City of El Cerrito not be considered until such time as another review is conducted to examine the City’s financial ability to provide services; and that any future SOI changes not be considered for the City of Concord, Town of Moraga, and City of Richmond until such time as a more complete review has been conducted to examine their capacity, adequacy, and financial ability to provide services. Contra Costa LAFCO Municipal Service Review Update 1-23 Chapter 1 1.6 CONCLUDING REMARKS Since the prior MSRs were last conducted for cities, towns, and CSDs, these jurisdictions have continued to provide service, have worked to address concerns raised in the prior MSRs, and several have secured new funding sources to address community needs. All jurisdictions have shown operational, financial, governance, and operational abilities to continue to provide services and to support reasonable growth within the next five years. This MSR recommends that the SOIs for all the studied jurisdictions remain unchanged at this time. Many communities that were seriously affected by the Great Recession and its effects on residents and real estate values have now largely or fully recovered. There are potentially serious financial challenges, largely caused or exacerbated by pension obligations for those communities that offer defined-benefit retirement programs. Many jurisdictions are addressing this growing concern. Compared to their peers in other Bay Area counties, jurisdictions in Contra Costa have a jobs/housing imbalance, namely too few jobs for the number of residents and housing units. This results in severe impacts on the transportation network and longer commutes that cause more pollution, greater commuting expenses, and excessive time away from families and communities. The region should rely on existing planning programs to address this concern and Contra Costa jurisdictions can advocate for a change in the policies that led to the current situation. ACKNOWLEDGEMENTS This MSR Update would not be possible without the substantial information and time investment provided by the 19 cities and 4 CSDs included in this report. We express our appreciation to the leadership of these agencies, including city managers, finance directors, public works directors, and community development directors, as well as to the staffs of the 23 agencies, whose contributions to the data gathering efforts were invaluable. We also extend our thanks to Contra Costa LAFCO Executive Officer Lou Ann Texeira, who provided project direction and review; Richard Berkson of Berkson Associates, who provided the fiscal review and analysis for each agency; Don Tatzin, who provided assistance in writing the Executive Summary; and the County demographics/GIS staff, who prepared the maps and select demographic information for this MSR Update. Contra Costa LAFCO 1-24 Municipal Service Review Update C 2 HAPTER C A ITY OF NTIOCH 2.1 AGENCY OVERVIEW The City of Antioch, incorporated in 1872, covers an area of approximately 28 square miles. With an estimated population of 113,061, the City has a population density of approximately 4,037 persons per square mile.1 The City of Antioch lies in eastern Contra Costa County between the cities of Brentwood and Oakley on the east and Pittsburg on the west. County lands bound the City to the south. The Sphere of Influence (SOI) for the City of Antioch is mostly coterminous with the municipal boundary, with the exception of extensions to the north (San Joaquin River and County boundary) and to the south, as shown in Figure 2.1. The City has its own voter-approved Urban Limit Line which surrounds the entire City. Land uses in the City include a mix of industrial, residential, office, commercial, transit oriented development, retail, mixed use, agricultural, and open space. Agricultural uses include hayfields, vineyards, almond orchards, and walnut orchards. 2.1.1 FORM OF GOVERNMENT The City of Antioch is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the directly elected Mayor; members serve staggered four-year terms. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 2-1 Figure 2.1. City of Antioch Municipal Boundary and Sphere of Influence June 2019 City of Antioch 2.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 269.0 full-time equivalent (FTE) employees. Table 2.1 shows the four service areas with the highest staffing levels. TABLE 2.1 CITY OF ANTIOCH HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 128.0 Public Works 83.0 Finance and Administrative Services 21.0 Community Development 15.0 Source: City of Antioch Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the City of Antioch, with 128.0 FTE employees. 2.1.3 JOINT POWERS AUTHORITIES The City of Antioch is a member of several joint powers authorities (JPAs), which are listed in Table 2.2. TABLE 2.2 CITY OF ANTIOCH JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Antioch Public Finance Authority Bond financing Contra Costa Delta Highway Joint Powers Financing Transportation Authority Contra Costa Water District Treated water Contra Costa Transportation Authority Congestion management Delta Diablo Sanitation District Recycled water program Contra Costa LAFCO Municipal Service Review Update 2-3 Chapter 2 JOINT POWERS AUTHORITY SERVICE East/Central County Wastewater Management — Authority East Contra Costa Regional Fee and Finance Transportation mitigation fee program Authority Eastern Contra Costa Transit Authority (TriDelta) Transportation State Route 4 Bypass Authority Transportation Source: City of Antioch 2.1.4 AWARDS AND RECOGNITION Since the first round Municipal Service Review (MSR), the City of Antioch has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for FYs 2013 through 2017. 2.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 2.3, municipal services for the City of Antioch are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 2.3 CITY OF ANTIOCH MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control City of Antioch Broadband AT&T, Comcast, River Delta Wireless, Winters Broadband Building / Planning City of Antioch Law Enforcement City of Antioch Library Contra Costa County Lighting City of Antioch Parks and Recreation City of Antioch Solid Waste Allied Waste Stormwater City of Antioch Streets City of Antioch Contra Costa LAFCO 2-4 Municipal Service Review Update City of Antioch SERVICE SERVICE PROVIDER Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Antioch The City of Antioch reports the following opportunities and challenges related to its provision of municipal services. Opportunities • Brackish water desalination plant, anticipated to deliver up to 6 million gallons a day of high quality, reliable, and sustainable water to the City Challenges • Creation of quality jobs • Unfunded state mandates (e.g., affordable housing, clean water, greenhouse gas emissions) • Funding future pension costs and the uncertainty of the projected rate of return for California Public Employees Retirement System investments • Staffing shortfalls and ongoing retirements in areas related to development and capital improvements A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 2.2.1 ANIMAL CONTROL The City of Antioch provides animal control services through the Antioch Animal Services Center. The Antioch Animal Services Center is responsible for the enforcement of Local and State Laws relating to the care, control, and protection of animals and Antioch citizens. Officers’ responsibilities include picking up and confining stray, sick, injured, vicious, and dead animals; issuance of dog licenses; patrolling the City streets; control of animal nuisance problems and animal euthanasia. The Animal Shelter also provides adoption, volunteer, and education programs. City expenditures for animal control services vary year to year, at $865,468 in FY 2017, up from $818,707 in FY 2016 and down from $867,451 in FY 2015. For 2017, 43.5 dog licenses were issued per 1,000 population. The number of animals handled by the City of Antioch in 2017 was 3,632 and 1,587 calls for service were received, reflecting a downward trend from 3,058 in FY 2015. Contra Costa LAFCO Municipal Service Review Update 2-5 Chapter 2 2.2.2 BROADBAND The City of Antioch does not provide public broadband service. Although broadband service includes Winters Broadband and River Delta Wireless, XFINITY from Comcast and AT&T Internet are the two main internet providers in the City.2 These providers use a variety of wired technologies including cable and DSL. The City of Antioch did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Antioch received a grade of C-, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.3 The City of Antioch did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 2.2.3 BUILDING/PLANNING The City of Antioch Community Development Department provides building and planning services. Department expenditures vary year to year, at $1.4 million in FY 2017, up from $1.3 million in FY 2016 and down from $1.7 million in FY 2015. The City of Antioch issued 2,424 residential and 184 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $113,436,750. Projects under construction in FY 2017 included multiple commercial and residential solar installations, a preschool and daycare center, several commercial remodels, and a charter elementary school. The City’s Project Development Pipeline can be viewed at https://www.antiochca.gov/fc/community-development/planning/Project-Pipeline.pdf. Planning city-wide has been captured in the General Plan and the Strategic Plan. 2.2.4 LAW ENFORCEMENT The City of Antioch Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $36.3 million, reflecting an upward trend from approximately $31.6 million in FY 2015. 2 Reese, Nick. Internet Access in California: Stats & Figures. Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 3 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 2-6 Municipal Service Review Update City of Antioch The City of Antioch has 0.9 FTE sworn personnel per 1,000 population, which represents a slight decrease from 0.93 FTE in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.4 There were 43.16 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 11% in 2017, and the violent crime clearance rate was 45%.5 2.2.5 LIBRARY Contra Costa County provides library services for the City of Antioch at its Antioch Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.6 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 2.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Antioch Department of Public Works. City expenditures for light and signal maintenance were approximately $782,319 in FY 2017, up from $729,368 in FY 2015. The City maintains 87 signalized intersections, 3,132 traffic lights, and 5,441 street lights. 2.2.7 PARKS AND RECREATION The City of Antioch Department of Public Works is the service provider for parks and recreation facilities, as well as landscaped medians and public planter beds, and the Recreation Department is the service provider for recreation programs. FY 2017 expenditures for parks were approximately $4 million in FY 2017, reflecting an upward trend from approximately $3.7 million in FY 2015. 4 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 5 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 6 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 2-7 Chapter 2 The City provides an extensive range of recreational activities and events for all ages, along with sports leagues, aquatics, marina activities, spring break camps and various special events. The City provides and maintains 2.9 park acres per 1,000 residents, 0.895 recreation center per 20,000 residents, and 24.9 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 2.2.8 SOLID WASTE Solid waste services are provided to the City of Antioch via franchise agreement with Republic Services. The City of Antioch FY 2017 expenditures for solid waste services were $195,795, down slightly from $196,683 in FY 2015. The City reported approximately 63,482 tons of waste disposed per capita for 2017. The 2017 per resident disposal rate was 3.1 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 2.2.9 STORMWATER/DRAINAGE The City of Antioch Department of Public Works provides and maintains the City’s stormwater drainage system. The City reports that they have 225.89 miles of closed storm drain lines and that 1.28% of their 7,422 storm drain inlets are equipped with trash capture. The City of Antioch also reports compliance with National Pollution Discharge Elimination System standards. Stormwater expenditures were $923,645 in FY 2017, down from $943,615 in FY 2015. 2.2.10 STREETS/ROADS The City of Antioch Department of Public Works provides and maintains 316.58 street miles as well as landscaped medians and other public landscaping. The lane miles of the City’s Class 1 and 2 bike lanes were unavailable at the time of this MSR update. FY 2017 expenditures for streets were approximately $4,896,374. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO 2-8 Municipal Service Review Update City of Antioch The PCI for streets in the City of Antioch was 68 (fair) in 2017, up from 66 in 2015, but remains below the target PCI of 75 (good) MTC has established.7 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. The City’s own 2017 Pavement Management System Report indicates a PCI of 71. 2.2.11 UTILITIES Pacific Gas & Electric provides gas and electricity service to the City of Antioch. The City is not a member of a Community Choice Aggregation program. The City of Antioch did not report whether it had concerns about the ability of utility service providers to serve the City’s existing or growing population. 2.3 FINANCIAL OVERVIEW This section provides an overview of the City’s financial health and assesses the City of Antioch’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 2.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City of Antioch. The City of Antioch prepares a biennial budget. As summarized in the City's budget, Mid-Year Budget Review,8 and described below, the City’s revenues do not cover its expenditures in FY 2018-19, and the City will use $2.2 million of reserves to balance the budget. Even with the use of reserves, the City's unassigned reserves exceed the City's policy that reserves equal or exceed a minimum 20% of revenues. Table 2.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The City's budget forecast anticipates "unsustainable structural deficits"9 beginning in FY 202018- 19. The anticipated deficits would have been compounded by the sunset of Measure C in 202110; however, Measure C was replaced by Measure W, a once-cent sales tax approved by voters in 7 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 8 Staff Report to the City Council, Mid-Year Budget Review, March 13, 2018, pg. 13. 9 City of Antioch 2017-19 Operating Budget, pg. ii. 10 A one-half-cent local sales tax measure adopted in 2013 that generates about $6.9 million annually Contra Costa LAFCO Municipal Service Review Update 2-9 Chapter 2 November 2018. Anticipated increases in unfunded pension liabilities and required payments will worsen the City's fiscal position.11 The City of Antioch increased its General Fund reserve policy from 10% to 20% of revenues for FY 2018 and subsequent years; the City has consistently exceeded 35% of annual General Fund expenditures over the past several years, even with the use of reserves in FY 2019 to cover shortfalls (see Attachment C). The City also retains reserves for replacement, mandated liabilities, and litigation/insurance. The City Council established a budget stabilization fund in March of 2018 during its mid-year budget review to aid in future planning and with the large projected California Public Employees Retirement System (CalPERS) increases. TABLE 2.4 CITY OF ANTIOCH SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $15,099,000 $16,363,000 $18,196,000 Sales Tax 17,595,000 19,973,000 19,395,000 Other Revenues (including Transfers) 17,910,000 20,810,000 15,263,000 Total General Fund Revenues $50,604,000 $57,146,000 $52,854,000 Change from Prior Year n/a 12.9% -7.5% GENERAL FUND EXPENDITURES General Government and $5,198,000 $7,749,000 $928,000 Administration 1 Public Safety 30,312,000 33,597,000 35,460,000 Other (includes Transfers Out) 12,503,000 13,008,000 12,136,000 Total Expenditures $48,013,000 $54,354,000 $48,524,000 Change from Prior Year n/a 13.2% -10.7% Expenditures per capita $429 $479 $432 11 The City reports that it is preparing the next biennial budget for the 2019-21 fiscal years. Based on preliminary revised 2018-19 projections, including the implementation of Measure W, FY 2018-19 will no longer be using reserves to balance the budget. Contra Costa LAFCO 2-10 Municipal Service Review Update City of Antioch ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 2 Governmental Activities 3.7 5.4 7.4 Business-type Activities 17.5 18.7 22.9 Source: Attachment C 1 FY 2017 CAFR shows cost allocations as reductions in charges to servicing department a change from prior year CAFRs. 2 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 2.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. Liquidity ratios for City of Antioch government and enterprise activities exceed 1.0 by a significant margin, indicating adequate liquidity.12 The City's total debt has been declining over time. Total debt was approximately $105 per capita in FY 2017,13 indicating significant reductions compared to the $493 per capita reported for FY 2015 (see Attachment C). 2.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Enterprise revenues have generally grown and positive net positions have increased overall, with the exception of the marina (see Attachment C). The total positive net position of governmental funds increased slightly between FY 2015 and FY 2017, and the negative unrestricted portion improved. The negative unrestricted amount is largely due to net pension liabilities. 2.3.4 LOCAL REVENUE MEASURES Measure C, the voter-approved one-half-cent local sales tax, generated approximately $6.9 million (13% of the City's total revenues) and is projected to grow about 3% to FY 2019. The measure expires in April, 2021. The funds help pay for increases in police and code enforcement services. Measure W, a one-cent sales tax measure approved by voters in November 2018 will replace the current one-half-cent Measure C sales tax for general purposes. The Antioch City Council will decide how to begin allocating Measure W funding during the budget cycle in early 2019. 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 13 Attachment C. Contra Costa LAFCO Municipal Service Review Update 2-11 Chapter 2 2.3.5 ENTERPRISE ACTIVITIES The City of Antioch's enterprise operations include water, sewer, marina, and waterpark. The City also owns a golf course which is operated by a separate corporation which has been unable to make lease payments sufficient to pay outstanding debt service on golf course improvements. The City indicates that its General Fund subsidizes the Prewett Water Park Enterprise consistent with adopted policy to invest in community programming. 2.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City's unfunded pension and other post-employment benefit (OPEB) liabilities continue to grow significantly, doubling since 2013 to a combined $159.9 million as of June 30, 2017.14 The City of Antioch is current on amortization payments of unfunded liabilities and the City has a policy that a minimum of 50% of one-time revenues will be applied to unfunded liabilities. The City previously considered establishing a Section 115 Trust restricted to pension and OPEB funding; however, the City Council rejected the plan. The City Council has approved a budget stabilization fund which will be used for various purposes as needed.15 2.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of the City capital assets has generally been declining over time (see Attachment C). This decline suggests that increased funding may be needed to keep pace with the depreciation of the assets. The City notes that it is "unable to facilitate ongoing funding and significant investment in roadway maintenance and preservation."16 In response, the City's developed several strategies including updating its Pavement Management System every two years, and exploring new technologies and revenue streams to address funding shortfalls. The City of Antioch plans to consider a new fee study prior to expiration of current rates in 2019 to assure adequate connection fees. The City also requires developers to construct expansion of utility distribution and collection systems that serve the new development. 2.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal 14 Staff Report to the City Council, Mid-Year Budget Review, March 13, 2018, pg. 5. 15 Staff Report to the City Council, Mid-Year Budget Review, March 13, 2018, pg. 6. 16 City of Antioch response to MSR fiscal questions. Contra Costa LAFCO 2-12 Municipal Service Review Update City of Antioch bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City of Antioch prepares long-term budget forecasts which identified the need for additional revenues and/or cost reductions to address growing pension costs and the possible loss of Measure C revenues. The City is seeking measures to address its structural deficit, including minimizing General Fund subsidies of its golf course and water park. City policies strive to set-aside a portion of one-time revenues and surpluses into reserves. The City continues its downtown revitalization efforts including a new restaurant and residential development. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 2.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Antioch. 2.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Antioch serves 113,061 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Antioch are depicted in Figure 2.2. Contra Costa LAFCO Municipal Service Review Update 2-13 City of Antioch 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 2.2. Population, Job, and Household Growth Projections (2010-2040) City of Antioch June 2019 City of Antioch ABAG projects that the City of Antioch will grow at an annual rate of approximately 0.8% to a population of 130,725 between 2010 and 2040.17 The City is also projected to experience an approximate 0.81% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data18 for 2010, the City of Antioch has 43,865 employed residents. The ABAG Projections data19 for 2010 estimated 20,115 jobs in the City, with approximately 0.42 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Antioch has 34,849 housing units, which results in a job and housing balance of 0.58. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 2.5), indicating that the rate of homeownership exceeds the rental household rate. TABLE 2.5 CITY OF ANTIOCH HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 20,751 Renter-occupied housing units 11,501 Vacant housing units 2,597 Total existing housing units 34,849 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very Low 349 Low 205 Moderate 214 Above Moderate 680 Total Regional Housing Need Allocation 1,448 Sources: ABAG, Bay Area Census; Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.20 The City of Antioch was assigned a RHNA of 1,448 units, as shown in Table 2.6. 17 ABAG. Projections 2017. 18 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 19 ABAG. Projections 2017. 20 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO Municipal Service Review Update 2-15 Chapter 2 The City adopted its General Plan in 2003 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 2,448 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Antioch 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.21 The City of Antioch provides a variety of programs and services in the areas of health, education, and recreation to meet the needs of adults age 50 and older, as shown in Table 2.6. TABLE 2.6 CITY OF ANTIOCH PROGRAMS AND SERVICES FOR AN AGING POPULATION PROGRAM SERVICE City of Antioch Operates Antioch Senior Center, provides activities, program, and outreach services, including lunch (funded by the County), bus rides, health insurance counseling and advisory program, Alzheimer’s support group, care manager/notary service, free legal assistance, free will service, and peer counseling. Meals on Wheels Provides nutritious meals to homebound elderly individuals The Bedford Center Provides adult day health care Senior Outreach Services Antioch Senior Center Source: City of Antioch ANTICIPATED GROWTH PATTERNS The City of Antioch reported approximately 625 undeveloped entitled residential acres in FY 2017. The City reports approximately 2,300 dwelling units and 658,500 square feet of commercial and light industrial as either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Antioch and included in Plan Bay Area 2040.22 The Hillcrest eBART Station and 21 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO 2-16 Municipal Service Review Update City of Antioch Rivertown Waterfront PDAs are anticipated to accommodate approximately 49% of the projected growth in households and 13% of the projected growth in employment.23 The Hillcrest eBART Station PDA is characterized as a Suburban Center and the Rivertown Waterfront PDA is characterized as a Transit Town Center. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Antioch has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.24 The City of Antioch does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 2.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Antioch’s SOI is mostly coterminous with the municipal boundary, with the exception of an extension to the north (San Joaquin River and County boundary) and to the south (see Figure 2.1). There are three unincorporated islands in the City of Antioch—one near James Donlon Boulevard former landfill), one near L Street (fairgrounds), and one near the Antioch bridge (marina area)—as shown in Figure 2.1. The City does not provide services to the Contra Costa County Fairgrounds or the closed County dump site that comprise these islands. In 2016, Contra Costa LAFCO approved annexation of the third island (marina) to the City; however, the voters rejected it. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified disadvantaged communities within the City’s SOI. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the 22 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 23 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 24 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO Municipal Service Review Update 2-17 Chapter 2 Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 2.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Antioch reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the foreseeable future. The disadvantaged communities within the City’s SOI receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS As noted earlier, the PCI for City streets is 67, which is below the target of 75 MTC has established. While the City actively seeks roadway funding through grants, they have been unable to facilitate ongoing funding and significant investment in roadway maintenance and preservation. The City developed a Pavement Report (2017) to assess the condition of its arterial, collector, and residential roadways and has identified strategies to address the 35.5% of roadways that are not within the good to very good/excellent range. These strategies include ensuring that the City’s pavement management system is updated and inspected every two years; ensuring that all maintenance, rehabilitation, and replacement treatments are updated in the pavement management system, exploring the use of emergent pavement technologies, and continuing to explore new revenue streams for pavement projects. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City does not have a formal plan. Contra Costa LAFCO 2-18 Municipal Service Review Update City of Antioch The City of Antioch reports that its capital assets funding is not sufficient to maintain roadway infrastructure consistent with projected needs. The City continues to seek additional funding to facilitate their investment in roadway maintenance and preservation. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to animal control, building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. 25 Services related to broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 25 Although not covered in this MSR, the City also provides sewer and water service. Contra Costa LAFCO Municipal Service Review Update 2-19 Chapter 2 2.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Antioch expects General Fund deficits in the foreseeable future, which may affect its ability to provide services. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. With the passage of Measure W and continued use of its unassigned reserves to cover shortfalls—as well as reserves for replacement, mandated liabilities, and litigation/insurance—the City of Antioch appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Antioch anticipates moving from a surplus to a deficit in their general fund beginning in FY 18-19. For FY 2018-19, the City will use $2.2 million of reserves to balance the budget. The City Council has established a budget stabilization fund to aid in future planning and help address projected CalPERS increases. The City has consistently exceeded their 35% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 7.4, which indicates the City has the means available to cover its existing obligations in the short run. Total debt has been declining and was approximately $105 per capita for FY 2017. The City's unfunded pension and OPEB liabilities continue to grow significantly; however, the City is current on amortization payments of unfunded liabilities. The City is considering funding options for the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, the FY 2017 CAFR shows cost allocations as reductions in charges to the servicing department, which can appear as very low costs in the Contra Costa LAFCO 2-20 Municipal Service Review Update City of Antioch servicing department. Showing the total cost of service and cost allocation separately would improve the presentation and comparability of results. Certain tables in the CAFR extend over multiple pages; however, the left-most column does not carry over to multiple pages, affecting the readability of the tables. 2.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Antioch website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Antioch website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Antioch website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. 2.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 2.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Antioch is mostly coterminous with the municipal boundary, with the exception of an extension to the north (San Joaquin River and County boundary) and to the south, as shown in Figure 2.1. The City of Antioch is bounded by the cities of Brentwood and Oakley on the east and Pittsburg on the west, with County lands to the south. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Antioch. Contra Costa LAFCO Municipal Service Review Update 2-21 Chapter 2 2.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF ANTIOCH Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Antioch MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Antioch plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, office, commercial, transit oriented development, retail, mixed use, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2003). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Antioch. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Antioch appears adequate. The City of Antioch anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Antioch. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within the City’s SOI. These areas receive sewer, water, and fire protection services. Contra Costa LAFCO 2-22 Municipal Service Review Update C 3 HAPTER C B ITY OF RENTWOOD 3.1 AGENCY OVERVIEW The City of Brentwood, incorporated in 1948, covers an area of approximately 14.8 square miles. With an estimated population of 63,042, the City has a population density of approximately 4,202 persons per square mile.1 The City of Brentwood lies in eastern Contra Costa County adjacent to the cities of Antioch to the northwest and Oakley to the north. County lands bound the City to the south, east, and west. The Sphere of Influence (SOI) for the City of Brentwood includes the municipal boundary and extends to the north near Oakley, as well as east and west along the southern municipal boundary, as shown in Figure 3.1. The Contra Costa County Urban Limit Line is coterminous with the City’s municipal boundary. Land uses in the City include a mix of industrial, residential, commercial, office, public facility, agricultural, and park/open space. 3.1.1 FORM OF GOVERNMENT The City of Brentwood is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the directly elected Mayor; members serve four-year terms. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 3-1 Figure 3.1. City of Brentwood Municipal Boundary and Sphere of Influence June 2019 City of Brentwood 3.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 280 full-time equivalent (FTE) employees. Table 3.1 shows the four service areas with the highest staffing levels. TABLE 3.1 CITY OF BRENTWOOD HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Law Enforcement 95.0 Water Operations 24.2 Solid Waste 24.52 Parks/Recreation/Landscaping 21.5 Source: City of Brentwood Similar to many other cities in Contra Costa County, the law enforcement function had the highest staffing level in the City of Brentwood, with 95.0 FTE employees. 3.1.3 JOINT POWERS AUTHORITIES The City of Brentwood is a member of several joint powers authorities (JPAs), which are listed in Table 3.2. TABLE 3.2 CITY OF BRENTWOOD JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. East Contra Costa Regional Fee and Finance — Authority State Route 4 Bypass Authority — Source: City of Brentwood 3.1.4 AWARDS AND RECOGNITION Table 3.3 lists the awards the City of Brentwood has reported receiving since the first round Municipal Service Review (MSR). Contra Costa LAFCO Municipal Service Review Update 3-3 Chapter 3 TABLE 3.3 CITY OF BRENTWOOD AWARDS AWARD ISSUER YEAR(S) RECEIVED Excellence in Capital Budgeting California Society of Municipal Finance Officers 2017, annually Excellence in Financial Reporting Government Finance Officers Association 2017, annually Distinguished Budget Government Finance Officers Association 2016, biannually Excellence in Operating Budgeting California Society of Municipal Finance Officers 2016, biannually Source: City of Brentwood 3.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 3.4, municipal services for the City of Brentwood are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 3.4 CITY OF BRENTWOOD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Sonic.net Building / Planning City of Brentwood Law Enforcement City of Brentwood Library Contra Costa County Lighting City of Brentwood Parks and Recreation City of Brentwood Solid Waste City of Brentwood Stormwater City of Brentwood Streets City of Brentwood Contra Costa LAFCO 3-4 Municipal Service Review Update City of Brentwood SERVICE SERVICE PROVIDER Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Brentwood The City of Brentwood reports the following challenges related to its provision of municipal services: • Addressing unincorporated islands • Possible expansion of Urban Limit Line (or SOI) for future growth area identified as SPA 1 and SPA 2 • Regulatory compliance (e.g., wastewater, SB 1383 and 606, AB 1668) A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 3.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Brentwood and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $324,269 for FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 3.2.2 BROADBAND The City of Brentwood does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Sonic.net are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Brentwood did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO Municipal Service Review Update 3-5 Chapter 3 The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Brentwood received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Brentwood did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 3.2.3 BUILDING/PLANNING The City of Brentwood Community Development Department provides building and planning services. Department expenditures for FY 2017 were approximately $3.5 million. Major FY 2017 residential projects include Barcelona, Silvergate, and Cowell Ranch; major commercial projects include Tractor Supply and Sprouts. The City of Brentwood issued 2,669 residential and 71 commercial building permits in 2017. Total building permit valuation in FY 2017 was approximately $96.9 million. Planning city-wide has been captured in the General Plan and the Strategic Plan. 3.2.4 LAW ENFORCEMENT The City of Brentwood Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $21.4 million. The City of Brentwood has 1.0 FTE sworn personnel per 1,000 population, which is up slightly from 0.9 in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 32.6 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 16% in 2017, and the violent crime clearance rate was 69%.6 3.2.5 LIBRARY Contra Costa County provides library services for the City of Brentwood at its Brentwood Community Center Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO 3-6 Municipal Service Review Update City of Brentwood The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 3.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Brentwood Department of Public Works. City expenditures for light and signal maintenance were $512,189 in FY 2017, reflecting a downward trend from 554,681 in FY 2015. The City maintains 76 signalized intersections, 71 traffic lights, and 6,693 street lights. 3.2.7 PARKS AND RECREATION The City of Brentwood Parks and Recreation Department is the service provider for parks and recreation facilities and services, as well as landscape services. FY 2017 expenditures for parks and recreation were approximately $16.1 million in FY 2017, reflecting an upward trend from approximately $14.1 million in FY 2015. The City provides a range of recreational programs and activities, including senior services, health and wellness, arts, aquatics, and more. The City provides and maintains 4.23 park acres per 1,000 residents, 0.65 recreation center per 20,000 residents, and 19.52 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 3-7 Chapter 3 3.2.8 SOLID WASTE The City of Brentwood Department of Public Works provides solid waste services. The City of Brentwood FY 2017 expenditures for solid waste services were approximately $11.6 million, reflecting an upward trend from $10.3 million in FY 2015. The City reported approximately 1.57 tons of waste disposed per capita for FY 2017 and a total diversion rate of 70%. The FY 2017 per resident disposal rate was 3.5 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 3.2.9 STORMWATER/DRAINAGE The City of Brentwood Department of Public Works provides and maintains the City’s stormwater drainage system, including catch basin and storm drain repairs, as well as street sweeping, to implement National Pollution Discharge Elimination System requirements. The City reports that they have 257.56 miles of closed storm drain lines and that 1.03% of their 2,000 storm drain inlets are equipped with trash capture. The City of Brentwood also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were reported for storm drain inlets at $3,224, reflecting a downward trend from $7,212 in 2015. 3.2.10 STREETS/ROADS The City of Brentwood Department of Public Works provides and maintains 192 street miles, as well as landscaped public areas. The Class 1 and 2 bike lane miles provided and maintained by the City of Brentwood Department of Public Works were not reported or were unavailable at the time of this MSR update. FY 2017 expenditures for streets were approximately $7.4 million. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Brentwood was 83 (very good to excellent) in 2017, down from 85 in 2015, which remains above the target PCI of 75 (good) MTC has established.8 Pavement in this range (80-100) is newly reconstructed or resurfaced with few signs of distress. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 3-8 Municipal Service Review Update City of Brentwood 3.2.11 UTILITIES Pacific Gas & Electric provides gas and electric service to the City of Brentwood. The City is not a member of a Community Choice Aggregation program. The City of Brentwood did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 3.3 FINANCIAL OVERVIEW This section provides an overview of the City of Brentwood’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 3.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City of Brentwood. The City of Brentwood prepares a biennial budget. According to the City's FY 2018-19 budget, the General Fund revenues of $59.3 million are slightly exceeded by General Fund expenditures of $59.8 million.9 Table 3.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The General Fund's ending fund balance in FY 2017 of $23.4 million represented a healthy 50% of General Fund expenditures; unassigned General Fund balances of $15.7 million in FY 2017 exceed 30% levels established by the City, and the reserve is expected to be $16 million at the start of FY 2019. In addition to its growing pension and other post-employment benefit (OPEB) liabilities, the City's budget and long-term financial planning address a number of significant capital and operating issues including funding of increased fire protection provided by East Contra Costa Fire Protection District and related facilities. The City's financial forecast anticipates budget stabilizing transfers from its Pension/OPEB Obligations Fund as needed in the future to address the impacts of pension/OPEB cost growth. 9 2018/19-2019/20 Operating Budget, City of Brentwood, June 2018, pg. 7. Contra Costa LAFCO Municipal Service Review Update 3-9 Chapter 3 TABLE 3.5 CITY OF BRENTWOOD SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $9,949,000 $11,106,000 $12,239,000 Sales Tax $6,837,000 $7,319,000 $8,188,000 Other Revenues (including Transfers) $22,295,000 $23,832,000 $24,753,000 Total General Fund Revenues $39,081,000 $42,257,000 $45,180,000 Change from Prior Year n/a 8.1% 6.9% GENERAL FUND EXPENDITURES General Government and $5,616,000 $5,968,000 $6,633,000 Administration Public Safety $18,089,000 $19,246,000 $21,417,000 Other (includes Transfers Out) 15,215,000 16,006,000 18,138,000 Total Expenditures $38,920,000 $41,220,000 $46,188,000 Change from Prior Year n/a 5.9% 12.1% Expenditures per capita $682 $698 $752 LIQUIDITY RATIO 1 Governmental Activities 6.5 8.5 9.8 Business-type Activities 10.6 9.8 8.5 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 3.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. Liquidity ratios over the past several years indicate that cash and short-term investments have exceeded current liabilities by a factor of 6 to 10.10 Debt secured by revenues exceeds minimum standards. Total enterprise and government activity debt was $157.8 million at the end of FY 2017 or $2,570 per capita (see Attachment C). 10 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 3-10 Municipal Service Review Update City of Brentwood 3.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Past years show an overall positive change for combined enterprise net position (see Attachment C). The total positive net position of governmental funds increased slightly between FY 2015 and FY 2017, and the positive unassigned portion improved. 3.3.4 LOCAL REVENUE MEASURES The City has no voter-approved sales, but the General Fund does receive about 9% of its revenues from Community Facilities District special taxes paid by new development.11 The City's enterprise funds regularly conduct rate studies to assure that fees and charges adequately cover costs. 3.3.5 ENTERPRISE ACTIVITIES The City's enterprise funds have experienced operating deficits in the past two years (water enterprise) to three fiscal years (wastewater and solid waste; see Attachment C). The City indicates that these shortfalls are being addressed by rate studies adopted by the City Council in June 2018 that are "sufficient to cure the deficits and cover the necessary operating expenses, debt service, capital improvement costs and the reserve requirements of the Enterprises."12 State-mandated drought conservation measures contributed to reduced water and wastewater operating revenues. The City is budgeting for a $62 million wastewater treatment plant expansion to serve its buildout population and to comply with water discharge requirements. The capital project will be funded by a combination of low-interest State Water Resources Control Board loans repaid by development impact fees, replacement fund reserves, and wastewater operating revenues.13 3.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City faces continuing challenges addressing its pension and OPEB liabilities, but has taken a number of steps to reduce future rate increases, including a $12.6 million prepayment towards its unfunded pension obligation, and switching from an OPEB pay-as-you-go plan to a pre-funding plan, and setting aside funds into a Pension/OPEB Obligation Fund which currently has an $11 11 2018/19-2019/20 Operating Budget, City of Brentwood, June 2018, pg. 74. 12 City of Brentwood Response to MSR Fiscal Questions. 13 2018/19-2019/20 Operating Budget, City of Brentwood, June 2018, pg. 9. Contra Costa LAFCO Municipal Service Review Update 3-11 Chapter 3 million balance.14 The City revised its OPEB benefit levels through labor negotiations to reduce future obligations to recent hires. Beginning in FY 2018, City policy requires annual contributions at least equal to 85% of OPEB unfunded liability. 3.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of the City governmental capital assets has been relatively flat, indicating the City's capital spending has generally kept pace with asset depreciation; enterprise capital assets show modest growth (see Attachment C). The City maintains a number of reserves for asset replacement and is completing detailed asset studies for the water and wastewater enterprises along with a Parks/Landscape Lighting Assessment District and Building asset study to assure adequate funds are set aside. These funds have projected fund balances of over $50 million at June 30, 2018. Construction of a new library is nearly complete, funded by Community Facilities District bond proceeds and a private placement debt issuance. The City's Capital Improvement Program (CIP) includes plans for a new fire station in Brentwood that will be constructed using development impact fees.15 3.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City of Brentwood considers all budgetary decisions in the context of long-term fiscal models.16 The City uses a 10-year fiscal model17 to forecast General Fund costs and revenues, and an enterprise fiscal model for the Water, Wastewater, and Solid Waste Enterprise Funds to help the City plan for future financial needs and seek funding sources. The City adopted an Economic Development Master Plan to address the issue of job growth not keeping pace with increases in housing, and to encourage growth in its property tax and sales tax. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the City's website. 14 City of Brentwood Response to MSR Fiscal Questions. 15 ibid, FY 2018/19 Brentwood Budget, pg. 8. 16 ibid, FY 2018/19 Brentwood Budget, pg. 27. 17 See https://www.brentwoodca.gov/gov/finance/docs/models.asp Contra Costa LAFCO 3-12 Municipal Service Review Update City of Brentwood 3.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Brentwood. 3.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Brentwood serves 63,042 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Brentwood are depicted in Figure 3.2. ABAG projects that the City of Brentwood will grow at an annual rate of approximately 1.6% to a population of 84,460 between 2010 and 2040.18 The City is also projected to experience an approximate 0.1% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data19 for 2010, the City of Brentwood has 19,385 employed residents. The ABAG Projections data20 for 2010 estimated 11,625 jobs in the City, with approximately 0.6 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Brentwood has 17,523 housing units, which results in a job and housing balance of 0.66. 18 ABAG. Projections 2017. 19 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 20 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 3-13 City of Brentwood 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 3.2. Population, Job, and Household Growth Projections (2010-2040) City of Brentwood June 2019 City of Brentwood The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 3.6), indicating that the rate of homeownership exceeds the rental household rate. TABLE 3.6 CITY OF BRENTWOOD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 12,580 Renter-occupied housing units 3,914 Vacant housing units 1,029 Total existing housing units 17,523 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 234 Low 124 Moderate 123 Above Moderate 279 Total Regional Housing Need Allocation 760 Sources: ABAG, Bay Area Census; Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.21 The City of Brentwood was assigned a RHNA of 760 units, as shown in Table 3.6. The City adopted its General Plan in 2014 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 8,097 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Brentwood 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.22 21 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 22 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 3-15 Chapter 3 The programs and services provided by the City for adults age 50 and older include a variety of classes, activities, and events hosted at the Brentwood Senior Activity Center. ANTICIPATED GROWTH PATTERNS The City reported 310.5 undeveloped entitled residential acres in FY 2017. Projects identified as part of the projected growth for the City (dwelling units and commercial space) that have been approved or are in the approval process were not reported or were unavailable at the time of this MSR update. PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified by the City of Brentwood or included in Plan Bay Area 2040.23 Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Brentwood has not identified any Priority Conservation Areas in Plan Bay Area or the City’s General Plan.24 The City of Brentwood reports that current or projected growth patterns within areas identified in the General Plan (SPA 1 – southwest Brentwood and SPA 2 – northeast Brentwood) will expand beyond its existing municipal boundary and SOI. 3.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Brentwood’s SOI includes the municipal boundary and extends to the north near Oakley, as well as east and west along the southern municipal boundary (see Figure 3.1). There are two unincorporated islands totaling 281 acres within the City SOI and urban limit line. These areas are located in north Brentwood, bifurcated by Brentwood Boulevard, adjoining the south boundary of the City of Oakley: • An approximately 140-acre area of unincorporated land substantially surrounded (98%) by the cities of Oakley and Brentwood and within Brentwood's SOI. This island is located where Lone Tree Way intersects with Virginia Drive west of Brentwood Boulevard. Land uses include residential, commercial, and agricultural. • An approximately 151-acre area of unincorporated land substantially surrounded (85%) by the City of Brentwood and within Brentwood's SOI. This island is bounded by Delta Road to the north and Brentwood Boulevard to the west. The area is largely undeveloped. Land uses include limited residential and active agricultural (prime farmland). With the exception of commercial properties abutting Brentwood Boulevard, these islands are developed with mainly large lot residences. Public utility services are not provided within these islands. 23 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 24 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 3-16 Municipal Service Review Update City of Brentwood The City of Brentwood is preparing the “Community Build-out Plan” (CBOP), which will ultimately be considered by the City Council as an amendment to the General Plan. The CBOP is intended to comprehensively establish a policy framework for the future growth areas that are identified by the General Plan, such as the two unincorporated islands. This plan is scheduled to be completed in the fall of 2019. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI.25 DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Updated identified a disadvantaged community within the City’s boundary. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 25 The City does provide water and wastewater service to 8011 Lone Tree Way, but these services are not under review in this MSR. Contra Costa LAFCO Municipal Service Review Update 3-17 Chapter 3 3.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Brentwood appears to adequately serve all areas within its municipal boundary and is likely to continue to do so in the foreseeable future based on available information. The disadvantaged community within the City’s SOI receives sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The City is in the process of completing their Parks, Recreation, and Trails Master Plan which will help identify facility needs and funding strategies. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City addresses the need to replace facilities and infrastructure through the use and funding of replacement funds. They report that the CIP is sufficient to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. Contra Costa LAFCO 3-18 Municipal Service Review Update City of Brentwood STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. 26 Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 3.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities and may affect the City’s ability to provide services. 26 Although not covered in this MSR, the City also provides sewer and water service. Contra Costa LAFCO Municipal Service Review Update 3-19 Chapter 3 The City of Brentwood appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Brentwood has been operating at a surplus in their General Fund over the past few years. The City anticipates budget stabilizing transfers to help address projected CalPERS increases. The City currently exceeds their 30% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 9.8, which indicates the City has the means available to cover its existing obligations in the short run. Total debt for FY 17 was $2,750 per capita. The City's unfunded pension and OPEB liabilities continue to grow; however, the City has taken several measures to reduce future rate increases. Beginning with FY 2018, City policy requires annual contributions at least equal to 85% of OPEB unfunded liability. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 3.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Brentwood website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Brentwood website provides public access to the City’s General Plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. Contra Costa LAFCO 3-20 Municipal Service Review Update City of Brentwood PUBLIC INVOLVEMENT The City of Brentwood website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. 3.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 3.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Brentwood includes the municipal boundary and extends to the north near Oakley, as well as east and west along the southern municipal boundary, as shown in Figure 3.1. The City of Brentwood is bound by the cities of Antioch to the northwest and Oakley to the north, and County lands to the south, east, and west. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Brentwood. 3.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF BRENTWOOD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Brentwood MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Brentwood plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, commercial, mixed use, public, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2014). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Brentwood. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Brentwood appears adequate. The City of Brentwood anticipates it will continue to have adequate capacity during the next five years. Contra Costa LAFCO Municipal Service Review Update 3-21 Chapter 3 EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Brentwood. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Updated identified a disadvantaged community within the City’s boundary. This area receives sewer, water, and fire protection services. Contra Costa LAFCO 3-22 Municipal Service Review Update C 4 HAPTER C C ITY OF LAYTON 4.1 AGENCY OVERVIEW The City of Clayton, incorporated in 1964, covers an area of approximately 4.2 square miles. With an estimated population of 11,431, the City has a population density of approximately 2,857 persons per square mile.1 The City of Clayton lies in central Contra Costa County and is surrounded primarily by County lands/open space (including Mt. Diablo State Park), with the City of Concord along its northwestern boundary. The Sphere of Influence (SOI) for the City of Clayton is mostly coterminous with the municipal boundary, with the exception of where it extends along Marsh Creek Road and at Mitchell Canyon Road, as shown in Figure 4.1. The voter-approved Urban Limit Line generally follows the City boundaries, except where it extends southeast into the SOI. Land uses in the City are primarily residential, but include some commercial uses, agriculture, and open space. 4.1.1 FORM OF GOVERNMENT The City of Clayton is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the directly elected Mayor. Council members serve four-year terms and the Mayor serves a one-year term. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 4-1 Figure 4.1. City of Clayton Municipal Boundary and Sphere of Influence June 2019 City of Clayton 4.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 26.2 full-time equivalent (FTE) employees. Table 4.1 shows the four service areas with the highest staffing levels. TABLE 4.1 CITY OF CLAYTON HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 11.0 Maintenance 7.0 Finance and Administrative Services 2.3 Community Development 1.9 Source: City of Clayton Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Clayton, with 11.0 FTE employees. 4.1.3 JOINT POWERS AUTHORITIES The City of Clayton is a member of several joint powers authorities (JPAs), which are listed in Table 4.2. TABLE 4.2 CITY OF CLAYTON JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. County Connection (CCTA) Public bus service East Contra Costa County Habitat Conservancy JPA Land use conservation mitigation Municipal Pooling Authority Risk Management Self-insurance pool PACE Programs HERO, Fig Tree, CalFirst energy and water conservation financing Transpac/CCTA Regional sales tax funding for road improvements Source: City of Clayton Contra Costa LAFCO Municipal Service Review Update 4-3 Chapter 4 4.1.4 AWARDS AND RECOGNITION Table 4.3 lists the awards the City of Clayton has reported receiving since and prior to the first round Municipal Service Review (MSR). TABLE 4.3 CITY OF CLAYTON AWARDS AWARD ISSUER YEAR(S) RECEIVED Sixth Safest City to Live in Contra Costa County Niche 2018 Top 100 Places to Live in the Nation for small cities CNN Money Magazine 2015 – 2017 Most Walkable Small Cities in America Walking Magazine 1998 Governors Historic Preservation Award State of California 1998 (DeMartini Winery preservation and renovation to City Hall) Design Award (DeMartini Winery preservation California Preservation Association 1998 and renovation to City Hall) Source: City of Clayton 4.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 4.4, municipal services for the City of Clayton are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 4.4 CITY OF CLAYTON MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Clayton Law Enforcement City of Clayton Library Contra Costa County Lighting City of Clayton, Contra Costa County Contra Costa LAFCO 4-4 Municipal Service Review Update City of Clayton SERVICE SERVICE PROVIDER Parks and Recreation City of Clayton Solid Waste Republic Services Stormwater City of Clayton Streets City of Clayton Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Clayton The City of Clayton reports the following challenges related to its provision of municipal services: • State mandate to increase residential density when City is mostly built out • Meeting community desires for infill development • Unfunded state mandates for stormwater compliance • Unfunded infrastructure projects A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 4.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Clayton through the Martinez Animal Shelter and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 4.2.2 BROADBAND The City of Clayton does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO Municipal Service Review Update 4-5 Chapter 4 technologies including cable and DSL. The City of Clayton did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Clayton received a grade of D, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Clayton did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 4.2.3 BUILDING/PLANNING The City of Clayton Community Development Department provides building and planning services. Department expenditures for FY 2017 were $288,962, up from $287,232 in FY 2015. The City of Clayton issued 115 residential and 129 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $5.8 million. Planning city-wide has been captured in the General Plan and the five-year Capital Improvement Plan. 4.2.4 LAW ENFORCEMENT The City of Clayton Police Department provides law enforcement services and contracts with the City of Concord for dispatch services. FY 2017 expenditures were approximately $2.1 million, up from approximately $1.9 million in FY 2015. The City of Clayton has 1 FTE sworn personnel per 1,000 population, which has remained consistent since 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 12.6 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 8% in 2017, and the violent crime clearance rate was 42%.6 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO 4-6 Municipal Service Review Update City of Clayton 4.2.5 LIBRARY Contra Costa County provides library services for the City of Clayton at its Clayton Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The Clayton Library Foundation raises funds to support the Clayton Branch Library programs and materials. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 4.2.6 LIGHTING Lighting (street and traffic) is maintained by the City of Clayton Maintenance Department and via contract with Contra Costa County. City expenditures for light and signal maintenance were $268,231 in FY 2017, up from $236,882 in FY 2015. The City maintains 12 signalized intersections and contracts with Contra Costa County for maintenance of traffic lights. Street lights are maintained by the City (647 lights) and Pacific Gas and Electric (655 lights), while other street lights (41) are privately or HOA maintained. 4.2.7 PARKS AND RECREATION The City of Clayton is the service provider for parks and park facilities, including maintenance, operation, and capital improvements for the Clayton community park, The Grove Park, and the Clayton Community Library. Recreation facilities are provided through cooperative agreements with the Mt. Diablo Unified School District. FY 2017 expenditures for parks were approximately $476,928 in FY 2017, down from approximately $581,787 in FY 2015. The City provides and maintains 1.2 park acres per 1,000 residents, 1.7 recreation centers per 20,000 residents, and 27 miles of recreation trails. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 4-7 Chapter 4 The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 10 acres per 1,000 residents.8 4.2.8 SOLID WASTE Solid waste services are provided to the City of Clayton via franchise agreement with Republic Services. The City of Clayton reports that FY 2017 expenditures data are not available because a franchisee provides the City’s solid waste services. The City reported approximately 0.55 tons of waste disposed per capita for FY 2017, up slightly from FY 2015. The FY 2017 per resident disposal rate was 3 pounds/resident/day, also up slightly from FY 2015. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 4.2.9 STORMWATER/DRAINAGE The City of Clayton Maintenance Department maintains the City’s stormwater drainage system. The City reports that they have 50 miles of closed storm drain lines and that 4% of their 650 storm drain inlets are equipped with trash capture. The City of Clayton also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $155,189, down slightly from $157,436. 4.2.10 STREETS/ROADS The City of Clayton Maintenance Department maintains 45 street miles and approximately 10 Class 1 and 2 bike lane miles, as well as landscaped medians and public planter beds. FY 2017 expenditures for streets were $423,341, down from $50,501 in FY 2015. Annual expenditure trends for street and road maintenance are non-linear and fluctuate as it generally takes more than one year to accumulate sufficient HUTA, RMRA, Measure J and other restricted funding necessary to undertake significant street projects. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Clayton was 84 (very good to excellent) in 2017, up from 81 in 2015, which remains above the target PCI of 75 (good) MTC has established.9 Pavement in this 8 Incudes 3 acres developed parks and 7 acres active open space. 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 4-8 Municipal Service Review Update City of Clayton range (80-100) is newly reconstructed or resurfaced with few signs of distress. The most recent assessment by Contra Costa County Transportation Authority determined a PCI of 85 for the City. 4.2.11 UTILITIES Pacific Gas & Electric provides gas and electric service to the City of Clayton. The City is not a member of a Community Choice Aggregation program. The City of Clayton did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 4.3 FINANCIAL OVERVIEW This section provides an overview of the City of Clayton’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 4.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of Clayton prepares an annual budget. According to the City's FY 2018-19 budget,10 the City’s General Fund revenues of $4.7 million slightly exceed General Fund expenditures of $4.6 million. The City has reported a surplus over the past several years. The General Fund's unassigned reserve at the end of FY 2017 totaled $5.4 million, or about 128% of expenditures that year; this significantly exceeds the City's policy of an amount not less than 50% in its General Fund Reserve Contingency (see Attachment C).11 Table 4.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. 10 City of Clayton Adopted Budget, Fiscal Year Ending June 30, 2019, pg. 2, pg. 10. 11 City of Clayton Investment Policy, Resolution No. 10-2015, Sec. XV. Contra Costa LAFCO Municipal Service Review Update 4-9 Chapter 4 TABLE 4.5 CITY OF CLAYTON SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $2,302,000 $2,257,000 $2,339,000 Sales Tax $398,000 $373,000 $455,000 Other Revenues (including Transfers) $1,541,000 $1,757,000 $1,553,000 Total General Fund Revenues $4,241,000 $4,387,000 $4,347,000 Change from Prior Year n/a 3.4% -0.9% GENERAL FUND EXPENDITURES General Government and $1,019,000 $1,069,000 $1,178,000 Administration Public Safety $1,926,000 $2,138,000 $2,104,000 Other (includes Transfers Out) $897,000 $802,000 $874,000 Total Expenditures $3,842,000 $4,009,000 $4,156,000 Change from Prior Year n/a 4.3% 3.7% Expenditures per capita $344 $356 $366 LIQUIDITY RATIO 1 Governmental Activities 17.7 27.9 18.4 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 4.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. Liquidity ratios over the past several years indicate that cash and short-term investments have exceeded current liabilities by a factor of 15 or more.12 The City has no outstanding debt. 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 4-10 Municipal Service Review Update City of Clayton 4.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Past years show a slightly negative change for the Endeavor Hall enterprise’s positive net position (see Attachment C). The total positive net position of governmental funds increased slightly between FY 2015 and FY 2017, and the positive unassigned portion improved. 4.3.4 LOCAL REVENUE MEASURES The City relies on $1.1 million of annual revenues generated by its Landscape Maintenance District parcel tax, which was renewed for 10 years by voters in June 2016 (Measure H). In November 2014 Clayton voters extended the Grove Park Mello-Roos restricted special tax (Community Facilities District 2006-1), which generates about $134,200 annually, for another 20 years. 4.3.5 ENTERPRISE ACTIVITIES Endeavor Hall, a rental facility, is the City's only business type activity and operates at a minimal deficit of about $5,000 to $10,000 annually. The City anticipates improved rentals to result from its improved website and online reservation system. 4.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's net pension liability totaled $4.4 million in FY 2017, and its unfunded other post- employment benefit (OPEB) liability equaled $143,000 (see Attachment C). The City is addressing its pension liabilities in several ways: with approval of the FY 2018 budget, the City established a Pension Rate Stabilization Internal Service Fund funded initially with $170,200. The City also took steps to require that new sworn police hires share in the "normal" pension cost previously funded by the City. The City does not provide a formal OPEB plan to provide retiree health benefits, but does offer the Public Employee Medical Health Care Act minimum as mandated by the state for California Public Employees' Retirement System health plan enrolled business partners; the plan is administered on a "pay as you go" basis. 4.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of the City capital assets has been declining slightly over time, indicating the City's capital spending has generally not kept pace with asset depreciation (see Attachment C). The City acknowledges that its capital priority has been for street repaving and overlay projects; the City's Capital Improvement Program (CIP) tracks other, unfunded needs including: park improvements, bridge improvements, library upgrades, vacant historical facility rehabilitation (Keller House), and hillside slide prevention improvements. Contra Costa LAFCO Municipal Service Review Update 4-11 Chapter 4 4.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 4.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Clayton. 4.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Clayton serves 11,431 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Clayton are depicted in Figure 4.2. Contra Costa LAFCO 4-12 Municipal Service Review Update City of Clayton 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 4.2. Population, Job, and Household Growth Projections (2010-2040) City of Clayton June 2019 Chapter 4 ABAG projects that the City of Clayton will grow at an annual rate of approximately 0.2% to a population of 11,245 between 2010 and 2040.13 The City is also projected to experience an approximate 0.2% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data14 for 2010, the City of Clayton has 5,314 employed residents. The ABAG Projections data15 for 2010 estimated 1,995 jobs in the City, with approximately 0.38 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Clayton has 4,086 housing units, which results in a job and housing balance of 0.49. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 4.6), indicating that the rate of homeownership exceeds the rental household rate. TABLE 4.6 CITY OF CLAYTON HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 3,621 Renter-occupied housing units 385 Vacant housing units 80 Total existing housing units 4,086 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 51 Low 25 Moderate 31 Above Moderate 34 Total Regional Housing Need Allocation 141 Sources: ABAG, Bay Area Census; Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 13 ABAG. Projections 2017. ABAG data estimates the 2010 population at 10,655, growing to 11,245 in 2040, representing the 0.2% annual growth rate. The 2018 California Department of Finance estimated population for Clayton (11,431) exceeds ABAG’s estimate for 2040; as a result, the annual growth rate is likely inaccurate. 14 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 15 ABAG. Projections 2017. Contra Costa LAFCO 4-14 Municipal Service Review Update City of Clayton California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.16 The City of Clayton was assigned a RHNA of 141 units, as shown in Table 4.6. The City amended its General Plan in 2007 and adopted its Housing Element in 2014. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 288 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Clayton 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.17 The City of Clayton did not report programs and services to meet the needs of adults age 50 and older. ANTICIPATED GROWTH PATTERNS The City of Clayton reported approximately nine undeveloped entitled residential acres in FY 2017. Verna Way and Southbrook (total of eight dwelling units) are currently under construction. PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified by the City of Clayton or included in Plan Bay Area 2040.18 Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Clayton has not identified any Priority Conservation Areas in Plan Bay Area or the City’s General Plan.19 The City of Clayton, which is mostly built out, does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 4.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Clayton’s SOI is mostly coterminous with the municipal boundary, with the exception of where it extends along Marsh Creek Road and near Mitchell Canyon Road (see Figure 4.1). 16 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 17 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 18 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 19 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO Municipal Service Review Update 4-15 Chapter 4 There is one unincorporated island within the Clayton area located east of Mitchell Canyon Road and is primarily built out with equestrian use (see Figure 4.1). The City has identified properties adjacent to Marsh Creek Road—east of the City limits but within the SOI—for potential annexation to accommodate development and services needed related to potential future development and to connect this area to City services and infrastructure. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the City of Clayton and therefore, no disadvantaged communities are relevant to this analysis. 4.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband. The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Clayton reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the foreseeable future. There are no disadvantaged communities within or contiguous to the City’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 84, which indicates the City’s streets are in very good condition and primarily require funding at a level to maintain the current condition. The City has indicated concerns about currently unfunded infrastructure projects. Contra Costa LAFCO 4-16 Municipal Service Review Update City of Clayton The City of Clayton is mostly built out. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES Although the City is mostly built out, they are planning for continued growth. The additional growth is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The library facility is owned by the City of Clayton and Contra Costa County Library staffs and operates the facility. The adjoining City meeting room is used for library programs. The City does not share other facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. Contra Costa LAFCO Municipal Service Review Update 4-17 Chapter 4 DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 4.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the City of Clayton appears to have sufficient financial resources to continue providing services, as well as to accommodate infrastructure expansion, improvements, or replacement, as indicated below. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Clayton has been operating with a surplus in their General Fund over the past several years. The City currently exceeds their 50% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 18.4, which indicates the City has the means available to cover its existing obligations in the short run. The City has no outstanding debt. The City's unfunded pension and OPEB liabilities continue to grow; however, the City has implemented several measures to address the increasing pension liabilities, including establishing a Pension Rate Stabilization Internal Service Fund. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, certain tables in the CAFR extend over multiple pages, but the left-most column does not. To ensure readability of multi-page tables, all columns of all tables should be carried over for each page. Contra Costa LAFCO 4-18 Municipal Service Review Update City of Clayton 4.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Clayton website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. City Council meetings are streamed live and archived on the City website. The CityTV shared government channel also shows Clayton City Council meetings. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Clayton website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Clayton website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. In addition to the City website, there are three public posting board locations within the City—City hall, the library, and downtown. The City also issues press releases, including distribution to Claycord20 social media and the local press. The City therefore adequately provides accountability with regard to citizen participation. 4.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 4.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Clayton is mostly coterminous with the municipal boundary, with the exception of where it extends along Marsh Creek Road and near Mitchell Canyon Road, as shown in Figure 4.1. The City of Clayton is surrounded primarily by County lands/open space (including Mt. Diablo State Park), with the City of Concord along its northwestern boundary. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Clayton. 20 Serving the cities of Clayton, Concord, Walnut Creek, Martinez, and Pleasant Hill. Contra Costa LAFCO Municipal Service Review Update 4-19 Chapter 4 4.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF CLAYTON Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Clayton MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN-SPACE LANDS) The City of Clayton plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2007). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Clayton. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Clayton appears adequate. The City of Clayton anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Clayton. PRESENT AND PROBABLE NEED SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the City of Clayton and therefore no present or probable need for the City to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. Contra Costa LAFCO 4-20 Municipal Service Review Update C 5 HAPTER C C ITY OF ONCORD 5.1 AGENCY OVERVIEW The City of Concord, incorporated in 1905, covers an area of approximately 31 square miles. With an estimated population of 129,159, the City has a population density of approximately 4,166 persons per square mile.1 The City of Concord lies in central Contra Costa County between the cities of Pleasant Hill and Martinez on the west, the City of Clayton on the southeast, the City of Pittsburg on the northeast, the City of Walnut Creek on the south, and the Carquinez Strait on the north. County lands lie to the north and south of the City. The Sphere of Influence (SOI) for the City of Concord includes the municipal boundary and extends to the north (Suisun Bay and County boundary), to the west toward I-680, and to the northeast past Highway 4, as shown in Figure 5.1. The SOI also includes an unincorporated island within the City’s municipal boundary. The voter-approved Urban Limit Line surrounds the entire City and the majority of the SOI, with the exception of the far northern SOI areas adjacent to the Suisun Bay. Land uses in the City are primarily residential, but include some commercial and mixed uses as well as and open space. There are no agricultural land uses in the City of Concord. 5.1.1 FORM OF GOVERNMENT The City of Concord is a general law city operating under a council-manager form of government. The City Council is publicly elected by district and consists of five members, including the Mayor who is selected from the Council members. Council members serve four-year terms and the Mayor rotates every year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 5-1 Figure 5.1. City of Concord Municipal Boundary and Sphere of Influence June 2019 City of Concord 5.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 419 full-time equivalent (FTE) employees. Table 5.1 shows the four service areas with the highest staffing levels. TABLE 5.1 CITY OF CONCORD HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 213.0 Public Works 82.0 Community and Economic Development 52.0 Finance 19.0 Source: City of Concord Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Concord, with 213.0 FTE employees. 5.1.3 JOINT POWERS AUTHORITIES The City of Concord is a member of several joint powers authorities (JPAs), which are listed in Table 5.2. TABLE 5.2 CITY OF CONCORD JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. ABAG Finance Authority for Nonprofit Corporations To have a forum for discussion and study metropolitan area problems of mutual interest and facilitate development of policy and action recommendations Bay Area Employee Relations Service Provide cost effective services and data in support of collective bargaining and other related activities of its members CSAC Excess Insurance Authority Purpose of jointly funding and/or establishing excess and other insurance programs as determined California Enterprise Development Authority Address gaps in economic development financing Contra Costa LAFCO Municipal Service Review Update 5-3 Chapter 5 JOINT POWERS AUTHORITY SERVICE California Statewide Communities Development To have access to low-cost, tax-exempt financing for Authority projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. Central Contra Costa Transit Authority Provide input for a countywide fixed-route and paratransit transportation system Central Contra Costa Transportation/Land Use — Partnership City of Concord and Successor Agency Joint Powers Provides financial assistance to the City by financing Financing Authority real and personal properties and improvements for the benefit of the residents of the City and surrounding areas Contra Costa Congestion Management Agency Purpose is to consolidate the designation of the CCTA as Congestion Management Program Agency East Bay Regional Communications System Evaluate the feasibility of developing a regional Authority communications system to serve all jurisdictions in Alameda and Contra Costa Counties Golden State Finance Authority To join PACE Program Marin Energy Authority (Marin Clean Energy) Provide residents with an alternative to PG&E in an effort to reduce the City’s greenhouse gas emissions TRANSPAC To cooperate in the establishment of policies and action to more effectively respond to the requirements of Measure C Source: City of Concord 5.1.4 AWARDS AND RECOGNITION Table 5.3 lists the awards the City of Concord has reported receiving since the first round Municipal Service Review (MSR). Contra Costa LAFCO 5-4 Municipal Service Review Update City of Concord TABLE 5.3 CITY OF CONCORD AWARDS AWARD ISSUER YEAR(S) RECEIVED Award of Excellence for Economica Development California Association for Local 2018 Promotion for “A better Business” campaign in Economic Development 2017 Great Places in California Award for Todos Santos California Chapter of the American 2018 Plaza Planning Association Helen Putnam Award for Excellence – Family League of California Cities 2016 Justice Center Achievement for Excellence in Procurement National Procurement Institute 2012 – 2018 Certificate of Achievement for Excellence in Government Finance Officers 1992 – 2017 Financial Reporting Association Distinguished Budget Presentation Award Government Finance Officers 2003 – 2013 Association Excellence in Operating Budget California Society of Municipal 2008 Finance Officers Source: City of Concord 5.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 5.4, municipal services for the City of Concord are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 5.4 CITY OF CONCORD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Wave Broadband Building / Planning City of Concord Law Enforcement City of Concord Library Contra Costa County Lighting City of Concord Contra Costa LAFCO Municipal Service Review Update 5-5 Chapter 5 SERVICE SERVICE PROVIDER Parks and Recreation City of Concord Solid Waste Mt. Diablo Resource Recovery Stormwater City of Concord Streets City of Concord Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Concord The City of Concord reports the following opportunities and challenges related to its provision of municipal services: Opportunities • Concord Reuse Project Specific Plan development and buildout (2022 – 2049) Challenges • Regulatory challenges related to the Municipal Regional Permit under the Water Quality Control Board • Funding deferred maintenance A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 5.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of Concord and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO 5-6 Municipal Service Review Update City of Concord 5.2.2 BROADBAND The City of Concord does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Wave Broadband are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Concord did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Concord received a grade of A-, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Concord, which has a Broadband Master Plan, did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 5.2.3 BUILDING/PLANNING The City of Concord Community and Economic Development Department provides building and planning services. Department expenditures for FY 2017 were $4.2 million, representing an upward trend from $1.9 million in FY 2015. The City of Concord issued 4,178 residential and 458 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $140.8 million. Planning city-wide has been captured in the General Plan and a five-year pavement management plan. In addition, the City is developing a Specific Plan for the Concord Reuse Project Specific Plan Area, which includes the Concord Naval Weapons Station Inland Area. The City published a Notice of Preparation5 for the Draft Environmental Impact Report (EIR) on November 20, 2018. The Specific Plan and EIR are being prepared with anticipated public review during the fall of 2019. The City anticipates bringing the Specific Plan and EIR forward for City Council review, adoption, and certification by March 2020. Planning for the overall infrastructure for the Concord Reuse Project is being done in coordination with local and regional agencies. Planning and phasing information will be included in the Specific Plan. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 Available at: https://www.concordreuseproject.org/DocumentCenter/View/1675/2018-11-20-Notice-of- Preparation Contra Costa LAFCO Municipal Service Review Update 5-7 Chapter 5 5.2.4 LAW ENFORCEMENT The City of Concord provides law enforcement and dispatch services. FY 2017 expenditures were approximately $53.4 million, reflecting an upward trend from approximately $45.1 million in FY 2015. The City of Concord has 1.12 FTE sworn personnel per 1,000 population, which represents a slight increase from 1.18 FTE in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.6 There were 31.7 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 12% in 2017, and the violent crime clearance rate was 47%.7 5.2.5 LIBRARY Contra Costa County provides library services for the City of Concord at its Concord Community Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.8 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 5.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Concord Department of Public Works. City expenditures for light and signal maintenance were $1.2 million in FY 2017, with little change from $1.2 million in FY 2015. The City owns and maintains 150 signalized intersections and 8,233 street lights. The number of traffic lights maintained by the City was not reported or was unavailable at the time of this MSR update. 6 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 7 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 8 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 5-8 Municipal Service Review Update City of Concord 5.2.7 PARKS AND RECREATION The City of Concord Parks and Recreation Department is the service provider for parks and recreation programs, services, and facilities (e.g., community centers and aquatic facilities), and the Public Works Department maintains developed parks and open space. FY 2017 expenditures for parks were approximately $5.2 million in FY 2017, up from approximately $4.5 million in FY 2015. The City of Concord offers a variety of programs and activities for all ages and abilities. Programs and activities include classes, days camps, trips, tours, and special events. The park acres per 1,000 residents, recreation centers per 20,000 residents, and miles of recreation trails provided and maintained by the City were not reported or were unavailable at the time of this MSR update. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 5.2.8 SOLID WASTE Solid waste services are provided to the City of Concord via contract with Mount Diablo Resource Recovery. The City of Concord FY 2017 expenditures for solid waste services were not reported or were unavailable at the time of this MSR update. The FY 2017 per resident disposal rate was 4.2 pounds/resident/day. The City reports that it is in compliance with disposal, diversion, and recycling requirements. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 5.2.9 STORMWATER/DRAINAGE The City of Concord Department of Public Works provides and maintains the City’s stormwater drainage system. The City reports that they have 240 miles of closed storm drain lines and that 7.4% of their approximately 6,000 storm drain inlets are equipped with trash capture. The City of Concord also reports compliance with National Pollution Discharge Elimination System standards. Total FY 2017 expenditures for stormwater were $1.5 million, representing a slight upward trend from $1.4 million in FY 2015. 5.2.10 STREETS/ROADS The City of Concord Department of Public Works provides and maintains 310 street miles and approximately 28 Class 1 and 2 bike lane miles, as well as landscaped medians and public planter Contra Costa LAFCO Municipal Service Review Update 5-9 Chapter 5 beds. FY 2017 expenditures for streets were $29.5 million, which is a significant increase from $14.5 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Concord was 60 (fair) in 2017, down from 61 in 2015, which remains below the target PCI of 75 (good) MTC has established.9 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. 5.2.11 UTILITIES The City of Concord is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Concord. The City of Concord did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 5.3 FINANCIAL OVERVIEW This section provides an overview of the City of Concord’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 5.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of Concord prepares a biennial budget. As summarized in the City's budget10, the City’s total revenues cover its expenditures in FY 2017-18, and the City will use $2.2 million of one-time revenues to balance the budget in FY 2018-19; the budget continues all programs at current or 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 10 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, and Staff Report June 27, 2017. Contra Costa LAFCO 5-10 Municipal Service Review Update City of Concord enhanced levels. The City maintains a 30% reserve level11 and limits the use of Measure Q (voter approved sales tax) dollars for operating costs to $7.5 million in both years. General Fund balances (including assigned) have consistently exceeded 40% of annual General Fund expenditures. Table 5.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The City's General Fund reserve policy of 30% of operating expenditures was equaled or slightly exceeded in FY 2018 and projected FY 2019.12 The Council formally restored the General Fund reserve policy to the 30% level on June 23, 2015.13 Including assigned balances, General Fund ending balances exceeded 40% in recent years.14 The City hopes to complete negotiations with the Navy for conveyance and land transfer of the former Concord Naval Weapons Station, leading to significant new development and corresponding increases in revenues and service responsibilities over the next 30 years.15 The City's budget forecast anticipates a deficit in future years as it reduces its reliance on Measure Q prior to its sunset in FY 2024-25. A structural budget deficit is projected and ongoing budget stabilization measures are needed beginning in FY 2019-20 of $6.2 million growing to $13.4 million by FY 2026-27. No deficit mitigation measures have been identified to fill the projected shortfall; however, the City reports that it is actively working to close the gap by capitalizing on efficiencies, new revenue sources, and cost cutting.16 TABLE 5.5 CITY OF CONCORD SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $13,600,000 $14,300,000 $15,400,000 Sales Tax $41,200,000 $45,900,000 $46,000,000 Other Revenues (including Transfers) $38,100,000 $37,700,000 $39,900,000 Total General Fund Revenues $92,900,000 $97,900,000 $101,300,000 Change from Prior Year n/a 5.4% 3.5% 11 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XXXVII. 12 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XVI. 13 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XVI. 14 City of Concord CAFR FY 2017, pg. 67. 15 The developer's proposal envisions approximately 13,000 units. A specific plan and environmental documentation are anticipated in 2019 (East Bay Times, August 23, 2018). 16 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XV-XVI. Contra Costa LAFCO Municipal Service Review Update 5-11 Chapter 5 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND EXPENDITURES General Government and $19,000,000 $15,500,000 $15,300,000 Administration Public Safety $45,200,000 $49,900,000 $53,700,000 Other (includes Transfers Out) $19,500,000 $30,600,000 $28,600,000 Total Expenditures $83,700,000 $96,000,000 $97,600,000 Change from Prior Year n/a 14.7% 1.7% Expenditures per capita $670 $740 $760 LIQUIDITY RATIO 1 Governmental Activities 3.5 2.8 2.7 Business-type Activities 1.4 1.6 1.8 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 5.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. General Fund and enterprise liquidity ratios have exceeded 1.0 from FY 2015 through the present.17 The City's total debt has been declining over time. Golf course debt will be retired in FY 2018-19, which will make funds available for capital improvements. Total debt was approximately $350 per capita in FY 2017. The ratio of pledged net revenue to debt has been improving, and exceeded 7.5 in FY 2017 (see Attachment C). The City is scheduling accelerated internal loan repayments (e.g., from its Pavilion Fund to the Sewer Fund), which will improve the City's Sewer Fund balances. 5.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Past years show an overall positive change for combined enterprise net position (see Attachment C). The total positive net position of governmental funds increased slightly between FY 2015 and FY 2017, however the negative unassigned portion worsened as unfunded pension liabilities 17 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 5-12 Municipal Service Review Update City of Concord increased. The City’s Enterprise Funds' net position relative to expenditures exceeded a ratio of 2.0 indicating strong balance sheets. 5.3.4 LOCAL REVENUE MEASURES The City relies on approximately $7.5 million of annual revenues (about 7.5% of General Fund revenues) generated a voter approved one-half-cent use and transaction tax (Measure Q) approved in 2010. The tax's 2016 expiration was extended by voter approval through March 31, 2025. The City's Fiscal Sustainability Ordinance18 designated Measure Q as a “limited duration revenue source,”19 and the City limits its annual use and plans to decrease its use over time as it finds replacement funding sources. 5.3.5 ENTERPRISE ACTIVITIES The City monitors and increases its utility charges as necessary to fund capital needs and its operating costs. Total enterprise revenues in recent years have generally grown 8% to 10%, outpacing expenditure growth of 3% to 4%. Total enterprise net position has ranged from about 2.3 to 2.4 times annual expenditures from FY 2015 through FY 2017, and their liquidity ratios exceed 1.0.20 The City's wastewater system is its primary enterprise, totaling about $29.3 million in FY 2018, funded by revenues of $33.8 million. Costs to the City for wastewater treatment plant operations and capital have been rising significantly in past years, contributing to increases in user charges and rates.21 The General Fund recoups indirect costs from the Sewer Fund per the City’s Cost Allocation Plan that was prepared by an independent consultant. Between 2007 and 2013, the General Fund advanced the Golf Course Enterprise Fund $774,000. From 2013 to current, the Golf Course Enterprise has been self-sufficient, and repayment of the advances has been built in to the 10-year budget projections for the Enterprise Fund. The municipal golf course budget is about $1.4 million annually; revenues exceed expenditures by about $100,000.22 5.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. 18 City’s Municipal Code: Chapter 3.20.020. 19 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XV. 20 City of Concord CAFRs - Citywide Changes in Net position (Table 2). 21 ibid, Concord Budget FY 2019, pg. XXXVIII. 22 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. 75. See the long-term forecast on pg. 37 for total General Expenditures. Contra Costa LAFCO Municipal Service Review Update 5-13 Chapter 5 Pension costs totaled $14.8 million in FY 2018, or about 15% of total General Fund expenditures, and increase to $25.2 million after 10 years, accounting for 20% of General Fund expenditures.23 The portion of total pension liabilities funded has been declining over recent years to 63.4%.24 The City's most recently reported unfunded liability totaled $177.2 million (see Attachment C). The City's Fiscal Sustainability Ordinance prioritizes annual recommended contributions towards its unfunded pension liabilities. The City reformed retiree medical costs to significantly reduce its unfunded liability by $16 million and lowered annual costs (saving $2.2 million annually).25 Unfunded unemployment benefits are listed as a prioritized use of the City’s “one-time and budget residual funds” per the City’s Municipal Code: Chapter 3.20.020 “Fiscal Sustainability.” 5.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of the City capital assets has been declining over time, particularly capital assets of its enterprises which declined about 4% to 6% annually from FY 2015 to FY 2017.26 This decline suggests that increased funding may be needed to keep pace with the depreciation of capital assets. The City continues to seek grants, including a grant to support its Corridors Plan Project, and One Bay Area Grant program grant projects. The City plans to pay off its golf course long-term debt in FY 2018-19 and use projected increased fund balances to invest in capital improvements.27 5.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 5.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of 23 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XXXII. 24 City of Concord CAFRs - Notes to Basic Financial Statements (Notes 10-12). 25 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XVI. See Staff Report, Aug. 2, 2016 re: vesting of fixed contribution amounts for retiree health care benefits. 26 City of Concord CAFRs - Notes to Basic Financial Statements (Note 6 - CAPITAL ASSETS). 27 City of Concord Adopted Biennial Operating Budget FY 2017-18, FY 2018-19, pg. XVIII. Contra Costa LAFCO 5-14 Municipal Service Review Update City of Concord determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Concord. 5.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Concord serves 129,159 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Concord are depicted in Figure 5.2. ABAG projects that the City of Concord will grow at an annual rate of approximately 1.4% to a population of 185,850 between 2010 and 2040.28 The City is also projected to experience an approximate 1.9% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data29 for 2010, the City of Concord has 62,173 employed residents. The ABAG Projections data30 for 2010 estimated 54,275 jobs in the City, with approximately 0.87 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Concord has 47,125 housing units, which results in a job and housing balance of 1.15. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 5.6), indicating that the rate of homeownership exceeds the rental household rate. 28 ABAG. Projections 2017. 29 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 30 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 5-15 City of Concord 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 5.2. Population, Job, and Household Growth Projections (2010-2040) City of Concord June 2019 City of Concord TABLE 5.6 CITY OF CONCORD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 27,069 Renter-occupied housing units 17,209 Vacant housing units 2,847 Total existing housing units 47,125 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 798 Low 444 Moderate 559 Above Moderate 1,677 Total Regional Housing Need Allocation 3,478 Sources: ABAG, Bay Area Census; Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.31 The City of Concord was assigned a RHNA of 3,478 units, as shown in Table 5.6. The City adopted its General Plan in 2007 and its Housing Element in 2014. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 4,523 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Concord 2014–2022 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.32 The City of Concord did not report programs and services to meet the needs of adults age 50 and older. 31 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 32 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 5-17 Chapter 5 ANTICIPATED GROWTH PATTERNS The undeveloped entitled residential acres in FY 2017 were not reported or were unavailable at the time of this MSR update. Projects identified as part of the projected growth for the City (dwelling units and commercial space) that have been approved or are in the approval process were not reported or were unavailable at the time of this MSR update. PDAs help form the implementing framework for Plan Bay Area. Three PDAs have been identified by the City of Concord and included in Plan Bay Area 2040.33 The Community Reuse Area/Los Medanos and Downtown PDAs are anticipated to accommodate approximately 87% of the projected growth in households and 73% of the projected growth in employment.34 The Community Reuse Area/Los Medanos PDA is characterized as a Suburban Center and a Transit Neighborhood, and the Downtown PDA is characterized as a City Center. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Concord has not identified any Priority Conservation Areas in Plan Bay Area or the City’s General Plan.35 The City of Concord does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 5.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Concord’s SOI includes the municipal boundary and extends to the north, west, and northeast (see Figure 5.1). There are two unincorporated islands within the City’s municipal boundary—a 183-acre residential development known as Ayers Ranch, located near Bailey Road and Concord Boulevard, and an approximately 58-acre undeveloped area at the end of Kaiser Quarry Road (see Figure 5.1). The City provides sewer services within the Ayers Ranch island area. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, 33 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 34 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 35 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 5-18 Municipal Service Review Update City of Concord and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified a portion of the Pacheco area located west of the City boundary (north of Concord) and within the SOI as a disadvantaged community. There is also a disadvantaged community within the City’s boundary in the Concord Avenue and Olivera Road area. The unincorporated community of Bay Point, a portion of which is within the SOI for the City of Concord, also meets the criteria for a disadvantaged community. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 5.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Concord reports that it adequately serves all areas within its municipal boundary and SOI. Future phased development of the Concord Reuse Project is anticipated to have an effect on City services, the extent to which is unknown at present and is expected to be analyzed as part of the planning and environmental review process. Based on available information, sufficient data has not been provided by the City of Concord for this MSR Update to make an accurate determination about the City’s ability to adequately serve all areas within its municipal boundary at present and in the foreseeable future. Three disadvantaged communities have been identified within the City of Concord’s SOI. Sewer, water, and fire/emergency medical services are provided for these areas Contra Costa LAFCO Municipal Service Review Update 5-19 Chapter 5 CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 60, which is below the target of 75 MTC has established and which indicates a potential need for pavement rehabilitation funding. The City also has identified the need for deferred maintenance funding. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City has deferred some infrastructure maintenance, but it continues to seek grants and other funding opportunities to invest in capital improvements. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. 36 Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. 36 Although not covered in this MSR, the City also provides sewer service. Contra Costa LAFCO 5-20 Municipal Service Review Update City of Concord The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 5.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Concord expects General Fund deficits in the future, which may affect its ability to provide services; however the City has strong financial reserves to be relied upon on as they face expenditure pressure. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of Concord appears to have sufficient financial resources (e.g., healthy reserves) to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. Ongoing budget stabilization measures are needed to address projected structural deficits and the sunset of Measure Q. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Concord has been operating with a surplus in their General Fund, but will anticipate a seven-year deficit period beginning in FY 2020 if measures are not taken to secure additional funds and reduce expenditures. The City is proactively working to close the gap using efficiencies, new revenues, and cost cutting. The City currently meets their 30% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 2.7, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $350 per capita for FY 2017 and has been declining. Contra Costa LAFCO Municipal Service Review Update 5-21 Chapter 5 The City's unfunded pension and OPEB liabilities continue to grow and currently account for 20% of General Fund expenditures. The City’s Fiscal Sustainability Ordinance prioritizes annual contributions to help address the unfunded liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 5.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Concord website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Concord website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Concord website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 5.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 5.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Concord includes the municipal boundary and extends to the north, west, and northeast, as shown in Figure 5.1. The City of Concord is bound by the cities of Pleasant Hill and Martinez on the west, Clayton on the southeast, of Pittsburg on the northeast, Walnut Creek on the south, and the Carquinez Strait on the north. County lands also bound the City on the north and south. Contra Costa LAFCO 5-22 Municipal Service Review Update City of Concord This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Concord. This report also recommends that Contra Costa LAFCO consider the option of retaining the existing SOI with the condition that future potential annexation applications from the City require that the City provide more information37 to demonstrate its capacity, adequacy, and ability to provide services to the area under consideration. 5.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF CONCORD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Concord MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Concord plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, retail, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2007). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Concord. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years and in conjunction with future phased development of the Concord Reuse Project. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Concord appears adequate; however, this may change with future phased development of the Concord Reuse Project. The City of Concord anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Concord. 37 To include undeveloped entitled residential acres, expenditures for animal control and solid waste services, and additional detail for parks and recreation services. Contra Costa LAFCO Municipal Service Review Update 5-23 Chapter 5 PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified a portion of the Pacheco area located west of the City boundary (north of Concord) and within the SOI as a disadvantaged community. There is also a disadvantaged community within the City’s boundary in the Concord Avenue and Olivera Road area. The unincorporated community of Bay Point, a portion of which is within the SOI for the City of Concord, also meets the criteria for a disadvantaged community. These areas receive services related to sewer, water, and structural fire protection from service providers outside the City. There are no other disadvantaged communities within or contiguous to the SOI for the City. Contra Costa LAFCO 5-24 Municipal Service Review Update C 6 HAPTER T D OWN OF ANVILLE 6.1 AGENCY OVERVIEW The Town of Danville, incorporated in 1982, covers an area of approximately 18.8 square miles. With an estimated population of 44,396, the Town has a population density of approximately 2,336 persons per square mile.1 The Town of Danville lies in south-central Contra Costa County with the City of San Ramon to the south, County lands to the west and east, and the unincorporated communities of Alamo, Blackhawk, and Diablo to the north and northeast. The Sphere of Influence (SOI) for the Town of Danville is mostly coterminous with the municipal boundary, with the exception of an extension to the east, as shown in Figure 6.1. The Town adopted the countywide Urban Limit Line in 2007. Land uses in the Town include a mix of residential, commercial, public, open space, and agricultural. 6.1.1 FORM OF GOVERNMENT The Town of Danville is a general law city operating under a council-manager form of government. The publicly elected Town Council consists of five members, including the Mayor. Council members serve four-year terms; the position of Mayor rotates annually. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 6-1 Figure 6.1. Town of Danville Municipal Boundary and Sphere of Influence June 2019 Town of Danville 6.1.2 STAFFING Total Town staffing for fiscal year (FY) 2017 included 124.75 full-time equivalent (FTE) employees. Table 6.1 shows the four service areas with the highest staffing levels. TABLE 6.1 TOWN OF DANVILLE HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Recreation Services 38.25 Police Services 37.75 Maintenance Services 31.0 Development Services 30.75 Source: Town of Danville Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the Town of Danville, with 37.75 FTE employees. 6.1.3 JOINT POWERS AUTHORITIES The Town of Danville is a member of several joint powers authorities (JPAs), which are listed in Table 6.2. TABLE 6.2 TOWN OF DANVILLE JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Transit Authority Transit bus and paratransit Contra Costa Transportation Authority One-half cent transportation sales tax program East Bay Regional Communications System Interoperable radio communications Authority Marin Clean Energy (MCE) Clean Energy Community choice aggregation provider Municipal Pooling Authority Liability insurance and risk management RecycleSmart Solid waste and recycling Contra Costa LAFCO Municipal Service Review Update 6-3 Chapter 6 JOINT POWERS AUTHORITY SERVICE TRAFFIX Measure J Traffic Congestion Agency Local congestion relief and student transportation program Tri-Valley - San Joaquin Valley Regional Rail Megaregion rail connection from BART in the Tri- Authority (Valley Link) Valley to the San Joaquin Valley Tri-Valley Transportation Council Regional transportation impact fee program Source: Town of Danville 6.1.4 AWARDS AND RECOGNITION Table 6.3 lists the awards the Town of Danville has reported receiving since the first round Municipal Service Review (MSR). TABLE 6.3 TOWN OF DANVILLE AWARDS AWARD ISSUER YEAR(S) RECEIVED Certificate of Achievement for Excellence in Government Finance Officers 16 years Financial Reporting Association Certified Bay Area Green Business Association of Bay Area Governments 14 years Quality in Information Technology Practices Municipal Information System 2016, 2018 Award Association of California Source: Town of Danville 6.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 6.4, municipal services for the Town of Danville are provided by Town staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO 6-4 Municipal Service Review Update Town of Danville TABLE 6.4 TOWN OF DANVILLE MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning Town of Danville Law Enforcement Contra Costa County Library Contra Costa County Lighting Town of Danville Parks and Recreation Town of Danville Solid Waste Republic Services/RecycleSmart Stormwater Town of Danville Streets Town of Danville Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: Town of Danville The Town of Danville reports the following opportunities and challenges related to its provision of municipal services: Opportunities • Collaboration with other agencies delivering subregional services • Use of contract services Challenges • Approved and proposed development in surrounding communities outside the Urban Limit Line directly impact the Town’s ability to adequately provide municipal services A summary of the Town’s municipal service level statistics for FY 2017 is provided in Attachment B. 6.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the Town of Danville and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $250,786 in FY 2017. Contra Costa LAFCO Municipal Service Review Update 6-5 Chapter 6 CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 6.2.2 BROADBAND The Town of Danville does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the Town.3 These providers use a variety of wired technologies including cable and DSL. The Town of Danville did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The Town of Danville received a grade of C-, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The Town of Danville did not indicate concerns about the ability of broadband providers to serve the Town’s existing or growing population. 6.2.3 BUILDING/PLANNING The Town of Danville Development Services Department provides building and planning services. Department expenditures vary year to year, at $1.9 million in FY 2017, up from $1.8 million in FY 2016 and down from $2 million in FY 2015. The Town of Danville issued 626 residential and 68 commercial building permits in 2017. Total building permit valuation in FY 2017 was not reported or was unavailable at the time of this MSR update. Planning efforts for the Town of Danville include the 2030 General Plan (which includes the Housing Element), 2017-2027 Danville Parks Recreation & Arts Strategic Plan, and Annual Operating Budget & Capital Improvement Program (which projects future service demands). 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 6-6 Municipal Service Review Update Town of Danville 6.2.4 LAW ENFORCEMENT The Town of Danville contracts with the Contra Costa County Office of the Sheriff for the provision of law enforcement and dispatch services. FY 2017 expenditures for the Sheriff’s Office were approximately $229.3 million, up from approximately $217.8 million in FY 2015. Approximately 0.7 FTE sworn personnel per 1,000 population serve the Town of Danville, which remains the same as in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 8.6 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 41% in 2017, and the violent crime clearance rate was not reported or was unavailable at the time of this MSR update.6 The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. Total property crime clearances were reported at 125 (14 in Danville) and total violent crime clearances were reported at 340 (22 in Danville) for FY 2017. The Town currently has an approved agreement in place with the County to provide police services to non-Danville residents of the Alamo Springs neighborhood at the terminus of La Gonda Way. As part of the agreement, the County transfers funds for these services to the Town. 6.2.5 LIBRARY Contra Costa County provides library services for the Town of Danville at its Danville Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 6-7 Chapter 6 expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. 6.2.6 LIGHTING Lighting (street and traffic) is maintained by the Town of Danville Maintenance Services Department with assistance from Contra Costa County (signal) and PG&E (street lights). Town expenditures for street light and signal maintenance were $223,000 in FY 2017, down from $231,000 in FY 2015. The Town maintains 54 signalized intersections and 3,483 street lights. 6.2.7 PARKS AND RECREATION The Town of Danville Recreation, Arts, and Community Services Department is the service provider for parks and recreation facilities and programs; the Maintenance Services Department maintains these facilities. FY 2017 expenditures for parks were approximately $2.3 million in FY 2017, up slightly from approximately $2 million in FY 2015. The Town provides a multitude of classes, programs, sports leagues and special events for all ages. The Town provides and maintains 6.6 park acres per 1,000 residents, 2.25 recreation centers per 20,000 residents, and 6.88 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The Town’s level of service standard is 5 acres per 1,000 residents. 6.2.8 SOLID WASTE Solid waste services are provided to the Town of Danville by RecycleSmart via contract with Republic Services.8 The Town of Danville FY 2017 expenditures for solid waste services vary slightly year to year at $7.48 million in FY 2017, down from $7.5 million in FY 2016 and up from $7.41 million in FY 2015. The Town reported regional service levels, with approximately 0.52 tons of waste disposed per capita for FY 2017, and a total diversion rate of 60%. The FY 2017 per resident disposal rate was 3.7 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 8 RecycleSmart is a dba of Central Contra Costa Solid Waste Authority. Contra Costa LAFCO 6-8 Municipal Service Review Update Town of Danville 6.2.9 STORMWATER/DRAINAGE The Town of Danville Maintenance Services Department provides and maintains the Town’s stormwater drainage system. The Town reports that they have 125 miles of closed storm drain lines and that 1.5% of their 4,700 storm drain inlets are equipped with trash capture. The Town of Danville also reports compliance with National Pollution Discharge Elimination System standards. Stormwater expenditures were $340,014 in FY 2017, up from $316,002 in FY 2015. 6.2.10 STREETS/ROADS The Town of Danville Maintenance Services Department maintains 157.9 street miles and approximately 21.55 Class 1 and 2 bike lane miles, as well as roadside landscaping. FY 2017 expenditures for streets were $800,000. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the Town of Danville was 77 (good) in 2016, up from 74 in 2015, and now exceeds the target PCI of 75 (good) MTC has established.9 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. The Town reports that its own records show a PCI of 81 for 2017. 6.2.11 UTILITIES The Town of Danville is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the Town, and customers may choose either service provider. PG&E also provides gas service to the Town of Danville. The Town of Danville did not indicate concerns about the ability of utility service providers to serve the Town’s existing or growing population. 6.3 FINANCIAL OVERVIEW This section provides an overview of the Town of Danville’s financial health and assesses the Town’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and Town staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO Municipal Service Review Update 6-9 Chapter 6 6.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the Town. According to the Town's FY 2018-19 (FY 2019) budget10, the Town’s total revenues of $37.8 million cover its projected expenditures of $32.9 million. The budget continues to achieve its goals of positive year-end fund balances, no unfunded future liabilities, and transfers from the General Fund to fund high priority capital projects.11 Table 6.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The General Fund's ending fund balance in FY 2017 of $27 million represents a healthy 140% of General Fund expenditures. Unassigned reserves exceed 20% levels established by the Town. The Town anticipates continued fiscal sustainability through the next ten years assuming current service levels and use of accumulated reserves. Within the next 3-5 years, the Town will need to evaluate its Town-wide Landscape and Lighting Assessment District (LLAD) operations and consider assessment increases, which have not changed since 2003.12 The FY 2019 budget proposes a transfer of $900,000 from the General Fund to subsidize LLAD operating costs. TABLE 6.5 TOWN OF DANVILLE SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $13,593,000 $14,154,000 $13,979,000 Sales Tax $4,080,000 $4,559,000 $5,535,000 Other Revenues (including Transfers) $6,269,000 $6,931,000 $6,090,000 Total General Fund Revenues $23,942,000 $25,644,000 $25,604,000 Change from Prior Year n/a 7.1% -.16% 10 Town of Danville Administrative Staff report re: approving the 2018/19 Operating Budget and Appropriation Limit, June 6, 2018. 11 ibid, FY 2018/19 Danville Budget, pg. II. 12 ibid, FY 2018/19 Danville Budget, pg. XI. Contra Costa LAFCO 6-10 Municipal Service Review Update Town of Danville ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND EXPENDITURES General Government and $1,526,000 $1,591,000 $1,623,000 Administration Public Safety $8,061,000 $8,456,000 $8,753,000 Other (includes Transfers Out) $8,865,000 $9,068,000 $9,443,000 Total Expenditures $18,452,000 $19,115,000 $19,819,000 Change from Prior Year n/a 3.6% 3.7% Expenditures per capita $434 $434 $450 LIQUIDITY RATIO 1 Governmental Activities 9.4 8.4 9.9 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 6.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. Liquidity has exceeded a ratio of eight.13 Debt has generally been declining, and totaled $7.6 million at the end of FY 2017, or $173 per capita (see Attachment C). 6.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Danville’s net position has been stable and growing from FY 2015 through FY 2017. 6.3.4 LOCAL REVENUE MEASURES The Town has no voter-approved sales or parcel taxes. LLAD assessments help fund maintenance activities in areas of the Town. 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO Municipal Service Review Update 6-11 Chapter 6 6.3.5 ENTERPRISE ACTIVITIES The Town has no enterprise activities. 6.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a municipality’s General Fund revenue is insufficient to cover pension expenses, the municipality may pass that expense on to taxpayers. The Town of Danville is not a member of the California Public Employees Retirement System or a defined benefit plan. The Town provides a 401(a) defined contribution benefit plan and provides no retiree health care, which means it has no unfunded liabilities for those items. 6.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of the Town capital assets has been increasing slightly over time, indicating that the Town's capital spending has generally kept pace with assets. 6.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The Town’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. The Town prepares a 10-year budget forecast to anticipate and plan for future budget shortfalls affecting the ability to maintain reserve levels, meet service demands, and undertake measures to increase revenues, for example, changes to its LLAD charges. The forecast is integrated into the Town's budget document. The Town adopted a Comprehensive Economic Development Plan in 2016 and is implementing a Community Branding and Marketing Plan adopted in 2017. Successful economic development programs could improve Town sales taxes. 6.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the Town of Danville. Contra Costa LAFCO 6-12 Municipal Service Review Update Town of Danville 6.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the Town of Danville serves 44,396 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the Town of Danville are depicted in Figure 6.2. ABAG projects that the Town of Danville will grow at an annual rate of approximately 0.4% to a population of 47,350 between 2010 and 2040.14 The Town is also projected to experience an approximate 0.3% annual growth rate in jobs between 2010 and 2040. Overall, the Town’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data15 for 2010, the Town of Danville has 19,005 employed residents. The ABAG Projections data16 for 2010 estimated 11,840 jobs in the Town, with approximately 0.62 job for every employed resident. Bay Area Census data for 2010 indicate that the Town of Danville has 15,934 housing units, which results in a job and housing balance of 0.74. The number of owner-occupied units in the Town is greater than the number of renter-occupied housing units (Table 6.6), indicating that the rate of homeownership exceeds the rental household rate. 14 ABAG. Projections 2017. 15 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 16 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 6-13 Town of Danville 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 6.2. Population, Job, and Household Growth Projections (2010-2040) Town of Danville June 2019 Town of Danville TABLE 6.6 TOWN OF DANVILLE HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 13,020 Renter-occupied housing units 2,400 Vacant housing units 514 Total existing housing units 15,934 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 196 Low 111 Moderate 124 Above Moderate 126 Total Regional Housing Need Allocation 557 Sources: ABAG, Bay Area Census; Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.17 The Town of Danville was assigned a RHNA of 557 units, as shown in Table 6.6. The Town adopted its General Plan in 2013 and its Housing Element in 2015. The Town’s 2014– 2022 Housing Element identifies adequate sites, anticipated to yield approximately 800 to 1,000 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The Town of Danville 2014–2022 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.18 The Town of Danville’s programs and services to meet the needs of adults age 50 and older were not reported or were unavailable at the time of this MSR update. 17 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 18 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 6-15 Chapter 6 ANTICIPATED GROWTH PATTERNS The undeveloped entitled residential acres in FY 2017 were not reported or were unavailable at the time of this MSR update. The Town reports approximately 323 dwelling units as either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the Town of Danville and included in Plan Bay Area 2040.19 The Downtown PDA is characterized as a Transit Town Center.20 Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Town of Danville has not identified any Priority Conservation Areas in Plan Bay Area or the Town’s General Plan. 21 The Town of Danville does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 6.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Town of Danville’s SOI is mostly coterminous with the municipal boundary, with the exception of an extension to the east (see Figure 6.1). No unincorporated islands have been identified in the Town of Danville. The Town does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the Town of Danville and therefore, no disadvantaged communities are relevant to this analysis. 19 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 20 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 21 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 6-16 Municipal Service Review Update Town of Danville 6.4.3 TOWN SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Town of Danville reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the near future. There are no disadvantaged communities within or contiguous to the Town’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for Town streets is 77, which indicates the Town’s streets are in good condition and primarily require funding at a level to maintain the current condition. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the Town does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The Town did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The Town is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the Town’s General Plan. The Town’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. Contra Costa LAFCO Municipal Service Review Update 6-17 Chapter 6 STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The Town provides an array of municipal services, including those related to building/planning, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, law enforcement, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The Town does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 6.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the Town of Danville appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The Town of Danville has been operating with a surplus in their General Fund. The Town currently exceeds their 20% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. Contra Costa LAFCO 6-18 Municipal Service Review Update Town of Danville LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The Town reported a liquidity ratio of 9.9, which indicates the Town has the means available to cover its existing obligations in the short run. Total debt was approximately $173 per capita for FY 2017 and has been declining. The Town provides a defined contribution retirement plan and has no unfunded pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The Town issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 6.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF TOWN GOVERNANCE INFORMATION The Town of Danville website provides public access to the agendas and minutes for the Town Council and its various boards and commissions; the Town’s budgets; and the Town’s CAFRs. Town meetings are livestreamed via Granicus, and these meetings and minutes are made available on the Town's website. The Town therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF TOWN PLANNING INFORMATION The Town of Danville website provides public access to the Town’s general plan as well as various development plans and projects. The Town therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The Town of Danville website provides access to public notices, including the time and place at which Town residents may provide input, as well as other opportunities for public involvement in the Town decision-making process. The Town regularly posts informational updates on programs, projects, and events via social media. Newsletters are also distributed to Town residents. The Town therefore adequately provides accountability with regard to citizen participation. Contra Costa LAFCO Municipal Service Review Update 6-19 Chapter 6 6.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 6.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Town of Danville is mostly coterminous with the municipal boundary, with the exception of an extension to the east, as shown in Figure 6.1. The Town of Danville is bounded by the City of San Ramon to the south, County lands to the west and east, and the unincorporated communities of Alamo, Blackhawk, and Diablo to the north. In conjunction with the first round MSR in 2009, LAFCO deferred action on the Town’s SOI due to concerns between the Town of Danville and the City of San Ramon related to future development and competing interests in the Tassajara Valley. Representatives and officials from Danville, San Ramon, and Contra Costa County met to discuss these concerns. The agencies agreed that any future Danville and San Ramon SOI requests would not conflict or overlap with one another. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Town of Danville. 6.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE TOWN OF DANVILLE Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Town of Danville MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The Town of Danville plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, public, open space, and agricultural. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2013). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the Town of Danville. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the Town of Danville appears adequate. The Town of Danville anticipates it will continue to have adequate capacity during the next five years. Contra Costa LAFCO 6-20 Municipal Service Review Update Town of Danville EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the Town’s municipal boundary are included within the SOI. There are several communities located in the East Danville and Camino Tassajara areas that are within Danville’s SOI and are communities of interest. There has been some growth and development in and around these areas. Also, there has been interest by some of the residents in these areas for enhanced police services and annexation to the Town of Danville. This report recommends that the Town consider annexing these areas. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the Town of Danville and therefore no present or probable need for the Town to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. Contra Costa LAFCO Municipal Service Review Update 6-21 This page intentionally left blank. C 7 HAPTER C E C ITY OF L ERRITO 7.1 AGENCY OVERVIEW The City of El Cerrito, incorporated in 1917, covers an area of approximately 4 square miles. With an estimated population of 24,939, the City has a population density of approximately 6,234 persons per square mile.1 The City of El Cerrito lies in western Contra Costa County with the City of Richmond on the west and east, the unincorporated community of East Richmond Heights on the north, the unincorporated community of Kensington on the southeast, and the City of Albany and Contra Costa–Alameda County boundary on the south. The Sphere of Influence (SOI) for the City of El Cerrito extends beyond the municipal boundary to the northeast, where it includes the southern portion of East Richmond Heights, and to southeast, where it includes Kensington, as shown in Figure 7.1. The City adopted the countywide Urban Limit Line in 2006. Land uses in the City include a mix of residential, commercial, and open space. There are no agricultural land uses in the City of El Cerrito. 7.1.1 FORM OF GOVERNMENT The City of El Cerrito is a charter city. The publicly elected City Council consists of five members, including the Mayor. All Council members serve four-year terms and the Mayor rotates every year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 7-1 Figure 7.1. City of El Cerrito Municipal Boundary and Sphere of Influence June 2019 City of El Cerrito 7.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 170.7 full-time equivalent (FTE) employees. Table 7.1 shows the four service areas with the highest staffing levels. TABLE 7.1 CITY OF EL CERRITO HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 56.4 Fire (not reviewed) 37 Public Works 24.8 Recreation 23 Source: City of El Cerrito Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of El Cerrito, with 56.4 FTE employees. 7.1.3 JOINT POWERS AUTHORITIES The City of El Cerrito is a member of several joint powers authorities (JPAs), which are listed in Table 7.2. TABLE 7.2 CITY OF EL CERRITO JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost-effective solutions to common problems that they face. ABAG Power Wind up electric program Automated Records Management System Automated records management system with the Agreement City of Richmond and other contract agencies California Statewide Communities Development Participate in California First Program Authority Contra Costa Abandoned Vehicle Abatement Service Proper removal and disposal of abandoned vehicles Authority Contra Costa County Municipal Risk Management Providing property, workers’ compensation, public Insurance Authority Joint Exercise of Powers liability and other insurance coverages Agreement Contra Costa LAFCO Municipal Service Review Update 7-3 Chapter 7 JOINT POWERS AUTHORITY SERVICE Contra Costa Transit Authority Congestion Plan, fund, and implement innovative transit Management Agency programs that strengthen our diverse communities and improve the lives of County residents East Bay Regional Communications System Develop, build, and maintain a state-of-the-art P25 Authority compliant communication system for Alameda and Contra Costa Counties; jointly purchasing federal mandated P25 compliant interoperable radios Gilman Sports Fields Complex (aka Tom Bates Maintenance of the sports fields – replacement of Regional Sports Field) turf, additional construction of bathroom Golden State Finance Authority Program Finance renewable energy generation, energy and water efficiency improvements, electric vehicle charging infrastructure, and other energy improvements Marin Clean Energy Community Choice Aggregation Municipal Pooling Authority Providing liability insurance to municipal agencies in Contra Costa County Property Assessed Clean Energy Financing for efficiency and seismic improvements West Contra Costa County Solid Waste Assembly Bill 939 Reporting; household hazardous Management (RecycleMore) waste collection service West Contra Costa Transportation Advisory Supports joint administration of Transportation Committee Demand Management ordinances and programs Source: City of El Cerrito 7.1.4 AWARDS AND RECOGNITION Table 7.3 lists the awards the City of El Cerrito has reported receiving since the first round Municipal Service Review (MSR). TABLE 7.3 CITY OF EL CERRITO AWARDS AWARD ISSUER YEAR(S) RECEIVED Leadership in Energy and Environmental Design U.S Green Building Council 2018 Certification Environmental Beacon Spotlight Awards: California Institute for Local 2018 Government • Gold Level – community greenhouse gas reductions • Platinum Level – energy savings; natural gas savings Honorable Mention Recycling Facility of the Year National Waste and Recycling 2018 Association Contra Costa LAFCO 7-4 Municipal Service Review Update City of El Cerrito AWARD ISSUER YEAR(S) RECEIVED Environmental Leadership and Commitment to Marin Clean Energy 2017 Deep Green 100% Renewable Energy Distinguished Budget Presentation Award Government Finance Officers 2010 – 2017 Association of the United States and Canada Certificate of Achievement for Excellence in Government Finance Officers 2016 Financial Reporting Association of the United States and Canada Best All-Around Pavement Management Program Metropolitan Transportation 2015 Commission Voice of the People Award for Transformation in International City/County 2013 Street Repair Services Management Association Voice of the People Award for Excellence in International City/County 2013 Recycling Services Management Association Sustainability Award 2012 for the El Cerrito Sustainable Contra Costa Leadership 2012 Recycling and Environmental Resource Center Program Excellence Award for Community International City/County 2012 Sustainability Management Association Recycling and Environmental Resource Center U.S. Green Building Council 2012 LEED for New Construction Platinum Most Improved Roads Metropolitan Transportation 2011 Commission Pavement Management Program Best of Contra Costa County to El Cerrito Parent’s Press Magazine 2011 – 2018 Recreation Department (various categories) Source: City of El Cerrito 7.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 7.4, municipal services for the City of El Cerrito are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO Municipal Service Review Update 7-5 Chapter 7 TABLE 7.4 CITY OF EL CERRITO MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of El Cerrito Law Enforcement City of El Cerrito Library Contra Costa County Lighting City of El Cerrito Parks and Recreation City of El Cerrito Solid Waste City of El Cerrito, East Bay Sanitary Company Stormwater City of El Cerrito, Contra Costa Clean Water Program Streets City of El Cerrito Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of El Cerrito The City of El Cerrito reports the following challenges related to its provision of municipal services: • Unfunded mandates and regulatory requirements • Tax limitation measures • Unfunded pension liability A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 7.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of El Cerrito and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. City expenditures for animal services were $137,559 for FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO 7-6 Municipal Service Review Update City of El Cerrito number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 7.2.2 BROADBAND The City of El Cerrito does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of El Cerrito did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of El Cerrito received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of El Cerrito did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 7.2.3 BUILDING/PLANNING The City of El Cerrito Community Development Department provides building and planning services. Department expenditures for FY 2017 were approximately $2.1 million. The City of El Cerrito issued 1,188 residential and 116 commercial building permits in 2017, reflecting an upward trend from 1,110 residential and 93 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $29.1 million, down from $45 million in FY 2015. Planning city-wide has been captured in the General Plan, Strategic Plan, and the five-year Master Plans. 7.2.4 LAW ENFORCEMENT The City of El Cerrito Police Department provides law enforcement services and contracts with the City of Richmond for dispatch services. FY 2017 expenditures for dispatch services were $501,256; expenditures for law enforcement services were not reported. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO Municipal Service Review Update 7-7 Chapter 7 The City of El Cerrito has 1.6 FTE sworn personnel per 1,000 population, which represents no change from 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 30.78 crimes per sworn FTE in 2017. The City does not track property or violent crime clearance rates (a measure of crimes solved).6 7.2.5 LIBRARY Contra Costa County provides library services for the City of El Cerrito at its El Cerrito Branch Library and Kensington Branch Library7 locations. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.8 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state’s average expenditures and staffing levels are nearly double the County’s. 7.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of El Cerrito Department of Public Works. City expenditures for light and signal maintenance vary year to year, at $273,015 in FY 2017, up slightly from $270,830 in FY 2015, but down from $301.951 in FY 2016. The City maintains 11 signalized intersections, 11 traffic lights, and 1,606 street lights. 7.2.7 PARKS AND RECREATION The City of El Cerrito Department of Public Works is the service provider for parks and recreation facilities, as well as landscaped medians and public planter beds, and the Recreation Department is 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 This branch is outside the municipal boundary but within the City’s SOI. 8 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 7-8 Municipal Service Review Update City of El Cerrito the service provider for recreation programs. FY 2017 expenditures for parks were approximately $1.6 million in FY 2017, up from approximately $1.4 million in FY 2015. The City provides a variety of classes, programs, activities and events, including a robust services program for older adults and youth. The City provides and maintains 6 park acres per 1,000 residents, 10.83 recreation centers per 20,000 residents, and 3.6 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 7.2.8 SOLID WASTE Solid waste services are provided to the City of El Cerrito via franchise agreement with East Bay Sanitary Company. The City of El Cerrito FY 2017 expenditures for solid waste services were $2.1 million, down from $2.2 million in FY 2015. The El Cerrito Recycling and Environmental Resource Center is open to residents for recycling and household hazardous waste. The City reported approximately 0.69 tons of waste disposed per capita for FY 2017, and a total diversion rate of 55%. The FY 2017 per resident disposal rate was 3.8 pounds/resident/day Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 7.2.9 STORMWATER/DRAINAGE The City of El Cerrito provides and maintains the City’s stormwater drainage system. The City reports that they have 38.75 miles of closed storm drain lines and that less than 7.6% of their 1,205 storm drain inlets are equipped with trash capture. The City of El Cerrito also reports compliance with National Pollution Discharge Elimination System standards. Total FY 2017 expenditures for stormwater were $945,334, representing an upward trend from $831,878 in FY 2015. 7.2.10 STREETS/ROADS The City of El Cerrito Department of Public Works provides and maintains 68 street miles and approximately 4 Class 1 and 2 bike lane miles, as well as landscaped medians and other public landscaping. FY 2017 expenditures for streets vary year to year, at $3 million in FY 2017, down from $4.1 million in FY 2016 and $3.6 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO Municipal Service Review Update 7-9 Chapter 7 The PCI for streets in the City of El Cerrito was 84 (very good to excellent) in 2017, the same as in 2015, which remains above the target PCI of 75 (good) MTC has established.9 Pavement in this range (80-100) is newly reconstructed or resurfaced with few signs of distress. 7.2.11 UTILITIES The City of El Cerrito is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of El Cerrito. The City of El Cerrito did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 7.3 FINANCIAL OVERVIEW This section provides an overview of the City of El Cerrito’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 7.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $37.8 million slightly exceed General Fund expenditures of $37.7 million.10 Table 7.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The General Fund's unassigned General Fund balance at the end of FY 2017 totaled $2.1 million, or about 6.3% of expenditures that year; this level is significantly below the City's policy goal to achieve "a general fund annual operating reserve of 15%, with a minimum of 10%, of projected General Fund operating expenditures in each fiscal year."11 The City anticipated that reserve levels could drop to 3.4% by the start of FY 2018-19.12 These low 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 10 City of El Cerrito Proposed Biennial Budget, Fiscal Years 2018-19 and 2019-20, pg. 5. 11 City of El Cerrito Comprehensive Financial Policy, Approved Dec. 6, 2016, General Fund Reserve Policy 3.2. 12 ibid, City of El Cerrito Budget 2018-19 and 2019-20, pg. 6. Contra Costa LAFCO 7-10 Municipal Service Review Update City of El Cerrito reserves resulted from City Council decisions to draw upon reserves following the recession rather than reduce service levels.13 TABLE 7.5 CITY OF EL CERRITO SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $8,800,000 $9,843,000 $9,082,000 Sales Tax $6,455,000 $7,551,000 $7,477,000 Other Revenues (including Transfers) $14,752,000 $14,975,000 $16,900,000 Total General Fund Revenues $30,007,000 $32,369,000 $34,531,000 Change from Prior Year n/a 7.9% 6.7% GENERAL FUND EXPENDITURES General Government and $3,728,000 $4,359,000 $4,927,000 Administration Public Safety $18,461,000 $19,326,000 $20,277,000 Other (includes Transfers Out) $7,627,000 $8,252,000 $9,123,000 Total Expenditures $29,816,000 $31,937,000 $34,327,000 Change from Prior Year n/a 7.1% 7.5% Expenditures per capita $1,236 $1,304 $1,391 LIQUIDITY RATIO 1 Governmental Activities 0.4 1.2 0.8 Business-type Activities 0.5 0.5 0.5 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 7.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In addition to low reserves, the City's liquidity ratios are less than 1.0 indicating that current liabilities exceed short-term resources; this situation can incur increased borrowing costs and risk of 13 ibid, City of El Cerrito Budget 2018-19 and 2019-20, pg. 32. Contra Costa LAFCO Municipal Service Review Update 7-11 Chapter 7 payment defaults.14 According to the City, currently it has "sufficient cash to cover all current liabilities and short-term debt."15 The City's outstanding debt totaled approximately $20.7 million at the end of FY 2017, or $841 per capita. 7.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Past years show a moderate positive change to its enterprise net position (see Attachment C). The total positive net position of governmental funds declined about 1% between FY 2015 and FY 2017, and the negative unrestricted portion improved slightly to a negative ($45.7 million) in FY 2017. 7.3.4 LOCAL REVENUE MEASURES The City supports its budget with the benefit of several voter approved measures, including a local 1-cent sales tax (Measure R) approved in 2010, and extended in 2014 for 12 years, and an 8% utility users tax approved in 1991 and again in 2004. A Landscape and Lighting Assessment District (LLAD) provides nearly $800,000 annually to fund certain maintenance services, although the assessments have not increased since the LLAD was formed in 1988. Measure V, city charter and property transfer tax measure, was approved by El Cerrito voters in November 2018. The measure made El Cerrito a charter city and allows it to increase its property transfer tax rate by 9.17%. 7.3.5 ENTERPRISE ACTIVITIES The City's Integrated Waste Management is its only enterprise. As an enterprise, the City can collect fees and charges to cover its costs. Revenues from Integrated Waste Management fees are projected to increase by 7.5% in calendar years 2019 and 2020 in order to compensate for loss in materials revenue.16 7.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City's net pension liability grew from approximately $46 million in FY 2016 to $54.8 million in FY 2017 (see Attachment C). Changes to the California Public Employees' Retirement System 14 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 15 City of El Cerrito Response to MSR Fiscal Questions. 16 ibid, City of El Cerrito Budget 2018-19 and 2019-20, pg. 47. Contra Costa LAFCO 7-12 Municipal Service Review Update City of El Cerrito requirements will likely increase this net liability. The City's budget does not identify any specific actions being taken to address the impact of unfunded pension liabilities on the ability to fund City services and facilities. The City does not provide retiree health care benefits, but does allow retirees to continue their health insurance at their own cost. The "implied subsidy" resulting from retirees' more costly insurance paid by retirees at the City's lower overall average cost is reported in the City's CAFR. 7.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of City capital assets has been declining over time, indicating the City's capital spending has generally not kept pace with asset depreciation (see Attachment C). FY 2018-19 capital expenditures total approximately $3.0 million and FY 2019-20 capital expenditures total approximately $2.4 million.17 7.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets are prepared in a timely manner and posted on the agency's website. The City recently changed auditing firms and consequently its audited CAFR was delayed beyond six months following the end of the FY 2017 fiscal year. The FY 2017 CAFR was posted on the City's website in September of 2018, more than one year after the end of FY 2017. 7.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of El Cerrito. 17 ibid, City of El Cerrito Budget 2018-19 and 2019-20, Capital Improvement Summary, pg. 163. Contra Costa LAFCO Municipal Service Review Update 7-13 Chapter 7 7.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of El Cerrito serves 24,939 residents. The City is considered built-out, and future growth will occur through infill development and reuse of existing sites. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of El Cerrito are depicted in Figure 7.2. ABAG projects that the City of El Cerrito will grow at an annual rate of approximately 0.7% to a population of 29,075 between 2010 and 2040.18 The City is also projected to experience an approximate 0.4% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data19 for 2010, the City of El Cerrito has 12,023 employed residents. The ABAG Projections data20 for 2010 estimated 5,315 jobs in the City, with approximately 0.44 job for every employed resident. Bay Area Census data for 2010 indicate that the City of El Cerrito has 10,716 housing units, which results in a job and housing balance of 0.50. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 7.6), indicating that the rate of homeownership exceeds the rental household rate. 18 ABAG. Projections 2017. 19 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 20 ABAG. Projections 2017. Contra Costa LAFCO 7-14 Municipal Service Review Update City of El Cerrito 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 7.2. Population, Job, and Household Growth Projections (2010-2040) City of El Cerrito June 2019 Chapter 7 TABLE 7.6 CITY OF EL CERRITO HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 6,145 Renter-occupied housing units 3,997 Vacant housing units 574 Total existing housing units 10,716 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 100 Low 63 Moderate 69 Above Moderate 166 Total Regional Housing Need Allocation 398 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.21 The City of El Cerrito was assigned a RHNA of 398 units, as shown in Table 7.6. The City adopted its General Plan in 1999 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 796 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of El Cerrito 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.22 The City of El Cerrito provides a variety of programs and services in the areas of health, education, and recreation to meet the needs of adults age 50 and older, as shown in Table 7.7. 21 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 22 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO 7-16 Municipal Service Review Update City of El Cerrito TABLE 7.7 CITY OF EL CERRITO PROGRAMS AND SERVICES FOR AN AGING POPULATION PROGRAM SERVICE Exercise Classes Balance, chair work, exercise, floor work, folk dance, pickleball, tai chi, yoga Enrichment Bridge, canasta, chess, computer classes, current events seminar, drawing, eldertech, ikebana, internet class, ipad/iphone class, mahjong, sing-a- long, Spanish Excursions Birding, hikes, day trips, extended trips, walks Service AARP taxes, easy ride paratransit, hairdresser, Health Insurance Counseling and Advocacy Program, lunch, massage, peer counseling, podiatrist, respite, women’s support group Special Events Pickleball tournament, presentations, senior resource fair, talks Source: City of El Cerrito ANTICIPATED GROWTH PATTERNS The City of El Cerrito undeveloped entitled residential acres for FY 2017 were not reported or were unavailable at the time of this MSR update. The City’s 2015 Housing Element identifies 251 units under construction or approved within El Cerrito, including 86 very low-income units, 38 low- income units, 13 moderate-income units, and 114 above moderate-income units. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of El Cerrito and included in Plan Bay Area 2040.23 The San Pablo Avenue Corridor PDAs are anticipated to accommodate approximately 73% of the projected growth in households and 50% of the projected growth in employment.24 The San Pablo Avenue Corridor PDA is characterized as Mixed Use Corridor/Transit Oriented Development and consists of a 2.5-mile section of San Pablo Avenue that traverses El Cerrito from its southern border at El Cerrito Plana to its northern gateway at the Baxter Creek Gateway Park at the Richmond border. The PDA is also included in the San Pablo Avenue Specific Plan. Priority Conservation Areas (PCAs), which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of El Cerrito has identified three PCAs. The Hillside Natural Area PCA consists of 79 acres of open space in central El Cerrito. The Ohlone Greenway PCA is a linear park that runs 2.5 miles (the 23 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 24 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 Contra Costa LAFCO Municipal Service Review Update 7-17 Chapter 7 length of the City). The Cerrito Creek PCA is a creek that runs along the southern border of the City. These PCAs are included in Plan Bay Area 2040.25 The City of El Cerrito does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 7.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of El Cerrito’s SOI extends beyond the municipal boundary to the northeast, where it includes the southern portion of East Richmond Heights, and to southeast, where it includes Kensington (see Figure 7.1). No unincorporated islands have been identified in the City of El Cerrito. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified an area along State Highway 123 and Potrero Avenue and within the City’s boundary that is considered a disadvantaged community. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 25 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 7-18 Municipal Service Review Update City of El Cerrito 7.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of El Cerrito reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the foreseeable future. The disadvantaged community within the City’s SOI receives sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 84, which indicates the City’s streets are in very good condition and primarily require funding at a level to maintain the current condition. The City reports that it is not otherwise keeping pace with the aging of capital infrastructure. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City may experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City reports that its CIP is not sufficient to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. Contra Costa LAFCO Municipal Service Review Update 7-19 Chapter 7 STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, solid waste, stormwater, and streets. 26 Services related to animal control, broadband, library, solid waste, stormwater, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 7.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of El Cerrito is experiencing some fiscal challenges that may affect its ability to provide services, particularly in the event of unexpected funding needs. The City’s capital spending has not kept pace with asset depreciation. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of El Cerrito appears to have sufficient financial resources to continue providing services. The City’s ability to accommodate infrastructure 26 Although not covered in this MSR, the City also provides fire service. Contra Costa LAFCO 7-20 Municipal Service Review Update City of El Cerrito expansion, improvements, or replacement over the next five years may be compromised absent the identification of additional funding opportunities. The additional revenue from the 2018 passage of Measure W will help the City of El Cerrito address some of its fiscal challenges. OPERATING GENERAL FUND AND RESERVES TRENDS The City of El Cerrito has been operating with a surplus in their General Fund. The City Council decided to draw upon the City’s reserves after the recession rather than reduce service levels. As a result, the City’s reserves have been declining, with the unassigned General Fund balance at 6.3% of expenditures for FY 2017 and projected at 3.4% for FY 2018-2019. This level is well below the City’s 15% reserve goal and may affect the City’s ability to maintain an acceptable level of service provision and to enact changes to maintain services.. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City’s liquidity ratio is 0.8; ratios less than 1.0 indicate that liabilities exceed short-term resources. Although the liquidity ratio is low, the City reports that it has sufficient cash to cover current liabilities and short-term debt. Total debt was approximately $841 per capita for FY 2017. The City's unfunded pension and OPEB liabilities continue to grow. The City has not identified any measures to address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR over one year after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 7.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of El Cerrito website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. City Council meetings are livestreamed, broadcast on radio and television, and made available on the City website for future viewing. The City therefore adequately provides accountability with regard to governance and municipal operations. Contra Costa LAFCO Municipal Service Review Update 7-21 Chapter 7 ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of El Cerrito website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of El Cerrito website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City uses social media, OpenGov, radio, printed media, and in-person workshops and meetings to notify, educate, and engage residents and other customers. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 7.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 7.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of El Cerrito extends beyond the municipal boundary to the northeast, where it includes the southern portion of East Richmond Heights, and to southeast, where it includes Kensington, as shown in Figure 7.1. The City of El Cerrito is bound by the City of Richmond on the west and east, the unincorporated community of East Richmond Heights on the north, the unincorporated community of Kensington on the southeast, and the City of Albany and Contra Costa–Alameda County boundary on the south. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of El Cerrito. This report also recommends that Contra Costa LAFCO consider the option of retaining the existing SOI with the condition that future potential annexation applications from the City require that the City demonstrate its financial ability to provide services to the area under consideration. 7.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF EL CERRITO Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of El Cerrito MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of El Cerrito plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (1999). Contra Costa LAFCO 7-22 Municipal Service Review Update City of El Cerrito PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of El Cerrito. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of El Cerrito appears adequate. The City of El Cerrito anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of El Cerrito. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There is an area along State Highway 123 and Potrero Avenue and within the City’s boundary that is considered a disadvantaged community. This area receives sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 7-23 This page intentionally left blank. C 8 HAPTER C H ITY OF ERCULES 8.1 AGENCY OVERVIEW The City of Hercules, incorporated in 1900, covers an area of approximately 8 square miles. With an estimated population of 26,317, the City has a population density of approximately 3,249 persons per square mile.1 The City of Hercules lies in western Contra Costa County with the City of Pinole to the south and west, the unincorporated community of Rodeo to the north, San Pablo Bay to the west, and County lands to the east. The Sphere of Influence (SOI) for the City of Hercules is mostly coterminous with the municipal boundary, with the exception of an extension to the north near Highway 4, as shown in Figure 8.1. The City adopted the countywide Urban Limit Line in 2009. Land uses in the City include a mix of residential, research and development, commercial, and open space. There are no designated agricultural land uses in the City of Hercules; however, livestock grazing does occur on some open space parcels. 8.1.1 FORM OF GOVERNMENT The City of Hercules is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. All Council members serve four-year terms and the Mayor rotates every year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 8-1 Figure 8.1. City of Hercules Municipal Boundary and Sphere of Influence June 2019 City of Hercules 8.1.2 STAFFING Total City staffing budgeted for fiscal year (FY) 2017 included 50.95 full-time equivalent (FTE) employees. Table 8.1 shows the four service areas with the highest budgeted staffing levels. TABLE 8.1 CITY OF HERCULES HIGHEST BUDGETED STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 24.0 Landscaping and Lighting 4.92 Parks and Recreation 4.0 Wastewater 3.35 Source: City of Hercules Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the City of Hercules, with 24.0 FTE employees. 8.1.3 JOINT POWERS AUTHORITIES The City of Hercules is a member of several joint powers authorities (JPAs), which are listed in Table 8.2. TABLE 8.2 CITY OF HERCULES JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Association of Bay Area Governments Publicly A natural gas aggregation to purchase natural gas Owned Energy Resources and related services California Statewide Communities Development — Authority Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System — Authority Hercules/Pinole/Rodeo Sanitary District Disposal of treated wastewater Contra Costa LAFCO Municipal Service Review Update 8-3 Chapter 8 JOINT POWERS AUTHORITY SERVICE Hercules Public Financing Authority Provide financing related to the lease, acquisition, construction, and improvement of public capital improvements Municipal Pooling Authority West Contra Costa Integrated Waste Management Authority West Contra Costa Transportation Advisory Committee Western Contra Costa County Transit Authority — Source: City of Hercules 8.1.4 AWARDS AND RECOGNITION The City of Hercules did not report receiving any awards since the first round Municipal Service Review (MSR). 8.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 8.3, municipal services for the City of Hercules are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 8.3 CITY OF HERCULES MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Hercules, Contra Costa County Law Enforcement City of Hercules Library Contra Costa County Lighting City of Hercules Parks and Recreation City of Hercules Solid Waste Republic Services/Richmond Sanitary Stormwater City of Hercules Streets City of Hercules Contra Costa LAFCO 8-4 Municipal Service Review Update City of Hercules SERVICE SERVICE PROVIDER Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Hercules Opportunities or challenges related to the provision of municipal services for the City of Hercules were not reported or were unavailable at the time of this MSR update. A summary of the available municipal service level statistics for FY 2017 is provided for the City in Attachment B. 8.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Hercules and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $142,208. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 8.2.2 BROADBAND The City of Hercules does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Hercules did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Hercules received a grade of C-, which indicates that internet service providers 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO Municipal Service Review Update 8-5 Chapter 8 did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Hercules reports that it has an ordinance in place which requires new development to install dark fiber and conduit as part of a possible future network and the City Council has budgeted funds to install dark fiber and conduit when the City undertakes its own public works projects in the public right-of-way. A variety of initial segments have been installed on this basis. The City did not indicate specific concerns about the ability of current broadband providers to serve the City’s existing or growing population. 8.2.3 BUILDING/PLANNING The City of Hercules Building Division of the Community Development Department provides support for building services. Contra Costa County provides contract building inspection and plan check services; City staff coordinates most building service activity. The Planning Department staff provides current planning services and limited long-range planning services. Department expenditures for FY 2017 were $512,151. The City of Hercules issued 61 residential and no commercial building permits in 2017. The total building permit valuation in FY 2017 was approximately $20.7 million. Planning city-wide has been captured in the General Plan, the Waterfront District Master Plan, and several specific plans. 8.2.4 LAW ENFORCEMENT The City of Hercules Police Department provides law enforcement services. FY 2017 expenditures were approximately $5.9 million, up from approximately $5.1 million in FY 2015. The City of Hercules reports 0.917 FTE sworn personnel per 1,000 population for FY 2017. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 20.25 crimes per sworn FTE in 2017. The 2017 property crime clearance rate (a measure of crimes solved) was 7% in 2017 and the violent crime clearance rate was 45%.6 8.2.5 LIBRARY Contra Costa County provides library services for the City of Hercules at its Hercules Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO 8-6 Municipal Service Review Update City of Hercules The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.2 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staff levels are nearly double the County’s. 8.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Hercules Engineering and Public Works Department. City FY 2017 expenditures for light and signal maintenance were a combined total of $275,075. The City’s 10 traffic signals are maintained by the County of Contra Costa through an inter-agency agreement. Street lights are owned and maintained by the City or Pacific Gas and Electric depending upon location and the rate structure.8 Street light maintenance is funded primarily through a Landscape & Lighting Assessment District. 8.2.7 PARKS AND RECREATION The City of Hercules Parks and Recreation Department is the service provider for parks and recreation facilities, as well as recreation programs. FY 2017 expenditures for parks were approximately $1.8 million in FY 2017, which is the same as for FY 2015. The City provides a number of activities, classes, programs and events for all ages, including online learning opportunities and extended trips. The City provides and maintains approximately 45.9 park acres, 3 recreation centers, and 6 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ 8 The City did not report the number of street lights. Contra Costa LAFCO Municipal Service Review Update 8-7 Chapter 8 8.2.8 SOLID WASTE Solid waste services are provided to the City of Hercules via franchise agreement with Republic Services/Richmond Sanitary. Republic Services/Richmond Sanitary transports solid waste collected from the City of Hercules to the Potrero Landfill located in Suisun City. The City of Hercules FY 2017 expenditures for solid waste services were not reported or were unavailable at the time of this MSR update. The FY 2017 solid waste disposal rates were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 8.2.9 STORMWATER/DRAINAGE The City of Hercules Engineering and Public Works Department provides and maintains the City’s stormwater drainage system. The City reports that they have 40 miles of closed storm drain lines and that 80% of high trash generation areas are equipped with trash capture (31 of the City’s storm drain inlets). The City of Hercules also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $279,083. 8.2.10 STREETS/ROADS The street miles and Class 1 and 2 bike lane miles provided and maintained by the City of Hercules Engineering and Public Works Department were not reported or were unavailable at the time of this MSR update. FY 2017 expenditures for streets were $187,094, up from $166,838 in FY 2015. Including capital costs, total FY 2017 street expenditures were $2.75 million. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Hercules was 69 (fair) in 2017, down from 71 in 2015, and remains below the target PCI of 75 (good) MTC has established.9 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. The City reports that it has significantly increased in investment in street maintenance and repair the last three years not only due to SB 1 revenues but also other local resources including one-time General Fund monies in some years. 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 8-8 Municipal Service Review Update City of Hercules 8.2.11 UTILITIES Pacific Gas & Electric provides gas and electricity service to the City of Hercules. The City is not a member of a Community Choice Aggregation program. The City of Hercules did not report concerns about the ability of utility service providers to serve the City’s existing or growing population. 8.3 FINANCIAL OVERVIEW This section provides an overview of the City of Hercules’s financial health and assesses the City’s financial ability to provide services. Key financial information for City municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 8.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $15.1 million10 are slightly below General Fund adopted expenditures of $15.2 million.11 The General Fund's unassigned General Fund balance at the end of FY 2017 totaled $9.4 million, or about 330% of expenditures (see Attachment C). In FY 2018 the City added to its Fiscal Neutrality Reserve in order to maintain the reserve at the City's policy goal of two months' expenditures.12 Table 8.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The General Fund's ending fund balances generally exceeded 300% of annual revenues in FY 2015 through FY 2017, however a significant portion of those balances are non-spendable advances to other funds. In the FY 2018/19 Budget, the City increased its General Fund Reserve to 3 months annual expenditures. 10 City of Hercules Adopted Budget, FY 202018-19 (FY 2019) pg. 68. 11 ibid, Hercules Budget FY 2019, pg. 122, Reso. No. 18-043. 12 ibid, Hercules Budget FY 2019, pg. 4. Contra Costa LAFCO Municipal Service Review Update 8-9 Chapter 8 TABLE 8.4 CITY OF HERCULES SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $1,173,000 $1,057,000 $1,110,000 Sales Tax $2,518,000 $1,803,000 $1,943,000 Other Revenues (including Transfers) $9,999,000 $11,260,000 $11,907,000 Total General Fund Revenues $13,690,000 $14,120,000 $14,960,000 Change from Prior Year n/a 3.1% 5.9% GENERAL FUND EXPENDITURES General Government and $2,636,000 $2,953,000 $3,974,000 Administration Public Safety $5,152,000 $5,590,000 $6,022,000 Other (includes Transfers Out) $3,308,828 $3,607,553 $2,658,808 Total Expenditures $11,096,828 $12,150,553 $12,654,808 Change from Prior Year n/a 9.5% 4.2% Expenditures per capita $451 $488 $483 LIQUIDITY RATIO 1 Governmental Activities 2.7 0.9 1.0 Business-type Activities 32.3 4.4 6.3 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 8.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio was approximately 1.0 indicating that current liabilities approximately equaled short-term resources; this situation can incur increased borrowing costs and risk of payment defaults.13 The FY 2016 liquidity ratio was 0.9. The City anticipated that positive surpluses from FY 2018 would increase its reserves and liquidity going into 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 8-10 Municipal Service Review Update City of Hercules FY19.14 The City's total debt has been declining over time. Total outstanding debt was approximately $1,485 per capita in FY 2017, indicating increases compared to the $1,346 per capita reported for FY 2015 (see Attachment C). 8.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Past years show an overall positive change for combined enterprise net position (see Attachment C). The total positive net position of governmental funds increased between FY 2015 and FY 2017, and the positive unassigned portion improved. 8.3.4 LOCAL REVENUE MEASURES The City supports its budget with the benefit of several voter approved measures, including a local one-half-cent sales tax (Measure B, originally adopted as Measure O) which generated about $1.1 million FY 2017, and a utility users tax increase (Measure C) that produced $1.3 million in FY 2017 in addition to the $3.3 million from the City's existing utility users tax. Zones in the Citywide Landscape and Lighting Assessment District (LLAD) have had financial difficulty funding costs, and efforts to increase assessments were unsuccessful. A mailed ballot tabulated in July 2018 successfully increased rates in only one of six LLAD districts, leading to "leading to the strong possibility of LLAD service cutbacks in those zones."15 The City's Stormwater Fund has also been experiencing deficits due to state-mandated services and increased expenditures that are not adequately funded by existing stormwater funding sources. 8.3.5 ENTERPRISE ACTIVITIES The City's wastewater operation is its only enterprise. As an enterprise, the City can collect fees and charges to cover its costs. The joint Pinole Hercules Waste Water Treatment Plant is undergoing expansion, and may result in some "future increase in operating costs."16 8.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City last reported its unfunded pension liability of $14.5 million in FY 2016 (see Attachment C), which is the residual owed after accounting for its 70% funded total liability. The City reports 14 ibid, Hercules Budget FY 2019, pg. 5. 15 City of Hercules website, 8/17/18, 2018 Landscape and Lighting Assessment, https://www.ci.hercules.ca.us/ 16 ibid, Hercules Budget FY 2019, pg. 7. Contra Costa LAFCO Municipal Service Review Update 8-11 Chapter 8 that it established a Section 115 Trust in FY18 with an initial deposit of $500,000 followed by a deposit of $1 million in FY19 and additional deposits for a current balance of $1.54 million and is considering options for the most effective use of the trust funds. The City recently negotiated an employee cost-sharing of 3 percent of the CalPERS employer rate.17 The City's other post- employment benefit accrued liability was $638,000 at the start of FY 2015. The City created an OPEB trust which grew to $2.105 million by the end of FY18 and which would be available to offset an OPEB liability of $3.561 million as of June 30, 2018.18 8.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of City governmental capital assets has been increasing over time, indicating the City's capital spending has generally kept pace with asset depreciation (see Attachment C). Enterprise assets show a jump in value attributable to transfer of redevelopment assets to the City. The City reports that its FY 2019 budget has sufficient funds and one-time revenues in excess of operating costs to invest in "many deferred facility repairs and maintenance issues," which the budget indicates are increasingly visible.19 8.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets are prepared in a timely manner and posted on the agency's website. The City's CAFR required more than 6 months following the end of the prior fiscal year; the CPA firm's letter is dated January 31, 2018. The City reports that “the 2017/18 audit was done prior to December 31, 2018.”20 8.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Hercules. 17 City of Hercules comments 4/12/2019 on the Public Review Draft MSR. 18 City of Hercules comments 4/12/2019 on the Public Review Draft MSR. 19 ibid, Hercules Budget FY 2019, pg. 5. 20 City of Hercules comments 4/12/2019 on the Public Review Draft MSR. Contra Costa LAFCO 8-12 Municipal Service Review Update City of Hercules 8.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Hercules serves 26,317 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Hercules are depicted in Figure 8.2. ABAG projects that the City of Hercules will grow at an annual rate of approximately 0.6% to a population of 28,700 between 2010 and 2040.21 The City is also projected to experience an approximate 0.3% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data22 for 2010, the City of Hercules has 12,264 employed residents. The ABAG Projections data23 for 2010 estimated 4,955 jobs in the City, with approximately 0.4 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Hercules has 8,553 housing units, which results in a job and housing balance of 0.58. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 8.5), indicating that the rate of homeownership exceeds the rental household rate. 21 ABAG. Projections 2017. 22 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 23 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 8-13 City of Hercules 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Jobs Households Population Figure 8.2. Population, Job, and Household Growth Projections (2010-2040) City of Hercules June 2019 City of Hercules TABLE 8.5 CITY OF HERCULES HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 6,450 Renter-occupied housing units 1,665 Vacant housing units 438 Total existing housing units 8,553 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 220 Low 118 Moderate 100 Above Moderate 244 Total Regional Housing Need Allocation 682 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.24 The City of Hercules was assigned a RHNA of 682 units, as shown in Table 8.5. The City adopted its General Plan in 1998 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 2,732 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Hercules 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.25 The programs and services provided by the City to meet the needs of adults age 50 and older were not reported or were unavailable at the time of this MSR update. 24 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 25 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 8-15 Chapter 8 ANTICIPATED GROWTH PATTERNS The undeveloped entitled residential acres for FY 2017 included only Parcel C – Muir Pointe, a development of 144 single-family housing units. Anticipated completion of the development is FY 2019-20. Projects identified as part of the projected growth for the City (dwelling units and commercial space) included the Sycamore Crossing Site and the Markethall Site, which lie on opposite corners of San Pablo and Sycamore avenues. The Markethall site will include development of a Safeway grocery store and a commercial pad building. The previously approved Sycamore Crossing commercial project has been revised by a new developer who has proposed 120 condo units, a 105 room hotel, a CVS pharmacy, and restaurant uses. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Hercules and included in Plan Bay Area 2040.26 The Central Hercules and Waterfront District PDAs are anticipated to accommodate approximately 52% of the projected growth in households but none of the projected growth in employment.27 The Central Hercules PDA is characterized as a Transit Neighborhood and the Waterfront District PDA is characterized as a Transit Town Center. In 2018, a mixed use Block N in the Waterfront PDA was approved for 172 multi-family housing units and 12,000 square feet of retail which is now under construction. In early 2019, another 232 units of multi-family housing (including 15 affordable housing units) were approved in Blocks Q-R in the Waterfront PDA, and this development is anticipated to begin construction soon. Priority Conservation Areas (PCAs), which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Hercules has identified the Central Hercules and Waterfront District PCA. This PCA is included in Plan Bay Area 2040.28 The City of Hercules did not report that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 8.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Hercules’s SOI is mostly coterminous with the municipal boundary, with the exception of an extension to the north near Highway 4 (see Figure 8.1). No unincorporated islands have been identified in the City of Hercules. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. 26 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 27 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 28 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 8-16 Municipal Service Review Update City of Hercules DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the City of Hercules and therefore, no disadvantaged communities are relevant to this analysis. 8.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. Based on available information, not enough data has been provided by the City of Hercules for this MSR Update to make an accurate determination about the City’s ability to adequately serve all areas within its municipal boundary at present and in the foreseeable future. There are no disadvantaged communities within or contiguous to the City’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 69, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. The City reports that it has many deferred facility repairs and maintenance issues. When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of municipal services, the City may experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. Contra Costa LAFCO Municipal Service Review Update 8-17 Chapter 8 The City did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. 29 Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 29 Although not covered in this MSR, the City also provides sewer service. Contra Costa LAFCO 8-18 Municipal Service Review Update City of Hercules 8.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Hercules is experiencing some fiscal challenges that may affect its ability to provide services. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of Hercules appears to have adequate financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS After operating at a surplus for the past few years, the City of Hercules is operating at a deficit for FY 2018-2019. The City states that “this small budgeted operating deficit is expected to transition into a net operating surplus” given that its revenue forecasts were conservative; the relatively small deficit should be covered by the City’s unallocated fund balances.30 The City recently added to its Fiscal Neutrality Reserve to maintain the City’s reserve goal of two months’ expenditures, allowing it to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 1.0, which indicates current liabilities approximately equal short-term resources. Ratios less than 1.0 indicate that liabilities exceed short- term resources. Total debt was approximately $1,485 per capita for FY 2017, up from $1,346 for FY 2015. The City's unfunded pension and OPEB liabilities continue to grow. The City has not identified any measures to address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most 30 City of Hercules comments 4/12/2019 on the Public Review Draft MSR. Contra Costa LAFCO Municipal Service Review Update 8-19 Chapter 8 recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 7 months after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. The City reports that “the 2017/18 audit was done prior to December 31, 2018.”31 Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, certain tables in the CAFR extend over multiple pages; however, the left-most column does not carry over to multiple pages, affecting the readability of the tables. 8.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Hercules website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Hercules website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Hercules website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. 31 City of Hercules comments 4/12/2019 on the Public Review Draft MSR. Contra Costa LAFCO 8-20 Municipal Service Review Update City of Hercules 8.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 8.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Hercules is mostly coterminous with the municipal boundary, with the exception of an extension to the north near Highway 4, as shown in Figure 8.1. The City of Hercules is bound by the City of Pinole to the south, the unincorporated community of Rodeo to the north, San Pablo Bay to the west, and County lands to the east. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Hercules. 8.5.2 Sphere of Influence Determinations for the City of Hercules Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Hercules MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Hercules plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, research and development, commercial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (1998). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Hercules. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Hercules appears adequate. The City of Hercules anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Hercules. Contra Costa LAFCO Municipal Service Review Update 8-21 Chapter 8 PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the City of Hercules and therefore no present or probable need for the City to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. Contra Costa LAFCO 8-22 Municipal Service Review Update C 9 HAPTER C L ITY OF AFAYETTE 9.1 AGENCY OVERVIEW The City of Lafayette, incorporated in 1968, covers an area of approximately 14 square miles. With an estimated population of 25,655, the City has a population density of approximately 1,832 persons per square mile.1 The City of Lafayette lies in central Contra Costa County with the Town of Moraga to the south, the cities of Walnut Creek and Pleasant Hill to the east, and the City of Orinda on the west. County lands bound the City to the north, including Briones Regional Park. The Sphere of Influence (SOI) for the City of Lafayette is mostly coterminous with the municipal boundary, with the exception of two extensions to the east, as shown in Figure 9.1. The City adopted the countywide Urban Limit Line in 2008. Land uses in the City include a mix of residential, commercial, and open space. There are no agricultural land uses in the City of Lafayette. 9.1.1 FORM OF GOVERNMENT The City of Lafayette is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates every year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 9-1 Figure 9.1. City of Lafayette Municipal Boundary and Sphere of Influence June 2019 City of Lafayette 9.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 39.57 full-time equivalent (FTE) employees. Table 9.1 shows the four service areas with the highest staffing levels. TABLE 9.1 CITY OF LAFAYETTE HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Public Works 13.0 Community Development (Planning) 9.0 Administration 7.72 Parks 5.6 Source: City of Lafayette Unlike many other cities in Contra Costa County, the public works function had the highest staffing level in the City of Lafayette, with 13.0 FTE employees. 9.1.3 JOINT POWERS AUTHORITIES The City of Lafayette is a member of several joint powers authorities (JPAs), which are listed in Table 9.2. TABLE 9.2 CITY OF LAFAYETTE JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Solid Waste Authority Provides solid waste services for Central Contra Costa residents and businesses Central Contra Costa Transit Authority — Contra Costa Transit Authority Congestion — Management Agency East/Central County Wastewater Management — Authority Lamorinda Fee and Financing Authority Subregional transportation finance committee Lamorinda Program Management Committee Sub-regional transportation planning committee Lamorinda School Bus Transportation Agency School bus service—Lafayette, Moraga, Orinda Municipal Pooling Authority Risk management Source: City of Lafayette Contra Costa LAFCO Municipal Service Review Update 9-3 Chapter 9 9.1.4 AWARDS AND RECOGNITION Table 9.3 lists the awards the City of Lafayette has reported receiving since the first round Municipal Service Review (MSR). TABLE 9.3 CITY OF LAFAYETTE AWARDS AWARD ISSUER YEAR(S) RECEIVED Certificate of Achievement for Excellence in Government Finance Officers 2015 – 2017 Financial Reporting Association Great Places in California American Planning Association 2017 Source: City of Lafayette 9.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 9.4, municipal services for the City of Lafayette are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 9.4 CITY OF LAFAYETTE MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Lafayette, Contra Costa County Law Enforcement Contra Costa County Library Contra Costa County Lighting City of Lafayette Parks and Recreation City of Lafayette, East Bay Regional Park District, East Bay Municipal Utility District Solid Waste Allied Waste Stormwater City of Lafayette Streets City of Lafayette Contra Costa LAFCO 9-4 Municipal Service Review Update City of Lafayette SERVICE SERVICE PROVIDER Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Lafayette The City of Lafayette reports the following opportunities and challenges related to its provision of municipal services: • Meeting regional housing obligations, including the provision of housing for all incomes • Dissolution of the former Redevelopment Agency • Stormwater management requirements and funding sources to comply with requirements • Unfunded housing mandates A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 9.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Lafayette and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $144,384 in FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 9.2.2 BROADBAND The City of Lafayette does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Lafayette did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO Municipal Service Review Update 9-5 Chapter 9 The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Lafayette received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Lafayette did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 9.2.3 BUILDING/PLANNING The City of Lafayette Planning and Building Department provides planning services and the City contracts with the Contra Costa County Building Division for building services. Department expenditures for FY 2017 were $766,303. The City of Lafayette issued 473 residential and 78 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $65.8 million. The Town Center Phase III residential project, under construction in 2017, includes 62 market-rate and 7 below-market-rate condominiums and two levels of underground parking adjacent to the BART station in the heart of downtown. Planning city-wide has been captured in the General Plan and the Five-year Master Plan, several master plans, and the Downtown Specific Plan. 9.2.4 LAW ENFORCEMENT The City of Lafayette contracts with the Contra Costa Sheriff’s Office to provide law enforcement and dispatch services. FY 2017 expenditures for the Sheriff’s Office were $229.3 million, up from $217.8 million in FY 2015. FY 2017 expenditures for the City were approximately $4.5 million, reflecting an upward trend from approximately $3.9 million in FY 2015. The City of Lafayette reported 0.7 FTE sworn personnel per 1,000 population in FY 2016, which is the same as in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 20.1 crimes per sworn FTE in 2016. The property crime clearance rate (a measure of crimes solved) was 6.94% in 2016, and the violent crime clearance rate was 37.5%.6 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO 9-6 Municipal Service Review Update City of Lafayette The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. Total property crime clearances were reported at 125 (30 in Lafayette) and total violent crime clearances were reported at 340 (11 in Lafayette) for FY 2017. The City of Lafayette has a Crime Prevention Commission which meets monthly with law enforcement to discuss crime-related concerns and crime prevention, and to provide input and support 9.2.5 LIBRARY Contra Costa County provides library services for the City of Lafayette at its Lafayette Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state’s averages for expenditures and staffing are nearly double the County’s. 9.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Lafayette Department of Public Works. City expenditures for light and signal maintenance were $653,400 in FY 2017. The City maintains 26 signalized intersections, 240 traffic lights, and 358 street lights. 9.2.7 PARKS AND RECREATION The City of Lafayette Parks and Recreation Department is the primary service provider for parks and recreation facilities, as well as recreation programs. East Bay Regional Park District also provides and maintains parks within the City’s SOI. FY 2017 expenditures for parks were approximately $728,000 in FY 2017, reflecting an upward trend from approximately $665,700 in FY 2015. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 9-7 Chapter 9 The City provides a range of programs and activities for all ages and interests, including inline hockey, basketball, dodge ball, lacrosse, and family and teen skate nights at the City’s multi- sport rink. The City provides and maintains approximately 3.5 park acres per 1,000 residents, 1 recreation center, and 9 miles of recreation trails. East Bay Regional Park District provides and maintains 1,000 park acres. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 9.2.8 SOLID WASTE Solid waste services are provided to the City of Lafayette via franchise agreement with Allied Waste Services. Allied Waste Services transports solid waste collected from the City of Lafayette to the Keller Canyon Landfill in the City of Pittsburg. The City of Lafayette has no expenditures for solid waste services as the provision of services is included in the franchise agreement. The City solid waste disposed disposal rates for 2017 were not reported or were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 9.2.9 STORMWATER/DRAINAGE The City of Lafayette Department of Public Works provides and maintains the City’s stormwater drainage system. The City reports that they have 57 miles of closed storm drain lines and that less 35% of the downtown storm drain inlets are equipped with trash capture; the City has 1,686 storm drain inlets in total. The City of Lafayette also reports compliance with National Pollution Discharge Elimination System standards. Total FY 2017 expenditures for stormwater were $112,380, representing an upward trend from $72,150 in FY 2015. 9.2.10 STREETS/ROADS The City of Lafayette Department of Public Works provides and maintains 92 street miles and approximately 78 Class 1 and 2 bike lane miles, as well as public landscaping. FY 2017 expenditures for streets were $6,768,000, which is a significant increase from $3,584,000 in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO 9-8 Municipal Service Review Update City of Lafayette The PCI for streets in the City of Lafayette was 79 (good) in 2017, up from 77 in 2015, which remains above the target PCI of 75 (good) MTC has established.8 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 9.2.11 UTILITIES The City of Lafayette is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Lafayette. The City of Lafayette did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 9.3 FINANCIAL OVERVIEW This section provides an overview of the City of Lafayette’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 9.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget,9 the City’s General Fund revenues of $16.5 million10 approximately equal General Fund expenditures. The General Fund's unassigned General Fund balance at the end of FY 2019 totaled $10.1 million, or about 61% of General Fund expenditures (including transfers out), a slight improvement over prior years (see Attachment C).11 The City's reserve policy targets 60%.12 Table 9.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. A shortfall of $150,000 is projected to the City's Stormwater Fund, which will require reductions in Stormwater Fund reserves or increased use of General Funds. The City is striving to build $1.1 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of Lafayette Proposed Budget and Workplan, FY 2018-19 (FY 2019). 10 City of Lafayette Staff Report, FY 2018/19 Proposed Municipal Budget and Workplan, pg. 1. 11 City of Lafayette Staff Report, FY 2018/19 Budget, pg. 1. 12 City of Lafayette policy established in 2015; staff is recommending 100% reserve levels. Contra Costa LAFCO Municipal Service Review Update 9-9 Chapter 9 million in reserves in the fund; the total amount currently reserved is $450,000 although this will be affected by the City's budget decisions.13 TABLE 9.5 CITY OF LAFAYETTE SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $4,005,000 $4,441,000 $4,722,000 Sales Tax $2,877,000 $3,194,000 $3,008,000 Other Revenues (including Transfers) $7,915,000 $8,633,000 $9,293,000 Total General Fund Revenues $14,797,000 $16,268,000 $17,023,000 Change from Prior Year n/a 9.9% 4.6% GENERAL FUND EXPENDITURES General Government and $3,268,000 $3,667,000 $4,136,000 Administration Public Safety $4,551,000 $4,603,000 $4,691,000 Other (includes Transfers Out) $5,558,560 $6,632,324 $7,573,380 Total Expenditures $13,377,560 $14,902,324 $16,400,380 Change from Prior Year n/a 11.4% 10.1% Expenditures per capita $542 $598 $651 LIQUIDITY RATIO 1 Governmental Activities 4.0 3.7 3.0 Business-type Activities 2.0 0.6 1.5 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 9.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. 13 City of Lafayette Staff Report, FY 2018/19 Budget, pg. 6-7. Contra Costa LAFCO 9-10 Municipal Service Review Update City of Lafayette In FY 2017 the City's governmental activities' liquidity ratio was approximately 3.0 indicating that short-term resources exceeded current liabilities.14 In FY 2016 the City's recreation fund's liquidity ratio was 0.6; this situation could require borrowing from other funds, or can incur increased borrowing costs and risk of payment defaults. In FY 2017 the recreation fund's ratio was 1.5 (see Attachment C). The City's total outstanding debt has been declining over time. Total $4.8 million outstanding debt was approximately $192 per capita in FY 2017, indicating reductions compared to the $268 per capita reported for FY 2015 (see Attachment C). The City has no enterprise debt. 9.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The enterprise’s positive net position has generally improved from FY 2015 to FY 2017 (see Attachment C). The total positive net position of governmental funds also increased slightly between FY 2015 and FY 2017, and the positive unrestricted portion improved. 9.3.4 LOCAL REVENUE MEASURES Voters defeated a proposed 1% local sales tax in 2016 that would have raised up to $3 million annually; Measure C received only 41.18% approval.15 The City has expressed concern about the failure of the measure eliminating the potential for future local sales tax increases if other agencies used the remaining sales tax capacity (up to 10% of taxable sales). The City receives assessments from properties in its Core Area; however, the Core Area Fund has continually run a deficit which is projected to be $246,000 in FY 2019. The budget proposes to fund this shortfall, although it had previously established a policy to limit General Funds to $100,000. 9.3.5 ENTERPRISE ACTIVITIES The Recreation Fund is the City's only enterprise activity. The fund's revenues slightly exceed its expenditures; in FY 2019 a slight increase in its cash position to $580,000 is anticipated. 9.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. 14 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 15 https://ballotpedia.org/Lafayette,_California,_Sales_Tax,_Measure_C_(November_2016) Contra Costa LAFCO Municipal Service Review Update 9-11 Chapter 9 The City contributes to a defined contribution 401(a) plan and has no unfunded pension liabilities. The City maintains an irrevocable trust account under the California Employers' Retiree Benefit Trust Fund managed by the California Public Employees' Retirement System. As of FY 2017 the account had a slight asset value because contributions exceeded obligations (see Attachment C). The City’s CAFRs also report a minimal positive asset value in its other post-employment benefit account. 9.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of City governmental capital assets has declined slightly over the past several years, indicating the City's capital spending has generally not quite kept pace with asset depreciation (see Attachment C). The City's 5-year budget forecast shows a $1 million annual transfer to its Capital Improvement Program (CIP) after a proposed $1.6 million contribution in FY 2019.16 In the summer of 2019, the City will complete reconstruction of the last streets remaining in the failed road backlog, and then the City will focus on systematic pavement maintenance and preservation, and the replacement of aging corrugated metal storm drain pipes. The City currently has not identified sufficient resources to maintain roads at the desired level; the City has identified $1.7 million annually for road maintenance, but needs $2.3 million to maintain a PCI of 77, exceeding the target PCI of 75 established by MTC.17 9.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. The City has applied the California Municipal Financial Health Diagnostic, which indicated healthy financial indicators with the exception of cautions related to recurring net operating deficits and declining fund balances.18 9.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of 16 City of Lafayette Staff Report, FY 2018/19 Budget, 5-Year Budget Forecast, pg. 11. 17 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 18 City of Lafayette Staff Report, May 27, 2014. Contra Costa LAFCO 9-12 Municipal Service Review Update City of Lafayette determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Lafayette. 9.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Lafayette serves 25,655 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Lafayette are depicted in Figure 9.2. ABAG projects that the City of Lafayette will grow at an annual rate of approximately 0.4% to a population of 26,815 between 2010 and 2040. 19 The City is also projected to experience an approximate 0.3% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data20 for 2010, the City of Lafayette has 10,862 employed residents. The ABAG Projections data21 for 2010 estimated 8,990 jobs in the City, with approximately 0.83 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Lafayette has 9,651 housing units, which results in a job and housing balance of 0.93. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 9.6), indicating that the rate of homeownership exceeds the rental household rate. 19 ABAG. Projections 2017. 20 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 21 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 9-13 City of Lafayette 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 9.2. Population, Job, and Household Growth Projections (2010-2040) City of Lafayette June 2019 City of Lafayette TABLE 9.6 CITY OF LAFAYETTE HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 6,937 Renter-occupied housing units 2,286 Vacant housing units 428 Total existing housing units 9,651 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 138 Low 78 Moderate 85 Above Moderate 99 Total Regional Housing Need Allocation 400 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.22 The City of Lafayette was assigned a RHNA of 400 units, as shown in Table 9.6. The City adopted its General Plan in 2002 and its Housing Element in 2015. The City’s 2014–2022 Housing Element identifies adequate sites, anticipated to yield approximately 868 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Lafayette 2014–2022 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.23 The City of Lafayette provides a variety of programs and services in the areas of health, education, and recreation to meet the needs of adults age 50 and older, as shown in Table 9.7. 22 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 23 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 9-15 Chapter 9 TABLE 9.7 CITY OF LAFAYETTE PROGRAMS AND SERVICES FOR AN AGING POPULATION PROGRAM SERVICE Lamorinda Spirit Van Offers rides to older Lamorinda residents Senior Service Commission Development, coordination, and promotion of Senior Service Center Programs Source: City of Lafayette ANTICIPATED GROWTH PATTERNS The City of Lafayette reported approximately 35 undeveloped entitled residential acres in FY 2017. The City reports approximately 225 dwelling units as either approved or in the approval process. No applications for new commercial space were considered in FY 2017. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of Lafayette and included in Plan Bay Area 2040.24 The Downtown PDA is anticipated to accommodate approximately 63% of the projected growth in households and all of the projected growth in employment.25 The Downtown PDA, characterized as a Transit Neighborhood consists of approximately 300 acres south of Highway 24, between Risa Road and Pleasant Hill Road. Priority Conservation Areas (PCAs), which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Lafayette has identified two PCAs. The Burton Ridge PCA lies between Olympic Boulevard and the City’s southern limits. The Lafayette Ridge PCA lies between the City’s northwestern limits and Pleasant Hill Road. These PCAs are included in the regional planning initiative called FOCUS, short for Focusing our Vision, and Plan Bay Area 2040.26 The City of Lafayette does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 9.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Lafayette’s SOI is mostly coterminous with the municipal boundary, with the exception of two extensions to the east (see Figure 9.1). No unincorporated islands have been identified in the City of Lafayette. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. 24 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 25 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 26 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 9-16 Municipal Service Review Update City of Lafayette DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified a disadvantaged community within and contiguous to the SOI for the City of Lafayette. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 9.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Lafayette reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the foreseeable future. The disadvantaged community within and contiguous to the City’s SOI receives sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 79, which indicates the City’s streets are in good condition and primarily require funding at a level to maintain the current condition; however, expenditures for streets nearly doubled from FY 2015 (when the PCI was 77) to FY 2017. Contra Costa LAFCO Municipal Service Review Update 9-17 Chapter 9 When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City’s capital spending has not kept pace with infrastructure needs, and sufficient resources have not been identified to maintain City streets at or above the PCI target established by MTC. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, law enforcement, library, parks and recreation, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. Contra Costa LAFCO 9-18 Municipal Service Review Update City of Lafayette 9.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the City of Lafayette appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Lafayette has been operating with a surplus in their General Fund. The City currently exceeds their 60% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 3.0, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $192 per capita for FY 2017 and has been declining. The City contributes to a defined contribution 401(a) plan and has no unfunded pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 9-19 Chapter 9 9.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Lafayette website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. Audio recordings of City Council, Planning Commission, Design Review Commission, and Circulation Commission meetings are also made available on the City’s website. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Lafayette website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Lafayette website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 9.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 9.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Lafayette is mostly coterminous with the municipal boundary, with the exception of two extensions to the east, as shown in Figure 9.1. The City of Lafayette is bound by the Town of Moraga to the south, the cities of Walnut Creek and Pleasant Hill to the east, the City of Orinda on the west, and County lands to the north, including Briones Regional Park. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Lafayette. 9.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF LAFAYETTE Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Lafayette MSR profile. Contra Costa LAFCO 9-20 Municipal Service Review Update City of Lafayette PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Lafayette plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2002). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Lafayette. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Lafayette appears adequate. The City of Lafayette anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Lafayette. In the past several years, however, there has been interest by various neighborhood groups in the Newell Avenue and Reliez Valley areas to annex to the City of Lafayette. City officials have discussed potential annexation with these neighborhoods indicating that due to deficient infrastructure (e.g., roads, drainage), a special tax would be needed to support City services in these areas. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified a disadvantaged community within and contiguous to the SOI for the City of Lafayette. This area receives sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 9-21 This page intentionally left blank. C 10 HAPTER C M ITY OF ARTINEZ 10.1 AGENCY OVERVIEW The City of Martinez, incorporated in 1876, covers an area of approximately 12.5 square miles. With an estimated population of 38,097, the City has a population density of approximately 2,930 persons per square mile.1 The City of Martinez lies in central Contra Costa County, with the City of Pleasant Hill to the south, the Carquinez Strait to the north, the City of Concord and Waterbird Regional Preserve to the east, and County lands, including the Briones hills, to the west. The Sphere of Influence (SOI) for the City of Martinez extends beyond the municipal boundary to the east, north, and southeast, as well as to the southwest, as shown in Figure 10.1. The SOI includes the unincorporated communities of Vine Hill, Mt. View, North Pacheco, and the Alhambra Valley. The City adopted the countywide Urban Limit Line in 2007. The municipal boundary extends beyond the Urban Limit Line to the northeast. Land uses in the City include a mix of industrial, residential, commercial, agricultural, and open space. Agricultural uses include areas in the Alhambra Valley that consist of privately owned rural lands, generally in hilly areas that are used for grazing livestock or dry grain farming. 10.1.1 FORM OF GOVERNMENT The City of Martinez is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor; members serve four-year terms. The Mayor is elected at large and the remaining members of the City Council are elected by district. The Martinez City Council also serves as Board of Directors for Contra Costa County Sanitation District No. 6 (Stonehurst Subdivision) following annexation of the area to City in 2012. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 10-1 Figure 10.1. City of Martinez Municipal Boundary and Sphere of Influence June 2019 City of Martinez 10.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 117.0 full-time equivalent (FTE) employees. Table 10.1 shows the three service areas with the highest staffing levels. TABLE 10.1 CITY OF MARTINEZ HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 52.0 Public Works 44.0 Park and Community Services 17.0 Source: City of Martinez Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Martinez, with 52.0 FTE employees. 10.1.3 JOINT POWERS AUTHORITIES The City of Martinez is a member of several joint powers authorities (JPAs), which are listed in Table 10.2. TABLE 10.2 CITY OF MARTINEZ JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Transit Authority — Central Contra Costa Transportation/Land Use — Partnership Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System To improve communications in emergency and Authority Operating Agreement disaster situations by coordinating with local entities within Alameda and Contra Costa County on the interoperability of emergency communications equipment East/Central County Wastewater Management — Authority Contra Costa LAFCO Municipal Service Review Update 10-3 Chapter 10 JOINT POWERS AUTHORITY SERVICE Municipal Pooling Authority of Northern California To pool risk with other public entities to jointly self- insure costs of tort liability, worker’s compensation, property, and other risks Pleasant Hill-Martinez Joint Facilities Agency To provide for the development and operation of shared facilities and services Transportation/Land Use Partnership (TRANSPAC) Aids in the establishment of policies and taking action to more effectively respond to the requirements of Measure C (local transportation funding) Source: City of Martinez 10.1.4 AWARDS AND RECOGNITION The City of Martinez has not reported receiving any awards since the first round Municipal Service Review (MSR). 10.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 10.3, municipal services for the City of Martinez are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 10.3 CITY OF MARTINEZ MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Wave Broadband Building / Planning City of Martinez Law Enforcement City of Martinez Library Contra Costa County Lighting City of Martinez Parks and Recreation City of Martinez Solid Waste Allied Waste Stormwater City of Martinez Streets City of Martinez Contra Costa LAFCO 10-4 Municipal Service Review Update City of Martinez SERVICE SERVICE PROVIDER Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Martinez The City of Martinez reports the following opportunities and challenges related to its provision of municipal services: • Meeting pension obligations • Funding capital improvements A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 10.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Martinez and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $214,584 in FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 10.2.2 BROADBAND The City of Martinez does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Wave Broadband are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Martinez did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO Municipal Service Review Update 10-5 Chapter 10 submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Martinez received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Martinez did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 10.2.3 BUILDING/PLANNING The City of Martinez Building Division provides building services and the Planning Division provides planning services. Building Division expenditures for FY 2017 were $$806,246 and Planning Division expenditures were $530,790. The City of Martinez issued 1,635 residential and 73 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $27.5 million. The Villages at Arnold Subdivision, a 42-unit development, was completed in 2017. Planning city-wide has been captured in the General Plan. 10.2.4 LAW ENFORCEMENT The City of Martinez Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $10.8 million. The City of Martinez has 0.97 FTE sworn personnel per 1,000 population in 2017, which remains unchanged from 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 18 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 10% in 2017, and the violent crime clearance rate was 54%.6 10.2.5 LIBRARY Contra Costa County provides library services for the City of Martinez at its Martinez Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO 10-6 Municipal Service Review Update City of Martinez from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditure and staffing levels are nearly double those of the County. 10.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Martinez Engineering Department. City expenditures for light and signal maintenance in FY 2017 were $515,646. The City maintains 27 signalized intersections, 331 traffic lights, and 550 street lights. 10.2.7 PARKS AND RECREATION The City of Martinez Recreation Division is the service provider for parks and recreation facilities, as well as recreation programs. FY 2017 expenditures for parks were $809,774. The City offers a range of activities and program including youth, senior, aquatic, historical, marina, sports and leagues, along with various special events. The City’s Waterfront Park completed an extensive renovation program in 2018. Improvements included new and renovated parking lots, safety lighting and fencing, new trails and sidewalks, a tot lot, restroom, and extensive renovations to the existing four baseball fields. The City provides and maintains 6.22 park acres per 1,000 residents, 5 recreation centers per 20,000 residents, and 3 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 10.2.8 SOLID WASTE Solid waste services are provided to the City of Martinez via franchise agreement with Allied Waste Services. Allied Waste Services transports solid waste collected from the City of Martinez to the Contra Costa Transfer and Recovery Facility located three miles east of the City of Martinez. The City of Martinez FY 2017 expenditures for solid waste services were $77.097. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 10-7 Chapter 10 The City reported approximately 20 tons of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 5.8 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 10.2.9 STORMWATER/DRAINAGE The City of Martinez Engineering Department provides and maintains the City’s stormwater drainage system. The City reports that they have 37 miles of closed storm drain lines and that approximately 7.85% of the City’s 1,350 storm drain inlets are equipped with trash capture. The City of Martinez also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were not reported or were unavailable at the time of this MSR update. 10.2.10 STREETS/ROADS The City of Martinez Engineering Department maintains 122 street miles. The Class 1 and 2 bike lane miles were unavailable at the time of this MSR update. FY 2017 expenditures for streets were approximately $6.2 million. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Martinez was 51 (at risk) in 2017, down from 52 in 2015, and remains well below the target PCI of 75 (good) MTC has established.8 Pavement in the 50-59 (at risk) has deteriorated and requires immediate attention, including rehabilitative work. The City will use new funding obtained from SB-1 and Measure D for pavement repair to increase the PCI. 10.2.11 UTILITIES The City of Martinez is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Martinez. The City of Martinez did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 10-8 Municipal Service Review Update City of Martinez 10.3 FINANCIAL OVERVIEW This section provides an overview of the City of Martinez’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 10.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 proposed budget, the City’s General Fund revenues of $22.5 million approximately equal General Fund expenditures; a mid-year update shows revenues improved by $300,000 but was offset by increased expenditures of $1.3 million (primarily to improve police staff recruitment and retention).9 The net result is a reduction to the unassigned General Fund balance at the end of FY 2019 originally proposed to be $8.3 million.10 Currently the City maintains an unassigned General Fund balance equal to 20% of expenditures, consistent with the City's reserve policy target of 20%.11 Table 10.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The City seeks to improve revenues and address fiscal issues by actively pursuing development opportunities and revitalizing its downtown. Actions include the reinstatement of the Community and Economic Development Director position and creation of a new Economic Development Coordinator position. The City is developing and implementing a market study, building and site inventory, and related marketing materials.12 9 City of Martinez Mid-Cycle Amendments to the Fiscal Year 2018-19 Budget, City Council Agenda, June 20, 2018. 10 City of Martinez 2017-18 and 2018-19 Biennial Budget, June 21, 2017. 11 ibid, Martinez Biennial Budget, Section 15, pg. 207. 12 ibid Martinez Biennial Budget, pg. ii. Contra Costa LAFCO Municipal Service Review Update 10-9 Chapter 10 TABLE 10.4 CITY OF MARTINEZ SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $7,165,000 $7,755,000 $8,212,000 Sales Tax $3,088,000 $4,018,000 $4,729,000 Other Revenues (including Transfers) $10,894,000 $11,123,000 $9,270,000 Total General Fund Revenues $21,147,000 $22,896,000 $22,211,000 Change from Prior Year n/a 8.3% -3.0% GENERAL FUND EXPENDITURES General Government and $3,359,000 $3,968,000 $4,518,000 Administration Public Safety $9,327,000 $10,396,000 $10,576,000 Other (includes Transfers Out) $6,160,000 $6,080,000 $6,328,000 Total Expenditures $18,846,000 $20,444,000 $21,422,000 Change from Prior Year n/a 8.5% 4.8% Expenditures per capita $510 $549 $566 LIQUIDITY RATIO 1 Governmental Activities 6.7 7.1 10.3 Business-type Activities 7.4 4.6 4.6 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 10.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio was approximately 10.3 indicating that short-term resources exceeded current liabilities.13 Total enterprise activities' liquidity ratio equaled 4.6 in FY 2017 (see Attachment C). 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 10-10 Municipal Service Review Update City of Martinez The City's total outstanding debt has been declining over time. Total outstanding debt was approximately $903 per capita in FY 2017, indicating reductions compared to the $980 per capita reported for FY 2015 (see Attachment C). 10.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The enterprise’s positive net position has generally improved from FY 2015 to FY 2017 (see Attachment C). The total positive net position of governmental funds also increased between FY 2015 and FY 2017, and the negative unrestricted portion of its net position improved. 10.3.4 LOCAL REVENUE MEASURES Voters approved Measure D, a half-cent sales tax, in November 2016 which currently generates $3.2 million annually dedicated for street improvements. The City Council placed a one-half-cent sales tax measure (Measure X) on the November 2018 ballot, which voters passed. 10.3.5 ENTERPRISE ACTIVITIES Although the City's "business-type activity" (water, marina and parking services) indicated improving ending balances FY 2015 through FY 2017, the City's current water system budget shows annual revenue shortfalls of approximately $600,000 in FY 2018 and FY 2019 (see Attachment C). The City plans to commission a study to update its water rates, the first update in 10 years, to address increasing costs for power and capital improvement needs. A draft study and review by the Martinez City Council is set for discussion in early 2019. The parking services fund is positive but declining. The marina budget projects negative ending fund balances of about ($340,000) to ($300,000) in FY 2018 and FY 2019, respectively.14 10.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City's budget anticipated a 20% increase in its $2.4 million annual pension costs from FY 2018 to FY 2019, and continued increases.15 As of FY 2017, the net pension liability totaled $36.4 million (see Attachment C). 14 City of Martinez 2017-18 and 2018-19 Biennial Budget, June 21, 2017, pg. 152. 15 ibid Martinez Biennial Budget, pg. ii. Contra Costa LAFCO Municipal Service Review Update 10-11 Chapter 10 10.3.7 CAPITAL ASSETS AND DEPRECIATION Measure D revenues have enabled the City to significantly increase its spending on road improvements. The City's governmental assets showed a net increase in FY 2017, indicating positive investments (see Attachment C). As noted above, water enterprise operations have shown declining positions which the City will address in its rate study update. 10.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 10.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Martinez. 10.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Martinez serves 38,097 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Martinez are depicted in Figure 10.2. Contra Costa LAFCO 10-12 Municipal Service Review Update City of Martinez 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 10.2. Population, Job, and Household Growth Projections (2010-2040) City of Martinez June 2019 Chapter 10 ABAG projects that the City of Martinez will grow at an annual rate of approximately 0.4% to a population of 40,035 between 2010 and 2040.16 The City is also projected to experience an approximate 0.8% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data17 for 2010, the City of Martinez has 18,164 employed residents. The ABAG Projections data18 for 2010 estimated 20,710 jobs in the City, with approximately 1.14 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Martinez has 14,976 housing units, which results in a job and housing balance of 1.40. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 10.5), indicating that the rate of homeownership exceeds the rental household rate. TABLE 10.5 CITY OF MARTINEZ HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 9,619 Renter-occupied housing units 4,668 Vacant housing units 689 Total existing housing units 14,976 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 124 Low 72 Moderate 78 Above Moderate 195 Total Regional Housing Need Allocation 469 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Projections 2017. Contra Costa LAFCO 10-14 Municipal Service Review Update City of Martinez California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.19 The City of Martinez was assigned a RHNA of 469 units, as shown in Table 10.5. The City adopted its General Plan in 2016 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 1,156 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Martinez 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.20 The City of Martinez provides programs and services for adults age 50 and older, including a wide range of health, education, recreation, volunteer, and other social interaction opportunities for participants that enhance dignity, support independence, and encourage community involvement. ANTICIPATED GROWTH PATTERNS The City of Martinez reported no undeveloped entitled residential acres in FY 2017. Several projects have been identified as part of the projected growth for the City and include 190 dwelling units and 300,000 square feet of commercial space. These projects are either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of Martinez and included in Plan Bay Area 2040.21 The Downtown PDA is anticipated to accommodate approximately 29% of the projected growth in households and 48% of the projected growth in employment.22 The Downtown PDA is characterized as a Transit Neighborhood. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Martinez has not identified any Priority Conservation Areas in Plan Bay Area or the City’s General Plan.23 The City of Martinez does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 19 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 20 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 21 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 22 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 23 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO Municipal Service Review Update 10-15 Chapter 10 10.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Martinez’s SOI extends beyond the municipal boundary to the east, north, and southeast and includes the unincorporated communities of Vine Hill, Mt. View, North Pacheco, and the Alhambra Valley. Mt. View is an unincorporated island which is substantially surrounded by the City (see Figure 10.1). The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified a disadvantaged community located within the City boundary in the northwest area. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 10.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Martinez appears to adequately serve all areas within its municipal boundary and SOI and is likely to continue to do so in the foreseeable future based on available information. Contra Costa LAFCO 10-16 Municipal Service Review Update City of Martinez The disadvantaged community within the City’s SOI receives sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 51, which is below the target of 75 MTC has established and which indicates a pressing need for pavement rehabilitation funding. The City also has identified the need for funding other capital improvements. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City may experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets.24 Services related to animal 24 Although not covered in this MSR, the City also provides retail water service. Contra Costa LAFCO Municipal Service Review Update 10-17 Chapter 10 control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 10.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of Martinez appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Martinez has been operating with a surplus in their General Fund. The City currently meets their 20% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 10.3, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $903 per capita for FY 2017 and has been declining. The City's unfunded pension and OPEB liabilities continue to grow significantly; however, the City has taken steps to help address the increasing costs by accounting for a 20% increase in its budgets. Contra Costa LAFCO 10-18 Municipal Service Review Update City of Martinez TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 10.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Martinez website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Martinez website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Martinez website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. 10.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 10.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Martinez extends beyond the municipal boundary to the east, north, and southeast and includes the unincorporated communities of Vine Hill, Mt. View, North Pacheco, and the Alhambra Valley, as shown in Figure 10.1. The City of Martinez is bound by the City of Pleasant Hill to the south, the Carquinez Strait to the north, the City of Concord and Waterbird Regional Preserve to the east, and County lands, including the Briones hills, to the west. Contra Costa LAFCO Municipal Service Review Update 10-19 Chapter 10 This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Martinez. 10.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF MARTINEZ Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Martinez MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Martinez plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, commercial, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2016). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Martinez. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Martinez appears adequate. The City of Martinez anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST The City’s SOI includes the unincorporated communities of Vine Hill, Mt. View, North Pacheco, and the Alhambra Valley. Mt. View is an unincorporated island which is substantially surrounded by the City. These areas could benefit from receiving City services. LAFCO encourages the City to annex these areas. All other communities of interest within the City’s municipal boundary are included within the SOI. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified a disadvantaged community located within the City boundary in the northwest area. This area receives sewer, water, and fire protection services. Contra Costa LAFCO 10-20 Municipal Service Review Update C 11 HAPTER T M OWN OF ORAGA 11.1 AGENCY OVERVIEW The Town of Moraga, incorporated in 1974, covers an area of approximately 9.5 square miles. With an estimated population of 16,991, the Town has a population density of approximately 1,699 persons per square mile.1 The Town of Moraga lies in central Contra Costa County, with the City of Lafayette to the north and northeast and the City of Orinda to the northwest. County lands bound the Town to the south, east, and west. The Sphere of Influence (SOI) for the Town of Moraga is mostly coterminous with the municipal boundary, with the exception of an extension to the southeast, as shown in Figure 11.1. The Town adopted the countywide Urban Limit Line in 2007. Land uses in the Town include a mix of residential, office, commercial, public institution, and open space. There are limited agricultural uses that include vineyards and some cattle grazing in the Town of Moraga. 11.1.1 FORM OF GOVERNMENT The Town of Moraga is a general law city operating under a council-manager form of government. The publicly elected Town Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates each year. 11.1.2 STAFFING Total Town staffing for fiscal year (FY) 2017 was 36 FTE, with the Police Department at 13 FTE. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 11-1 Figure 11.1. Town of Moraga Municipal Boundary and Sphere of Influence June 2019 Town of Moraga 11.1.3 JOINT POWERS AUTHORITIES The Town of Moraga is a member of several joint powers authorities (JPAs), which are listed in Table 11.1. TABLE 11.1 TOWN OF MORAGA JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Solid Waste Authority Provides solid waste services for Central Costa Contra residents and businesses Central Contra Costa Transit Authority Cooperative agreements for Measure C, Measure J, and PDA Planning Grant Program Contra Costa County Board of Supervisors Abatement of abandoned vehicles (Abandoned Vehicle Abatement) Contra Costa County Board of Supervisors (Building For building inspection services Inspections) Contra Costa County Board of Supervisors (Fine & Grants the power to sue and be sued in its own Forfeiture Distribution) name Contra Costa County Board of Supervisors (General For provision of various general services.\ Services) Contra Costa County Board of Supervisors For provision of technical engineering and (Technical Engineering and Inspection) inspection services Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System IP-based architectural communications system Authority Operating Agreement Lamorinda Fee and Financing Authority Subregional transportation finance committee Lamorinda School Bus Transportation Agency School bus service—Lafayette, Moraga, Orinda MCE Clean Energy A community-wide electricity aggregation program known as Community Choice Aggregation Western Riverside Council of Governments To permit the provision of property assessed clean energy program services Source: Town of Moraga Contra Costa LAFCO Municipal Service Review Update 11-3 Chapter 11 11.1.4 AWARDS AND RECOGNITION Table 11.2 lists the awards the Town of Moraga received since the first round Municipal Service Review (MSR). TABLE 11.2 TOWN OF MORAGA AWARDS AWARD ISSUER YEAR(S) RECEIVED Emergency Project of the Year for the Northern California Chapter American Public 2019 Canyon Road Bridge Emergency Works Association Opening Transportation Project of the Year for Northern California Chapter American Public 2017 the Lamorinda Paving Partnership Works Association Best All-Around Pavement Metropolitan Transportation Commission 2013 Management Program Environmental Project of the Year for Northern California Chapter American Public 2013 the Town’s Integrated Pest Works Association Management Source: Town of Moraga 11.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 11.3, municipal services for the Town of Moraga are provided by Town staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 11.3 TOWN OF MORAGA MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning Town of Moraga, Contra Costa County Law Enforcement Town of Moraga, Contra Costa County Library Contra Costa County Lighting Town of Moraga Contra Costa LAFCO 11-4 Municipal Service Review Update Town of Moraga SERVICE SERVICE PROVIDER Parks and Recreation Town of Moraga Solid Waste Republic Services Stormwater Town of Moraga Streets Town of Moraga Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: Town of Moraga The Town of Moraga reports the following opportunities and challenges related to its provision of municipal services: • Development of the Moraga Center and Rheem Center development areas to promote the growth of retail/restaurant options, mixed use developments, and a variety of housing types consistent with the Town’s approved Housing Element and RHNA goals • Continued preservation of sensitive hillside and ridgeline areas while processing development of several subdivisions in these settings • An increase in property crimes, some of which involve violence, which requires additional law enforcement resources to take police reports and investigate crimes • Shifts to local-agency responsibility related to the use of non-judicial alternatives for the disposition of criminal offenses A summary of the Town’s municipal service level statistics for FY 2017 is provided in Attachment B. 11.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the Town of Moraga and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO Municipal Service Review Update 11-5 Chapter 11 11.2.2 BROADBAND The Town of Moraga does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the Town.3 These providers use a variety of wired technologies including cable and DSL. The Town of Moraga did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The Town of Moraga received a grade of D, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The Town of Moraga did not indicate concerns about the ability of broadband providers to serve the Town’s existing or growing population. 11.2.3 BUILDING/PLANNING The Town of Moraga Planning Department provides planning and code enforcement services and contracts out all building permit processing and inspection services to the Contra Costa County Building Department. Town of Moraga Planning Department expenditures for FY 2017 were $790,707, up from $868,417 in FY 2016. The Town of Moraga issued 518 residential and 25 commercial building permits issued in 2017. Total building permit valuation in FY 2017 is estimated at approximately $27.5 million. Planning city-wide has been captured in the General Plan, Moraga Center Specific Plan, and the St. Mary’s College Campus Master Plan. The Town is currently processing the Moraga Center Specific Plan Implementation project to develop zoning provisions and development standards to implement the goals and policies of the Specific Plan, revitalize the Moraga Center Priority Development Area, and provide housing opportunities consistent with adopted state goals and mandates. 11.2.4 LAW ENFORCEMENT The Town of Moraga Police Department provides law enforcement and contracts with the Contra Costa County Office of the Sheriff for dispatch services. FY 2017 expenditures for the Moraga Police Department were approximately $2.9 million, up from $2.5 million in FY 2016. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 11-6 Municipal Service Review Update Town of Moraga The Moraga Police Department reported 13 FTE for FY 2017, unchanged from the previous year. The 2017 FTE sworn personnel per 1,000 population was not reported or was unavailable at the time of this MSR update. The crimes per sworn FTE in 2017 were not reported or were unavailable at the time of this MSR update. The 2017 property crime clearance rate (a measure of crimes solved) and the violent crime clearance rate were not reported or were unavailable at the time of this MSR update.5 11.2.5 LIBRARY Contra Costa County provides library services for the Town of Moraga at its Moraga Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.6 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 11.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the Town of Moraga Public Works Department. The Town formed the Assessment District No. 1979-1, Town of Moraga Street Lighting in 1979. Town expenditures for light and signal maintenance were not reported or were unavailable at the time of this MSR update. The signalized intersections, traffic lights, and street lights maintained by the Town were not reported or were unavailable at the time of this MSR update. 5 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 6 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 11-7 Chapter 11 11.2.7 PARKS AND RECREATION The Town of Moraga Parks and Recreation Department is the service provider for parks and recreation facilities, as well as recreation programs. The Parks Division of the Public Works Department provides maintenance of park and recreation facilities. FY 2017 expenditures for parks were approximately $1.3 million in FY 2017, reflecting a slight increase from approximately $1.2 million in FY 2016 The Town provides a variety of programs and activities for people of all ages and interests, including special events, summer camps, senior trips, and youth classes. Overall, the Parks Division maintains 320 acres of active and passive park land within the Town, which equates to 20 acres per 1,000 residents. The Town has 1 recreation center and 20.5 miles of recreation trails, of which 5.2 miles are provided and maintained by the Town. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The Town’s level of service standard is 5 acres per 1,000 residents. 11.2.8 SOLID WASTE Solid waste services are provided to the Town of Moraga via franchise agreement with Republic Services. The Town of Moraga FY 2017 expenditures for solid waste services were not reported or were unavailable at the time of this MSR update. The FY 2017 solid waste disposal rates were not reported or were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 11.2.9 STORMWATER/DRAINAGE The Town of Moraga Public Works Department provides and maintains the Town’s stormwater drainage system. The Town reports that they have 27 miles of closed storm drain lines. The percentage of their storm drain inlets equipped with trash capture were not reported or were unavailable at the time of this MSR update. The Town also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $214,640. 11.2.10 STREETS/ROADS The Town of Moraga Public Works Department provides and maintains 56 street miles. Class 1 and 2 bike lane miles were not reported or were unavailable at the time of this MSR update. FY 2017 expenditures for streets were $3 million. Contra Costa LAFCO 11-8 Municipal Service Review Update Town of Moraga MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the Town of Moraga was 68 (fair) in 2017, up from 64 in 2015, but remains below the target PCI of 75 (good) MTC has established.7 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. To maximize the Town’s PCI, the Town has implemented recommendations from the 2015 Pavement Management Report to: 1) focus on one treatment per year to maximize quantities and lower unit bid; 2) allocate approximately 17%, 33%, and 50% of funding to overlay, reconstruction, and surface seal treatments respectively; 3) partner with other agencies to combine projects as a way to reduce costs; and 4) leverage Measure K as local match for grant funding. 11.2.10 UTILITIES The Town of Moraga is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the Town, and customers may choose either service provider. PG&E also provides gas service to the Town of Moraga. The Town of Moraga did not report concerns about the ability of utility service providers to serve the Town’s existing or growing population. 11.3 FINANCIAL OVERVIEW This section provides an overview of the Town of Moraga’s financial health and assesses the Town’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and Town staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 11.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the Town. According to the Town's FY 2018-19 budget, the Town’s General Fund revenues of $9.3 million8 approximately equal General Fund expenditures. Table 11.4 summarizes prior year changes in 7 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 8 Town of Moraga Staff Report, Preliminary FY 2018/19 Budget, June 13, 2018 Town Council Meeting. Contra Costa LAFCO Municipal Service Review Update 11-9 Chapter 11 General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The General Fund's projected unassigned balance at the end of FY 2019 totals $3.9 million, or about 42% of General Fund expenditures (see Attachment C). The Town's reserve policy targets 50%.9 While property tax growth has been strong and the Town has rescinded its fiscal emergency,10 the Town faces continuing needs for capital improvement funding. TABLE 11.4 TOWN OF MORAGA SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $1,854,000 $1,983,000 $2,111,000 Sales Tax $2,755,000 $1,069,000 $1,007,000 Other Revenues (including Transfers) $4,876,637 $7,274,759 $5,118,817 Total General Fund Revenues $9,485,637 $10,326,759 $8,236,817 Change from Prior Year n/a 8.9% -20.2% GENERAL FUND EXPENDITURES General Government and $1,439,000 $1,609,000 $1,676,000 Administration Public Safety $2,494,000 $2,537,000 $2,564,000 Other (includes Transfers Out) $5,529,465 $4,232,700 $4,306,480 Total Expenditures $9,462,465 $8,378,700 $8,546,480 Change from Prior Year n/a -11.5% 2.0% Expenditures per capita $576 $505 $507 LIQUIDITY RATIO 1 Governmental Activities 8.0 8.9 8.4 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 9 Town of Moraga Preliminary Fiscal Year 2018/19 Operating and Capital Improvement Program Budgets, policy FY 2019 budget, pg. C-7. 10 The Town of Moraga fiscal emergency was declared on June 28, 2017 as part of the FY 2017/18 Budget process. Contra Costa LAFCO 11-10 Municipal Service Review Update Town of Moraga The primary cause of the Town's fiscal emergency was insufficient cash flow for day-to-day operations. Two serious infrastructure failures contributing to the emergency, the Rheem sinkhole and Canyon Road bridge, have been repaired and reopened in November 2017.11 11.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In the years prior to the emergency (FY 2015 through FY 2017), the Town's governmental activities' liquidity ratio was approximately 8.0 or greater, indicating that short-term resources significantly exceeded current liabilities (see Attachment C).12 The Town's total outstanding debt has been declining over time. Total outstanding debt was approximately $471 per capita in FY 2017, indicating reductions compared to the $529 per capita reported for FY 2015 (see Attachment C). 11.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The total positive net position of governmental funds increased between FY 2015 and FY 2017, and the positive unrestricted portion improved (see Attachment C). 11.3.4 LOCAL REVENUE MEASURES Voter-approved Measure K, a one-cent local sales and use tax, generates about $1.8 million annually. The measure is a general tax adopted in 2012 and expiring after 20 years. Currently the Town dedicates the funds towards road maintenance. 11.3.5 ENTERPRISE ACTIVITIES The Town does not provide any enterprise activities. 11.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. 11 ibid, Town of Moraga Staff Report, FY 2019 Budget. 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO Municipal Service Review Update 11-11 Chapter 11 The Town projects its annual payments towards unfunded pension liabilities to more than double over the next four years. In FY 2019 those payments total $323,500 and could grow to $637,300 in FY 2023.13 11.3.7 CAPITAL ASSETS AND DEPRECIATION The value of the Town's capital assets increased FY 2015 and FY 2016 partly due to road improvements funded by Certificates of Participation; however, Town infrastructure is aging and the Town's fiscal emergency and depleted reserves contributed to current shortfalls of funding. Roads require additional funds to restore and maintain their condition at target levels, and shortfalls exist in the Town's stormwater program and asset replacement program. Specific funding options to fill the gap were not identified in the FY 2019 budget, although the Town's five-year General Fund projections indicate revenue growth and increases in the General Fund balance. 11.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The Town’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 11.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the Town of Moraga. 11.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the Town of Moraga serves 16,991 residents. 13 Town of Moraga. Contra Costa LAFCO 11-12 Municipal Service Review Update Town of Moraga PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the Town of Moraga are depicted in Figure 11.2. ABAG projects that the Town of Moraga will grow at an annual rate of approximately 0.4% to a population of 18,080 between 2010 and 2040.14 The Town is also projected to experience an approximate 0.8% annual growth rate in jobs between 2010 and 2040. Overall, the Town’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data15 for 2010, the Town of Moraga has 7,060 employed residents. The ABAG Projections data16 for 2010 estimated 4,570 jobs in the Town, with approximately 0.65 job for every employed resident. Bay Area Census data for 2010 indicate that the Town of Moraga has 5,754 housing units, which results in a job and housing balance of 0.79. 14 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 15 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 16 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 11-13 Town of Moraga 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 11.2. Population, Job, and Household Growth Projections (2010-2040) Town of Moraga June 2019 Town of Moraga The number of owner-occupied units in the Town is greater than the number of renter-occupied housing units (Table 11.5), indicating that the rate of homeownership exceeds the rental household rate. TABLE 11.5 TOWN OF MORAGA HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 4,673 Renter-occupied housing units 897 Vacant housing units 184 Total existing housing units 5,754 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 75 Low 44 Moderate 50 Above Moderate 60 Total Regional Housing Need Allocation 229 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.17 The Town of Moraga was assigned a RHNA of 229 units, as shown in Table 11.5 The Town adopted its General Plan in 2002 and its Housing Element in 2015. The Town’s 2015– 2023 Housing Element identifies adequate sites, anticipated to yield approximately 644 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The Town of Moraga 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.18 17 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO Municipal Service Review Update 11-15 Chapter 11 The programs and services provided by the Town to meet the needs of adults age 50 and older include recreational, wellness, and social networking opportunities. Moraga Municipal Code Sec. 8.104 provides for density bonuses for residential development projects to assist in meeting the Town’s affordable housing goals, per its adopted Housing Element. Additionally, the Moraga Center PDA provides for higher residential densities targeted for affordable housing, including senior housing. The Town is currently working to complete the Moraga Center Specific Plan Implementation Project, which would provide for zoning provisions and development standards consistent with the Moraga Center Specific Plan to streamline the approval process for affordable housing developments. ANTICIPATED GROWTH PATTERNS The Town reported approximately 530 undeveloped entitled residential acres in FY 2017. The Town reports approximately 229 dwelling units as either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the Town of Moraga and included in Plan Bay Area 2040.19 The Moraga Center PDA is anticipated to accommodate approximately 50% of the projected growth in households and 18% of the projected growth in employment.20 The Moraga Center PDA, which encompasses approximately 187 acres, is characterized as a Transit Town Center. In 2010, the Town adopted the Moraga Center Specific Plan to guide the future development of this area. Since that time, approximately 20 acres have been redeveloped for residential purposes, leaving the remainder of the Moraga Center as either vacant (approximately 79 acres) or underutilized (approximately 88 acres). Future development of these vacant or underutilized parcels are slated for a combination of residential, retail, commercial, and mixed uses. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Town of Moraga has identified the Moraga Open Space Ordinance and Non-Moraga Open Space Ordinance Open Space PCA. This PCA is included in Plan Bay Area 2040 as MOSO and Non-MOSO.21 The Town of Moraga did not report that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 18 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 19 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 20 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 21 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 11-16 Municipal Service Review Update Town of Moraga 11.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Town of Moraga’s SOI is mostly coterminous with the municipal boundary, with the exception of an extension to the southeast (see Figure 11.1). No unincorporated islands have been identified in the Town of Moraga. The Town of Moraga is currently processing an application for a proposed 13-unit residential subdivision on a 24-acre site located at Camino Pablo and Tharp Drive (Assessor’s Parcel Number 258-290-023; Figure 11.3). The proposed project includes a request to annex the property into the Town of Moraga; the project site is currently within unincorporated Contra Costa County, but is within the Urban Limit Line for the Town of Moraga. The southern portion of the project site (approximately 4.5 acres) has a Town of Moraga General Plan designation of Residential, 1 Dwelling Unit Per Acre (1–DUA). The remainder of the site (approximately 19.5 acres) has a Town of Moraga General Plan designation of Open Space (OS). The entire site is designated Agricultural Lands (AL) in the Contra Costa County General Plan and has a Contra Costa County zoning designation of A–2 (Agriculture). The proposed project consists of 13 single-family residential units on individual lots. The two-story detached houses would be clustered at the southern end of the site on approximately 8 acres, and the remaining 16 acres would be preserved as permanent open space. The Town anticipates taking action on this application by the end of 2019. The Town does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. Contra Costa LAFCO Municipal Service Review Update 11-17 Figure 11.3. Area of Proposed Camino Pablo Annexation June 2019 Town of Moraga DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the Town of Moraga and therefore, no disadvantaged communities are relevant to this analysis. 11.4.3 TOWN SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Town of Moraga reports that it adequately serves all areas within its municipal boundary and SOI. Based on available information, sufficient data has not been provided by the Town of Moraga for this MSR Update to make an accurate determination about the Town’s ability to adequately serve all areas within its municipal boundary in the foreseeable future. There are no disadvantaged communities within or contiguous to the Town’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for Town streets is 68, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. The Town has implemented recommendations from its Pavement Management Report to help address this need. When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of municipal services, the Town may experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. Contra Costa LAFCO Municipal Service Review Update 11-19 Chapter 11 CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The Town did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The Town is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the Town’s General Plan. The Town’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The Town provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, law enforcement, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The Town does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. Contra Costa LAFCO 11-20 Municipal Service Review Update Town of Moraga 11.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The Town of Moraga has recovered from a 2017 fiscal emergency resulting from unplanned major infrastructure repairs which cost the Town approximately $5 million and drained their reserve fund. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the Town of Moraga appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The Town of Moraga has been operating with a surplus in their General Fund until the 2017 fiscal year. The Town’s 2018-2019 budget projects that revenues will approximately equal expenditures. The Town does not currently meet their 50% reserve goal, but they appear to have the ability to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The Town reported a liquidity ratio of 8.4, which indicates the Town has the means available to cover its existing obligations in the short run. Total debt was approximately $471 per capita for FY 2017 and has been declining. The Town's unfunded pension and OPEB liabilities continue to grow. The Town has not identified any measures to address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The Town issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 11-21 Chapter 11 11.5.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF TOWN GOVERNANCE INFORMATION The Town of Moraga website provides public access to the agendas and minutes for the Town Council and its various boards and commissions; the Town’s budgets; and the Town’s CAFRs. The Town also livestreams broadcasts Council meetings as well as broadcasts them on cable TV. The Town therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF TOWN PLANNING INFORMATION The Town of Moraga website provides public access to the Town’s general plan as well as various development plans and projects. The Town therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The Town of Moraga website provides access to public notices, including the time and place at which Town residents may provide input, as well as other opportunities for public involvement in the Town decision-making process. Newsletters are also distributed to Town residents. The Town therefore adequately provides accountability with regard to citizen participation. 11.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 11.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Town of Moraga is mostly coterminous with the municipal boundary, with the exception of an extension to the southeast, as shown in Figure 11.1. The Town of Moraga is bound by the City of Lafayette to the north and northeast, and the City of Orinda to the northwest, and County lands to the south, east, and west. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Town of Moraga. This report also recommends that Contra Costa LAFCO consider the option of retaining the existing SOI with the condition that future potential annexation applications from the Town require that the Contra Costa LAFCO 11-22 Municipal Service Review Update Town of Moraga Town provide more information22 to demonstrate its capacity, adequacy, and ability to provide services to the area under consideration 11.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE TOWN OF MORAGA Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Town of Moraga MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The Town of Moraga plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, office, commercial, public institution, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2002). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the Town of Moraga. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the Town of Moraga appears adequate. The Town of Moraga anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the Town’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the Town of Moraga. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the Town of Moraga and therefore no present or probable need for the Town to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. 22 To include expenditures for animal control, lighting, solid waste, stormwater/drainage, and streets/roads services; additional detail for law enforcement, lighting, parks and recreation solid waste, stormwater drainage, streets/road services; as well as programs and services for adults aged 50 and over. Contra Costa LAFCO Municipal Service Review Update 11-23 This page intentionally left blank. C 12 HAPTER C O ITY OF AKLEY 12.1 AGENCY OVERVIEW The City of Oakley, incorporated in 1999, covers an area of approximately 16 square miles. With an estimated population of 41,742, the City has a population density of approximately 2,608 persons per square mile.1 The City of Oakley lies in eastern Contra Costa County, with the City of Brentwood to the south, the City Antioch to the west, the San Joaquin River to the north, and County lands to the east and south. The Sphere of Influence (SOI) for the City of Oakley is mostly coterminous with the municipal boundary, with the exception of an extension to the east, as shown in Figure 12.1. The City adopted the countywide Urban Limit Line in 2008. Land uses in the City include a mix of industrial, residential, office, commercial, institution, retail, agricultural, and open space. Agricultural uses include vineyards, orchards, and row crops, animal husbandry, active cultivation of crops, or some other type of use that is substantially agricultural in nature. 12.1.1 FORM OF GOVERNMENT The City of Oakley is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 12-1 Figure 12.1. City of Oakley Municipal Boundary and Sphere of Influence June 2019 City of Oakley 12.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 82.5 full-time equivalent (FTE) employees. Table 12.1 shows the four service areas with the highest staffing levels. TABLE 12.1 CITY OF OAKLEY HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 40.0 Parks and Recreation 16.0 Administration 9.5 Public Works 7.5 Source: City of Oakley Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the City of Oakley, with 40.0 FTE employees. 12.1.3 JOINT POWERS AUTHORITIES The City of Oakley is a member of several joint powers authorities, which are listed in Table 12.2. TABLE 12.2 CITY OF OAKLEY JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. East Bay Regional Communications System — Authority Operating Agreement East Contra Costa County Habitat Conservancy — East Contra Costa County Habitat Conservation — Plan Implementing Agreement East Contra Costa Regional Fee and Financing — Authority East Contra Costa Transit Authority Restated — PACE Program, 2014 — State Route 4 Bypass Authority 1989-2011 — Transplan (East County) Regional Transportation — Planning Committee Source: City of Oakley Contra Costa LAFCO Municipal Service Review Update 12-3 Chapter 12 12.1.4 AWARDS AND RECOGNITION Table 12.3 lists the awards the City of Oakley has reported receiving since the first round Municipal Service Review (MSR). TABLE 12.3 CITY OF OAKLEY AWARDS AWARD ISSUER YEAR(S) RECEIVED Public Works Project of the Year (Main Street American Public Works Association, 2018 Rehabilitation Project) Northern California Local Government Program Excellence International City Management 2018 (Community, Diversity, and Inclusion) Association Public Works Project of the Year (Downtown American Public Works Association, 2016 Improvement Project) Northern California Playful City USA National Campaign for Play 2016 League of California Cities (Advancement of League of Cities 2012 Diverse Communities) Certificate of Achievement for Excellence in Government Finance Officers Annually Financial Reporting Association Source: City of Oakley 12.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 12.4, municipal services for the City of Oakley are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO 12-4 Municipal Service Review Update City of Oakley TABLE 12.4 CITY OF OAKLEY MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Oakley Law Enforcement City of Oakley Library Contra Costa County Lighting City of Oakley, Pacific Gas and Electric Parks and Recreation City of Oakley, East Bay Regional Park District Solid Waste Mt. Diablo Resource Recovery Stormwater City of Oakley Streets City of Oakley Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Oakley Opportunities or challenges related to the provision of municipal services for the City of Oakley were not reported or were unavailable at the time of this MSR update. A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 12.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Oakley and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Contract expenditures for animal services were approximately $238,000 in FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO Municipal Service Review Update 12-5 Chapter 12 the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 12.2.2 BROADBAND The City of Oakley does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Oakley did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Oakley received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Oakley did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 12.2.3 BUILDING/PLANNING The City of Oakley Building Division provides building services and the Planning Division provides planning services. Department expenditures for FY 2017 were $2.1 million, up from $1.9 million in FY 2015. The City of Oakley issued 1,426 residential permits in 2017, reflecting an upward trend from 1,130 in 2015. The City issued 11 commercial building permits in 2017, down from 16 in 2015. Total building permit valuation in FY 2017 is estimated at $72.4 million, reflecting a downward trend from $85.8 million in 2015. Planning city-wide has been captured in the General Plan and the Strategic Plan. 12.2.4 LAW ENFORCEMENT The City of Oakley Police Department provides law enforcement and dispatch services. In 2017-18, the City successfully transitioned from contracting with the County Sheriff’s Office for police to services to having its own in-house police department. FY 2017 expenditures were approximately $11.1 million, reflecting an upward trend from $8.8 million in FY 2015. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 12-6 Municipal Service Review Update City of Oakley The City of Oakley has 0.76 FTE sworn personnel per 1,000 population, a number which has remained steady since FY 2015 and which they are seeking to increase. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 15 crimes per sworn FTE in 2017, down from 19.4 in FY 2015. The property crime clearance rate (a measure of crimes solved) was 7% for FY 2017, and the violent crime clearance rate was 15%.6 The City reports that these numbers appear very low, which may be attributable to a software problem and which they are working to address. 12.2.5 LIBRARY Contra Costa County provides library services for the City of Oakley at its Oakley Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. 12.2.6 LIGHTING Lighting is provided and maintained by the City of Oakley Public Works and Engineering Department and Pacific Gas and Electric (PG&E). City expenditures for light and signal maintenance were $110,000 in FY 2017, down from $140,000 in FY 2015. The City maintains 21 signalized intersections and 1,450 street lights. 12.2.7 PARKS AND RECREATION The City of Oakley Parks and Landscape Division is the service provider for parks and recreation facilities, as well as landscaped public areas, and the Recreation Division is the service provider for 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 12-7 Chapter 12 recreation programs. FY 2017 expenditures for parks were approximately $0.56 million in FY 2017, up only slightly from FY 2015. The City provides a range of programs and activities including various sports and camps, along with year-round community events. The City provides and maintains 235 park acres per 1,000 residents. A new recreation center is under construction, anticipated for completion in the spring of 2019. Most recreation trails are provided and maintained by the East Bay Regional Park District. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 6 acres per 1,000 residents. 12.2.8 SOLID WASTE Solid waste services are provided to the City of Oakley via franchise agreement with Mt. Diablo Resource Recovery, which also serves the cities of Antioch, Brentwood, Concord, and Pittsburg, through the Mt. Diablo Resource Recovery Park. Contra Costa Waste Service, located at 1300 Loveridge Road in Pittsburg, is dedicated to recovery and recycling of as many items as possible. Mt. Diablo Recycling, a 90,000-square foot facility located in Pittsburg, is 100% dedicated to recycling. As part of the franchise agreement, there is no charge for solid waste services to City- owned facilities. Mt. Diablo Resource Recovery reported approximately 19,273 tons of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 2.6 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 12.2.9 STORMWATER/DRAINAGE The City of Oakley Public Works and Engineering Department provides and maintains the City’s stormwater drainage system. The City reports that they have 110 miles of closed storm drain lines and that 3% of their 2,610 storm drain inlets are equipped with trash capture. The City of Oakley also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $892,000. 12.2.10 STREETS/ROADS The City of Oakley Public Works and Engineering Department provides and maintains 136 street miles and approximately 27 Class 1 and 2 bike lane miles, as well as landscaped public areas. FY 2017 expenditures for streets were $11.8 million, up from $10.6 million in FY 2015. Contra Costa LAFCO 12-8 Municipal Service Review Update City of Oakley MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Oakley was 77 (good) in 2017, up from 75 in 2015, which is slightly above the target PCI of 75 (good) MTC has established.8 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. The City rates its own pavement condition, which it reports as 78 for FY 2017. 12.2.11 UTILITIES The City of Oakley is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Oakley. The City of Oakley did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 12.3 FINANCIAL OVERVIEW This section provides an overview of the City of Oakley’s financial health and assesses the City’s financial ability to provide services. Key financial information for City municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 12.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $19.6 million are slightly less than General Fund expenditures of $20.3 million. The $6.3 million available General Fund balance at the start of FY 2019 equals about 32% of annual expenditures, exceeding the City's 20% reserve policy.9 The City sets aside reserves for major maintenance and capital improvement costs of its Storm Drain Program, which it met in FY 2017.10 Table 12.5 summarizes 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of Oakley Adopted Annual Operating and Capital Budget, Fiscal Year 2018-2019, Reserve Policies, pg. 14. 10 City of Oakley FY 2017 Basic Financial Statements, Note 10 (item 9). Contra Costa LAFCO Municipal Service Review Update 12-9 Chapter 12 prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. Although the City meets its General Fund and Stormwater Fund reserve targets, its Vehicle and Equipment Replacement Reserve Fund is not in compliance with the policy to maintain a reserve balance equaling at least 50% of accumulated depreciation. The City notes that it "is not keeping up with aging of capital infrastructure" and is investigating a computerized Asset Management program.11 The City is experiencing difficulty funding its Lighting and Landscape District at desired levels; two of its zones' revenues fall short of expenditures, and other zones are funded at minimum levels without adequate set-asides for periodic repairs and replacement.12 The General Fund is loaning one of the zones funds for park maintenance until the zone can annex sufficient newly developed homes to provide sufficient assessment revenue. The City also anticipates a loan to its Public Facilities Impact Fee to fund a shortfall in impact fees; the fund helps to pay debt service on 2016 debt that refinanced earlier debt and also helped pay for construction of a new community center. TABLE 12.5 CITY OF OAKLEY SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $4,833,000 $5,324,000 $5,796,000 Sales Tax $1,506,000 $1,753,000 $1,774,000 Other Revenues (including Transfers) $4,441,000 $8,683,000 $5,060,000 Total General Fund Revenues $10,780,000 $15,760,000 $12,630,000 Change from Prior Year n/a 46.2% -19.9% GENERAL FUND EXPENDITURES General Government and $1,737,000 $1,818,000 $2,323,000 Administration Public Safety $4,523,000 $4,499,000 $4,009,000 Other (includes Transfers Out) $3,860,000 $4,913,000 $9,178,000 Total Expenditures $10,120,000 $11,230,000 $15,510,000 Change from Prior Year n/a 11.0% 38.1% Expenditures per capita $255 $279 $377 11 City of Oakley Response to MSR Fiscal Questions. 12 ibid, Oakley FY 2019 Budget, Budget Message, pg. 5. Contra Costa LAFCO 12-10 Municipal Service Review Update City of Oakley ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 1 Governmental Activities 5.4 6.6 7.1 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 12.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio exceeded 7.0 indicating that short-term resources exceeded current liabilities.13 The City has no enterprise funds. The City's total outstanding debt has been declining over time. Total outstanding debt was approximately $236 per capita in FY 2017, indicating increases compared to the $169 per capita reported for FY 2015 (see Attachment C). 12.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The total positive net position of governmental funds increased between FY 2015 and FY 2017, and the positive unrestricted portion improved (see Attachment C). 12.3.4 LOCAL REVENUE MEASURES The City has no local voter-approved tax measures. 12.3.5 ENTERPRISE ACTIVITIES The City has no enterprise activities. 12.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO Municipal Service Review Update 12-11 Chapter 12 otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City's $1.7 million pension liability is 75% funded (see Attachment C). The City has implemented and funded a Section 115 Trust to address the pension liability. The City has no other post-employment benefit liabilities. 12.3.7 CAPITAL ASSETS AND DEPRECIATION The value of the City's governmental assets showed a net increase in FY 2017 (see Attachment C). However, the net value would have shown a decline if road assets transferred to the City from the Redevelopment Successor Agency were excluded. A decline in net value indicates that infrastructure investments are not keeping pace with depreciation of those assets. Development impact fees will help to fund a new fire station. In addition, the City will be obtaining a $1.9 million no-cost loan from the East Contra Costa Fire Protection District to pay for increased fire station costs.14 12.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. The City is investigating the prospect of obtaining a computerized Asset Management Program that would be implemented in the coming years. Economic development is among the City's highest priorities, and its FY 2019 budget lists a number of recent accomplishments to advance that goal including: launch of the OpportunityOakley.com website; participation with neighboring cities in the joint East County Economic Development attraction website EastCounty4You.com; facilitated planning for over 20 new residential and commercial projects; and completed Downtown revitalization loans and renovations.15 12.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of 14 East Bay Times, August 15, 2018. 15 ibid, Oakley FY 2019 Budget Message, pg. 3. Contra Costa LAFCO 12-12 Municipal Service Review Update City of Oakley determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Oakley. 12.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Oakley serves 41,742 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Oakley are depicted in Figure 12.2. ABAG projects that the City of Oakley will grow at an annual rate of approximately 1.4% to a population of 54,435 between 2010 and 2040.16 The City is also projected to experience an approximate 1.5% annual growth rate in jobs between 2010 and 2040. The City reports that its General Plan buildout estimates (68,000 population) are higher than Plan Bay Area 2040 projections. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. 16 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 12-13 City of Oakley 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 12.2. Population, Job, and Household Growth Projections (2010-2040) City of Oakley June 2019 City of Oakley JOBS AND HOUSING According to the Bay Area Census data17 for 2010, the City of Oakley has 14,439 employed residents. The ABAG Projections data18 for 2010 estimated 3,410 jobs in the City, with approximately 0.24 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Oakley has 11,484 housing units, which results in a job and housing balance of 0.30. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 12.6), indicating that the rate of homeownership exceeds the rental household rate. TABLE 12.6 CITY OF OAKLEY HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 8,163 Renter-occupied housing units 2,564 Vacant housing units 757 Total existing housing units 11,484 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 317 Low 174 Moderate 175 Above Moderate 502 Total Regional Housing Need Allocation 1,168 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.19 The City of Oakley was assigned a RHNA of 1,168 units, as shown in Table 12.6. The City adopted its General Plan in 2002 and its Housing Element in 2015.20 The City’s 2015– 2023 Housing Element identifies adequate sites, anticipated to yield approximately 2,095 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Oakley 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Projections 2017. 19 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 20 The City is planning an update to its General Plan in 2019/2020. Contra Costa LAFCO Municipal Service Review Update 12-15 Chapter 12 State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.21 The City of Oakley’s Recreation Division provides some programs for adults age 50 and older. Oakley Seniors, a nonprofit organization, provides general services to seniors in the area at the Oakley Senior Center. ANTICIPATED GROWTH PATTERNS The City of Oakley reported approximately 2,500 undeveloped entitled residential acres in FY 2017. Several projects have been identified as part of the projected growth for the City and include 4,500 dwelling units and 75,000 square feet of commercial space. These projects are either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. Three PDAs have been identified by the City of Oakley and included in Plan Bay Area 2040.22 The Employment Center, Downtown, and Potential Planning Area PDAs are anticipated to accommodate approximately 90% of the projected growth in households and 75% of the projected growth in employment.23 The Employment Area PDA is characterized as a Suburban Center, the Downtown PDA is characterized as a Transit Town Center, and the Potential Planning Area PDA is characterized as a Transit Neighborhood. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Oakley has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.24 The City of Oakley does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI prior to the next MSR update. 12.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Oakley’s SOI is mostly coterminous with the municipal boundary, with the exception of an extension to the east (see Figure 12.1). No unincorporated islands have been identified in the City of Oakley. 21 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 22 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 23 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 24 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 12-16 Municipal Service Review Update City of Oakley The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified an area in northwest Oakley—south of Main Street along Neroly Road—that meets the criteria of a disadvantaged community. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 12.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Oakley reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. The disadvantaged community identified within the City’s SOI receives sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 77, which indicates the City’s streets are in good condition and primarily require funding at a level to maintain the current condition. Contra Costa LAFCO Municipal Service Review Update 12-17 Chapter 12 The City reports that it is not keeping up with the aging of capital infrastructure and that they are investigating the prospects of obtaining a computerized asset management program that would be implemented in the coming years. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City reports that the demand for capital infrastructure construction and maintenance is consistently higher than the resources available. The City continues to seek opportunities to supplement CIP funding with federal and state grants. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. Contra Costa LAFCO 12-18 Municipal Service Review Update City of Oakley DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 12.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of Oakley appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Oakley has been operating with a surplus in their General Fund until the 2017 fiscal year. The City currently exceeds their 20% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 7.1, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $236 per capita for FY 2017, up from $169 per capita in FY 2015. The City's unfunded pension liabilities continue to grow; however, the City has funded a Section 115 Trust to address the increasing pension liabilities. The City has no OPEB liabilities. Contra Costa LAFCO Municipal Service Review Update 12-19 Chapter 12 TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 12.4.4 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Oakley website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Oakley website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Oakley website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City uses social media and also distributes newsletters to residents. The City therefore adequately provides accountability with regard to citizen participation. 12.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 12.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Oakley is mostly coterminous with the municipal boundary, with the exception of an extension to the east, as shown in Figure 12.1. The City of Oakley is bound by the City of Brentwood to the south, the City Antioch to the west, and County lands to the north, east, and south. Contra Costa LAFCO 12-20 Municipal Service Review Update City of Oakley This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Oakley. 12.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF OAKLEY Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Oakley MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Oakley plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, office, commercial, institution, retail, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2002). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Oakley. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Oakley appears adequate. The City of Oakley anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Most communities of interest within the City’s municipal boundary are included within the SOI. In 2006, the City considered annexing the area within the City’s SOI. Although the City did proceed with annexation of a large portion of the territory in 2006, due to resistance from the residents, the City did not pursue the annexation of a small portion within the existing SOI. Contra Costa LAFCO has not identified other specific social or economic communities of interest relevant to the City of Oakley. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified an area in northwest Oakley—south of Main Street along Neroly Road—that meets the criteria of a disadvantaged community. This area receives sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 12-21 This page intentionally left blank. C 13 HAPTER C O ITY OF RINDA 13.1 AGENCY OVERVIEW The City of Orinda, incorporated in 1985, covers an area of approximately 12.8 square miles. With an estimated population of 19,199, the City has a population density of approximately 1,476 persons per square mile.1 The City of Orinda lies in central Contra Costa County, with the City of Lafayette to the east and the Town of Moraga to the southeast. County lands bound the City to the south, north, and west. The Sphere of Influence (SOI) for the City of Orinda is coterminous with the municipal boundary, as shown in Figure 13.1. The City adopted the countywide Urban Limit Line in 2009. Land uses in the City include a mix of residential, office and community business, public, and open space. Although there are no designated agricultural land uses in the City of Orinda, livestock grazing may be allowable within some open space areas. 13.1.1 FORM OF GOVERNMENT The City of Orinda is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 13-1 Figure 13.1. City of Orinda Municipal Boundary and Sphere of Influence June 2019 City of Orinda 13.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 38.3 full-time equivalent (FTE) employees. Table 13.1 shows the four service areas with the highest staffing levels. TABLE 13.1 CITY OF ORINDA HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Public Works and Engineering 12.0 Park and Recreation 11.0 City Manager and Administration 8.3 Planning 6.0 Source: City of Orinda Unlike other cities in Contra Costa County, the public works and engineering function had the highest staffing level in the City of Orinda, with 12.0 FTE employees. 13.1.3 JOINT POWERS AUTHORITIES The City of Orinda is a member of several joint powers authorities (JPAs), which are listed in Table 13.2. TABLE 13.2 CITY OF ORINDA JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Solid Waste Authority Solid waste Central Contra Costa Transportation Authority Transit Contra Costa Transit Authority Congestion Streets and roads Management Agency Forensic Services Agreement Forensic services Lamorinda Fee and Financing Authority Traffic impact fee Lamorinda School Bus Transportation Agency School bus service Source: City of Orinda Contra Costa LAFCO Municipal Service Review Update 13-3 Chapter 13 13.1.4 AWARDS AND RECOGNITION The City of Orinda has not reported receiving any awards since the first round Municipal Service Review (MSR). 13.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 13.3, municipal services for the City of Orinda are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 13.3 CITY OF ORINDA MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Orinda, Contra Costa County Law Enforcement Contra Costa County Library Contra Costa County Lighting City of Orinda Parks and Recreation City of Orinda Solid Waste Allied Waste Stormwater City of Orinda Streets City of Orinda Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Orinda Opportunities or challenges related to the provision of municipal services for the City of Orinda were not reported or were unavailable at the time of this MSR update. A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. Contra Costa LAFCO 13-4 Municipal Service Review Update City of Orinda 13.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) provides animal control services for the City of Orinda and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $106,833 for FY 2017 and are included as part of the Police Department budget. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 13.2.2 BROADBAND The City of Orinda does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Orinda did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Orinda received a grade of D, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Orinda did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 13.2.3 BUILDING/PLANNING The City of Orinda Planning Department provides planning services and the City contracts with the Contra Costa County Building Division for building services. Department expenditures for FY 2017 were $1,038,101. The City does not record an expense for building services. The contract with Contra Costa County is structured as a revenue-sharing arrangement and Contra Costa County retains the base fees collected. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO Municipal Service Review Update 13-5 Chapter 13 A combined total of 889 residential and commercial building permits were issued in 2017 and the total building permit valuation in FY 2017 was $49.8 million. Planning city-wide has been captured in the General Plan, Strategic Plan, the five-year Capital Improvement Plan, and the Bicycle, Trails and Walkways Master Plan. 13.2.4 LAW ENFORCEMENT The City of Orinda Police Department provides law enforcement and dispatch services through contract with the Contra Costa County Office of the Sheriff. FY 2017 expenditures for the Sheriff’s Office were $229.3 million, up from $217.8 million in FY 2015. The City of Orinda has 1.3 FTE sworn personnel per 1,000 population. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 11.6 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 7.8% in 2017, and the violent crime clearance rate was 0.5%.6 . The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. Total property crime clearances were reported at 125 (17 in Orinda) and total violent crime clearances were reported at 340 (13 in Orinda) for FY 2017. 13.2.5 LIBRARY Contra Costa County provides library services for the City of Orinda at its Orinda Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 13-6 Municipal Service Review Update City of Orinda expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. The City of Orinda is responsible for operating the library building and utilities as well as providing funding for additional hours of operation. A portion of these expenses are offset by a voter- approved parcel tax. In FY 2017, the parcel tax amount was $39 per equivalent residential unit. The total costs paid by the City in FY 2017 were $217,043. 13.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Orinda Public Works and Engineering Department. City FY 2017 expenditures for light and signal maintenance were $76,179. The City maintains 19 signalized intersections and 17 traffic lights. 132.7 PARKS AND RECREATION The City of Orinda Parks and Recreation Department is the service provider for parks and recreation facilities, as well as recreation programs. FY 2017 expenditures for parks were approximately $3.6 million. The City provides a variety of classes and programs for adults, seniors, and youth, along with adult and youth sports leagues. The City provides and maintains 7.45 park acres per 1,000 residents, 1 recreation center per 20,000 residents, and 12 miles of recreation trails. The City anticipates opening a second recreation center in 2019. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 13.2.8 SOLID WASTE Solid waste services are provided to the City of Orinda via franchise agreement with Republic Services. The City of Orinda FY 2017 expenditures for solid waste services were unavailable at the time of this MSR update. Because the City does not provide these services, it does not have an expenditure report. Republic Services handles all billing and also services City facilities without a charge under the franchise agreement. The FY 2017 solid waste disposal rates were not reported or were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. Contra Costa LAFCO Municipal Service Review Update 13-7 Chapter 13 13.2.9 STORMWATER/DRAINAGE The City of Orinda Public Works and Engineering Department provides and maintains the City’s stormwater drainage system. The City reports that they have 19 miles of closed storm drain lines within and that 0.4% of their storm drain inlets are equipped with trash capture. The City’s compliance with National Pollution Discharge Elimination System standards was not reported or was unavailable at the time of this MSR update. Stormwater expenditures were $177,929 in FY 2017, with an additional $257,850 spent on drainage projects. 13.2.10 STREETS/ROADS The City of Orinda Public Works and Engineering Department provides and maintains 92.7 street miles, 1 mile of Class 1 and 0.8 mile of Class 2 bike lanes. FY 2017 expenditures for streets were approximately $13 million, with $12 million spent for street related repairs. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Orinda was 60 (fair) in 2017, up considerably from 49 in 2015, but remains well below the target PCI of 75 (good) MTC has established.8 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. 13.2.11 UTILITIES Pacific Gas & Electric provides gas and electricity service to the City of Orinda. The City is not a member of a Community Choice Aggregation program. The City of Orinda did not report concerns about the ability of utility service providers to serve the City’s existing or growing population. 13.3 FINANCIAL OVERVIEW This section provides an overview of the City of Orinda’s financial health and assesses the City’s financial ability to provide services. Key financial information for City municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 13-8 Municipal Service Review Update City of Orinda 13.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of Orinda prepares a biennial budget. According to the City's FY 2018-19 budget, the City’s General Fund revenue of $13.2 million exceeds General Fund expenditures by $320,000; the budget transfers most of the surplus to the Road and Drainage Stabilization Fund.9 The City maintains a General Fund balance of $5.9 million consistent with its financial policy to retain a $5 million reserve plus 20% of annual revenues exceeding $10 million.10 The City has achieved and maintained this level in prior years as well, although reductions occurred in FY 2017 from the use of $2 million for storm and sinkhole related repairs. Table 13.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The City provides funding to its M-11 Lighting and Landscape District to offset assessment shortfalls, and is considering options that may include assessment increases, or dissolution / replacement with a Business Improvement District.11 TABLE 13.4 CITY OF ORINDA SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $5,653,000 $6,123,000 $6,543,000 Sales Tax $2,067,000 $2,121,000 $2,107,000 Other Revenues (including Transfers) $5,324,183 $5,581,236 $5,114,653 Total General Fund Revenues $13,044,183 $13,825,236 $13,764,653 Change from Prior Year n/a 6.0% -0.4% 9 City of Orinda Biennial Budget Fiscal Years 2018 and 2019 Adopted May 16, 2017, pg. 40. 10 ibid, Orinda FY 2019 budget, Financial Policies and Budget Procedures, pg. 27. 11 ibid, Orinda FY 2019 budget, Strategic Priorities, pg. 13. Contra Costa LAFCO Municipal Service Review Update 13-9 Chapter 13 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND EXPENDITURES General Government and $1,834,000 $2,015,000 $1,977,000 Administration Public Safety $3,960,000 $4,034,000 $4,112,000 Other (includes Transfers Out) $6,368,067 $6,444,523 $9,791,389 Total Expenditures $12,162,067 $12,493,523 $15,880,389 Change from Prior Year n/a 5.9% 12.1% Expenditures per capita $655 $663 $835 LIQUIDITY RATIO 1 Governmental Activities 5.6 3.6 2.5 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 13.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio equaled 2.5 indicating that short-term resources exceeded current liabilities (see Attachment C).12 The City's total outstanding debt has been increasing over time. Total outstanding debt was approximately $2,700 per capita in FY 2017, indicating a significant increase compared to the $984 per capita reported for FY 2015. Governmental activities' outstanding debt totaled $51.3 million in FY 2017 (see Attachment C). 13.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The total positive net position of governmental funds increased between FY 2015 and FY 2017, and the positive unrestricted portion declined slightly, apparently as the result of increased investments in capital assets (see Attachment C). 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 13-10 Municipal Service Review Update City of Orinda 13.3.4 LOCAL REVENUE MEASURES General Fund revenues are supplemented by Measure L, which generates approximately $1.1 million of annual voter-approved local half-cent sales tax. Measure L, approved in 2012 and effective 2013 (expires after 10 years), is appropriated annually for road and drainage infrastructure improvements. In June 2018, the voters approved an increase in the local library tax to $69 per residential equivalent unit, which will provide support for the 17-year old facility as well as continuing operational funds. 13.3.5 ENTERPRISE ACTIVITIES The City has no enterprise funds. 13.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City has no pension liability, as it provides a defined contribution retirement plan. The City is in the process of obtaining its first other post-employment benefit actuarial estimate for retiree medical contributions. The City obtained its first other post-employment benefit actuarial estimate for retiree medical contributions in July 2018 and has recorded a liability of $411,965 on its Statement of Net Position for the period ending June 30, 2018. Currently, the City contributes the minimum payment per month and the majority of the premium is paid for by the two participating retirees. 13.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2015 and FY 2016 showed small declines in governmental assets; however, FY 2017 net value of depreciable assets increased significantly (see Attachment C). This increase was largely due to completion of significant drainage and roadway improvement projects (including sinkhole repair). Road improvements are funded by 2014 voter-approved general obligation bonds totaling $20 million. Voters approved an additional $25 million of bonds in 2016. The bonds are repaid by annual assessments on property owners.13 13.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. 13 ibid, Orinda FY 2019 budget, pg. 112-113. Contra Costa LAFCO Municipal Service Review Update 13-11 Chapter 13 According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. The City prepares a 5-year forecast as part of planning its annual budget. A facility condition report was commissioned to estimate long-term costs associated with the City's library building, and aid in budgeting and the use of library tax revenues.14 13.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Orinda. 13.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Orinda serves 19,199 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Orinda are depicted in Figure 13.2. 14 Facility Condition Assessment Orinda Library, EMG, February 28, 2018. Contra Costa LAFCO 13-12 Municipal Service Review Update City of Orinda 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 13.2. Population, Job, and Household Growth Projections (2010-2040) City of Orinda June 2019 Chapter 13 ABAG projects that the City of Orinda will grow at an annual rate of approximately 0.3% to a population of 18,745 between 2010 and 2040.15 The City is also projected to experience an approximate 0.4% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data16 for 2010, the City of Orinda has 8,001 employed residents. The ABAG Projections data17 for 2010 estimated 4,835 jobs in the City, with approximately 0.6 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Orinda has 6,804 housing units, which results in a job and housing balance of 0.71. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 13.5), indicating that the rate of homeownership exceeds the rental household rate. TABLE 13.5 CITY OF ORINDA HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 5,876 Renter-occupied housing units 677 Vacant housing units 251 Total existing housing units 6,804 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 84 Low 47 Moderate 54 Above Moderate 42 Total Regional Housing Need Allocation 227 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.18 The City of Orinda was assigned a RHNA of 227 units, as shown in Table 13.5. The City adopted its General Plan in 1987 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 299 units, which are 15 ABAG. Projections 2017. 16 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 17 ABAG. Projections 2017. 18 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO 13-14 Municipal Service Review Update City of Orinda appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Orinda 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.19 The City provides a number of senior services and programs, and works with other agencies and nonprofit organizations to meet the needs of seniors in the community. The Orinda Recreation Department sponsors fitness, recreational, and social programs, and provides referrals to the Contra Costa County Agency on Aging and Adult Services. The City’s Senior Service Committee meets monthly. Senior health care consulting is provided through a volunteer health insurance and advocacy program at Orinda Senior Village. The County Connection Link program provides paratransit, and the Orinda Association’s Seniors Around Town program provides free door-to-door rides to seniors who are unable to drive and may not qualify for the County Connection Link program. The Council on Aging, Lamorinda Group, Spirit Van, and the Contra Costa Library also offer programs for seniors. ANTICIPATED GROWTH PATTERNS The City of Orinda reported approximately 450 undeveloped entitled residential acres in FY 2017. During FY 2017, 43 new housing units were constructed, with a comparatively higher number submitted to the City for design approval. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of Orinda and included in Plan Bay Area 2040.20 The Downtown PDA is anticipated to accommodate approximately 50% of the projected growth in households and 57% of the projected growth in employment.21 The Downtown PDA is characterized as a Transit Town Center. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Orinda has not identified any Priority Conservation Areas, and none are included in Plan Bay Area 2040.22 The City of Orinda does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and coterminous SOI. 19 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 20 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 21 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 22 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO Municipal Service Review Update 13-15 Chapter 13 13.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Orinda’s SOI is coterminous with the municipal boundary (see Figure 13.1). No unincorporated islands have been identified in the City of Orinda. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the City of Orinda and therefore, no disadvantaged communities are relevant to this analysis. 13.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Orinda appears to adequately serve all areas within its municipal boundary and SOI and is likely to continue to do so in the next five years based on available information. There are no disadvantaged communities within or contiguous to the City’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 60, which is below the target of 75 MTC has established and which indicates a need for pavement rehabilitation funding. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. Contra Costa LAFCO 13-16 Municipal Service Review Update City of Orinda CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City of Orinda CIP forecasts available funds and proposed projects, allowing them to keep pace with infrastructure priorities. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to planning, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, building, law enforcement, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City operates the Orinda Library through a cooperative agreement with Contra Costa County. The City does not share other facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. Contra Costa LAFCO Municipal Service Review Update 13-17 Chapter 13 13.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the City of Orinda appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Orinda has been operating with a surplus in their General Fund until the 2017 fiscal year. The City currently meets their 20% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 2.5, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $2,700 per capita for FY 2017 and has been increasing over time. The City provides a defined contribution retirement plan and has no unfunded pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 8 months after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, certain tables in the CAFR extend over multiple pages; however, the left-most column does not carry over to multiple pages, affecting the readability of the tables. Contra Costa LAFCO 13-18 Municipal Service Review Update City of Orinda 13.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Orinda website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City of Orinda also livestreams City Council and Planning Commission meetings. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Orinda website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Orinda website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 13.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 13.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Orinda is coterminous with the municipal boundary, as shown in Figure 13.1. The City of Orinda is bound by the City of Lafayette to the east, the Town of Moraga to the southeast, and County lands to the south, north, and west. 13.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF ORINDA Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Orinda MSR profile. Contra Costa LAFCO Municipal Service Review Update 13-19 Chapter 13 PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Orinda plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, office, commercial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (1987). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Orinda. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Orinda appears adequate. The City of Orinda anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Orinda. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the City of Orinda and therefore no present or probable need for the City to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. Contra Costa LAFCO 13-20 Municipal Service Review Update C 14 HAPTER C P ITY OF INOLE 14.1 AGENCY OVERVIEW The City of Pinole, incorporated in 1903, covers an area of approximately 11.6 square miles. With an estimated population of 19,236, the City has a population density of approximately 1,748 persons per square mile.1 The City of Pinole lies in western Contra Costa County with the cities of Richmond and San Pablo to the south, Hercules to the north, San Pablo Bay to the west. County lands (unincorporated Briones Hills and the communities of Bay View, Montalvin Manor, and Tara Hills) lie to the east. The Sphere of Influence (SOI) for the City of Pinole extends beyond the municipal boundary to the south and west, as shown in Figure 14.1. The City adopted the countywide Urban Limit Line in 2007. Land uses in the City include a mix of residential, multi-family residential, commercial, retail, mixed use, and open space. Although there are no designated agricultural land uses in the City of Pinole, some rural designated areas may allow for community gardening and specialty crop farming. 14.1.1 FORM OF GOVERNMENT The City of Pinole is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 14-1 Figure 14.1. City of Pinole Municipal Boundary and Sphere of Influence June 2019 City of Pinole 14.1.2 STAFFING Total City staffing for fiscal year (FY) 2017 included 113.31 full-time equivalent (FTE) employees. Table 14.1 shows the four service areas with the highest staffing levels. TABLE 14.1 CITY OF PINOLE HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police Service 45.42 Recreation 14.18 Waste Management 11.0 Public Works 10.25 Source: City of Pinole Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Pinole, with 45.42 FTE employees. 14.1.3 JOINT POWERS AUTHORITIES The City of Pinole is a member of several joint powers authorities (JPAs), which are listed in Table 14.2. TABLE 14.2 CITY OF PINOLE JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Contra Costa Abandoned Vehicle Authority Removal and disposal of abandoned vehicles Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System Regional communication systems Authority Marin Clean Energy Utility services (electric) provider Municipal Pooling Authority Workers compensation and liability self-insurance pool Pinole Joint Financing Authority Financing Contra Costa LAFCO Municipal Service Review Update 14-3 Chapter 14 JOINT POWERS AUTHORITY SERVICE West Contra Costa Integrated Waste Management Garbage service oversight Authority Western Contra Costa County Transit Authority — Western Contra Costa Transportation Advisory Growth management and sub-regional planning Committee mandates Western Riverside Council of Governments PACE program Source: City of Pinole 14.1.4 AWARDS AND RECOGNITION Table 14.3 lists the awards the City of Pinole has reported receiving since the first round Municipal Service Review (MSR). TABLE 19.3 CITY OF PINOLE AWARDS AWARD ISSUER YEAR(S) RECEIVED Excellence in Financial Reporting Government Finance Officers 2011 – 2016 Association Award for Financial Excellence Government Finance Officers 1996 – 2017 Association Restoration Project of the Year Contra Costa Watershed Forum 2011 Meritorious in Operating Budget California Society of Municipal 2008 – 2011, Finance Officers 2014 – 2015 Source: City of Pinole 14.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 14.4, municipal services for the City of Pinole are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO 14-4 Municipal Service Review Update City of Pinole TABLE 14.4 CITY OF PINOLE MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Pinole Law Enforcement City of Pinole Library Contra Costa County Lighting City of Pinole Parks and Recreation City of Pinole Solid Waste Republic Services Stormwater City of Pinole Streets City of Pinole Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Pinole Opportunities or challenges related to the provision of municipal services for the City of Pinole were not reported or were unavailable at the time of this MSR update. A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 14.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of Pinole and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $108,450 for FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO Municipal Service Review Update 14-5 Chapter 14 the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 14.2.2 BROADBAND The City of Pinole does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Pinole did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Pinole received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Pinole did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 14.2.3 BUILDING/PLANNING The City of Pinole Building Division provides building services and the Planning Division provides planning services. Department expenditures for FY 2017 were $781,869. The City of Pinole issued 261 residential and 5 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $9.2 million. The City worked with Target to complete an interior store renovation, and provided final occupancy to a new Sprouts Grocery store, Lifelong Medical Clinic, and multi-tenant retail shop space building within the Gateway Shopping Center. The City also worked with Eden Housing to complete the renovation and modernization of 144 affordable multi-family housing units. Construction was initiated on a new CVS Pharmacy, AAA Office, and a DaVita Dialysis Clinic. Additionally, the City worked with East Bay Regional Park District on the design and construction of a new segment of the Bay Trail from the Pinole Shores Drive trailhead to Bayfront Park. Planning city-wide has been captured in the General Plan. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 14-6 Municipal Service Review Update City of Pinole 14.2.4 LAW ENFORCEMENT The City of Pinole Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $6.4 million. The City of Pinole has 1.45 FTE sworn personnel per 1,000 population, which represents a slight increase from 1.41 FTE in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 74.2 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 16.8% in 2017, and the violent crime clearance rate was 78.7%.6 14.2.5 LIBRARY Contra Costa County provides library services for the City of Pinole at its Pinole Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. 14.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Pinole Public Works Department. City expenditures for light and signal maintenance were $933,013 in FY 2017, up from $630,182 in FY 2015. The City maintains 29 signalized intersections, 21 traffic lights, and 523 street lights. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 14-7 Chapter 14 14.2.7 PARKS AND RECREATION The City of Pinole Public Works Department maintains the parks and recreation facilities as well as landscaped medians and public planter beds. The Recreation Department is the service provider for recreation programs. FY 2017 expenditures for parks were approximately $1,041,074. The City offers a variety of programs and classes for all ages and interests, including a school of performing arts, day camps, a senior center with a robust activity schedule and trips and travel, and various community events. The City provides and maintains 14 park acres per 1,000 residents, 3 recreation centers per 20,000 residents, and 3.5 miles of recreation trails.8 The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 3 acres per 1,000 residents. 14.2.8 SOLID WASTE Solid waste services are provided to the City of Pinole via contract with Republic Services. The City of Pinole FY 2017 expenditures for solid waste services were $234,631. The City reported approximately 0.68 ton of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 3.7 pounds/resident/day.9 Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 14.2.9 STORMWATER/DRAINAGE The City of Pinole Public Works Department provides and maintains the City’s stormwater drainage system. The City reports that they have 34 miles of closed storm drain lines and that approximately 10.3% of their estimated 1,048 storm drain inlets are equipped with trash capture. The City of Pinole also reports compliance with National Pollution Discharge Elimination System standards. Total FY 2017 expenditures for stormwater were $241,081. 14.2.10 STREETS/ROADS The City of Pinole Public Works Department provides and maintains 51.75 street miles and approximately 1.5 Class 1 and 2 bike lane miles. FY 2017 expenditures for streets were $627,006. 8 The City of Pinole has a senior center which offers programs for ages 50 and over, a youth center for ages 6-17, and the tiny tot facility for ages 3-5. 9 Data from Republic Services via Recyclemore. Percentage is based on data for inbound solid waste, green waste, construction and demolition waste, not accounting for diverted recyclables. Contra Costa LAFCO 14-8 Municipal Service Review Update City of Pinole MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Pinole was 68 (fair) in 2017, up from 67 in 2015, but remains below the target PCI of 75 (good) MTC has established.10 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. 14.2.11 UTILITIES The City of Pinole is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Pinole. The City of Pinole did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 14.3 FINANCIAL OVERVIEW This section provides an overview of the City of Pinole’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 14.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of Pinole prepares an annual budget. According to the City's FY 2018-19 budget, the City’s General Fund revenue of $14.3 million exceeds General Fund expenditures by about $300,00011 The City's General Fund balance is projected to grow to about $8.1 million consistent with its financial policy to retain a $5 million reserve plus 10% of annual revenues exceeding $10 million.12 Table 14.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The City’s Utility Users Tax, renewed in November 2018, helps to maintain City revenues. 10 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 11 City of Pinole Fiscal Year 2018-19 Proposed Budget June 19, 2018 pg. B-1. 12 ibid, Pinole FY 2019 budget, Financial Policies, pg. A-9. Contra Costa LAFCO Municipal Service Review Update 14-9 Chapter 14 Several City funds, including Recreation and Cable Television, continue to require City funding. The City's Building and Planning Fund also required City financial support, although as the result of fluctuating development fee revenues. The City's five-year projections indicate annual General Fund shortfalls beginning in FY 2019 assuming conservative revenue growth against increases in pension costs; however the proposed FY 2019 budget shows a balanced budget. The Utility Users Tax will help mitigate projected shortfalls. TABLE 14.5 CITY OF PINOLE SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $5,132,000 $3,413,000 $3,491,000 Sales Tax $6,120,000 $7,859,000 $7,597,000 Other Revenues (including Transfers) $6,066,000 $6,120,000 $6,065,000 Total General Fund Revenues $17,317,575 $17,391,787 $17,152,904 Change from Prior Year n/a 0.4% -1.4% GENERAL FUND EXPENDITURES General Government and $2,136,000 $2,685,000 $2,708,000 Administration Public Safety $8,336,000 $9,025,000 $9,459,000 Other (includes Transfers Out) $1,550,000 $2,808,000 $2,348,000 Total Expenditures $12,022,000 $14,518,000 $14,515,000 Change from Prior Year n/a 20.8% 0.0% Expenditures per capita $644 $771 $760 LIQUIDITY RATIO 1 Governmental Activities 4.9 6.0 6.6 Business-type Activities 7.0 30.9 4.6 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 14.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. Contra Costa LAFCO 14-10 Municipal Service Review Update City of Pinole In FY 2017 the City's governmental activities' liquidity ratio equaled 6.6, indicating that short-term resources exceeded current liabilities (see Attachment C).13 The City's enterprise funds' liquidity ratio equaled 4.6 in FY 2017. Although the General Fund balance and short-term liquidity measures appear strong, combined governmental activities' unrestricted net position at the end of FY 2017 was a negative $31.2 million.14 This negative long-term unrestricted position reflects significant pension and other post-employment benefit liabilities of $46.6 million in FY 2017 that are not covered by the value of non-capital assets. Total outstanding debt was approximately $620 per capita in FY 2017, indicating reductions compared to the $720 per capita reported for FY 2015 (see Attachment C). 14.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The total net position of governmental activities improved from FY 2015 to a total $19.3 million in FY 2017. As noted above, combined governmental activities' unrestricted net position at the end of FY 2017 was a negative $31.2 million. This decrease was largely the result of net pension and other post-employment benefit (OPEB) liabilities. The net position of the City's wastewater utility has generally improved from FY 2015 through FY 2017. 14.3.4 LOCAL REVENUE MEASURES The City helps to fund services using funds from two local sales tax measures (both Measure S) approved by voters in 2006 and in 2014; together these sales taxes equal 1% of taxable sales and provide about $3.9 million annually. The taxes are general revenues and can be used for any purpose, but 2006 taxes have been dedicated by the City to public safety programs and the 2014 taxes to infrastructure projects are their highest priority.15 In November 2018, voters approved Measure C extending the existing Utility Users Tax at its current rate of 8% with no sunset date. The tax, first approved in 1998, supports essential City services. Fiscal year 2018-2019 revenues from this tax are estimated to be $1.9 million, or 14% of General Fund revenues.16 14.3.5 ENTERPRISE ACTIVITIES The City’s sole enterprise activity is its wastewater utility. 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 14 City of Pinole FY 2017 CAFR, pg. 6. 15 ibid, Pinole FY 2019 budget, pg. A-12. 16 ibid, Pinole FY 2019 budget, pg. A-17. Contra Costa LAFCO Municipal Service Review Update 14-11 Chapter 14 14.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City reported its unfunded pension liability of $18.6 million in FY 2015 grew to $27.1 million in FY 2017.17 The City's reported OPEB liability was $19.5 million in FY 2017. In addition to City payments required to pay ongoing pension costs and unfunded liabilities, the City is paying about $500,000 annually towards a Pension Obligation Bond issued in 2006. The FY 2017 CAFR reports $3,085,910 million pension expense paid in FY 2017 in addition to the pension bond payments and OPEB payments.18 14.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2016 and FY 2017 show declines in the net value of governmental and enterprise assets (see Attachment C). Completion of a Water Pollution Control Plant Upgrade Project anticipated for Spring 2019 should result in a significant increase in net value of enterprise assets. The City includes in its wastewater rate structure a component to fund reserves for asset replacement. These costs are shared 50% with the City of Hercules (in addition to sharing plant operations costs based on flows). 14.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets are prepared in a timely manner and posted on the agency's website. The FY 2017 CAFR was prepared over 8 months after the end of the FY 2017 fiscal year, which is not considered timely. 14.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Pinole. 17 City of Pinole MSR Fiscal Profile, Table 8. 18 Ibid, Pinole FY 2017 CAFR, pg. 54. Contra Costa LAFCO 14-12 Municipal Service Review Update City of Pinole 14.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Pinole serves 19,236 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Pinole are depicted in Figure 14.2. ABAG projects that the City of Pinole will grow at an annual rate of approximately 0.4% to a population of 21,390 between 2010 and 2040.19 The City is also projected to experience an approximate 0.8% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data20 for 2010, the City of Pinole has 8,888 employed residents. The ABAG Projections data21 for 2010 estimated 6,700 jobs in the City, with approximately 0.75 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Pinole has 7,158 housing units, which results in a job and housing balance of 0.94. The number of owner- occupied units in the City is greater than the number of renter-occupied housing units (Table 14.6), indicating that the rate of homeownership exceeds the rental household rate. 19 ABAG. Projections 2017. 20 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 21 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 14-13 City of Pinole 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 14.2. Population, Job, and Household Growth Projections (2010-2040) City of Pinole June 2019 City of Pinole TABLE 14.6 CITY OF PINOLE HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 4,861 Renter-occupied housing units 1,914 Vacant housing units 393 Total existing housing units 7,158 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 80 Low 48 Moderate 43 Above Moderate 126 Total Regional Housing Need Allocation 297 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.22 The City of Pinole was assigned a RHNA of 297 units, as shown in Table 14.6. The City adopted its General Plan in 2010 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 493 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Pinole 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.23 The City of Pinole senior center offers programs for adults age 50 and over, including morning, afternoon, and evening classes. 22 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 23 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 14-15 Chapter 14 ANTICIPATED GROWTH PATTERNS The City of Pinole reported approximately 1.7 undeveloped entitled residential acres in FY 2017. Several projects have been identified as part of the projected growth for the City and include 13 dwelling units and 143,061 square feet of commercial space. These projects are either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Pinole and included in Plan Bay Area 2040.24 The Old Town San Pablo Avenue and Appian Way Corridor PDAs are anticipated to accommodate approximately 56% of the projected growth in households and employment.25 The Old Town San Pablo Avenue PDA is characterized as a Mixed Use Corridor and the Appian Way Corridor PDA is characterized as a Transit Town Center. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Pinole has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.26 The City of Pinole does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 14.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Pinole’s SOI extends beyond the municipal boundary to the south (see Figure 14.1). No unincorporated islands have been identified in the City of Pinole. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified disadvantaged communities within the City’s SOI. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities 24 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 25 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 26 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 14-16 Municipal Service Review Update City of Pinole and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 14.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Pinole reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. Disadvantaged communities are within or contiguous to the City’s SOI and these areas receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 68, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. When accounting for the projected growth and population increases over the next five years, as well as the potential fiscal challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s Contra Costa LAFCO Municipal Service Review Update 14-17 Chapter 14 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets.27 Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City participates in the Tri-City Services Agreement with San Pablo and Hercules for police dispatch and computer-aided dispatch/automated records management systems services. Pinole provides the dispatch services and San Pablo provides the computer-aided dispatch/automated records management systems services. The City does not share facilities or other services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 27 In addition to the municipal services covered in this report, the City also provides fire and emergency medical and wastewater collection and treatment. Contra Costa LAFCO 14-18 Municipal Service Review Update City of Pinole 14.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Pinole is experiencing some fiscal challenges, such as General Fund deficits projected after FY 2019 and continuing for five years, that may affect its ability to provide services, particularly in the event of unexpected funding needs. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of Pinole appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Pinole anticipates moving from a surplus trend to a deficit in their general fund after FY 2019. The City appears to meet their $5 million plus 10% reserve goal, allowing them to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 6.6, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $620 per capita for FY 2017 and has been declining. The City's unfunded pension and OPEB liabilities continue to grow. To address the increasing pension liabilities, the City Council approved an IRS Section 115 Irrevocable Pension Trust in June 2018 and has funded over $16 million to use to pay for pension obligations through 2036; the City’s actuarial report indicates rates should decrease significantly. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 9 months after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 14-19 Chapter 14 14.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Pinole website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Pinole website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Pinole website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City televises City Council and Planning Commission meetings. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 14.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 14.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Pinole extends beyond the municipal boundary to the south, as shown in Figure 14.1. The City of Pinole is bound by cities of Richmond and San Pablo to the south, Hercules to the north, San Pablo Bay to the west, and County lands to the east. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Pinole. 14.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF PINOLE Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Pinole MSR profile. Contra Costa LAFCO 14-20 Municipal Service Review Update City of Pinole PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Pinole plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, multi-family residential, commercial, retail, mixed use, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2010). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Pinole. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Pinole appears adequate. The City of Pinole anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Pinole. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within the City’s SOI. These areas receive sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 14-21 This page intentionally left blank. C 15 HAPTER C P ITY OF ITTSBURG 15.1 AGENCY OVERVIEW The City of Pittsburg, incorporated in 1903, covers an area of approximately 15.5 square miles. With an estimated population of 72,647, the City has a population density of approximately 4,540 persons per square mile.1 The City of Pittsburg lies in eastern Contra Costa County, with the City of Antioch to the east, San Pablo Bay to the north, and the cities of Clayton and Concord to the south and west. County lands bound the City to the south and west. The Sphere of Influence (SOI) for the City of Pittsburg extends beyond the municipal boundary to the west, as shown in Figure 15.1. The City’s voter- approved Urban Growth Boundary surrounds the entire City. Land uses in the City include a mix of residential, commercial, mixed use, governmental and quasi- public, industrial, planned development, and open space. Under the open space designation, allowable agricultural uses include orchards and cropland, grasslands, incidental agricultural, or related sales. 15.1.1 FORM OF GOVERNMENT The City of Pittsburg is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayor. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 15-1 Figure 15.1. City of Pittsburg Municipal Boundary and Sphere of Influence June 2019 City of Pittsburg 15.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 268.0 full-time equivalent (FTE) employees. Table 15.1 shows the four service areas with the highest staffing levels. TABLE 15.1 CITY OF PITTSBURG HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 110.0 Public Works – Water & Sewer Enterprises 41.0 Public Works – Maintenance Services 37.45 Administration 25.7 Source: City of Pittsburg Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Pittsburg, with 110.0 FTE employees. 15.1.3 JOINT POWERS AUTHORITIES The City of Pittsburg is a member of several joint powers authorities (JPAs), which are listed in Table 15.2. TABLE 15.2 CITY OF PITTSBURG JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. California Municipal Finance Authority Bond issuance – 2011 infrastructure bonds Contra Costa Transit Authority Congestion Congestion management/Measure C growth Management Agency management Delta Diablo Sanitation District Waste management East Bay Regional Communications System Construction, operation, maintenance of public Authority safety communications East/Central County Wastewater Management — Authority East Contra Costa County Habitat Conservancy JPA Habitat Conservation Plan Contra Costa LAFCO Municipal Service Review Update 15-3 Chapter 15 JOINT POWERS AUTHORITY SERVICE East Contra Costa County Habitat Conservation — Plan Implementing Agreement East Contra Costa Regional Fee and Financing Traffic mitigation fees Authority Eastern Contra Costa Transit Authority Public transportation needs in Eastern Contra Costa County Marin Energy Authority Provide community choice aggregation energy to residents and businesses Municipal Pooling Authority Self-insurance pool Pittsburg Power Company Municipal gas and electric utility Recycled Water Sales and Utility Service (Delta Recycled water and utility services Diablo) Transplan (East County) Regional Transportation — Planning Committee Source: City of Pittsburg 15.1.4 AWARDS AND RECOGNITION Table 15.3 lists the awards the City of Pittsburg has reported receiving since the first round Municipal Service Review (MSR). TABLE 15.3 CITY OF PITTSBURG AWARDS AWARD ISSUER YEAR(S) RECEIVED Distinguished Budget Presentation Government Finance Officers 2012 – 2017 Association Certificate of Achievement for Excellence in Government Finance Officers 2013 – 2017 Financial Reporting Association Source: City of Pittsburg 15.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 15.4, municipal services for the City of Pittsburg are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO 15-4 Municipal Service Review Update City of Pittsburg TABLE 15.4 CITY OF PITTSBURG MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Pittsburg Law Enforcement City of Pittsburg Library Contra Costa County Lighting City of Pittsburg, Pacific Gas and Electric Parks and Recreation City of Pittsburg Solid Waste Mt. Diablo Resource Recovery Stormwater City of Pittsburg Streets City of Pittsburg Utilities: Electricity Pittsburg Power Company, Pacific Gas & Electric Gas Pittsburg Power Company, Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Pittsburg The City of Pittsburg reports the following challenges related to its provision of municipal services: • Meeting pension obligations • Funding infrastructure improvements • Increased housing density within areas surrounding BART stations • Lack of vacant land for housing development • Stress on utility infrastructure A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 15.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of Pittsburg and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. City expenditures for animal control services were $403,833 for FY 2017, reflecting an upward trend from $369,006 in FY 2015. Contra Costa LAFCO Municipal Service Review Update 15-5 Chapter 15 CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 15.2.2 BROADBAND The City of Pittsburg does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Pittsburg did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Pittsburg received a grade of C-, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Pittsburg did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 15.2.3 BUILDING/PLANNING The City of Pittsburg Community Development Department provides building and planning services. Department expenditures for FY 2017 were $2.2 million, up from $1.9 million in FY 2015. The City of Pittsburg issued 150 residential and 90 commercial building permits in 2017. Total building permit valuation in FY 2017 was $89.7 million. Planning city-wide has been captured in the General Plan, the five-year Capital Improvement Program, and the five-year Master Plan. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 15-6 Municipal Service Review Update City of Pittsburg 152.4 LAW ENFORCEMENT The City of Pittsburg Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $25.8 million, reflecting an upward trend from approximately $23.1 million in FY 2015. The City of Pittsburg has 1.1 FTE sworn personnel per 1,000 population, which is unchanged from 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 37 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 6.5% in 2017, and the violent crime clearance rate was 42.2%.6 15.2.5 LIBRARY Contra Costa County provides library services for the City of Pittsburg at its Pittsburg Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing are nearly double the County’s. 15.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Pittsburg Public Works Department. City expenditures for light and signal maintenance were $953,278 in FY 2017, up from $933,570 in FY 2015. The City maintains 62 signalized intersections, 620 traffic lights, and 2,054 of its 4,286 street lights. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 15-7 Chapter 15 15.2.7 PARKS AND RECREATION The City of Pittsburg Parks and Recreation Department is the service provider for parks and recreation facilities and recreation programs. FY 2017 expenditures for parks were approximately $4.4 million in FY 2017, up from approximately $3.9 million in FY 2015. The City offers extensive classes and programs serving all ages and interests, including sports, aquatics, marina, literacy, art and theatre activities, and a host of special events. A portion of the City of Pittsburg overlaps with the Ambrose Recreation and Park District and there are shared aquatic programs among the agencies. The City provides and maintains 5 park acres per 1,000 residents, 1 recreation center per 20,000 residents, and 26.37 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 15.2.8 SOLID WASTE Solid waste services are provided to the City of Pittsburg via franchise agreement with Mt. Diablo Resource Recovery. The City of Pittsburg FY 2017 expenditures for solid waste services were $692,167, reflecting a downward trend from $812,582 in FY 2015. The City reported approximately 0.99 ton of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 5.45 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 15.2.9 STORMWATER/DRAINAGE The City of Pittsburg Public Works Department provides and maintains the City’s stormwater drainage system. The City reports that they have 105 miles of closed storm drain lines and that 3.5% of their 3,676 storm drain inlets are equipped with trash capture. The City of Pittsburg also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $1,034,380. 15.2.10 STREETS/ROADS The City of Pittsburg Public Works Department provides and maintains 164 street miles and approximately 44 Class 1 and 2 bike lane miles, as well as landscaped public areas. FY 2017 expenditures for streets were $3 million, up from $2.8 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. Contra Costa LAFCO 15-8 Municipal Service Review Update City of Pittsburg These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Pittsburg was 67 (fair) in 2017, which is unchanged from 2015, and remains below the target PCI of 75 (good) MTC has established.8 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. 15.2.11 UTILITIES The City of Pittsburg is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Pittsburg. The City of Pittsburg did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 15.3 FINANCIAL OVERVIEW This section provides an overview of the City of Pittsburg’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 15.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenue of $44.0 million is about $600,000 less than General Fund expenditures.9 The General Fund projects a slight decline in its FY 2019 ending balance to $13.2 million, or about 30% of annual expenditures. The City's Fiscal Sustainability policies require a reserve of 30%.10 The City notes that it has experienced recurring budget deficits, and has used reserves to fill the gap. Table 15.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of Pittsburg Adopted Annual Budget, Fiscal Year 2018-19, pg. 59. 10 Pittsburg Municipal Code, Sec. 3.26.020 General Fund Account. Contra Costa LAFCO Municipal Service Review Update 15-9 Chapter 15 The City has maintained a significant positive net position for governmental activities and enterprise activities (see Attachment C).11 Although the General Fund balance and short-term liquidity measures appear strong, combined governmental activities' unrestricted net position at the end of FY 2017 was a negative $33.3 million.12 This negative long-term position reflects significant pension and other post-employment benefit (OPEB) liabilities that are not covered by the value of non-capital assets. The City's long-term projections, assuming conservative revenue growth, indicate a need for $1.5 million of additional annual revenues (and/or cost reductions) beginning in FY 2022 in order to maintain desired reserve levels; the financial needs increase to about $5.5 million annually by FY 2030.13 The General Fund receives funding from enterprise funds consistent with the City Council adopted policy; according to the City, these transfers are sustainable and are being reduced gradually to eliminate the need in the future. TABLE 15.5 CITY OF PITTSBURG SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $3,205,000 $3,301,000 $3,574,000 Sales Tax $11,746,000 $13,113,000 $13,372,000 Other Revenues (including Transfers) 21,828,757 24,207,941 25,467,362 Total General Fund Revenues $36,779,757 $40,621,941 $42,413,362 Change from Prior Year n/a 12.9% -7.5% GENERAL FUND EXPENDITURES General Government and $8,752,000 $7,411,000 $8,104,000 Administration Public Safety $21,485,000 $22,848,000 $24,110,000 Other (includes Transfers Out) $9,100,172 $9,152,934 $9,582,867 Total Expenditures $39,337,172 $39,411,934 $41,796,867 Change from Prior Year n/a 0.2% 6.1% Expenditures per capita $586 $578 $586 11 See also FY 2017 CAFR, pg. 11. 12 City of Pittsburg FY 2017 CAFR, pg. 23. 13 ibid, Pittsburg FY 2019 budget, pg. 50 et seq. Contra Costa LAFCO 15-10 Municipal Service Review Update City of Pittsburg ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 1 Governmental Activities 3.8 4.1 3.3 Business-type Activities 4.0 4.4 5.3 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 15.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio equaled 3.3, which indicated that short-term resources exceeded current liabilities.14 The City's enterprise funds' liquidity ratio equaled 5.3 in FY 2017. Total outstanding debt of $78.3 million amounted to approximately $1,097 per capita in FY 2017, indicating a reduction compared to the $1,221 per capita reported for FY 2015 (see Attachment C). 15.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). As noted above, the City has maintained a significant positive net position for governmental activities, although the net position declined from FY 2015 to FY 2017. The net position of combined enterprise activities generally increased from FY 2015 through FY 2017; marina net position declined from $14 million to $13 million in FY 2017 (see Attachment C). 15.3.4 LOCAL REVENUE MEASURES The City partially funds services from a one-half-cent voter-approved local sales tax measure approved in 2012 and subsequently extended through 2035. The sales tax measure will provide an estimated $4.7 million annually in FY 2019. The taxes fund public safety, the Senior Center, jobs programs, road repair, youth services and services for victims of domestic violence within the City.15 14 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 15 ibid, Pittsburg FY 2019 budget, pg. 36. Contra Costa LAFCO Municipal Service Review Update 15-11 Chapter 15 15.3.5 ENTERPRISE ACTIVITIES City enterprises include water, sewer, marina, Pittsburg Power, and Waterfront Operations. According to the City, the General Fund subsidized the City-owned golf course until its closure in FY 2018. 15.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The City's unfunded pension liability increased from FY 2015 by about $10 million to $50.4 million at the end of FY 2017 (see Attachment C). The City established a trust to accumulate funds for future pension obligation payments; in FY 2019 $400,000 is budgeted towards the trust.16 The City's OPEB liability was $27.2 million at the end of FY 2017; a trust was established with the California Public Employees Retirement System to fund OPEB obligations and held a balance of $3.8 million as of March 31, 2018 (see Attachment C).17 The long-term forecast projects total pension and OPEB payments to grow from about $4.4 million annually in FY 2019 to $9.7 million by FY 2029 to fully fund its obligations over time according to CalPERS requirements.18 The trusts will help the City manage and meet its payments and reduce impacts on other General Fund resources as payments increase. In addition, the City is paying about $3.6 million annually towards a pension obligation bond issued in 2006. 15.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2016 through FY 2017 shows declines in the net value of governmental assets; enterprise assets show minimal declines (see Attachment C). These declines indicate that capital investment has not kept pace with asset depreciation. The FY 2019 budget proposes approximately $12 million in capital improvements, the majority for water and sewer system improvements which are funded by operating fees and charges.19 The City does not have the resources to fund everything on an ideal replacement schedule, but uses its five-year capital budget program to identify capital needs and funding through available funds, grants, or other funding sources. 15.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal 16 ibid, Pittsburg FY 2019 budget, pg. 13. 17 See also Pittsburg FY 2019 budget, pg. 13-14. 18 ibid, Pittsburg FY 2019 budget, pg. 50 et seq. 19 ibid, Pittsburg FY 2019 budget, pg. 15. Contra Costa LAFCO 15-12 Municipal Service Review Update City of Pittsburg bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. In FY05 the City established an Economic Development Fund to provide financing for economic development activities within the City. Revenue sources include a Business Improvement District tax, as share of the City's voter-approved sales tax, and transfers from Pittsburg's power enterprise. The City has undertaken ongoing business retention and recruitment activities, including collaborating with Antioch, Oakley, and Brentwood to create EastCounty4you.com, a marketing site to promote the region. 15.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Pittsburg. 15.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Pittsburg serves 72,647 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Pittsburg are depicted in Figure 15.2. Contra Costa LAFCO Municipal Service Review Update 15-13 City of Pittsburg 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 15.2. Population, Job, and Household Growth Projections (2010-2040) City of Pittsburg June 2019 City of Pittsburg ABAG projects that the City of Pittsburg will grow at an annual rate of approximately 1.2% to a population of 91,615 between 2010 and 2040.20 The City is also projected to experience an approximate 0.9% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data21 for 2010, the City of Pittsburg has 27,266 employed residents. The ABAG Projections data22 for 2010 estimated 11,835 jobs in the City, with approximately 0.43 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Pittsburg has 21,126 housing units, which results in a job and housing balance of 0.56. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 15.6), indicating that the rate of homeownership exceeds the rental household rate. TABLE 15.6 CITY OF PITTSBURG HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 11,490 Renter-occupied housing units 8,037 Vacant housing units 1,599 Total existing housing units 21,126 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 392 Low 254 Moderate 316 Above Moderate 1,063 Total Regional Housing Need Allocation 2,025 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.23 The City of Pittsburg was assigned a RHNA of 2,025 units, as shown in Table 15.6. 20 ABAG. Projections 2017. 21 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 22 ABAG. Projections 2017. 23 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO Municipal Service Review Update 15-15 Chapter 15 The City adopted its General Plan in 2001 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 5,006 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Pittsburg 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.24 The City of Pittsburg has general policies related to senior housing included in the Housing Element of the General Plan. ANTICIPATED GROWTH PATTERNS The City of Pittsburg reported approximately 575 undeveloped entitled residential acres in FY 2017. Several projects have been identified as part of the projected growth for the City including 1,035 approved (but not yet built) housing units, 119 near-term future housing units, and 3,894 long-term future housing units. The Maximum Planned Buildout Scenarios estimate 4,455 total additional housing units in various specific and master plans adopted by the City. The City has estimated that approximately 1.13 million square feet of commercial and office space can be built in and around its two BART Stations per the approved planning documents. An additional 870,000 square feet of commercial and industrial space is proceeding in various stages of the planning approval process. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Pittsburg and included in Plan Bay Area 2040.25 The Railroad Avenue eBART Station and Downtown PDAs are anticipated to accommodate approximately 50% of the projected growth in households and 42% of the projected growth in employment.26 The Railroad Avenue eBART Station PDA is characterized as a Transit Town Center. The Railroad Avenue eBART Station PDA consists of areas within ½ mile of the Pittsburg Center BART Station. The Downtown PDA is characterized as a Transit Neighborhood and is bounded by the San Joaquin River to the north, BNSF Railroad tracks to the south, Harbor Street to the east, and NRG Pittsburg Generating Station to the west. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of 24 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 25 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 26 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 Contra Costa LAFCO 15-16 Municipal Service Review Update City of Pittsburg Pittsburg has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.27 The City of Pittsburg does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 15.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Pittsburg’s SOI for the City of Pittsburg extends beyond the municipal boundary to the west (see Figure 15.1). LAFCO did not identify any unincorporated islands in the City of Pittsburg. The City has expressed an interest in the annexation of two areas--the Faria/Southwest Hills28 area, located just southwest of the municipal boundary of the City of Pittsburg within the Southwest Hills planning subarea of the Pittsburg General Plan, and an extension of James Donlon Boulevard, a City-approved project to construct an approximately 2-mile roadway from the Antioch City Limits to Kirker Pass Road. Both areas are within the City’s SOI. The City also identified additional unincorporated island areas in which it has an interest— Orbisonia Heights and Keller Canyon (Figure 15.3). The Orbisonia Heights area is within the City’s SOI but not the municipal boundary or the Urban Growth Boundary; the Keller Canyon area is not within the City’s SOI, municipal boundary or Urban Growth Boundary. Orbisonia Heights, located south of Highway 4 east of Bailey Road, does not receive any services from the City at this time. Ambrose Park, which is within the municipal boundary, splits the nearly 30 acres of unincorporated and vacant property. The City reports a willingness to consider annexation of the island and to provide Code Enforcement and Police Services to the area. Keller Canyon landfill, located south of the City limits east of Bailey Road, is adjacent to residential property to the west and the City of Concord and the Concord Naval Weapons Station to the south. The City shares the street maintenance and Code Enforcement of Bailey Road with the County from the City limits south to Concord. The island does not receive any services from the City at this time. The City of Pittsburg reports that it is evaluating the potential to annex the island and to provide street maintenance and Code Enforcement to Bailey Road. The City is a Local Enforcement Agency for the State of California and can provide the oversight and monitoring for the Keller Canyon landfill. The City does not request any additional changes to its SOI at this time. Other than the areas indicated above, the City of Pittsburg does not provide services outside its municipal boundaries or SOI. 27 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 28 City voters approved a measure to bring into the City’s SOI and assign General Plan designations for Open Space and Residential. Contra Costa LAFCO Municipal Service Review Update 15-17 Keller Canyon Landfill Figure 15.3. Orbisonia Heights and Keller Canyon Landfill Areas City of Pittsburg June 2019 City of Pittsburg DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County This MSR Update identified disadvantaged communities within the municipal boundary, including the unincorporated community of Bay Point, which is within the SOI for the City of Pittsburg. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 15.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Pittsburg reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. Disadvantaged communities have been identified within the City of Pittsburg’s SOI. Sewer, water, and fire/emergency medical services are provided for these areas. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 67, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City may Contra Costa LAFCO Municipal Service Review Update 15-19 Chapter 15 experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City of Pittsburg has identified capital needs and funding as part of its five-year capital budget program. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. 29 Services related to animal control, broadband, library, lighting, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City shares aquatic programs with the Ambrose Recreation and Park District. No other areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. 29 Although not covered in this MSR, the City also provides sewer and water service. Contra Costa LAFCO 15-20 Municipal Service Review Update City of Pittsburg AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 15.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Pittsburg is experiencing some fiscal challenges that may affect its ability to provide services, particularly in the event of unexpected funding needs. The City has experienced recurring budget deficits for which it has used reserves to address the shortfalls. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of Pittsburg appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Pittsburg has been operating with a surplus in their General Fund in the recent two fiscal years. The City currently meets its 30% reserve goal, allowing it to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 3.3, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $1,097 per capita for FY 2017 and has been declining. The City's unfunded pension and OPEB liabilities continue to grow; however, the City has established a trust to help address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 15-21 Chapter 15 15.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Pittsburg website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. All City of Pittsburg meetings—City Council, Planning Commission, and Community Advisory Commission—are streamed on the City’s website and broadcast on CCTV. The webcasts are archived and can be viewed at any time after the meeting, usually by noon the day following the meetings. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Pittsburg website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Pittsburg website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. 15.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 15.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Pittsburg extends beyond the municipal boundary to the west, as shown in Figure 15.1. The City of Pittsburg is bound by the City of Antioch to the east, San Pablo Bay to the north, the cities of Clayton and Concord to the south and west, and County lands to the south and west. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Pittsburg. Contra Costa LAFCO 15-22 Municipal Service Review Update City of Pittsburg 15.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF PITTSBURG Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Pittsburg MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Pittsburg plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, industrial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space (including agriculture) uses, as demonstrated in the General Plan (2001). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Pittsburg. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years, and in conjunction with recent annexations (Montreux and Tuscany Meadows). PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Pittsburg appears adequate. The City of Pittsburg anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Pittsburg. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within the municipal boundary, as well as the unincorporated community of Bay Point, which is within the SOI for the City of Pittsburg. These areas receive services related to sewer, water, and structural fire protection. There are no other disadvantaged communities within or contiguous to the SOI for the City. Contra Costa LAFCO Municipal Service Review Update 15-23 This page intentionally left blank. C 16 HAPTER C P H ITY OF LEASANT ILL 16.1 AGENCY OVERVIEW The City of Pleasant Hill, incorporated in 1961, covers an area of approximately 8.1 square miles. With an estimated population of 35,068, the City has a population density of approximately 4,383 persons per square mile.1 The City of Pleasant Hill lies in central Contra Costa County, with the City of Martinez to the north, the City of Concord to the east, the City of Walnut Creek to the south, the City of Lafayette to the southwest, and County lands to the west (Briones Hills) and south. The Sphere of Influence (SOI) for the City of Pleasant Hill extends beyond the municipal boundary to the north and to the west, with a small extension to the south near I-680, as shown in Figure 16.1. The City adopted the countywide Urban Limit Line in 2008. Land uses in the City include a mix of industrial, residential, institutional, commercial, and open space. Although there are no agricultural land use designations in the City of Pleasant Hill, the Mangini/Delu property remains a working farm. 16.1.1 FORM OF GOVERNMENT The City of Pleasant Hill is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the Mayo. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 16-1 Figure 16.1. City of Pleasant Hill Municipal Boundary and Sphere of Influence June 2019 City of Pleasant Hill 16.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 110.6 full-time equivalent (FTE) employees. Table 16.1 shows the four service areas with the highest staffing levels. TABLE 16.1 CITY OF PLEASANT HILL HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 57.0 City Administration 35.0 Public Works 25.95 Public Service Center 14.0 Source: City of Pleasant Hill Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Pleasant Hill, with 57.0 FTE employees. 16.1.3 JOINT POWERS AUTHORITIES The City of Pleasant Hill is a member of several joint powers authorities (JPAs), which are listed in Table 16.2. TABLE 16.2 CITY OF PLEASANT HILL JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. California Enterprise Development Authority Property assessed clean energy program California Municipal Finance Authority Promote economic, cultural, and community development activities in the City, including the financing of projects by the Authority California Statewide Communities Development Access economic development financing resources Authority and participate in a JPA-affiliated property assessed clean energy program Central Contra Costa Transit Authority — Central Contra Costa Transportation/Land Use — Partnership Contra Costa Abandoned Vehicle Service Authority Regional program to abate abandoned vehicles Contra Costa LAFCO Municipal Service Review Update 16-3 Chapter 16 JOINT POWERS AUTHORITY SERVICE Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System Regional interoperable communications system Authority East/Central County Wastewater Management — Authority Fire Districts Association of California Employee benefits purchasing pool Golden State Finance Authority Include properties within the City’s jurisdiction in the PACE program to finance or refinance the acquisition, installation, and improvement of energy efficiency, water conservation, renewable energy and electric vehicle infrastructure, and such other improvements as may be authorized. Municipal Pooling Authority Risk management pool Pleasant Hill-Martinez Joint Facilities Agency Shared services arrangements for provision of municipal services TRANSPAC Transportation Partnership and Participate in a regional transportation planning Cooperation association Western Riverside Council of Governments Participate in a JPA-affiliated property assessed clean energy Source: City of Pleasant Hill 16.1.4 AWARDS AND RECOGNITION The award the City of Pleasant Hill has reported receiving since the first round Municipal Service Review (MSR) includes the Growing Smart Together Awards – On the Ground Getting it Done, awarded by the Association of Bay Area Governments. 16.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 16.3, municipal services for the City of Pleasant Hill are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO 16-4 Municipal Service Review Update City of Pleasant Hill TABLE 16.3 CITY OF PLEASANT HILL MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Wave Broadband Building / Planning City of Pleasant Hill Law Enforcement City of Pleasant Hill Library Contra Costa County Lighting City of Pleasant Hill, Contra Costa County, Pacific Gas & Electric Parks and Recreation Pleasant Hill Recreation and Park District Solid Waste Allied Waste Stormwater City of Pleasant Hill Streets City of Pleasant Hill Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: City of Pleasant Hill Opportunities or challenges related to the provision of municipal services for the City of Pleasant Hill were not reported or were unavailable at the time of this MSR update. A summary of the available municipal service level statistics for FY 2017 is provided for the City in Attachment B. 16.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of Pleasant Hill and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO Municipal Service Review Update 16-5 Chapter 16 number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 16.2.2 BROADBAND The City of Pleasant Hill does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Wave Broadband are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Pleasant Hill did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Pleasant Hill received a grade of B-, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Pleasant Hill did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 16.2.3 BUILDING/PLANNING The City of Pleasant Hill Building Division provides building services and the Planning Division provides planning services. Department expenditures for FY 2017 were not reported or were unavailable at the time of this MSR update. The City of Pleasant Hill issued 150 residential and 90 commercial building permits in 2017. Total building permit valuation in FY 2017 was approximately $39.7 million. Planning city-wide has been captured in the General Plan and the Capital Improvement Program. 16.2.4 LAW ENFORCEMENT The City of Pleasant Hill Police Department provides law enforcement and dispatch services. FY 2017 expenditures were not reported or were unavailable at the time of this MSR update. The City of Pleasant Hill has 1.3 FTE sworn personnel per 1,000 population, which is unchanged from 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf Contra Costa LAFCO 16-6 Municipal Service Review Update City of Pleasant Hill There were 37.5 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was approximately 23% in 2017, and the violent crime clearance rate was approximately 56%.6 16.2.5 LIBRARY Contra Costa County provides library services for the City of Pleasant Hill at its Pleasant Hill Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. 16.2.6 LIGHTING Lighting (street and traffic) is provided by and maintained by the City of Pleasant Hill Maintenance Division, Contra Costa County, and Pacific Gas & Electric. City expenditures for light and signal maintenance were $178,000 in FY 2017, up from $151,000 in FY 2015. Contra Costa County maintains the City’s 62 signalized intersections and 620 traffic lights. The number of street lights maintained by the City is 505. Pacific Gas & Electric maintains 1,614 street lights in the City. 16.2.7 PARKS AND RECREATION The Pleasant Hill Recreation and Park District is the service provider for parks and recreation facilities and recreation programs in the City of Pleasant Hill as well as unincorporated areas in Lafayette and Walnut Creek. FY 2017 expenditures for parks were not reported or were unavailable at the time of this MSR update. 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 16-7 Chapter 16 The Pleasant Hill Recreation and Park District provides 2,300 programs and activities for all ages and abilities, including classes, sports, camps, events and travel adventures. The park acres per 1,000 residents, recreation centers per 20,000 residents, and miles of recreation trails were not reported or were unavailable at the time of this MSR update. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 3 acres per 1,000 residents. 16.2.8 SOLID WASTE Solid waste services are provided to the City of Pleasant Hill via franchise agreement with Allied Waste Services. Allied Waste Services transports solid waste collected from the City of Pleasant Hill to the Keller Canyon Landfill near the City of Pittsburg. The City of Pleasant Hill FY 2017 expenditures for solid waste services were not reported or were unavailable at the time of this MSR update. The FY 2017 solid waste disposal rates were not reported or were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 16.2.9 STORMWATER/DRAINAGE The City of Pleasant Hill Maintenance Division maintains the City’s stormwater drainage system. The City reports that they have 49 miles of closed storm drain lines and that 8% of their 1,363 storm drain inlets are equipped with trash capture. The City of Pleasant Hill also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $70,000, down from $90,000 in FY 2015. 16.2.10 STREETS/ROADS The City of Pleasant Hill Maintenance Division provides and maintains 110 street miles and approximately 20.7 Class 1 and 2 bike lane miles, as well as landscaped public areas. FY 2017 expenditures for streets were $7.53 million, up slightly from $7.52 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO 16-8 Municipal Service Review Update City of Pleasant Hill The PCI for streets in the City of Pleasant Hill was 66 (fair) in 2017, up from 65 in 2015, but remains below the target PCI of 75 (good) MTC has established.8 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. The City self-reports a PCI of 68 for 2017. 16.2.11 UTILITIES Pacific Gas & Electric provides gas and electricity service to the City of Pleasant Hill. The City is not a member of a Community Choice Aggregation program. The City of Pleasant Hill did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 16.3 FINANCIAL OVERVIEW This section provides an overview of the City of Pleasant Hill’s financial health and assesses the City’s financial ability to provide services. Key financial information for City municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 16.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of Pleasant Hill prepares a biennial budget. According to the City's FY 2018-19 budget, the City’s General Fund revenue of $29.2 million are about equal to General Fund expenditures.9 Deficits projected in prior years (FY 2018 and FY 2017) were primarily due to “the intentional investment of a portion of the General Fund’s high fund balance in priority projects such as street resurfacing.”10 Table 16.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year (see Attachment C). The General Fund projects an ending FY 2019 balance of $9.9 million, or about 34% of annual expenditures. In 2014 the City Council adopted a policy establishing General Fund reserves totaling $8,890,000 for working capital ($5 million), economic uncertainty ($2 million), catastrophic events ($1 million), and for an existing bank loan ($890,000).11 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of Pleasant Hill Proposed Fiscal Year 2018/19-2019/20 Biennial Budget, pg. iv. 10 City of Pleasant Hill Response to MSR Fiscal Questions. 11 City of Pleasant Hill Resolution Number 31-14 Adopting a Revised General Fund Reserve Policy. Contra Costa LAFCO Municipal Service Review Update 16-9 Chapter 16 The City expects to generate additional sales tax beginning in FY 2018/19 due to the formation of a Tourism Improvement District that will market hotels in Pleasant Hill.12 The City's Five-Year Forecast predicts that revenues may not keep pace with expenditure increases, resulting in deficits in FY 2021 through FY 2023.13 The City's Long-Term Financial Plan identifies measures to balance the budget, including service reductions; paying down the City's unfunded pension liability; paying down unfunded accrued leave liability; increasing General Fund reserves; reducing deferred maintenance and making other desirable capital improvements.14 TABLE 16.4 CITY OF PLEASANT HILL SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $5,518,000 $5,760,000 $6,111,000 Sales Tax $7,737,000 $8,598,000 $8,437,000 Other Revenues (including Transfers) $7,939,000 $8,583,000 $9,596,000 Total General Fund Revenues $21,194,000 $22,941,000 $24,144,000 Change from Prior Year n/a 8.2% 5.2% GENERAL FUND EXPENDITURES General Government and $4,283,000 $4,323,000 $5,099,000 Administration Public Safety $8,758,000 $9,499,000 $10,190,000 Other (includes Transfers Out) $8,160,000 $8,870,000 $9,808,000 Total Expenditures $21,201,000 $22,692,000 $25,097,000 Change from Prior Year n/a 7.0% 10.6% Expenditures per capita $625 $663 $718 12 ibid, Pleasant Hill FY 2019 budget, pg. 68. 13 ibid, Pleasant Hill FY 2019 budget, pg. v. 14 City of Pleasant Hill Long-Term Financial Plan for Fiscal Year 2018/19 through Fiscal Year 2022/23 Proposed June 2018. Contra Costa LAFCO 16-10 Municipal Service Review Update City of Pleasant Hill ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 1 Governmental Activities 3.9 7.9 2.9 Business-type Activities 46.7 14.8 13.4 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 16.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio equaled 2.9 indicating that short-term resources exceeded current liabilities (see Attachment C).15 As of FY 2019, the City has no debt. 16.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The City has maintained a positive net position for governmental activities, although its net position declined slightly from FY 2015 to FY 2017. The unrestricted portion of the governmental activities net position was negative ($20.1 million) in FY 2017, slightly worse than FY 2015 and partly the result of unfunded pension liabilities. The net positive position of the City’s enterprise activity increased from FY 2015 to FY 2017 (see Attachment C). 16.3.4 LOCAL REVENUE MEASURES Measure K, a 2016 voter-approved one-half-cent sales tax, is projected to generate about $4.3 million in FY 2019. Landscape and Lighting Assessment District revenues from areas of the City help pay for maintenance services. 16.3.5 ENTERPRISE ACTIVITIES The only City enterprise is the Diablo Vista Water System, which provides irrigation water to an area with 474 homes within the City. The Diablo Vista County Water System was formed in 1950 to provide untreated canal water for irrigation to 475 homes in the area bounded roughly by Oak Park Boulevard, the Contra Costa canal, Boyd Road, and Patterson Boulevard. The system is funded 15 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO Municipal Service Review Update 16-11 Chapter 16 by assessments and property tax from the area served. The City has monitored and revised fees and charges, including creation of a capital improvements fee, to maintain a fiscally solvent enterprise.16 16.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's unfunded pension liability totaled $34.7 million at the end of FY 2017 (see Attachment C). The City is reviewing options for addressing this liability in addition to making the annual required payments to eventually pay it off. The City does not provide retirement health benefits and has no other post-employment benefit obligations. 16.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2016 through FY 2017 generally show declines in the net value of governmental assets (see Attachment C). However, the City indicates that its buildings have a fair amount of useful life remaining but need to plan for their eventual replacement for example through creation of reserves for this purpose.17 The City is in the process of preparing a 20-year infrastructure needs assessment and capital improvement plan to address future capital needs. 16.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 16.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Pleasant Hill. 16 City of Pleasant Hill FY 2017 CAFR. 17 ibid, City of Pleasant Hill Long-Term Financial Plan, pg. 31. Contra Costa LAFCO 16-12 Municipal Service Review Update City of Pleasant Hill 16.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Pleasant Hill serves 35,068 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Pleasant Hill are depicted in Figure 16.2. ABAG projects that the City of Pleasant Hill will grow at an annual rate of approximately 0.3% to a population of 35,925 between 2010 and 2040.18 The City is also projected to experience an approximate 0.6% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data19 for 2010, the City of Pleasant Hill has 16,870 employed residents. The ABAG Projections data20 for 2010 estimated 16,360 jobs in the City, with approximately 0.97 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Pleasant Hill has 14,321 housing units, which results in a job and housing balance of 1.14. The number of owner-occupied units in the City is greater than the number of renter- occupied housing units (Table 16.5), indicating that the rate of homeownership exceeds the rental household rate. 18 ABAG. Projections 2017. 19 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 20 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 16-13 City of Pleasant Hill 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 16.2. Population, Job, and Household Growth Projections (2010-2040) City of Pleasant Hill June 2019 City of Pleasant Hill TABLE 16.5 CITY OF PLEASANT HILL HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 8,470 Renter-occupied housing units 5,238 Vacant housing units 613 Total existing housing units 14,321 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 118 Low 69 Moderate 84 Above Moderate 177 Total Regional Housing Need Allocation 448 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.21 The City of Pleasant Hill was assigned a RHNA of 448 units, as shown in Table 16.5. The City adopted its General Plan in 2003 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 938 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Pleasant Hill 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.22 The programs and services provided by the City for adults age 50 and older were not reported or were unavailable at the time of this MSR update. 21 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 22 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 16-15 Chapter 16 ANTICIPATED GROWTH PATTERNS The City of Pleasant Hill reported approximately 48.6 undeveloped entitled residential acres in FY 2017. Several new projects have been identified as part of the projected growth for the City including approximately 17 residential projects and 16 commercial projects. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Pleasant Hill and included in Plan Bay Area 2040.23 The Diablo Valley College and Buskirk Avenue Corridor PDAs are anticipated to accommodate approximately 23% of the projected growth in households and 35% of the projected growth in employment.24 The Diablo Valley College PDA, which includes selected areas within a one-quarter-mile radius of the Diablo Valley College Transit Station, is characterized as a Transit Neighborhood. The Buskirk Avenue Corridor PDA, which includes areas surrounding Buskirk Corridor, extending to the east and west (not include single family residential) is characterized as a Mixed Use Corridor. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Pleasant Hill has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.25 The City of Pleasant Hill does not report that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 16.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Pleasant Hill’s SOI extends beyond the municipal boundary to the north and to the west, with a small extension to the south (see Figure 16.1). The City of Pleasant Hill contains the following three unincorporated islands, all of which are under 150 acres and can be annexed through an expedited process: • An approximately 5-acre area located off Alhambra Avenue (eastside of the road) surrounded by the cities of Martinez and Pleasant Hill and within Pleasant Hill’s SOI • An approximately 51-acre area located north of Chilpancongo Parkway, surrounded by the cities of Martinez and Pleasant Hill, and within Pleasant Hill’s SOI • An approximately 37-acre area adjacent to and east of the Contra Costa Country Club that is surrounded by the City of Pleasant Hill and within Pleasant Hill’s SOI. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. 23 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 24 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 25 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 16-16 Municipal Service Review Update City of Pleasant Hill DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified a disadvantaged community within the City’s boundary and SOI (Oak Park Boulevard and Patterson Boulevard). LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 16.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Pleasant Hill reports that it adequately serves all areas within its municipal boundary and anticipates it will continue to do so in the foreseeable future. The disadvantaged communities within and contiguous to the City’s SOI receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 66, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. Contra Costa LAFCO Municipal Service Review Update 16-17 Chapter 16 When accounting for the projected growth and population increases over the next five years, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City of Pleasant Hill has identified measures to reduce deferred maintenance and make capital improvements. The City is also preparing a 20-year infrastructure needs assessment and capital improvement plan. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, stormwater, and streets. Services related to animal control, broadband, library, lighting, parks and recreation, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City does not share facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. Contra Costa LAFCO 16-18 Municipal Service Review Update City of Pleasant Hill AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 16.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Pleasant Hill is experiencing some fiscal challenges that may affect its ability to provide services, particularly in the event of unexpected funding needs. The City projects ongoing General Fund deficits, which may affect its ability to provide services. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of Pleasant Hill appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Pleasant Hill has been operating with an overall deficit trend in their General Fund and anticipates this trend to continue through FY 2023. The City’s reserve goal is $8.9 million; however, it is unknown whether it meets this goal. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 2.9, which indicates the City has the means available to cover its existing obligations in the short run. The City has no outstanding debt. The City's unfunded pension and OPEB liabilities continue to grow. The City is considering funding options for the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 16-19 Chapter 16 16.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Pleasant Hill website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City also livestreams Planning Commission and City Council meetings. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Pleasant Hill website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Pleasant Hill website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City also uses social media and distributes newsletters to its residents. The City therefore adequately provides accountability with regard to citizen participation. 16.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 16.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Pleasant Hill extends beyond the municipal boundary to the north and to the west, with a small extension to the south, as shown in Figure 16.1. The City of Pleasant Hill is bound by the City of Martinez to the north, the City of Concord to the east, the City of Walnut Creek to the south, the City of Lafayette to the southwest, and County lands to the south and west. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Pleasant Hill. Contra Costa LAFCO 16-20 Municipal Service Review Update City of Pleasant Hill 16.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF PLEASANT HILL Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Pleasant Hill MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Pleasant Hill plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, institutional, commercial, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2003). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Pleasant Hill. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Pleasant Hill appears adequate. The City of Pleasant Hill anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Contra Costa LAFCO has identified three islands within the City’s SOI that potentially represent communities of interest and encourages the City to consider annexing these areas. No additional specific social or economic communities of interest relevant to the City of Pleasant Hill have been identified. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified a disadvantaged community within the City’s boundary and SOI (Oak Park Boulevard and Patterson Boulevard). This area receives sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 16-21 This page intentionally left blank. C 17 HAPTER C R ITY OF ICHMOND 17.1 AGENCY OVERVIEW The City of Richmond, incorporated in 1905, covers an area of approximately 52.6 square miles. With an estimated population of 119,067, the City has a population density of approximately 2,246 persons per square mile.1 The City of Richmond lies in western Contra Costa County and surrounds the City of San Pablo. The City of Pinole lies to the north, San Pablo Bay lies to the west, the City of El Cerrito and the San Francisco Bay lie to the south, and County lands lie to the east. The Sphere of Influence (SOI) for the City of Richmond is mostly coterminous with the municipal boundary, with the exception of areas to the east (the unincorporated community of El Sobrante) and to the north (the unincorporated community of North Richmond), as shown in Figure 17.1. The City adopted the countywide Urban Limit Line in 2008. A portion of East Richmond Heights (within Wildcat Canyon Regional Park) and a portion of North Richmond (adjacent to San Pablo Bay) lie outside the adopted Urban Limit Line. Land uses in the City include a mix of industrial, residential, research and development, commercial, agricultural, and open space. Agricultural uses include grazing, crop production, farming, community gardens, and ancillary residential uses. 17.1.1 FORM OF GOVERNMENT The City of Richmond is a charter city operating under a council-manager form of government. The publicly elected City Council consists of seven members, including the directly elected Mayor. Council members, including the Mayor, serve four-year terms. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 17-1 Figure 17.1. City of Richmond Municipal Boundary and Sphere of Influence June 2019 City of Richmond 17.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 722.7 full-time equivalent (FTE) employees. Table 17.1 shows the four service areas with the highest staffing levels. TABLE 17.1 CITY OF RICHMOND HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 244.5 Public Works 83.0 Finance and Administrative Services 21.0 Community Development 15.0 Source: City of Richmond Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the City of Richmond, with 244.5 FTE employees. 17.1.3 JOINT POWERS AUTHORITIES The City of Richmond is a member of various joint powers authorities (JPAs), which are listed in Table 17.2. TABLE 17.2 CITY OF RICHMOND JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. California Association of Counties – Excess Provide commercial insurance coverage Insurance Authority California Joint Powers Risk Management Authority Provide commercial insurance coverage Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System — Authority Operating Agreement Gilman Sports Field Develop, maintain, and operate sports fields at Eastbay State Park (Gilman Sports Field) to benefit youth and adult sports. Contra Costa LAFCO Municipal Service Review Update 17-3 Chapter 17 JOINT POWERS AUTHORITY SERVICE Joint Powers Financing Authority Assist the City, the Community Redevelopment Agency, and other local public agencies in financing and refinancing capital improvements and working capital pursuant to the Marks-Roos Local Bond Pooling Act of 1985. Marin Clean Energy Program Procure renewable electric energy on behalf of electricity customers to reduce greenhouse gas emissions. North Richmond Pump Station (JEPA) Established to set limits of the County’s and City’s responsibility for maintenance and operation. Richmond Housing Authority Properties Maintain and increase the long-term supply of affordable and/or publicly owned housing within the jurisdictions of the member entities West Contra Costa Integrated Waste Management Responsible for ensuring compliance with state- Authority mandated solid waste and recycling laws and overseeing the region’s post-collection agreement, include recyclables, processing, composting, operation of a Household Hazardous Waste facility, and the transfer, transportation, and disposal of solid waste. West Contra Costa Transportation Advisory Guide transportation project and programs and aim Committee to improve the transportation system in West Contra Costa through the development and coordination of transportation plans, projects, program, and policies for the West Contra Costa area. West County Agency (JEPA) Established for the purpose of providing more efficient disposal of wastewater produced in the Richmond Municipal Sewer District and the West County Wastewater District. Source: City of Richmond 17.1.4 AWARDS AND RECOGNITION Table 17.3 lists the awards the City of Richmond has reported receiving since the first round Municipal Service Review (MSR). Contra Costa LAFCO 17-4 Municipal Service Review Update City of Richmond TABLE 17.3 CITY OF RICHMOND AWARDS AWARD ISSUER YEAR(S) RECEIVED Excellent IT Practices Award Municipal Information Systems Association of 2018 California Peak Performance – Gold Award (for National Association of Clean Water Agencies 2018 complete and consistent treatment plant permit compliance for calendar year 2017) Organizational Excellence for the California Association of Sanitation Agencies 2017 Sewer Lateral Grant Program North Richmond Pump Station American Public Works Association, Northern 2016 Stormwater Diversion Project CA Chapter State of our Schools Award – Partner West Contra Costa Unified School District 2016 of the Year Quality IT Practices Award Municipal Information Systems Association of 2014 – 2018 California Distinguished Budget Presentation Government Finance Officers Association FY2013-15 – Award FY2018-19 Operating Budget Excellence Award California Society of Municipal Finance Officers FY2013-15 – FY2018-19 Capital Budget Excellence Award California Society of Municipal Finance Officers FY2013-15 – FY2018-19 Source: City of Richmond 17.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 17.4, municipal services for the City of Richmond are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO Municipal Service Review Update 17-5 Chapter 17 TABLE 17.4 CITY OF RICHMOND MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of Richmond Law Enforcement City of Richmond Library City of Richmond Lighting City of Richmond Parks and Recreation City of Richmond Solid Waste Richmond Sanitary Services Stormwater City of Richmond Streets City of Richmond Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Richmond The City of Richmond reports the following challenges related to its provision of municipal services: • Aging capital infrastructure (primarily related to roadway network assets) • Potential annexation of North Richmond unincorporated island • Pension obligations A summary of the available municipal service level statistics for FY 2017 is provided for the City in Attachment B. 17.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of Richmond and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $616,166 in FY 2017, up from $560,534 in FY 2015. Contra Costa LAFCO 17-6 Municipal Service Review Update City of Richmond CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 17.2.2 BROADBAND The City of Richmond does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Richmond did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Richmond received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City is aware that service providers are limited in the Point Richmond area and along the shoreline. As funding permits, this area can be covered by the Community Wi-Fi. The City of Richmond did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 17.2.3 BUILDING/PLANNING The City of Richmond Department of Building and Planning Services provides building and planning services. Department expenditures for FY 2017 were approximately $7.8 million, up from $7.25 million in FY 2015. The City of Richmond issued 2,783 residential and 1,513 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $355 million. Planning city-wide has been captured in the General Plan and the Five-year Strategic Plan. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO Municipal Service Review Update 17-7 Chapter 17 17.2.4 LAW ENFORCEMENT The City of Richmond Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $62.7 million, reflecting an upward trend from approximately $59.6 million in FY 2015. The City of Richmond has 1.49 FTE sworn personnel per 1,000 population, which represents a decrease from 1.8 FTE in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 31.81 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 3.2% in 2017, and the violent crime clearance rate was 17.5%.6 17.2.5 LIBRARY The City of Richmond provides library services at its Main Branch, Bayview Branch, and West Side Branch locations. City library expenditures were $43.99 per capita for FY 2017, up slightly from $45.14 per capita in FY 2013. The Richmond Public Library operates the Literacy for Every Adult Program, which provides one- on-one, self-directed online, and classroom instruction for basic literacy, GED preparation, high school diploma, English as a second language, digital literacy, health literacy, and workforce development. Program operating expenditures for FY 2017 were $1,022,564, or approximately 20% of total library expenditures. Average circulation per capita was 1.66 in FY 2017, down from 2.69 in FY 2013. The City library had 2.63 visits per capita in in FY 2013; no data were available for FY 2017. The Richmond library system had 0.3715 FTE staff per 1,000 population in FY 2017. The Richmond Public Library participates in a statewide public library E-Rate consortium through the Corporations for Education Network Initiatives in California (CENIC), which provides high- speed broadband services to connect libraries to the California Research and education Network. The 1-gigabit CENIC broadband connection is available for staff and the public at all three Richmond library locations. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 17-8 Municipal Service Review Update City of Richmond downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. 17.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Richmond Engineering and Capital Improvement Projects Department. City expenditures for light and signal maintenance for FY 2017 were not reported or were unavailable at the time of this MSR update. The City maintains approximately 9,000 street lights. The numbers for signalized intersections and traffic lights maintained by the City were not reported or were unavailable at the time of this MSR update. 17.2.7 PARKS AND RECREATION The City of Richmond Community Services Department manages the City’s parks and recreation facilities and is the service provider for recreation programs. The Parks and Landscaping Division maintains the City’s parks, public landscapes and natural open spaces. FY 2017 expenditures for parks were approximately $4.4 million, reflecting an upward trend from approximately $3.9 million in FY 2015. The City provides various programs and activities for all ages including summer camps, aquatics, sports, senior services, community festivals and special events. The City provides and maintains 7.1 park acres per 1,000 residents, 1.68 recreation centers per 20,000 residents, and 35 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 3 acres per 1,000 residents. 17.2.8 SOLID WASTE Solid waste services are provided to the City of Richmond via contract with Richmond Sanitary Services. The City of Richmond reports that it has no direct expenditures for solid waste services. The City reported approximately 0.89 tons of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 3.9 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 17.2.9 STORMWATER/DRAINAGE The City of Richmond Water Resource Recovery Department provides and maintains the City’s stormwater drainage system. The City reports that they have 165.4 miles of closed storm drain lines Contra Costa LAFCO Municipal Service Review Update 17-9 Chapter 17 and that 4.8% of their 5,215 storm drain inlets are equipped with trash capture. The City of Richmond also reports compliance with National Pollution Discharge Elimination System standards. Stormwater expenditures were $2.3 million in FY 2017, down from $3.3 million in FY 2015. 17.2.10 STREETS/ROADS The City of Richmond Engineering and Capital Improvement Projects Department provides and maintains 280 street miles and approximately 35.3 Class 1 and 2 bike lane miles. FY 2017 expenditures for streets were not reported or were unavailable at the time of this MSR update. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Richmond was 62 (fair) in 2017, down from 63 in 2015, and remains below the target PCI of 75 (good) MTC has established.8 Pavement at the low end of the 60-69 (fair) range is significantly distressed and may require a combination of rehabilitation and preventive maintenance. 17.2.11 UTILITIES The City of Richmond is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Richmond. The City of Richmond did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 17.3 FINANCIAL OVERVIEW This section provides an overview of the City of Richmond’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 17-10 Municipal Service Review Update City of Richmond 17.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenue of $168 million is equal to General Fund expenditures.9 Table 17.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The budget projects an ending FY 2019 General Fund balance of $16.8 million, or about 11 percent of annual expenditures.10 The City's fund balance policy requires the City to maintain a year-end contingency reserve balance of a minimum of 7% of the next year’s budgeted General Fund expenditures.11 At the end of FY 2017, the City's cash reserve component represented $11.2 million of the General Fund's $19.7 million unassigned fund balance.12 TABLE 17.5 CITY OF RICHMOND SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $30,905,000 $33,232,000 $36,970,000 Sales Tax $33,131,000 $40,877,000 $41,620,000 Other Revenues (including Transfers) $80,494,000 $72,466,000 $85,815,000 Total General Fund Revenues $144,529,612 $146,575,079 $164,405,410 Change from Prior Year n/a 1.4% 12.2% GENERAL FUND EXPENDITURES General Government and $21,242,000 $22,372,000 $25,517,000 Administration Public Safety $83,960,000 $86,860,000 $92,617,000 Other (includes Transfers Out) $38,188,000 $36,627,420 $40,251,915 Total Expenditures $143,389,704 $145,859,420 $158,385,915 9 City of Richmond Agenda Report, Proposed Fiscal Year 2018-19 Operating Budget and Proposed Fiscal Years 2018-19 to 2022-23 Capital Improvement Plan, June 26, 2018, pg. 2. 10 City of Richmond FY 202018-19 Operating Budget, Adopted June 26, 2018. FY 202018-19 Adopted Budget Summary, pg. 42-44. 11 City of Richmond FY 2017 CAFR, Note 9C, Contingency Reserve Policy, pg. 96. 12 ibid, Richmond FY 2017 CAFR, Note 9C. Contra Costa LAFCO Municipal Service Review Update 17-11 Chapter 17 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 Change from Prior Year n/a 1.7% 8.6% Expenditures per capita $1,309 $1,316 $1,438 LIQUIDITY RATIO 1 Governmental Activities 0.3 0.4 0.7 Business-type Activities 1.3 0.4 0.9 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 17.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2015 through FY 2017 the City's governmental activities' liquidity ratios were less than 1.0 indicating that short-term resources were less than current liabilities (see Attachment C).13 The City's enterprise funds' liquidity ratios were also less than 1.0 with the exception of FY 2015 (1.3). Debt totaled $397.5 million, or about $3,600 per capita. 17.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The total net position of governmental activities improved slightly from FY 2015 to FY 2017, but remained negative at $194.2 million. The governmental activities' unrestricted net position at the end of FY 2017 declined to a negative ($504.6 million) from FY 2015, largely the result of significant and worsening net pension and other post-employment benefit (OPEB) liabilities. 17.3.4 LOCAL REVENUE MEASURES Measure Q, a voter-approved local one-half-cent sales tax was approved by Richmond voters in November 2004; the measure generates approximately $15 million annually.14 In 2014 Measure U was approved, providing an additional one-half-cent sales tax for general purposes. 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 14 Measure Q revenues are not separately listed in the budget; assuming total General Fund sales tax of $46 million represents 1.5 cent sales tax rate, Measure Q would equal about one-third. Contra Costa LAFCO 17-12 Municipal Service Review Update City of Richmond An election to approve an increase in the City's transfer tax was defeated in November, 2016;15 Measure H, a tax increase placed on the November 2018 ballot by the City Council, was subsequently approved by voters.16 On the same November 2018 ballot, a vacant property tax to fund services to the homeless failed. 17.3.5 ENTERPRISE ACTIVITIES The City provides a range of enterprise services, including the Richmond Housing Authority, Port of Richmond, municipal sanitary and storm sewer, cable television, and marina. 17.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's unfunded pension liability totaled $312 million at the end of FY 2017 (see Attachment C). The City established the Secured Pension Override Special Revenue Fund to which proceeds of a special incremental property tax levy voted by the citizens of the City of Richmond are credited for the payment of benefits under the City’s pension plans. The incremental property tax revenue received for the year ended June 30, 2017 was $8,788,063,17 which partially offset reductions in the pension plan's net assets due to pension payments. The City's unfunded other post-employment benefit (OPEB) liability equaled $182.1 million at the end of FY 2017 (see Attachment C). As part of its effort to address unfunded OPEB liabilities, the City Council adopted a policy in December 2014 to place into its OPEB trust an amount equal to half of any one-time, non-operating revenues, and half of any year-end surplus in excess of the City’s cash reserve policy of 7% toward the unfunded liability for retired employee health costs.18 The City reports that it is working to address its OPEB liability by working with unions and encouraging union contributions to OPEB. 17.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2016 through FY 2017 show declines in the net value of governmental assets, generally indicating that investments in capital assets are not keeping pace with depreciation. Enterprises from FY 2015 through FY 2017 indicate a similar pattern of declining asset value (see Attachment C). One of the City's strategic goals and objectives is to "[i]mprove the aged storm drainage, sanitary sewer, and wastewater treatment systems."19 15 https://ballotpedia.org/Richmond,_California,_Real_Estate_Transfer_Tax,_Measure_M_(November_2016) 16 City of Richmond Resolution Number 71-18, adopted August 7, 2018. 17 ibid, Richmond FY 2017 CAFR, Note 11, pg. 103. 18 ibid, Richmond FY 2017 CAFR, pg. vi. 19 Ibid, Richmond FY 2019 Budget, FY 202018-19 Adopted Budget, pg. 203. Contra Costa LAFCO Municipal Service Review Update 17-13 Chapter 17 17.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City prepares a long-range financial forecast to assist with budget preparation and to address future issues such as potential budget deficits. The FY 2019 budget indicates that projected FY 2019 budget shortfalls of at least $4.6 million were eliminated in the adopted budget; however, the budget does not indicate whether projected future year shortfalls were reduced or eliminated as a result of the FY 2019 budget and service decisions.20 Preparation of the City's CAFR required more than 6 months following the end of the prior fiscal year. 17.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Richmond. 17.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Richmond serves 119,067 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent 20 ibid, Richmond FY 2019 Budget, FY 2018-19 Adopted Budget Summary, pg. 28. Contra Costa LAFCO 17-14 Municipal Service Review Update City of Richmond with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Richmond are depicted in Figure 17.2. ABAG projects that the City of Richmond will grow at an annual rate of approximately 1.6% to a population of 164,220 between 2010 and 2040.21 The City is also projected to experience an approximate 2.3% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data22 for 2010, the City of Richmond has 45,638 employed residents. The ABAG Projections data23 for 2010 estimated 30,685 jobs in the City, with approximately 0.67 job for every employed resident. Bay Area Census data for 2010 indicate that the City of Richmond has 39,328 housing units, which results in a job and housing balance of 0.78. The number of owner-occupied units in the City is greater than the number of renter-occupied housing units (Table 17.6), indicating that the rate of homeownership exceeds the rental household rate. 21 ABAG. Projections 2017. 22 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 23 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 17-15 City of Richmond 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 17.2. Population, Job, and Household Growth Projections (2010-2040) City of Richmond June 2019 City of Richmond TABLE 17.6 CITY OF RICHMOND HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 18,659 Renter-occupied housing units 17,434 Vacant housing units 3,235 Total existing housing units 39,328 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 438 Low 305 Moderate 410 Above Moderate 1,282 Total Regional Housing Need Allocation 2,435 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.24 The City of Richmond was assigned a RHNA of 2,435 units, as shown in Table 17.6. The City adopted its General Plan in 2012 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 2,664 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Richmond 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.25 The programs and services provided by the City for adults age 50 and older include the public library’s literacy program and book van, as well as a variety of educational, social, recreational, nutritional, and human service programs offered by the City of Richmond Community Services 24 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 25 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 17-17 Chapter 17 Department. These programs include the Senior Community Service Employment Program, daily exercise programs, art classes, nutritional lunch program, massage therapy, ballroom dancing, tai chi, country western line dancing, bingo, tap dancing, tango, swing dance, and game room activities. Other services include Health Insurance Counseling and Advocacy Program, blood pressure screening, monthly birthday celebrations, and numerous other special events. ANTICIPATED GROWTH PATTERNS The City of Richmond reported approximately 15 undeveloped entitled residential acres in FY 2017. Several projects have been identified as part of the projected growth for the City and include 1,678 dwelling units and 616,742 square feet of commercial space. These projects are either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of Richmond and included in Plan Bay Area 2040.26 The Central Richmond and 23rd Street Corridor and South Richmond PDAs are anticipated to accommodate approximately 83% of the projected growth in households and 70% of the projected growth in employment.27 The Central Richmond and 23rd Street Corridor PDA is characterized as a City Center and Mixed Use Corridor, and the South Richmond PDA is characterized as a Transit Neighborhood. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Richmond has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.28 The City of Richmond does not report that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 17.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Richmond’s SOI is mostly coterminous with the municipal boundary, with the exception of areas to the east (the unincorporated community of El Sobrante) and to the north (the unincorporated community of North Richmond; see Figure 17.1). The existing unincorporated islands are shown in Figure 17.1. The unincorporated area of North Richmond is entirely surrounded by the municipal boundaries of the City of Richmond. The City of Richmond and Contra Costa County commissioned a jointly funded service plan and fiscal analysis study regarding the possible annexation of unincorporated North Richmond to the City of Richmond. Annexation of this service island into the City of Richmond could potentially increase the provision of services to the unincorporated area. The current City Council has determined that it will not move forward with annexing North Richmond. 26 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 27 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 28 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 17-18 Municipal Service Review Update City of Richmond The City does not request any changes to its SOI at this time and does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified disadvantaged communities within the City’s SOI, including the unincorporated community of North Richmond. The City of Richmond is currently considering the potential annexation of the North Richmond area. North Richmond receives water services from the East Bay Municipal Utility District, fire and emergency medical service from Contra Costa County Fire Protection District, and is mostly served by the West County Wastewater District for sewer service. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 17.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Richmond reports that it adequately serves all areas within its municipal boundary and SOI. Based on available information, sufficient data has not been provided by the City of Richmond Contra Costa LAFCO Municipal Service Review Update 17-19 Chapter 17 for this MSR Update to make an accurate determination about the City’s ability to adequately serve all areas within its municipal boundary in the foreseeable future. The disadvantaged communities within and contiguous to the City’s SOI receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 62, which is below the target of 75 MTC has established and which indicates a potential future need for pavement rehabilitation funding. The City reports aging capital infrastructure, primarily related to roadway network assets. When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. FY 2016 through FY 2017 show declines in the net value of governmental assets, generally indicating that investments in capital assets are not keeping pace with depreciation. Enterprises from FY 2015 through FY 2017 indicate a similar pattern of declining asset value. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. Contra Costa LAFCO 17-20 Municipal Service Review Update City of Richmond CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, library, lighting, parks and recreation, stormwater, and streets. 29 Services related to animal control, broadband, solid waste, stormwater in North Richmond, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City of Richmond partially owns the North Richmond Stormwater Pump Station, which is managed by Contra Costa County. The City does not share other facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 17.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The City of Richmond is experiencing some fiscal challenges that may affect its ability to provide services, particularly in the event of unexpected funding needs. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, and despite these fiscal challenges, the City of Richmond appears to have adequate financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Richmond has been operating with a surplus in their General Fund. The City currently exceeds their 20% reserve goal, allowing it to maintain an acceptable level of service provision and to enact changes to maintain services. 29 Although not covered in this MSR, the City also provides fire and sewer service. Contra Costa LAFCO Municipal Service Review Update 17-21 Chapter 17 LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City’s liquidity ratio is 0.7; ratios less than 1.0 indicate that liabilities exceed short-term resources. Total debt was approximately $3,600 per capita for FY 2017. The City's unfunded pension and OPEB liabilities continue to grow significantly; however, the City has implemented measures to help address increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 9 months after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. 17.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Richmond website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City also broadcasts City Council and shares information about other events and meetings on KCRT, the City’s cable channel, the City’s website, various social media outlets, City’s electronic billboard, and multiple City email listservs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Richmond website provides access to the City’s general plan as well as various development plans and projects. City staff are also active in Neighborhood Councils and participate in multiple community meeting and events. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of Richmond website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. The City therefore adequately provides accountability with regard to citizen participation. Contra Costa LAFCO 17-22 Municipal Service Review Update City of Richmond 17.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 17.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Richmond is mostly coterminous with the municipal boundary, with the exception of areas where it extends and connects with the municipal boundary, as shown in Figure 17.1. The City of Richmond is bound by the City of Pinole to the north, San Pablo Bay to the west, the City of El Cerrito and the San Francisco Bay to the south, and County lands to the east. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Richmond. This report also recommends that Contra Costa LAFCO consider the option of retaining the existing SOI with the condition that future potential annexation applications from the City require that the City provide more information30 to demonstrate its capacity, adequacy, and financial ability to provide services to the area under consideration. 17.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF RICHMOND Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Richmond MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Richmond plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including industrial, residential, research and development, commercial, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2012). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Richmond. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years, as well as with the potential annexation of North Richmond. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Richmond appears adequate. The City of Richmond anticipates it will continue to have adequate capacity during the next five years. The 30 To include undeveloped entitled residential acres, expenditures for lighting and streets/roads services, and additional detail for lighting services. Contra Costa LAFCO Municipal Service Review Update 17-23 Chapter 17 potential annexation of North Richmond is likely to have an effect on the City’s capacity to provide public facilities and services. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of Richmond. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within the City’s SOI, including the unincorporated community of North Richmond. These areas receive sewer, water, and fire protection services. In the event the City of Richmond annexes the North Richmond community, there will be a need for the City to provide structural fire protection and other municipal facilities and services to this area. Contra Costa LAFCO 17-24 Municipal Service Review Update C 18 HAPTER C S P ITY OF AN ABLO 18.1 AGENCY OVERVIEW The City of San Pablo, incorporated in 1948, covers an area of approximately 2.5 square miles. With an estimated population of 31,593, the City has a population density of approximately 10,531 persons per square mile.1 The City of San Pablo lies in western Contra Costa County and is mostly surrounded by the City of Richmond, with County lands adjacent to the northern and southeastern boundaries. The Sphere of Influence (SOI) for the City of San Pablo is mostly coterminous with the municipal boundary, with the exception of small extensions to the north and to the east, as shown in Figure 18.1. The City adopted the countywide Urban Limit Line in 2006. Land uses in the City include a mix of residential, residential mixed use, commercial mixed use, institutional mixed use, Specific Plan Areas (San Pablo Avenue and 23rd Street), and open space. There are no agricultural land use designations in the City of San Pablo. 18.1.1 FORM OF GOVERNMENT The City of San Pablo is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 18-1 Figure 18.1. City of San Pablo Municipal Boundary and Sphere of Influence June 2019 City of San Pablo 18.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 190.3 full-time equivalent (FTE) employees. Table 18.1 shows the four service areas with the highest staffing levels. TABLE 18.1 CITY OF SAN PABLO HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 86.0 Community Services 41.3 Public Works 26.0 Administrative Services 12.0 Source: City of San Pablo Similar to other cities in Contra Costa County, the police service function had the highest staffing level in the City of San Pablo, with 86.0 FTE employees. 18.1.3 JOINT POWERS AUTHORITIES The City of San Pablo is a member of several joint powers authorities (JPAs), which are listed in Table 18.2. TABLE 18.2 CITY OF SAN PABLO JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Contra Costa Transit Authority Congestion — Management Agency East Bay Regional Communications System — Authority Operating Agreement Marin Clean Energy JPA — San Pablo Joint Powers Financing Authority — West Contra Costa Integrated Waste Management Solid waste and recycling Authority West Contra Costa Transportation Advisory Regional transportation planning Committee Source: City of San Pablo Contra Costa LAFCO Municipal Service Review Update 18-3 Chapter 18 18.1.4 AWARDS AND RECOGNITION The City of San Pablo has not reported receiving any awards since the first round Municipal Service Review (MSR). 18.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 18.3, municipal services for the City of San Pablo are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 18.3 CITY OF SAN PABLO MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of San Pablo Law Enforcement City of San Pablo Library Contra Costa County Lighting Contra Costa County, Pacific Gas and Electric Parks and Recreation City of San Pablo Solid Waste Republic Services Stormwater City of San Pablo Streets City of San Pablo Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of San Pablo Contra Costa LAFCO 18-4 Municipal Service Review Update City of San Pablo The City of San Pablo reports the following opportunities and challenges related to its provision of municipal services in the next five years: Opportunities • Facilitate regular utility coordination meeting for all agencies in the City (as well as neighboring communities) to discuss upcoming work, changes to requirements or regulations that may affect the group, pursue joint projects or contracts, and coordinate the construction activities to optimize efficiency • Continue to pursue alternative compliance (and associated funding) to meet the stormwater regulatory requirements Challenges • Nonconforming land uses • Aging and marginal housing stock • Transportation issues – traffic, parking, and transit • Increases in stormwater regulations • Unfunded mandates (e.g., affordable housing, stormwater) • Unfunded pension liabilities • Solid waste reduction • Emergency operations related to catastrophic events • Flood control and drainage issues from adjacent County properties A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 18.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of San Pablo and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. City expenditures for animal control services were $216,431 for FY 2017, up from $157,508 in FY 2015. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO Municipal Service Review Update 18-5 Chapter 18 18.2.2 BROADBAND The City of San Pablo does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of San Pablo did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of San Pablo received a grade of C, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of San Pablo did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 18.2.3 BUILDING/PLANNING The City of San Pablo Community and Economic Development Department provides building and planning services. Department expenditures for FY 2017 were $1.1 million, down from $1.5 million in FY 2015. The City of San Pablo issued 330 residential permits in 2017, reflecting an upward trend from 301 in 2015. The City issued 47 commercial building permits in 2017, up from 37 in 2015. Total building permit valuation in FY 2017 is estimated at $14.6 million, up from $13.8 million in FY 2015. Planning city-wide has been captured in the General Plan, 23rd Street and San Pablo Avenue Specific Plans, and the Capital Improvement Plan. 18.2.4 LAW ENFORCEMENT The City of San Pablo Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $15 million, down from approximately $16.8 million in FY 2015. The City of San Pablo has 1.52 FTE sworn personnel per 1,000 population, which represents a slight decrease from 1.58 in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 18-6 Municipal Service Review Update City of San Pablo 1,000 population.5 There were 27 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 6.1% in 2017, and the violent crime clearance rate was 32.8%.6 18.2.5 LIBRARY Contra Costa County provides library services for the City of San Pablo at its San Pablo Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditure and staffing levels are nearly double the County’s. 18.2.6 LIGHTING Lighting is provided and maintained by the Contra Costa County (traffic lights) and Pacific Gas and Electric (PG&E; street lights) City of San Pablo Department of Public Works. City expenditures for street light maintenance were $465,729 in FY 2017, down from $536,597 in FY 2015. DC Electric Group maintains the City’s 29 signalized intersections and traffic lights, and PG&E maintains 1,051 street lights. 18.2.7 PARKS AND RECREATION The City of San Pablo Community Services Department is the service provider for parks and recreation facilities, as well as recreation programs. FY 2017 expenditures for parks were approximately $3.1 million in FY 2017, up from approximately $2.6 million in FY 2015. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 18-7 Chapter 18 The City offers various programs and classes for youth and adults, including camps, an art gallery and multiple programs and activities for seniors. The City provides and maintains less than 3 park acres per 1,000 residents, 6 recreation centers per 20,000 residents, and 0.55 mile of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 3 acres per 1,000 residents. 18.2.8 SOLID WASTE Solid waste services are provided to the City of San Pablo via franchise agreement with Republic Services. The City of San Pablo FY 2017 expenditures for solid waste services were unavailable at the time of this MSR update. The City reported approximately 0.38 ton of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 3.9 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 18.2.9 STORMWATER/DRAINAGE The City of San Pablo Department of Public Works provides and maintains the City’s stormwater drainage system. The City reports that they have 16.4 miles of closed storm drain lines and that 14% of their 539 storm drain inlets are equipped with trash capture. The City of San Pablo also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for stormwater were $305,303, down from $530,215 in FY 2015. 18.2.10 STREETS/ROADS The City of San Pablo Department of Public Works provides and maintains 48 street miles and approximately 4.4 Class 1 and 2 bike lane miles as well as landscaped medians and other public landscaped areas. FY 2017 expenditures for streets were $631,045, up from $444.299 in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO 18-8 Municipal Service Review Update City of San Pablo The PCI for streets in the City of San Pablo was 75 (good) in 2017, down from 77 in 2015, but meets the target PCI of 75 (good) MTC has established.8 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 18.2.11 UTILITIES The City of San Pablo is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of San Pablo. The City of San Pablo did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 18.3 FINANCIAL OVERVIEW This section provides an overview of the City’s financial health and assesses the City’s financial ability to provide services. Key financial information for City municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 18.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. The City of San Pablo prepares a quadrennial budget. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $35.2 million are nearly equal to General Fund expenditures of $35.3 million.9 The budget projects an ending FY 2019 General Fund balance of $21.1 million, or about 60% of annual expenditures. In addition to the General Fund balance, the City projects an additional $38 million in its Catastrophic Reserve ($17.8 million), Budget Stabilization Reserve ($1.7 million), and Designated Reserves ($18.6 million).10 Table 18.4 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of San Pablo Quadrennial Operating Budget FY 2018-19, pg. 84. 10 ibid, City of San Pablo FY 2019 Budget, pg. 85. Contra Costa LAFCO Municipal Service Review Update 18-9 Chapter 18 Approximately 60% of General Fund revenues depend on Casino Business License revenue and Casino Payment in Lieu of Taxes. The Casino Business License revenue grew an average of 9% annually over the past 10 years.11 TABLE 18.4 CITY OF SAN PABLO SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $837,000 $720,000 $873,000 Sales Tax $3,199,000 $3,304,000 $3,747,000 Other Revenues (including Transfers) $34,722,000 $39,504,000 $36,449,000 Total General Fund Revenues $38,757,685 $43,527,828 $41,068,515 Change from Prior Year n/a 12.3% -5.6% GENERAL FUND EXPENDITURES General Government and $5,803,000 $9,612,000 $9,418,000 Administration Public Safety $15,436,000 $13,735,000 $14,928,000 Other (includes Transfers Out) $6,696,000 $5,909,000 $13,629,000 Total Expenditures $27,935,000 $29,256,000 $37,975,000 Change from Prior Year n/a 4.7% 29.8% Expenditures per capita $947 $949 $1,223 LIQUIDITY RATIO 1 Governmental Activities 11.8 12.1 9.2 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 18.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. 11 ibid, City of San Pablo FY 2019 Budget, pg. 90. Contra Costa LAFCO 18-10 Municipal Service Review Update City of San Pablo In FY 2015 through FY 2017 the City's Governmental Activities' liquidity ratios were 9.2 or greater, indicating that short-term resources were significantly greater than current liabilities (see Attachment C).12 Total government activity debt was $25.7 million at the end of FY 2017, or about $830 per capita (see Attachment C). 18.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The City has maintained a positive net position for governmental activities that improved from FY 2015 to FY 2017; the unrestricted portion was also positive and improved over that period (see Attachment C). 18.3.4 LOCAL REVENUE MEASURES Two voter-approved local sales tax measures help to fund services. Measure Q is a one-half-cent sales tax that declines to one-quarter cent in 2017, then expires in 2022, generating about $760,000 in FY 2019. Measure K is a one-quarter-cent sales tax authorized solely to provide emergency medical services out of San Pablo’s Fire Station 70 by the Contra Costa County Fire Protection District.13 18.3.5 ENTERPRISE ACTIVITIES The City of San Pablo has no enterprise activities. 18.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's unfunded pension liability totaled $34.9 million at the end of FY 2017 (see Attachment C). The City's budget forecasts that its payments towards its unfunded liability will nearly double from $1.7 million in FY 2018 to $3.3 million in FY21. The City's other post-employment benefit (OPEB) had a net positive asset value of $4.3 million at the start of FY 2017 as a result of the City Council's funding strategy which includes pay-as-you-go financing plus an additional amount to 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 13 City of San Pablo website http://www.sanpabloca.gov/411/Taxes Contra Costa LAFCO Municipal Service Review Update 18-11 Chapter 18 pre-fund benefits.14 Approximately 10 years ago, the City made a lump-sum payment for OPEB liability, essentially eliminating the liability at the time. 18.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2015 through FY 2017 show annual increases in the net value of governmental assets, generally indicating that investments in capital assets are keeping pace with depreciation (see Attachment C). The City is in the process of replacing its Civic Center buildings utilizing a combination of reserve funds and debt proceeds. A new library building and a community center were recently completed. The City indicates that it is keeping pace with capital needs and with road resurfacing. A recently completed road condition assessment provides for funding required maintenance.15 18.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City prepares a Financial Trend Analysis in its four-year quadrennial budget for medium to long range forecasting. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 18.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of San Pablo. 14 ibid, City of San Pablo FY 2019 Budget, pg. 25. 15 MTC P-TAP Round 18 Budget Options Report (BOR) for City of San Pablo, California, Fugro Roadware, Inc., Jan. 24, 2018. Contra Costa LAFCO 18-12 Municipal Service Review Update City of San Pablo 18.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of San Pablo serves 31,593 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of San Pablo are depicted in Figure 18.2. ABAG projects that the City of San Pablo will grow at an annual rate of approximately 0.5% to a population of 34,090 between 2010 and 2040.16 The City is also projected to experience an approximate 0.7% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning—via the Municipal Code, General Plan, Specific Plans, and Capital Improvement Program—is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data17 for 2010, the City of San Pablo has 12,250 employed residents. The ABAG Projections data18 for 2010 estimated 7,430 jobs in the City, with approximately 0.61 job for every employed resident. Bay Area Census data for 2010 indicate that the City of San Pablo has 9,571 housing units, which results in a job and housing balance of 0.78. The number of owner-occupied units in the City is less than the number of renter-occupied housing units (Table 18.5), indicating that the rental household rate exceeds the rate of homeownership. 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 18-13 City of San Pablo 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 18.2. Population, Job, and Household Growth Projections (2010-2040) City of San Pablo June 2019 City of San Pablo TABLE 18.5 CITY OF SAN PABLO HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 4,110 Renter-occupied housing units 4,651 Vacant housing units 810 Total existing housing units 9,571 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 56 Low 53 Moderate 75 Above Moderate 265 Total Regional Housing Need Allocation 449 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.19 The City of San Pablo was assigned a RHNA of 449 units, as shown in Table 18.5. The City adopted its General Plan in 2011 and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 858 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of San Pablo 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.20 The City of San Pablo provides a variety of programs and services in the areas of health, education, and recreation to meet the needs of adults age 50 and older, including billiards, strength and 19 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 20 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 18-15 Chapter 18 balance, nutrition, program, movies, social dances, low impact aerobics, bingo, tai chi exercise class, social games, computer classes, social trips, and transportation services. ANTICIPATED GROWTH PATTERNS The FY 2017 undeveloped entitled residential acres in for the City of San Pablo were not available. Two projects (residential and mixed-use) have been identified as part of the projected growth for the City; however, the anticipated number of dwelling units and square feet of commercial space were not available. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of San Pablo and included in Plan Bay Area 2040.21 The San Pablo Avenue and 23rd Street Corridors PDA is anticipated to accommodate approximately 60% of the projected growth in households and 59% of the projected growth in employment.22 The San Pablo Avenue and 23rd Street Corridors PDA is characterized as a Mixed Use Corridor. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of San Pablo has not identified any Priority Conservation Areas, nor are any included in Plan Bay Area 2040.23 The City of San Pablo does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 18.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of San Pablo’s SOI for the City of San Pablo is mostly coterminous with the municipal boundary, with the exception of small extensions to the north and to the east (see Figure 18.1). The City has identified two unincorporated islands—the Rollingwood neighborhood (to the north) and an area to the east bounded by Hillcrest Road and Wildcat Canyon. Additionally, the City of San Pablo has some boundary irregularities and various split parcels with the City of Richmond. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, 21 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 22 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 23 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 18-16 Municipal Service Review Update City of San Pablo and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified the City of San Pablo as a disadvantaged community and disadvantaged communities contiguous with its SOI that are within the municipal boundary and SOI of Richmond. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 18.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of San Pablo reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. The disadvantaged communities within and contiguous to the City’s SOI receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 75, which indicates the City’s streets are in good condition and primarily require funding at a level to maintain the current condition. The City has reported that its SOI northeast of I-80 and San Pablo Dam Road is likely lacking in necessary public infrastructure. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. Contra Costa LAFCO Municipal Service Review Update 18-17 Chapter 18 CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City of San Pablo has completed a roadway assessment and overall is keeping pace with capital needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, parks and recreation, stormwater, and streets. Services related to animal control, broadband, library, lighting, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The City’s shared Police Dispatch and Records Management System is a shared joint function with the cities of Pinole and Hercules, and the City has joint use arrangements with the West Contra Costa Unified School District. The City of San Pablo does not share and additional facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. Contra Costa LAFCO 18-18 Municipal Service Review Update City of San Pablo 18.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of San Pablo appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of San Pablo has been operating with a surplus in their General Fund. The City’s reserve goal is unknown, and therefore it is unknown whether they meet their goal; however, the City currently projects a $38 million reserve. With this reserve level, the City appears able to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 9.2, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $830 per capita for FY 2017. The City's unfunded pension and OPEB liabilities continue to grow; however, the City Council’s funding strategy includes OPEB pay-as-you-go financing. The City has not identified any other measures to address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING by ensuring that the State Controller’s Financial Transactions Report was filed on a timely basis and that the Comprehensive Annual Financial Report (CAFR) for most recent fiscal year received a clean opinion and was issued within six months of fiscal year end The City issued its CAFR more than 6 months after fiscal year end, which is not considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 18-19 Chapter 18 18.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of San Pablo website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of San Pablo website provides access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of San Pablo website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 18.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 18.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of San Pablo is mostly coterminous with the municipal boundary, with the exception of small extensions to the north and to the east, as shown in Figure 18.1. The City of San Pablo is mostly surrounded by the City of Richmond, with County lands adjacent to its northern and southeastern boundaries. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of San Pablo. 18.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF SAN PABLO Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of San Pablo MSR profile. Contra Costa LAFCO 18-20 Municipal Service Review Update City of San Pablo PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of San Pablo plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, commercial, institutional, retail, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2011). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of San Pablo. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of San Pablo appears adequate. The City of San Pablo anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. The Rollingwood community is a community of interest and is a small island which can be annexed via an expedited process. This report encourages the City of San Pablo to consider annexing the Rollingwood island. Contra Costa LAFCO has not identified other social or economic communities of interest relevant to the City of San Pablo. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified the City of San Pablo as a disadvantaged community and disadvantaged communities contiguous with its SOI that are within the municipal boundary and SOI of Richmond. These areas receive sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 18-21 This page intentionally left blank. C 19 HAPTER C S R ITY OF AN AMON 19.1 AGENCY OVERVIEW The City of San Ramon, incorporated in 1983, covers an area of approximately 18.7 square miles. With an estimated population of 82,643, the City has a population density of approximately 4,349 persons per square mile.1 The City of San Ramon lies in central Contra Costa County, with the City of Danville to the north, County lands to the east and west, and the Contra Costa – Alameda County boundary to the south. The Sphere of Influence (SOI) for the City of San Ramon is mostly coterminous with the municipal boundary, with extensions to the west and south, as shown in Figure 19.1. The City adopted its urban growth boundary in 2002, which encompasses the City limits and includes the SOI in Dougherty Valley. Land uses in the City include a mix of residential, office, commercial, retail, mixed use, and open space. Although there are no agricultural land use designations in the City of San Ramon, some open space areas include land privately owned and used for agricultural purposes. The Tassajara Valley, which lies outside the City’s SOI but is included in the General Plan planning area, includes agricultural uses such as spring pasture and livestock grazing, with a few orchards, small horse ranches, and two to five acre ranchettes. 19.1.1 FORM OF GO ‐ VERNMENT The City of San Ramon is a charter city operating under a council-manager form of government. The publicly elected City Council consists of five members, including the directly elected Mayor; Council members serve four-year overlapping terms and the Mayor serves a two-year term. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 19-1 Figure 19.1. City of San Ramon Municipal Boundary and Sphere of Influence June 2019 City of San Ramon 19.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 258.75 full-time equivalent (FTE) employees. Table 19.1 shows the four service areas with the highest staffing levels. TABLE 19.1 CITY OF SAN RAMON HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Public Works 99.75 Police Services 83.0 Parks and Community Services 33.0 Community Development 17.0 Source: City of San Ramon Unlike many other cities in Contra Costa County, the public works function had the highest staffing level in the City of San Ramon, with 99.75 FTE employees. 19.1.3 JOINT POWERS AUTHORITIES The City of San Ramon is a member of various joint powers authorities (JPAs), which are listed in Table 19.2. TABLE 19.2 CITY OF SAN RAMON JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments ABAG’s mission is to strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. California Communities Statewide Development Allow residents to participate in a Property Assessed Authority Clean Energy (PACE) program. California Enterprise Development Authority Allow residents to participate in a PACE program. California Municipal Finance Authority Allow residents to participate in a PACE program California State Association of Counties Excess Employee benefits program Insurance Authority Central Contra Costa Sanitary District Public entity for the handling of wastewater Central Contra Costa Transit Authority Provides fixed routes and express bus service to partner organizations Contra Costa LAFCO Municipal Service Review Update 19-3 Chapter 19 JOINT POWERS AUTHORITY SERVICE Contra Costa County Flood Control and Water Established to appropriate project duties and cost. Conservation District Contra Costa Transit Authority Congestion — Management Agency Dougherty Regional Fire Authority Formed to provide fire protection services; remains in effect for the sole purpose of winding up the affairs of the District and meeting contractual obligation for retired employees East Bay Regional Communication System Authority Regional radio system Golden State Finance Authority Allow residents to participate in a PACE program. Municipal Pooling Authority To arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage San Ramon Public Financing Authority and San Facilitate acquisition of improvements and sale of Ramon Redevelopment Agency Joint Exercise of bonds Powers Agreement Southern Contra Costa Fees for Traffic Mitigation Establish traffic mitigation fees for southern Contra Costa County TRAFFIX – Measure J Traffic Congestion Relief Provides school bus service to relieve traffic Agency congestion in the San Ramon valley Tri-Valley Transportation Council Planning and facilitating implementation of transportation improvement projects in the Tri- Valley area. Tri-Valley Transportation Development Fees for Establish traffic mitigation development fees in the Traffic Mitigation Tri-Valley area Tri-Valley Transportation Plan Provide for the joint preparation of a transportation plan; provide a forum for review and coordination of planning and implementation of transportation facilities in the Tri-Valley area. Western Riverside Council of Governments Allow residents to participate in a PACE program. Source: City of San Ramon 19.1.4 AWARDS AND RECOGNITION Table 19.3 lists the awards the City of San Ramon has reported receiving since the first round Municipal Service Review (MSR). Contra Costa LAFCO 19-4 Municipal Service Review Update City of San Ramon TABLE 19.3 CITY OF SAN RAMON AWARDS AWARD ISSUER YEAR(S) RECEIVED Outstanding Facility – San Ramon Library California Parks and Recreation 2017 Society Library Journal’s 2017 Top Trends in Library Library Journal Magazine 2017 Architecture Gold Level Learn to Swim Provider American Red Cross 2017 Top Lifesaving and Drowning Prevention Provider American Red Cross 2017 Marketing / Social Media Award California Parks and Recreation 2017 Society – Aquatics Section Champion of the Community California Parks and Recreation 2017 and 2016 Society People Love the San Ramon Olympic Pool and Yelp 2017 and 2016 Aquatic Park on Yelp! Certificate of Achievement for Excellence in Government Finance Officers 2003 – 2017 Financial Reporting Association International Award for Excellence in LERN Learning Resource Network 2016 Management Practices Beauty in Age Project and Gallery Exhibit California Parks and Recreation 2016 Society – Aging Section Creating Community through Partnerships and California Parks and Recreation 2015 Collaboration Society – Aging Section Source: City of San Ramon 19.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 19.4, municipal services for the City of San Ramon are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO Municipal Service Review Update 19-5 Chapter 19 TABLE 19.4 CITY OF SAN RAMON MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning City of San Ramon Law Enforcement City of San Ramon Library Contra Costa County Lighting City of San Ramon Parks and Recreation City of San Ramon Solid Waste Waste Management Stormwater City of San Ramon Streets City of San Ramon Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of San Ramon The City of San Ramon reports the following challenges related to its provision of municipal services: • Meeting pension obligations • Staffing needs related to growth • Funding capital improvements / deferred maintenance A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 19.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the City of San Ramon and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were $284.092 in FY 2017. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor Contra Costa LAFCO 19-6 Municipal Service Review Update City of San Ramon of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 19.2.2 BROADBAND The City of San Ramon does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of San Ramon did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of San Ramon received a grade of C-, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of San Ramon did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 19.2.3 BUILDING/PLANNING The City of San Ramon Community Development Department provides building and planning services. Department expenditures for FY 2017 were $3.7 million. The City of San Ramon issued 7,567 residential and 843 commercial building permits in 2017. Total building permit valuation in FY 2017 is estimated at $1.3 billion. In November 2018, the City Center Bishop Ranch development opened at Bollinger Canyon Road and Sunset Drive. The development is a one-acre plaza with various shopping, dining, and entertainment amenities. Planning city-wide has been captured in the General Plan. 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO Municipal Service Review Update 19-7 Chapter 19 19.2.4 LAW ENFORCEMENT The City of San Ramon Police Service Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $20.5 million, reflecting an upward trend from approximately $17.9 million in FY 2015. The City of San Ramon has 0.84 FTE sworn personnel per 1,000 population, which represents a slight increase from 0.79 FTE in 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 15.71 crimes per sworn FTE in 2017. The Police Department does not currently have a mechanism in place to capture property and violent clearance rates (a measure of crimes solved) as accurately as they would like; however, their best estimate for the total (violent and property crimes) 2017 clearance rate is 62%.6 19.2.5 LIBRARY Contra Costa County provides library services for the City of San Ramon at two San Ramon Branch Library locations. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. Total City of San Ramon library expenditures were $135,148 in FY 2017, reflecting a downward trend from $202,983 in FY 2015. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state averages for expenditures and staffing are nearly double the County’s. 19.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of San Ramon Public Works Department. City expenditures for light and signal maintenance were $929,969 in FY 2017, up 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 19-8 Municipal Service Review Update City of San Ramon from $835,519 in FY 2015. The City maintains 99 signalized intersections and 7,300 street lights. The City does not track traffic light maintenance separate from signalized intersections. 19.2.7 PARKS AND RECREATION The City of San Ramon Parks and Community Services Department is the service provider for parks and recreation facilities, as well as recreation programs. The Public Services Division maintains City park and recreation facilities. Expenditures for parks vary year to year, at $8 million in FY 2017, down from $8.5 million in FY 2016, and up from $7.8 million in FY 2015. The City’s Parks and Community Services Department provides a variety of cultural, sporting, performing arts, educational events, and programs for all segments of the community. The City provides and maintains 4.7 park acres per 1,000 residents, 1.08 recreation centers per 20,000 residents, and 57.1 miles of recreation trails. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 6.5 acres per 1,000 residents, which is higher than most cities in Contra Costa County. 19.2.8 SOLID WASTE Solid waste services are provided to the City of San Ramon via franchise agreement with Valley Waste Management. The City of San Ramon FY 2017 expenditures for solid waste services were $354,393, representing a substantial increase from $202,804 in FY 2015. The increase resulted from implementing new commercial business recycling programs in 2016, for which the City compensates Waste Management directly. The City reported approximately 0.57 tons of waste disposed per capita for FY 2017. The FY 2017 per resident disposal rate was 3.1 pounds/resident/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 19.2.9 STORMWATER/DRAINAGE The City of San Ramon Public Works Department provides and maintains the City’s stormwater drainage system. The City reports that they have 152 miles of closed storm drain lines and that less than 1% of their 4,400 storm drain inlets are equipped with trash capture. The City of San Ramon also reports compliance with National Pollution Discharge Elimination System standards. Total FY 2017 expenditures for stormwater were $1,053,070, representing an upward trend from $940,999 in FY 2015. Contra Costa LAFCO Municipal Service Review Update 19-9 Chapter 19 19.2.10 STREETS/ROADS The City of San Ramon Public Works Department provides and maintains 498 street miles and approximately 43 Class 1 and 2 bike lane miles, as well as landscaped medians and other public landscaped areas. FY 2017 expenditures for streets were $1.6 million, up from 1.4 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of San Ramon was 80 (very good to excellent) in 2017, which is unchanged from 2015, and which remains above the target PCI of 75 (good) MTC has established.8 Pavement in this range (80-100) is newly reconstructed or resurfaced with few signs of distress. 19.2.11 UTILITIES The City of san Ramon is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Ramon. The City of San Ramon did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 19.3 FINANCIAL OVERVIEW This section provides an overview of the City of San Ramon’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 19.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $51.5 million slightly exceed General Fund expenditures of $48.5 million.9 The budget projects an ending FY 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 City of San Ramon Adopted FY 202018-2019 Operating Budget, Budget Message pg. 6. Contra Costa LAFCO 19-10 Municipal Service Review Update City of San Ramon 2019 General Reserve balance of $19.4 million, or about 40% of annual expenditures, which includes General Fund, Dougherty Valley Fund, and Debt Service Fund unrestricted reserves, consistent with the City Council General Reserve Policy.10 Table 19.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The City indicates that continued growth will affect staffing needs and related budget costs. The City tracks its expenditures to the Dougherty Valley area separately from its other services. The City provides services to the areas of Dougherty Valley that are annexed to the City as development occurs. The City services and capital projects in the area are largely reimbursed by assessments collected by the County Service Area (CSA) in Dougherty Valley. Projected FY 2019 expenditures of $20.2 million will be funded by $20.5 million of total sources including $18.1 million of CSA revenue, $0.1 million from the City's Infrastructure Maintenance Fund, and the remaining $2.3 million from the General Fund. The City’s Special Revenue Funds indicate Dougherty Valley accounts receivable growing from $6.5 million in FY 2015 to $8 million in FY 2017.11 TABLE 19.5 CITY OF SAN RAMON SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $16,092,000 $17,241,000 $18,479,000 Sales Tax $9,143,000 $10,485,000 $9,329,000 Other Revenues (including Transfers) $20,614,000 $23,300,000 $22,516,000 Total General Fund Revenues $45,849,000 $51,026,000 $50,324,000 Change from Prior Year n/a 11.3% -1.4% GENERAL FUND EXPENDITURES General Government and $4,807,000 $5,587,000 $5,944,000 Administration Public Safety $11,381,000 $12,041,000 $12,579,000 Other (includes Transfers Out) $30,723,000 $31,187,000 $35,038,000 Total Expenditures $46,911,000 $48,815,000 $53,561,000 Change from Prior Year n/a 4.1% 9.7% Expenditures per capita $597 $623 $665 10 ibid, San Ramon FY 2019 Budget Message, pg. 8. 11 City of San Ramon CAFRs, Governmental Funds Balance Sheet, pg. 20. Contra Costa LAFCO Municipal Service Review Update 19-11 Chapter 19 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 1 Governmental Activities 5.1 3.9 5.4 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 19.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio was 5.4, indicating that short-term resources were greater than current liabilities (see Attachment C).12 Total debt was $25.7 million at the end of FY 2017, or about $319 per capita. Governmental activities' debt totaled $25.7 million at the end of FY 2017 (see Attachment C). 19.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The City has maintained a positive net position for governmental activities, improving from FY 2015 to FY 2017. The unrestricted portion of the governmental activities net position was a negative ($11.6 million) in FY 2017, slightly improved compared to FY 2015 as a result of combined debt and unfunded pension liabilities (see Attachment C). 19.3.4 LOCAL REVENUE MEASURES The City has no voter-approved local sales tax measures. Various special assessments totaling $6.9 million are restricted to funding specific services to benefitting areas paying the assessments.13 19.3.5 ENTERPRISE ACTIVITIES The City of San Ramon operates no enterprises or business type activities. 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 13 ibid, San Ramon FY 2019 Budget, pg. 26. Contra Costa LAFCO 19-12 Municipal Service Review Update City of San Ramon 19.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's unfunded pension liability at FY 2016 totaled $23.4 million (see Attachment C).14 In 2017 the City began participating in a Section 115 Trust; in FY 2019 the City anticipates contributing $1 million into the trust. The City is in negotiations with employees and is proposing that employees fund a share of the employer's obligation in addition to the full share of employee contributions. City employees currently pay the full employee share of pension cost. City management negotiated with its employee groups to begin contributing towards the employer’s share of the pension. Effective July 1, 2018, the employees contribute 1%. Effective July 1, 2019, employees will contribute 2%, which will increase to 3% effective July 1, 2020. The City established an other post-employment benefit trust several years ago which is currently 100% funded. According to the FY 2019 budget, cumulative contributions and assets more than covered a total estimated liability of $25.1 million.15 19.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2015 through FY 2017 show annual increases in the net value of governmental assets, generally indicating that investments in capital assets are keeping pace with depreciation (see Attachment C). The City established an infrastructure maintenance fund several years ago to fund improvements to City-owned buildings. The City maintains an Equipment Replacement Fund that provides adequate funds for needed replacement of vehicles and equipment; internal service charges fund the Replacement Fund.16 19.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. 14 Note: City FY 2019 budget reports FY 2016 liability of $28.3 million (Budget Message, pg. 9). The budget amount is prior to GASB adjustments made in the FY16 CAFR. 15 ibid, San Ramon FY 2019 Budget Message, pg. 9. 16 ibid, San Ramon FY 2019 Budget Message, pg. 9. Contra Costa LAFCO Municipal Service Review Update 19-13 Chapter 19 The City tracks capital needs and funding through a pavement management program, Capital Improvement Plan, and Renovation and Replacement Plans for parks, facilities, landscape, and aquatics. 19.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of San Ramon. 19.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of San Ramon serves 82,643 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of San Ramon are depicted in Figure 19.2. ABAG projects that the City of San Ramon will grow at an annual rate of approximately 0.6% to a population of 84,165 between 2010 and 2040.17 The City is also projected to experience an approximate 1.3% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. 17 ABAG. Projections 2017. Contra Costa LAFCO 19-14 Municipal Service Review Update City of San Ramon 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2015 2020 2025 2030 2035 2040 Population Jobs Households Figure 19.2. Population, Job, and Household Growth Projections (2010-2040) City of San Ramon June 2019 Chapter 19 JOBS AND HOUSING According to the Bay Area Census data18 for 2010, the City of San Ramon has 34,570 employed residents. The ABAG Projections data19 for 2010 estimated 47,950 jobs in the City, with approximately 1.39 jobs for every employed resident. Bay Area Census data for 2010 indicate that the City of San Ramon has 26,222 housing units, which results in a job and housing balance of 1.83. The number of owner-occupied units in the City is greater than the number of renter- occupied housing units (Table 19.6), indicating that the rate of homeownership exceeds the rental household rate. TABLE 19.6 CITY OF SAN RAMON HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 18,056 Renter-occupied housing units 7,228 Vacant housing units 938 Total existing housing units 26,222 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 516 Low 279 Moderate 282 Above Moderate 340 Total Regional Housing Need Allocation 1,417 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.20 The City of San Ramon was assigned a RHNA of 1,417 units, as shown in Table 19.6. The City adopted its General Plan and its Housing Element in 2015. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 3,865 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of San Ramon 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with 18 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 19 ABAG. Projections 2017. 20 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO 19-16 Municipal Service Review Update City of San Ramon State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.21 The City of San Ramon provides a number of classes, trips, and events for adults age 55 and older. ANTICIPATED GROWTH PATTERNS The City reported approximately 26 undeveloped entitled residential acres in FY 2017, which includes Phases 4 and 5 of The Preserve (formerly Faria Preserve) development. The City reports approximately 1,943 dwelling units and 2.2 million square feet of commercial space as either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. Two PDAs have been identified by the City of San Ramon and included in Plan Bay Area 2040.22 The City Center and North Camino Ramon PDAs are anticipated to accommodate approximately 36% of the projected growth in households and 82% of the projected growth in employment.23 The City Center PDA is characterized as a Suburban Center and the North Camino Ramon PDA is characterized as a Transit Town Center. Priority Conservation Areas (PCAs), which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of San Ramon has identified one PCA—the Big Canyon Preserve—within its SOI. The Big Canyon Preserve PCA has a natural landscape designation in the PCA program. This PCA is included in Plan Bay Area 2040.24 The City of San Ramon does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 19.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of San Ramon’s SOI is mostly coterminous with the municipal boundary, with extensions to the west and south (see Figure 19.1). One unincorporated island has been identified in the City of San Ramon—a 0.13-acre open space area adjacent to Deerwood Road and an East Bay Municipal Utility District water tank site. The island is a remnant from the Faria Preserve annexation. 21 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. 22 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 23 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 24 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO Municipal Service Review Update 19-17 Chapter 19 The City anticipates two potential annexations, to include the Chang Residential Development (66.92 acres) and an area of development within Dougherty Valley. The City also will propose to modify the City Urban Growth Boundary for the Labor's Property. The City does not request any changes to its SOI and indicates that it does not provide services to any areas outside its municipal boundaries or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the City of San Ramon and therefore, no disadvantaged communities are relevant to this analysis. 19.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of San Ramon reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. There are no disadvantaged communities within or contiguous to the City’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 80, which indicates the City’s streets are in very good condition and primarily require funding at a level to maintain the current condition. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City does not anticipate obstacles to maintaining existing service levels or meeting infrastructure needs. Contra Costa LAFCO 19-18 Municipal Service Review Update City of San Ramon CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. FY 2015 through FY 2017 show annual increases in the net value of governmental assets, generally indicating that investments in capital assets are keeping pace with depreciation. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. The San Ramon Police Department participates in the Central County SWAT Team with Martinez, Walnut Creek, Pleasant Hill, and Bay Area Rapid Transit Police to safety resolve critical incidents. The Police Department also uses a joint-use 911 Communications Center for all emergency and non-emergency calls for service. The City shares capital facilities with San Ramon Unified School District for school parks, the aquatic center, and the Dougherty Valley Performing Arts Center. Additionally, the two San Ramon libraries are shared with the County library system. Contra Costa LAFCO Municipal Service Review Update 19-19 Chapter 19 The City does not share other facilities or services. No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 19.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As the City of San Ramon continues to grow and experience General Fund deficits in the future, the City’s ability to provide services may be affected. As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of San Ramon appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The City of San Ramon has been operating with a deficit trend in their General Fund. The City currently meets its 40% reserve goal, allowing it to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 5.4, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $319 per capita for FY 2017 and has been declining. The City's unfunded pension liabilities continue to grow; however, its other post-employment benefit trust is fully funded. The City is considering funding options for the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO 19-20 Municipal Service Review Update City of San Ramon Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, certain tables in the CAFR extend over multiple pages; however, the left-most column does not carry over to multiple pages, affecting the readability of the tables. 19.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of San Ramon website provides access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of San Ramon website provides access to the City’s general plan as well as various development plans and projects. City Council and Planning Commission meetings are videotaped and posted on the City’s website and are shown on the local cable networks; minutes of these meetings are also posted on the website. The City therefore adequately provides accountability with regard to municipal and land use planning. PUBLIC INVOLVEMENT The City of San Ramon website provides access to public notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 19.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 19.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of San Ramon is mostly coterminous with the municipal boundary, with extensions to the west and south, as shown in Figure 19.1. The City of San Ramon is bound by the City of Danville to the north, County lands to the east and west, and the Contra Costa – Alameda County boundary to the south. In conjunction with the first round MSR in 2009, LAFCO deferred action on the City’s SOI due to concerns between the Town of Danville and the City of San Ramon regarding future development Contra Costa LAFCO Municipal Service Review Update 19-21 Chapter 19 and competing interests in the Tassajara Valley. Representatives and officials from Danville, San Ramon, and Contra Costa County subsequently discussed these concerns and agreed that any future Danville and San Ramon SOI requests would not conflict with or overlap boundaries. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of San Ramon. 19.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF SAN RAMON Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of San Ramon MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of San Ramon plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, office, commercial, retail, mixed use, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan (2015). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of San Ramon. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years, and in conjunction with recent annexations (Dougherty Valley, Chang). PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of San Ramon appears adequate. The City of San Ramon anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST All communities of interest within the City’s municipal boundary are included within the SOI. Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the City of San Ramon. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the City of San Ramon and therefore no present or probable need for the City to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. Contra Costa LAFCO 19-22 Municipal Service Review Update C 20 HAPTER C W C ITY OF ALNUT REEK 20.1 AGENCY OVERVIEW The City of Walnut Creek, incorporated in 1914, covers an area of approximately 19.5 square miles. With an estimated population of 70,667, the City has a population density of approximately 3,533 persons per square mile.1 The City of Walnut Creek lies in central Contra Costa County, with the cities of Concord and Pleasant Hill to the north, Lafayette to the west, and County lands to the south and east. The Sphere of Influence (SOI) for the City of Walnut Creek is mostly coterminous with the municipal boundary, with numerous islands and pockets as shown in Figure 20.1. The City adopted the countywide Urban Limit Line in 2008. Land uses in the City include a mix of residential, commercial, community, agricultural, and open space. Agricultural uses include grazing, equestrian, or agricultural pursuits. 20.1.1 FORM OF GOVERNMENT The City of Walnut Creek is a general law city operating under a council-manager form of government. The publicly elected City Council consists of five members. Council members serve four-year terms and the Mayor rotates each year. 1 California Department of Finance, January 1, 2018 estimate. Available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ Contra Costa LAFCO Municipal Service Review Update 20-1 Figure 20.1. City of Walnut Creek Municipal Boundary and Sphere of Influence June 2019 City of Walnut Creek 20.1.2 CITY STAFFING Total City staffing for fiscal year (FY) 2017 included 363 full-time equivalent (FTE) employees. Table 20.1 shows the four service areas with the highest staffing levels. TABLE 20.1 CITY OF WALNUT CREEK HIGHEST STAFFING LEVELS BY SERVICE AREA SERVICE AREA FY 2017 FTE Police 117.0 Public Works 107.0 Arts and Recreation 54.0 Community and Economic Development 37.5 Source: City of Walnut Creek Similar to other cities in Contra Costa County, the police function had the highest staffing level in the City of Walnut Creek, with 117.0 FTE employees. 20.1.3 JOINT POWERS AUTHORITIES The City of Walnut Creek is a member of various joint powers authorities (JPAs), which are listed in Table 20.2. TABLE 20.2 CITY OF WALNUT CREEK JOINT POWERS AUTHORITY MEMBERSHIP JOINT POWERS AUTHORITY SERVICE Association of Bay Area Governments Strengthen cooperation and collaboration among local governments to provide innovative and cost effective solutions to common problems that they face. Central Contra Costa Solid Waste Authority Provides solid waste services for Central Contra Costa County residents and businesses. Contracts for solid waste and recycling services, and provides member agencies economies of scale for solid waste services. Allows the agency to report its members’ disposal and diversion quantities together in a single report. Reduce the time and expense of creating multiple reports. Opportunity to facilitate the implementation of other shared programs in the future, and may have additional benefits. Contra Costa LAFCO Municipal Service Review Update 20-3 Chapter 20 JOINT POWERS AUTHORITY SERVICE Central Contra Costa Transit Authority Provides fixed route and paratransit bus service throughout central Contra Costa County; manages the county’s transportation sales tax program and oversees countywide transportation planning efforts CSAC – Excess Insurance Authority Provides risk coverage programs and risk management services East Bay Regional Communications Systems Provides risk coverage programs and risk management services East/Central County Wastewater Management — Authority Marin Clean Energy JPA Achieving greater local involvement over the provision of electric services and promoting competitive and renewable energy Municipal Pooling Authority To manage risks and pooling or purchasing coverage for losses PACE Program JPA 2014 — Regional Government Services Provide certain management, administrative, special, or general services for members and other public agencies TRANSPAC Responsible for the development of transportation plans, projects and programs for the Central County areas as well as the appointment of two representatives to the Contra Costa Transportation Authority who serve alternating two-year terms Western Riverside Council of Governments To permit the provision of property assessed clean energy (PACE) program services Source: City of Walnut Creek 20.1.4 AWARDS AND RECOGNITION Table 20.3 lists the awards the City of Walnut Creek has reported receiving since the first round Municipal Service Review (MSR). Contra Costa LAFCO 20-4 Municipal Service Review Update City of Walnut Creek TABLE 20.3 CITY OF WALNUT CREEK AWARDS AWARD ISSUER YEAR(S) RECEIVED Agency of the Excellence Award Northern California Chapter of the 2018 International Public Management Association – Human Resources Agency of the Excellence Award Western Region of the International 2018 Public Management Association – Human Resources Award of Merit – Implementation Award, Small American Planning Association – 2018 Jurisdiction – Walnut Creek Shadelands Gateway California Chapter, Northern Section Specific Plan Award of Merit – Economic Development California Association of Local 2018 Partnerships – Walnut Creek Development Economic Development Services Forum Award of Merit – Economic Development California Association of Local 2018 Programs – Walnut Creek Blueprint for Success Economic Development Ceramic Workshops at the Oaks Clay Glass and Art Foundation 2018 Ceramic Workshops at YVHS Clay Glass and Art Foundation 2018 Extension Grant (After School) California Arts Council 2018 Professional Development California Arts Council 2018 Art Afternoons at the Trinity Center Walnut Creek Civic Pride Foundation 2018 Best Art Gallery of the East Bay Diablo Magazine 2018 Best Golf Course of the East Bay Diablo Magazine 2018 Certificate of Achievement in Financial Reporting Government Finance Officers 2013 – 2018 Association Source: City of Walnut Creek 20.2 MUNICIPAL SERVICES OVERVIEW As shown in Table 20.4, municipal services for the City of Walnut Creek are provided by City staff and under contract with other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. Contra Costa LAFCO Municipal Service Review Update 20-5 Chapter 20 TABLE 20.4 CITY OF WALNUT CREEK MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Wave Building / Planning City of Walnut Creek Law Enforcement City of Walnut Creek Library Contra Costa County Lighting City of Walnut Creek Parks and Recreation City of Walnut Creek Solid Waste Republic Services Stormwater City of Walnut Creek Streets City of Walnut Creek Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: City of Walnut Creek The City of Walnut Creek reports the following challenges related to its provision of municipal services: • Managing growth to address the need for housing and economic development while limiting impact related to growth (e.g., provision of municipal services) • Funding capital improvements • CalPERS pension costs A summary of the City’s municipal service level statistics for FY 2017 is provided in Attachment B. 20.2.1 ANIMAL CONTROL Contra Costa County Animal Services is the animal control service provider for the City of Walnut Creek and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. City expenditures for animal control services were $415,907 for FY 2017. Contra Costa LAFCO 20-6 Municipal Service Review Update City of Walnut Creek CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 20.2.2 BROADBAND The City of Walnut Creek does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Wave Broadband are the main internet providers in the City.3 These providers use a variety of wired technologies including cable and DSL. The City of Walnut Creek did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. The City of Walnut Creek received a grade of B+, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The City of Walnut Creek did not indicate concerns about the ability of broadband providers to serve the City’s existing or growing population. 20.2.3 BUILDING/PLANNING The City of Walnut Creek Community and Economic Development Department provides building and planning services. Department expenditures for FY 2017 were $4,037,111, representing an upward trend from $3,272,633 in FY 2015. The City of Walnut Creek issued 3,171 residential and 1,585 commercial building permits in 2017, which is down from 2016. Total building permit valuation in FY 2017 is estimated at $281.4 million, up from $197.3 million in 2015. Planning city-wide has been captured in numerous plans, which include the following: General Plan 2025, Master Plan - Public Facilities, Master Services Plan, Pedestrian Master Plan, Public Art Master Plan, 2016-2026 Ten-Year Capital Investment Program, Creeks Restoration and Trails Master Plan; Specific Plans for Montego Way & La Casa Via, Shadelands Business Park, La Casa Via (2 different areas), Walnut Boulevard and Whitecliff Way, Bridle Lane, South Newell Avenue, Geary 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO Municipal Service Review Update 20-7 Chapter 20 Road/Hall Lane/First Avenue, Alma Avenue, North Gate, East Mt. Diablo, North Main Street and Ygnacio Valley Road, Locust Street and Mt. Diablo Boulevard, Shadelands Gateway, Walnut Creek BART Transit Village, West Downtown, and North Downtown (not final); Redevelopment Plans for South Broadway and Mt. Diablo Boulevard; and the Geary Road/North Main Street Area Wide Plan. 20.2.4 LAW ENFORCEMENT The City of Walnut Creek Police Department provides law enforcement and dispatch services. FY 2017 expenditures were approximately $25.3 million, up from approximately $23.2 million in FY 2015. The City of Walnut Creek has 1.1 FTE sworn personnel per 1,000 population, which represents no change from FY 2015. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 3.9 crimes per sworn FTE in 2017. The property crime and violent crime clearance rates (a measure of crimes solved) are not tracked by the City.6 20.2.5 LIBRARY Contra Costa County provides library services for the City of Walnut Creek at its Walnut Creek Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The Walnut Creek Downtown Library and Ygnacio Valley Library are located in the City of Walnut Creek; Walnut Creek Downtown Library is owned by the City. The City funds 21 extra hours at both libraries, supports maintenance at the Ygnacio Valley Library, and pays for utilities, maintenance, capital improvements, and other building related costs at the Walnut Creek Downtown Library. In FY 2017, the City’s library expenditures were $1,096,800. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 20-8 Municipal Service Review Update City of Walnut Creek downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 20.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the City of Walnut Creek Public Works Department. City expenditures for light and signal maintenance were $1.5 million in FY 2017. The City maintains 99 signalized intersections, 99 traffic lights, and 1,650 street lights. Pacific Gas and Electric maintains approximately 3,000 streetlights within the City of Walnut Creek. 20.2.7 PARKS AND RECREATION The City of Walnut Creek Public Works Department is the service provider for parks and recreation facilities, and the Arts and Recreation Department is the service provider for recreation programs. FY 2017 expenditures for parks were approximately $6.4 million, up from approximately $5.2 million in FY 2015. The City offers arts and recreation programs and activities for all ages. The City provides and maintains 44 park acres per 1,000 residents, 2 recreation centers per 20,000 residents, and 52 miles of recreation trails. The City of Walnut Creek has developed several master plans to guide park planning; these include plans for the following: Alma Park, Arbolado Park, Civic Park, Diablo Shadows Park, El Divisadero Neighborhood Park, Heather Farm Park, Howe Homestead Park, Old Oak Park, Rudgear Park, San Miguel Park, Tice Valley Park, Valle Verde Park, Walden Park, and Creekwalk at Civic Park. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The City’s level of service standard is 5 acres per 1,000 residents. 20.2.8 SOLID WASTE Solid waste services are provided to the City of Walnut Creek by RecycleSmart via franchise agreement with Republic Services.8 RecycleSmart handles all of the City’s solid waste services and contracts. The City does not have any direct solid waste expenditures. The City-specific data for tons of waste disposed per capita and per resident disposal rate was not available. The City does not report the tons of waste disposed per capita. RecycleSmart reports this information for the entire JPA service area, and does not break it out by jurisdiction when reporting 8 RecycleSmart is a dba of Central Contra Costa Solid Waste Authority Contra Costa LAFCO Municipal Service Review Update 20-9 Chapter 20 it to CalRecycle. In 2017, the tons of waste disposed per capita and per resident for the RecycleSmart service area was 3.7 pounds/person/day. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 20.2.9 STORMWATER/DRAINAGE The City of Walnut Creek Public Works Department provides and maintains the City’s stormwater drainage system. The City reports that they have 100 miles of closed storm drain lines and that 4% of their 4,010 storm drain inlets are equipped with trash capture. The City of Walnut Creek also reports compliance with National Pollution Discharge Elimination System standards. FY 2017 expenditures for streets were $1.2 million. 20.2.10 STREETS/ROADS The City of Walnut Creek Public Works Department provides and maintains 213 street miles and approximately 32 Class 1 and 2 bike lane miles, as well as landscaped medians and other public landscaped areas. FY 2017 expenditures for streets were $10.8 million, representing a downward trend from $12.8 million in FY 2015. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in the City of Walnut Creek was 73 (good) in 2017, up from 71 in 2015, but remains below the target PCI of 75 (good) MTC has established.9 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 20.2.11 UTILITIES The City of Walnut Creek is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides PG&E customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and Pacific Gas & Electric provide electricity service to the City, and customers may choose either service provider. PG&E also provides gas service to the City of Walnut Creek. The City of Walnut Creek did not indicate concerns about the ability of utility service providers to serve the City’s existing or growing population. 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 20-10 Municipal Service Review Update City of Walnut Creek 20.3 FINANCIAL OVERVIEW This section provides an overview of the City of Walnut Creek’s financial health and assesses the City’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Comprehensive Annual Financial Reports (CAFRs), current budget documents, and City staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 20.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the City. According to the City's FY 2018-19 budget, the City’s General Fund revenues of $88.8 million slightly exceed General Fund expenditures of $88 million.10 The projected FY 2019 General Fund budget allocates $300,000 to reserves. The budget projects ending FY 2019 General Fund reserve balances totaling $42.6 million, or about 48% of annual expenditures. Reserves include, for example, Catastrophic Emergency reserves ($8.8 million), Fiscal Emergency reserves ($4.6 million), and Capital Projects - General Fund portion ($16 million).11 The City’s FY 2019 budget indicates that “the budget ensures the City has adequate funding available during this budget cycle to maintain services, infrastructure and facilities, and meet all reserve policy requirements.12 Table 20.5 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. The City's 10-year Long-Term Financial Forecast projects General Fund deficits beginning in FY 2019, largely attributable to increasing California Public Employees Retirement System pension costs.13 The shortfalls are exacerbated by a predicted flattening of sales tax growth and delay in an anticipated new hotel. The City's FY 2019 budget indicates that service levels and reserves have been maintained through short-term actions, but does not identify specific longer-term strategies. 10 City of Walnut Creek Adopted Biennial Budget Fiscal Year 2018 - 2020, pg. A-3. 11 ibid, Walnut Creek Budget FY 202018-20, pg. D-15-16. 12 ibid, Walnut Creek Budget FY 202018-20, pg. A-2 13 ibid. Contra Costa LAFCO Municipal Service Review Update 20-11 Chapter 20 TABLE 20.5 CITY OF WALNUT CREEK SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Sales Tax $22,261,000 $24,923,000 $24,022,000 Property Tax $18,492,000 $19,961,000 $21,596,000 Other Revenues (including Transfers) $45,387,000 $44,086,000 $42,699,000 Total General Fund Revenues $86,140,000 $88,970,000 $88,317,000 Change from Prior Year n/a 3.3% -0.7% GENERAL FUND EXPENDITURES General Government and $4,950,000 $4,733,000 $5,602,000 Administration Public Safety $23,250,000 $24,385,000 $25,338,000 Other (includes Transfers Out) $49,340,000 $52,689,000 $54,136,000 Total Expenditures $77,540,000 $81,807,000 $85,076,000 Change from Prior Year n/a 5.5% 4.0% Expenditures per capita $1,169 $1,168 $1,199 LIQUIDITY RATIO 1 Governmental Activities 6.8 8.3 6.9 Business-type Activities 7.5 5.2 4.7 Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 20.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the City's governmental activities' liquidity ratio was 6.9, indicating that short-term resources were greater than current liabilities (see Attachment C).14 Enterprise Fund liquidity ratios declined from FY 2015 through FY 2017 and were 4.7 in FY 2017. 14 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 20-12 Municipal Service Review Update City of Walnut Creek The City's total outstanding debt has been declining over time. Total outstanding debt was approximately $52 per capita in FY 2017, indicating slight reductions compared to the $55 per capita reported for FY 2015 (see Attachment C). 20.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The City has maintained a positive net position for governmental activities, improving from FY 2015 to FY 2017; the negative unrestricted portion also improved over that period from $19.9 million in FY 2015 to $3.8 million in FY 2017 (see Attachment C). 20.3.4 LOCAL REVENUE MEASURES The City has no voter-approved local sales tax measures or other voter-approved General Fund revenue sources. 20.3.5 ENTERPRISE ACTIVITIES The City's enterprise operations include the Boundary Oaks public golf course and the Downtown Parking operation. The golf course revenues appear to be sufficient to cover City golf course administration and debt service related to recent clubhouse improvements. Revenues from the parking operation cover the Downtown Parking & Enhancement Fund operations and a portion of revenues are transferred to the Capital Program. 20.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the City may pass that expense on to taxpayers. The City's unfunded pension liability at FY 2017 totaled $101.8 million (see Attachment C). In February 2018, the City Council directed staff to create a Section 115 Irrevocable Pension Trust to assist in smoothing future cost increases; the City Council approved approximately $14 million to deposit in the trust to pay for future pension costs. The City does not provide post-retirement benefits and therefore has no other post-employment benefit liability. 20.3.7 CAPITAL ASSETS AND DEPRECIATION FY 2015 through FY 2017 show annual declines in the net value of governmental assets, generally indicating that investments in capital assets are not keeping pace with depreciation (see Attachment C). The City reports that SB-1 gas tax revenues enable the City to keep up with pavement maintenance; however, it does not have sufficient funds to provide upgrades to modernize facilities or replace facilities that have reached or exceeded the end of their useful life. Contra Costa LAFCO Municipal Service Review Update 20-13 Chapter 20 The City's Capital Improvement Program (CIP) includes several very large replacement projects such as replacement of the Clarke Swim Center; however, "there are not adequate funds to replace facilities or build new ones."15 The City Council has directed staff to complete a facility needs assessment to identify current and future facility needs and update Master Plans associated with key community facilities. 20.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The City’s budgets and audited CAFRs are prepared in a timely manner and posted on the agency's website. The City prepares a Long-Term Financial Forecast and a Municipal Maintenance Master Plan that is used for facility management. The Master Plan includes 10-year budget forecasting, asset management plan and condition assessment by facility. 20.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the City of Walnut Creek. 20.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2018 California Department of Finance estimates, the City of Walnut Creek serves 70,667 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that 15 City of Walnut Creek Response to MSR Fiscal Questions. Contra Costa LAFCO 20-14 Municipal Service Review Update City of Walnut Creek considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. Year 2010–2040 ABAG projections for the City of Walnut Creek are depicted in Figure 20.2. ABAG projects that the City of Walnut Creek will grow at an annual rate of approximately 0.7% to a population of 81,265 between 2010 and 2040.16 The City is also projected to experience an approximate 0.4% annual growth rate in jobs between 2010 and 2040. Overall, the City’s planning is expected to accommodate the growth projected by ABAG. JOBS AND HOUSING According to the Bay Area Census data17 for 2010, the City of Walnut Creek has 30,499 employed residents. The ABAG Projections data18 for 2010 estimated 50,855 jobs in the City, with approximately 1.67 jobs for every employed resident. Bay Area Census data for 2010 indicate that the City of Walnut Creek has 32,681 housing units, which results in a job and housing balance of 1.56. The number of owner-occupied units in the City is greater than the number of renter- occupied housing units (Table 20.6), indicating that the rate of homeownership exceeds the rental household rate. 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Projections 2017. Contra Costa LAFCO Municipal Service Review Update 20-15 City of Walnut Creek 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2015 2020 2025 2030 2035 2040 Jobs Households Population Figure 2.20. Population, Job, and Household Growth Projections (2010-2040) City of Walnut Creek June 2019 City of Walnut Creek TABLE 20.6 CITY OF WALNUT CREEK HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 20,262 Renter-occupied housing units 10,181 Vacant housing units 2,238 Total existing housing units 32,681 REGIONAL HOUSING NEED ALLOCATION BY INCOME CATEGORY, 2014–2022 Very low 604 Low 355 Moderate 381 Above Moderate 985 Total Regional Housing Need Allocation 2,235 Sources: ABAG, Bay Area Census and Regional Housing Need Plan for the San Francisco Bay Area: 2014-2022 California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.19 The City of Walnut Creek was assigned a RHNA of 2,235 units, as shown in Table 20.6. The City adopted its General Plan in 2006 and its Housing Element in 2014. The City’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield approximately 3,186 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA. The City of Walnut Creek 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.20 The City of Walnut Creek’s Winter 2018 “Directory of Aging and Adult Resources” lists the numerous programs and services in the areas of health, education, and recreation to meet the needs of adults age 50 and older, as provided by Walnut Creek and other cities and agencies in Contra 19 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 20 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 20-17 Chapter 20 Costa County. This directory is available on the City’s website at: http://www.walnut- creek.org/departments/arts-and-recreation/recreation-parks/adults-50/directory-of-aging-adult- resources. ANTICIPATED GROWTH PATTERNS The City of Walnut Creek reports that they are a “built-out” city (only a nominal amount of vacant residential land), and new development will be in the form of redevelopment. The City reports approximately 1,843 dwelling units and 534,620 square feet of commercial space as either approved or in the approval process. PDAs help form the implementing framework for Plan Bay Area. One PDA has been identified by the City of Walnut Creek and included in Plan Bay Area 2040.21 The West Downtown (or Core Area) PDA, characterized as a City Center, is anticipated to accommodate approximately 78% of the projected growth in households and 25% of the projected growth in employment.22 Priority Conservation Areas (PCAs), which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The City of Walnut Creek has identified Acalanes Ridge Open Space PCA. This PCA is included in Plan Bay Area 2040.23 The City of Walnut Creek, which is mostly built out, does not anticipate that current or projected growth patterns will expand beyond its existing municipal boundary and SOI. 20.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The City of Walnut Creek’s SOI is mostly coterminous with the municipal boundary, with multiple islands and pockets (see Figure 20.1). There are four unincorporated islands in the City of Walnut Creek, as shown in Figure 20.1. These islands include an approximate 55-acre island bounded by Pleasant Hill Road to the west and adjacent to Acalanes Open Space to the south; an approximate 104-acre island (Springbrook Road), generally bounded by Highway 24 and Acalanes Open Space; an approximate 10-acre area bounded by Bancroft Road and Mayhew Way; and an approximate 54-acre area at the intersection of Walnut Blvd and Shady Glen Road. The total population of the unincorporated islands within the SOI is approximately 16,500, which is nearly a quarter of the City’s population. Over the years, residents in these areas have expressed interest in annexing to the City. The City has indicated that due to deferred maintenance of County roads, drainage, and other infrastructure in these areas, the City is unable to annex these areas without significant cost to the affected residents. The City has no plans to annex these areas, but will support annexation requests made by residents. 21 http://opendata.mtc.ca.gov/datasets/priority-development-areas-plan-bay-area-2040 22 MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 23 http://opendata.mtc.ca.gov/datasets/a16ad6d33e8544f79916f236db43715e_0 Contra Costa LAFCO 20-18 Municipal Service Review Update City of Walnut Creek The City does not request any changes to its SOI and indicates that it does not provide services to any unincorporated areas outside its municipal boundaries or SOI. The City does, however, provide service by contract to the City of Lafayette (street sweeping), the City of Concord (open space management and maintenance of Lime Ridge Open Space), and Contra Costa County (signal maintenance of intersections at City borders). DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified disadvantaged communities within the City’s SOI. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 20.4.3 CITY SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The City of Walnut Creek reports that it adequately serves all areas within its municipal boundary and SOI and anticipates it will continue to do so in the foreseeable future. The disadvantaged communities within and contiguous to the City’s SOI receive sewer, water, and fire protection services. Contra Costa LAFCO Municipal Service Review Update 20-19 Chapter 20 CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS The PCI for City streets is 73, which indicates the City’s streets are in good condition and primarily require funding at a level to maintain the current condition. When accounting for the projected growth and population increases over the next five years, as well as the identified challenges related to its provision of municipal services, the City may experience funding obstacles to maintaining existing service levels or meeting overall infrastructure needs. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The City reports that it funds high priority projects that keep the basic functions of its facilities intact; however, they are not currently able fully fund facility upgrade or replacement. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The City is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the City’s General Plan. The City’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The City provides an array of municipal services, including those related to building/planning, law enforcement, lighting, parks and recreation, stormwater, and streets. Services related to animal control, broadband, library, solid waste, and utilities are provided via contract with Contra Costa County, public vendors, or private vendors. Contra Costa LAFCO 20-20 Municipal Service Review Update City of Walnut Creek With the exception of the library, the City does not share services. The City owns several facilities which are leased by other agencies, including: • Lindsay Wildlife Experience • Gardens at Heather Farm • UC Master Gardeners • Walnut Creek Historical Society • Assistance League of Diablo Valley • Heather Farm Equestrian Center • Walnut Creek Model Railroad Society • Walnut Creek Downtown • Walnut Creek Library No areas of overlapping responsibilities or additional opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 20.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES As with other cities in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. Overall, the City of Walnut Creek appears to have sufficient financial resources to continue providing services; however, it has reported that there are not adequate funds to replace facilities or build new ones. The City’s ability to accommodate infrastructure expansion, improvements, or replacement over the next five years may be compromised absent the identification of additional funding opportunities. OPERATING GENERAL FUND AND RESERVES TRENDS The City of Walnut Creek has been operating with a surplus in their General Fund. The City’s reserve goal is unknown, and therefore it is unknown whether they meet their goal; however, the City projects a General Fund reserve of 48% for FY 2019. With this reserve level, the Contra Costa LAFCO Municipal Service Review Update 20-21 Chapter 20 City appears able to maintain an acceptable level of service provision and to enact changes to maintain services. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The City reported a liquidity ratio of 6.9, which indicates the City has the means available to cover its existing obligations in the short run. Total debt was approximately $52 per capita for FY 2017 and has been declining. The City's unfunded pension and OPEB liabilities continue to grow; however, the City has established a trust to help address the increasing pension liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The City issued its CAFR approximately 6 months after fiscal year end, which is considered timely. The CAFR was audited by an independent CPA and received a clean opinion. Overall, the CAFRs are clearly presented; however, the City could incorporate changes to improve the transparency of its financials. For example, certain tables in the CAFR extend over multiple pages; however, the left-most column does not carry over to multiple pages, affecting the readability of the tables. 20.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CITY GOVERNANCE INFORMATION The City of Walnut Creek website provides public access to the agendas and minutes for the City Council and its various boards and commissions; the City’s budgets; and the City’s CAFRs. City Council meetings are streamed on the City’s website and are broadcast and captioned on cable television. Access to electronic subscriptions is made available for updates on a variety of topics concerning the City, including a monthly City Manager’s update. The City therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CITY PLANNING INFORMATION The City of Walnut Creek website provides public access to the City’s general plan as well as various development plans and projects. The City therefore adequately provides accountability with regard to municipal and land use planning. Contra Costa LAFCO 20-22 Municipal Service Review Update City of Walnut Creek PUBLIC INVOLVEMENT The City of Walnut Creek website provides public access to public hearing notices, including the time and place at which City residents may provide input, as well as other opportunities for public involvement in the City decision-making process. Public hearing notices are posted near the project site and the City Hall bulletin board. Newsletters are also distributed to City residents. The City therefore adequately provides accountability with regard to citizen participation. 20.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 20.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the City of Walnut Creek is mostly coterminous with the municipal boundary, with several small extensions, as shown in Figure 20.1. The City of Walnut Creek is bound by the cities of Concord and Pleasant Hill to the north, Lafayette to the west, and County lands to the south and east. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the City of Walnut Creek. 20.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CITY OF WALNUT CREEK Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this City of Walnut Creek MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) The City of Walnut Creek plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses, including residential, business park, commercial, retail, mixed use, agricultural, and open space. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan (2006). PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the City of Walnut Creek. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years, particularly as higher-density development replaces older lower-density development. Contra Costa LAFCO Municipal Service Review Update 20-23 Chapter 20 PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the City of Walnut Creek appears adequate. The City of Walnut Creek anticipates it will continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST There are several communities of interest within the City’s SOI. Residents in these areas have Walnut Creek addresses, travel City streets, attend City schools, and are surrounded by the City of Walnut Creek. This report recommends that the City consider annexing these island and pocket areas. Contra Costa LAFCO has not identified other social or economic communities of interest relevant to the City of Walnut Creek. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within the City’s SOI. These areas receive sewer, water, and fire protection services. Contra Costa LAFCO 20-24 Municipal Service Review Update C 21 HAPTER C C S ROCKETT OMMUNITY ERVICES D ISTRICT 21.1 AGENCY OVERVIEW The Crockett Community Services District (CSD), formed in 2006, covers an area of approximately 1.3 square miles and includes the unincorporated towns of Crockett and Port Costa, located in two separate and distinct areas. With an estimated combined population of 3,331, the CSD has a population density of approximately 2,562 persons per square mile.1 The Crockett CSD lies in western Contra Costa County with the Carquinez Strait to the north, and County and East Bay Regional Park lands to the south, east, and west. The Sphere of Influence (SOI) for the Crockett CSD is coterminous with the service area boundary, with the exception of one parcel located west of Canyon Lake Drive (Port Costa area), as shown in Figure 21.1. Land uses in the CSD are almost entirely residential and include parks and recreation, open space, and some agricultural land uses as designated in the Contra Costa County General Plan for grazing livestock or dry grain farming. 21.1.1 FORM OF GOVERNMENT The publicly elected CSD Board of Directors consists of five members; members serve staggered four-year terms. 21.1.2 AGENCY STAFFING The CSD has eight year-round employees with various levels of regular hours. The four staffing functions with the highest FTE include the General Manager, Sanitary Department Manager, Recreation Facilities Manager, and Recreation Event Supervisor. In addition, the CSD operates a summer aquatics center from Memorial Day through Labor Day with 24 to 27 part-time employees. For FY 2017 seasonal staffing included an additional 6.57 FTE employees. 21.1.3 JOINT POWERS AUTHORITIES The Crockett CSD is a not member of any joint powers authorities. 1 American Community Survey, 2016 estimate. Available at: https://censusreporter.org Contra Costa LAFCO Municipal Service Review Update 21-1 August 2017 Page 03‐2 Contra Costa LAFCO Directory of Local Agencies Figure 21.1. Crockett Community Services District Boundary and Sphere of Influence June 2019 Crockett CSD 21.1.4 AWARDS AND RECOGNITION The Crockett CSD reports that it has not received any awards since the 2009 Municipal Service Review (MSR). 21.2 MUNICIPAL SERVICES OVERVIEW The Crockett CSD primarily provides recreation and sewer services within its service area. As shown in Table 21.1, other municipal services for the Crockett CSD are provided by other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 21.1 CROCKETT CSD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning Contra Costa County Law Enforcement Contra Costa County Library Contra Costa County Lighting Contra Costa County Parks and Recreation Crockett CSD Solid Waste Richmond Sanitary Service dba Crockett Garbage Company Stormwater Contra Costa County Streets Contra Costa County Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: Crockett CSD The Crockett CSD reports the following challenges related to its provision of services: • The community of Port Costa is very small and is required to maintain its own wastewater collection system and treatment plant. The financial burden to the community is great with Contra Costa LAFCO Municipal Service Review Update 21-3 Chapter 21 such a small population supporting the service. The average property owner income thresholds limit grant opportunities and taking on extra debt burden may be required to maintain services. Long-term solutions are being investigated to provide alternatives to the existing method of wastewater treatment. • Majority of residential lots in older neighborhoods of Crockett and Port Costa are smaller lots of 5,000 square feet or less, were designed with narrow streets, and have limited off- street parking options. The state continues to work to address the housing shortages and recent legislation allowing Accessory Dwelling Units to be added to single-family residential units will impact the community as more duplexes and in-law apartments are added. The smaller lot size is below the County minimum standard lot size square feet and therefore property owners must regularly apply for variances with the County building and planning departments which causes an undue burden on property owners in Crockett and Port Costa. Parking solutions will need to be considered by the County, with input from the community, for some neighborhoods in Crockett and Port Costa as Accessory Dwelling Units are added. The Crockett CSD no longer collects capacity charge revenue when Accessory Dwelling Units are added. The fiscal impact to the Crockett CSD is minimal with the estimated annual loss of revenue at $3,234. 21.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the Crockett CSD and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 21.2.2 BROADBAND The Crockett CSD does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers for the CSD.3 These providers use a variety of wired technologies including cable and DSL. The Crockett CSD did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO 21-4 Municipal Service Review Update Crockett CSD The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. Contra Costa County received a grade of C+, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The Crockett CSD did not indicate concerns about the ability of broadband providers to serve the CSD’s existing or growing population. 21.2.3 BUILDING/PLANNING The Contra Costa County Department of Conservation and Development provides building and planning services for the County, including the Crockett CSD. Department expenditures for FY 2017 were not reported or were unavailable at the time of this MSR update. The County issued 121 residential and 6 commercial building permits for the Crockett CSD in 2017. Total building permit valuation in FY 2017 is estimated at approximately $2.4 million. 21.2.4 LAW ENFORCEMENT The Contra Costa County Sheriff’s Office provides law enforcement and dispatch services for the County, including the Crockett CSD. FY 2017 expenditures for the Sheriff’s Office were approximately $229.3 million, up from approximately $217.8 million in FY 2015. The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 Crime clearance rates are a measure of crimes solved.6 Total property crime clearances were reported at 125 and total violent crime clearances were reported at 340 for FY 2017. The CSD is assigned one Resident Deputy who works only in the Town of Crockett. This position is funded from the Crockett Cogeneration power plant Return-to-Source property tax revenue. Additionally, one of the Bay Station beats, staffed by one Deputy, covers Crockett. The property crime closure rate was reported as 59% and the violent crime closure rate was reported as 100% for FY 2017, up from 47% and 80% respectively in FY 2016. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO Municipal Service Review Update 21-5 Chapter 21 21.2.5 LIBRARY Contra Costa County provides library services for the Crockett CSD at its Crockett Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 21.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the Contra Costa County Public Works Department. FY 2017 expenditures for light and signal maintenance were not reported or were unavailable at the time of this MSR update. The signalized intersections, traffic lights, and street lights maintained by the County were not reported or were unavailable at the time of this MSR update. The Crockett CSD owns 29 decorative streetlamps that are located throughout the downtown area. As part of an agreement for taking ownership of the decorative streetlamps, funding for the continuing operation of the streetlamps is considered annually by the Crockett Community Foundation and ongoing maintenance is managed by a local non-profit group, Crockett Public Services, at no cost to the Crockett CSD. 21.2.7 PARKS AND RECREATION The Crockett Recreation Department is the service provider for parks and recreation facilities and recreation programs for Crockett and Port Costa residents. FY 2017 expenditures for recreation facilities were approximately $549,292 in FY 2017, up from approximately $488,667 in FY 2015. These amounts include capital replacement and capital improvement projects which can fluctuate annually as projects are completed. Actual Operating & Maintenance expenditures were $493,467 in FY 2017, up from $463,504 in FY 2015. Minimum wage increases in recent years have affected 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 21-6 Municipal Service Review Update Crockett CSD the seasonal aquatics payroll expense as pay scales for instructor and lifeguard positions have been increased along with minimum wage increases. The CSD provides various classes and programs including swim lessons, dance and exercise classes, bocce, and special events. The CSD provides and maintains 1.8 park acres per 1,000 residents and 0.33 recreation centers per 20,000 residents. The facilities include the Crockett Community Center, Crockett Aquatics Center, Alexander Park, and adjacent hillside. The Community Center auditorium is rented out and is primarily funded through rental fees. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The County’s General Plan identifies the neighborhood park standard as 2.5 acres per 1,000 population and the community park standard as 1.5 acres per 1,000 population, with the goal of achieving a level of park and recreational facilities at 4 acres per 1,000 population. 21.2.8 SOLID WASTE Solid waste services are provided to the Crockett CSD via franchise agreement between Contra Costa County and Richmond Sanitary Service, doing business as Crockett Garbage Service. As such, there are no expenditures for solid waste. The CSD-specific data for tons of waste disposed per capita and per resident disposal rate for FY 2017 were not available. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 21.2.9 STORMWATER/DRAINAGE The Contra Costa County Public Works Department maintains the Crockett CSD stormwater drainage system. FY 2017 expenditures for streets were not reported or were unavailable at the time of this MSR update. 21.2.10 STREETS/ROADS The miles of public roads in the Crockett CSD provided and maintained by the Contra Costa County Public Works Department were not reported or were unavailable at the time of this MSR update. FY 2017 expenditures for streets were not reported or were unavailable at the time of this MSR update. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect the pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO Municipal Service Review Update 21-7 Chapter 21 The PCI for streets in Contra Costa County was 70 (good) in 2017, up from 69 in 2015, but remains below the target PCI of 75 (good) MTC has established.8 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 21.2.11 UTILITIES Pacific Gas & Electric provides electricity and gas service to the Crockett CSD. The Crockett CSD did not indicate concerns about the ability of utility service providers to serve its existing or growing population. 21.3 FINANCIAL OVERVIEW This section provides an overview of the Crockett CSD’s financial health and assesses the CSD’s financial ability to provide services. Key financial information for municipal operations derives from 2015 through 2017 Audited Financial Reports, current budget documents, and CSD staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 21.3.1 FUND BALANCES AND RESERVES Crockett CSD services are funded via several funds, including the Community Services / Administration,9 Recreation, and Maintenance funds. Funds categorized under Sanitary Department include the Port Costa Operating Fund, Crockett Operating Fund, and Crockett Construction Fund. The CSD also maintains a separate Crockett Sanitary Reserve Fund. For purposes of this MSR, governmental activities include the Community Services/Administration, Recreation, and Maintenance funds. The Community Services District/Administration fund is used to receive property tax revenue and tax adjustments from the County. The funds are allocated and transferred to the respective operating funds of the Crockett Sanitary Department and Recreation Department based on the historical tax rate allocation in place prior to the CSD’s formation in 2006. The CSD prepares an annual budget. According to the CSD's FY 2018-19 budget for governmental activities including administration, recreation and (non-sanitary fund) maintenance, total revenues of $1.11 million are less than total expenditures of $1.23 million.10 One primary factor for the shortfall in the budget is an underfunded expenditure for improvements to the Memorial Hall.11 The Recreation Fund nearly covers its operating expenditures through charges for services, property taxes, and a recreation tax; its FY 2019 budget shows a shortfall of $34,000. FY 2019 budget shortfalls also appear in the sanitation funds. Combined reserves for the CSD totaled $3.88 million 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 The Crockett CSD’s budget and Audited Financial Reports alternately use the terms “Community Services” and “Administration.” 10 Crockett Community Services District FY 2018/19 Budget, Adopted 6/27/2018. 11 FY 18/19 Maintenance Department Adopted Budget (6/27/2018) - Fund 3242. Contra Costa LAFCO 21-8 Municipal Service Review Update Crockett CSD for all funds, representing an increase over the prior year $3.4 million total; however, Port Costa reserves appear to be low.12 Governmental activities fund revenues generally exceed expenditures for the combination of administration, recreation, and (non-sanitary fund) maintenance activities.13 Table 21.2 summarizes prior year changes in governmental activities expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. TABLE 21.2 CROCKETT CSD SUMMARY OF GOVERNMENTAL ACTIVITIES FUNDS AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GOVERNMENTAL ACTIVITIES FUND REVENUES Property Tax1 $419,000 $437,000 $461,000 Other Revenues (including Transfers In) $538,000 $586,000 $560,000 Total Revenues $957,000 $1,023,000 $1,002,000 Change from Prior Year n/a 6.9% -0.2% GOVERNMENTAL ACTIVITIES FUND EXPENDITURES Administration, Recreation, and Maintenance $455,000 $464,000 $521,000 Operations (non-sanitary) Other (includes Cash Transfers Out) $398,000 $416,000 $487,000 Total Expenditures $853,000 $880,000 $1,008,000 Change from Prior Year n/a 3.2% 14.5% Expenditures per capita $375 $387 $443 LIQUIDITY RATIO 2 Business-type Activities 7.9 4.7 5.6 Source: Attachment C 1 FY 2016 property taxes partially allocated to Sanitary/Crockett Operating Fund. The total tax for FY16 is shown here before allocations for comparison purposes. 2 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 12 FY17 Audited Financial Report, Note 2, pg. 10. 13 Crockett CSD FY 2018/19 Budget. Contra Costa LAFCO Municipal Service Review Update 21-9 Chapter 21 21.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. The CSD's governmental activities current obligations are nominal; therefore, its cash and investments provide significant liquidity by comparison. The FY 2017 enterprise activity liquidity ratio was a combined 5.6, indicating adequate cash and investments.14 The Port Costa Operating Fund, which provides sanitary services, had only $100,000 of cash and investments compared to $570,000 of liabilities; the liabilities included interdepartmental loans from the Crockett Sanitary Department.15 The two interdepartmental loans were made to pay off higher interest rate municipal and county loans related to treatment plant upgrades completed before the Crockett CSD took over the Port Costa treatment plant. The CSD reported debt obligations totaling $642,000 in FY 2017 for loans that funded Crockett sewer improvements. 21.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The CSD’s Audited Financial Reports indicate a relatively stable net position for combined business-type activities for FY 2017 compared to FY 2015.16 The Port Costa Fund component shows a significant decline from $1.3 million in FY 2015 to about $900,000 in FY 2017, resulting from the inability of sanitary rates charged to meet Port Costa sanitary expenditures. The ending balance for the CSD’s governmental activities improved slightly for FY 2017 compared to FY 2016. Liabilities totaling $1.14 million were reallocated from Community Services to other departments in FY 2016, resulting in an improved governmental activities balance.17 21.3.4 LOCAL REVENUE MEASURES A CSD is not authorized to adopt voter-approved local tax measures or other voter-approved General Fund revenue sources, other than rates and charges for services, and assessment, e.g., for landscape and lighting maintenance. The CSD’s financial documents only report income from property taxes, which are assumed to be generated entirely from the CSD’s share of the Proposition 13-related 1% property taxes. No assessments for landscape and lighting or other purposes are identified; the taxes are used in the sanitary funds. 14 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 15 The CSD's Audited Financial Reports do not provide information about the interdepartmental transfers and loans. 16 Changes in FY 2016 are not clear—a decline in FY16 appears to be the result of a restatement of beginning net position that is not explained. 17 The nature of the liability and means of elimination is not apparent in the Audited Financial Reports. Contra Costa LAFCO 21-10 Municipal Service Review Update Crockett CSD The FY 2019 budget reports a recreation parcel tax assessment. The recreation assessment of $110 is assessed against every residential parcel in the district annually. 21.3.5 ENTERPRISE ACTIVITIES The Crockett Operating Fund, which provides sanitary services, is funded by property tax in addition to sewer use charges, and revenues equal expenditures (after including the use of capital reserves for capital expenditures by the Fund). However, Port Costa Operating Fund revenues, which consist only of sewer service charges, fall short of expenditures by about $33,000 in FY 2019 and also are short in prior years.18 According to the CSD, the Port Costa community "is unable to support a sizeable increase to their annual sewer use charges which are already one of the highest (if not the highest) in the greater Bay Area."19 Inadequate rate revenues, in addition to the lack of property tax revenues, contribute to the ongoing Port Costa Operating Fund shortfalls. Inadequate operating and capital reserves for the Port Costa system are also a consequence. According to the CSD, Port Costa paid off its largest interdepartmental loan in 2019 which will result in $54,000 being available annually to address operational and capital improvements projects with the collection system and treatment plant. The second interdepartmental loan is expected to be paid in off by 2025. The Recreation Fund nearly covers its expenditures, according to the adopted FY 2019 budget. The Fund receives charges for services, property taxes, and a recreation parcel assessment tax. The Maintenance Fund relies almost entirely on grants and donations to fund services including "insurance for downtown decorative street lamps, Crockett’s downtown plaza, landscaping at Crockett’s bridgehead, and for Crockett’s Memorial Hall renovation."20 The CSD has no plans to request additional taxes from its residents to cover these expenditures. 21.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When an agency’s General Fund revenue is insufficient to cover pension expenses, the agency may pass that expense on to taxpayers. The CSD's FY 2017 Audited Financial Report reported its unfunded pension liability at $99,000. No other post-employment benefit obligations were reported. The CSD has been meeting its required California Public Employees’ Retirement System contributions for FY 2015 through FY 2017.21 18 Crockett CSD FY 2018/19 Budget. 19 Crockett CSD Response to MSR Fiscal Questions. 20 Crockett CSD Response to MSR Fiscal Questions. 21 FY17 Audited Financial Report, Note 6, pg. 22. Contra Costa LAFCO Municipal Service Review Update 21-11 Chapter 21 21.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of Governmental Fund depreciable capital assets declined over FY 2016 and FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation. As noted above, the CSD relies on grants, donations, and volunteers for maintenance and improvement of many of its recreation and community facilities. 21.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The CSD's budgets and Audited Financial Reports are prepared in a timely manner and posted on the agency's website. The CSD's Audited Financial Reports report payment of debt service; however, they do not provide any further detail about the debt. The Audited Financial Report documents were not electronically searchable. According to the CSD, various reserve reports have been provided to its Board, most commonly in budget support documentation, but "they have not been converted to PDF or electronically archived into one centralized location."22 The CSD made the same comment with respect to other reports such as financial forecasts, asset management plans, and conditions assessments. No other financial reports were provided for the purposes of this MSR Update. 21.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the Crockett CSD. 21.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2016 American Community Survey data, the Crockett CSD serves 3,331 residents. 22 Crockett CSD Response to MSR Fiscal Questions. Contra Costa LAFCO 21-12 Municipal Service Review Update Crockett CSD PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. ABAG projects that unincorporated Contra Costa County will grow at an annual rate of approximately 0.7% to a population of 199,105 between 2010 and 2040.23 Unincorporated Contra Costa County is also projected to experience an approximate 0.5% annual growth rate in jobs between 2010 and 2040. JOBS AND HOUSING The Bay Area Census does not provide jobs and employment data for the Crockett CSD.24 The ABAG Projections data25 for 2010 provides jobs and employment estimates for unincorporated Contra Costa County only. For 2010, ABAG estimated 35,790 jobs and 76,035 employed residents in unincorporated areas of the County, which equates to approximately 0.47 job for every employed resident. The jobs/housing ratio is 0.62. Bay Area Census data26 estimates for 2016 indicate that the Crockett CSD has 1,759 housing units (Table 21.3). The number of owner-occupied units in the CSD is greater than the number of renter- occupied housing units, indicating that the rate of homeownership exceeds the rental household rate. 23 ABAG. Projections 2017. 24 A Bay Area Census data are derived from US Census data specific to the Bay Area and includes mostly population and housing characteristics for Census Designated Places. 25 ABAG. Projections 2017. 26 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. Contra Costa LAFCO Municipal Service Review Update 21-13 Chapter 21 TABLE 21.3 CROCKETT CSD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 861 Renter-occupied housing units 684 Vacant housing units 214 Total existing housing units 1,759 Source: ABAG Bay Area Census. Available at: http://www.bayareacensus.ca.gov/cdp/cdp.htm California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.27 The Crockett CSD was not assigned a RHNA; therefore, Contra Costa County data is provided. Contra Costa County adopted its General Plan in 2000 and its Housing Element in 2015. The County’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 3,590 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA of 1,367 housing units. The West County Subregion of the County, which includes the Crockett CSD, accounts for 389 of the housing unit potential. The Contra Costa County 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.28 The Crockett Sanitary and Port Costa Sanitary departments have an Access and Repair Agreement program whereby low interest loans are offered to senior citizens if their building sewer lateral is defective and it would be financial hardship to replace it otherwise. The Recreation Department contracts with Contra Costa County to provide a senior nutrition program to seniors in Crockett and greater West Contra Costa County. Aqua Zumba is offered as a summer pool recreation program and is well attended by those who want a low impact workout. 27 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 28 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO 21-14 Municipal Service Review Update Crockett CSD ANTICIPATED GROWTH PATTERNS PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified for the Crockett CSD in Plan Bay Area or the County General Plan. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Crockett CSD has not identified any Priority Conservation Areas in Plan Bay Area or the County’s General Plan. The Crockett CSD did not report that current or projected growth patterns will expand beyond its existing service area boundary and SOI. 21.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Crockett CSD’s service boundary and SOI are coterminous, with the exception of one parcel located west of Canyon Lake Drive (Port Costa area; see Figure 21.1). The CSD does not request any changes to its SOI. The CSD reports that it provides services to one Port Costa property that is within its SOI but outside its service area boundary. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. This MSR Update identified disadvantaged communities within and contiguous to the CSD’s SOI. LAFCO is required to consider the need for sewer, municipal and industrial water, or structural fire protection services within identified disadvantaged communities as part of a SOI update for cities and special districts that provide such services. These services have been recently reviewed under the 2nd Round EMS/Fire Services Municipal Service Review/Sphere of Influence Updates and the Contra Costa County Water and Wastewater Agencies Combined Municipal Service Review and Sphere of Influence Study (2nd Round), adopted in 2016 and 2014 respectively, and remain unchanged. 21.4.3 CSD SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the Contra Costa LAFCO Municipal Service Review Update 21-15 Chapter 21 status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Crockett CSD reports that it adequately serves all areas within its service area and SOI and is likely to continue to do so in the foreseeable future based on available information. The disadvantaged communities within and contiguous to the CSD’s SOI receive sewer, water, and fire protection services. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of services, obstacles to maintaining existing service levels or meeting infrastructure needs are not anticipated for the CSD. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The CSD did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The CSD is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the County’s General Plan. The County’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. Contra Costa LAFCO 21-16 Municipal Service Review Update Crockett CSD CURRENT SHARED SERVICES The CSD provides parks and recreation services within its service area. All other services for the CSD—including those related to animal control, broadband, building/planning, law enforcement, library, lighting, stormwater, streets, and utilities—are provided through Contra Costa County, public vendors, or private vendors. The CSD does not share facilities or services covered under this review. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 21.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES The Crockett CSD is experiencing some fiscal challenges that may affect its ability to provide services, particularly in the event of unexpected funding needs. Overall, and despite these fiscal challenges, the Crockett CSD is likely to have sufficient financial resources to continue providing services. The CSD’s ability to accommodate infrastructure expansion, improvements, or replacement over the next five years may be compromised absent the identification of additional funding opportunities. The net value of Governmental Fund depreciable capital assets declined over FY 2016 and FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation. The Port Costa Operating Fund, which provides sanitary services, had only $100,000 of cash and investments compared to $570,000 of liabilities; the liabilities included interdepartmental loans from the Crockett Sanitary Department as reported in the FY 2017 Audited Financial Reports. Port Costa Operating Fund revenues, which consist only of service charges, fall short of expenditures by about $60,000 in FY 2019, continuing a shortfall trend in prior years. OPERATING GENERAL FUND AND RESERVES TRENDS The Crockett CSD has been operating with a surplus in their Government Activities Fund, and projects a FY 2019 deficit for the Port Costa Operating Fund. Contra Costa LAFCO Municipal Service Review Update 21-17 Chapter 21 The CSD’s Port Costa reserve goal is unknown, and therefore it is unknown whether they meet their goal and whether they are able to maintain an acceptable level of service provision and to enact changes to maintain services. Combined reserves totaled $3.88 million for all funds for FY 2017; however, Port Costa reserves appear to be low. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The CSD reported a liquidity ratio of 5.6, which indicates the CSD has the means available to cover its existing obligations in the short run. Total debt has been declining and was approximately $283 per capita for FY 2017. The CSD's unfunded pension and OPEB liabilities continue to grow; however, the CSD has not identified measures to address the increasing pension liabilities. As with other agencies in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The CSD issued its Audited Financial Reports approximately 6 months after fiscal year end, which is considered timely. The Financial Report was audited by an independent CPA and received a clean opinion. Overall, the Audited Financial Reports are clearly presented; however, the CSD could incorporate the following changes to improve the transparency of its financials: • Add a label or footnote for the debt payments and link them to the detail provided in the Audited Financial Reports’ notes for reporting payment of debt service. • Ensure future Audited Financial Reports are electronically searchable. • Ensure clear documentation and explanation throughout (e.g., see GASB 68 adjustments in FY 2016 Audited Financial Report, Statements of Revenues, Expenses, and Changes in Net Position). • Include greater narrative detail in the budgets and Audited Financial Reports to help the reader understand the activities of the District and their financial status, beyond the basic financial reports. • Separately list debt service payments in the Audited Financial Report statements. • Explain the purpose of all reported funds and categorize them in the Audited Financial Reports as “governmental activities” and “business type” or “enterprise” activities, for example. • Make the cost allocations (allocation of administrative costs to individual funds) apparent. • Provide supplemental information in the Audited Financial Reports related to historical documentation of assessed value, debt, and other expenditures and revenues, for example. • Clearly present actual budget results and adjustments in the Audited Financial Reports to reconcile to the financial statements. • Use common documentation in tables and notes for the source fund and destination fund of interfund transfers. • Describe the nature or terms of the loans, including interfund loans. Contra Costa LAFCO 21-18 Municipal Service Review Update Crockett CSD • Ensure that restated beginning of the year net positions match prior year ending position and that the basis for restated amounts is explained. 21.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CSD GOVERNANCE INFORMATION The Crockett CSD website provides public access to the agendas and minutes for the CSD Board meetings and its various committees and commissions; the CSD’s current budget; and the CSD’s annual audit report. The CSD therefore adequately provides accountability with regard to governance and operations. ONLINE AVAILABILITY OF CSD PLANNING INFORMATION The Crockett CSD website provides public access to the CSD’s governance, including meetings, reports, and policies. Building and planning services are provided by Contra Costa County, whose website includes information on its general plan as well as various development plans and projects. The CSD therefore adequately provides accountability with regard to planning. PUBLIC INVOLVEMENT The Crockett CSD website provides public access to public hearing notices, including the time and place at which CSD residents may provide input, as well as other opportunities for public involvement in the CSD decision-making process. Newsletters are also distributed to residents of the CSD. The CSD therefore adequately provides accountability with regard to citizen participation. 21.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 21.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Crockett CSD is coterminous with the service area boundary, with the exception of one parcel located west of Canyon Lake Drive (Port Costa area), as shown in Figure 21.1. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Crockett CSD. Contra Costa LAFCO Municipal Service Review Update 21-19 Chapter 21 21.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE CROCKETT CSD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Crockett CSD MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) Contra Costa County, of which the Crockett CSD is a part, plans for a variety of urban uses within its boundary, representing a continuation of the current mix of land uses. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan. PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the Crockett CSD. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the Crockett CSD appears adequate. The CSD is likely to continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the Crockett CSD. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE This MSR Update identified disadvantaged communities within and contiguous to the CSD’s SOI. These areas receive sewer, water, and fire protection services. NATURE, LOCATION, EXTENT, FUNCTIONS, AND CLASSES OF SERVICES TO BE PROVIDED The Crockett CSD service boundary encompasses approximately 1.3 square miles. The CSD is authorized to provide recreation, lighting, landscaping, and sewer services within its boundary. Crockett CSD provides and maintains 1.8 park acres per 1,000 residents. CSD recreation facilities include the Crockett Community Center, Crockett Aquatics Center, Alexander Park, and adjacent hillside. Contra Costa LAFCO 21-20 Municipal Service Review Update C 22 HAPTER D C S D IABLO OMMUNITY ERVICES ISTRICT 22.1 AGENCY OVERVIEW The Diablo Community Services District (CSD), formed in 1969 as a successor to the Diablo Public Utility District, covers an area of approximately 1.4 square miles. With an estimated population of 807, the CSD has a population density of approximately 594 persons per square mile.1 The Diablo CSD lies in central Contra Costa County between the unincorporated communities of Alamo and Blackhawk/Tassajara, with the Town of Danville to the southwest. The Sphere of Influence (SOI) for the Diablo CSD is coterminous with the service area boundary, as shown in Figure 22.1. Land uses in the CSD are almost entirely residential and include some agricultural land uses as designated in the Contra Costa County General Plan for grazing livestock or dry grain farming. 22.1.1 FORM OF GOVERNMENT The publicly elected CSD Board of Directors consists of five members; members serve staggered four-year terms. The CSD Board members also serve on the Diablo Municipal Advisory Council, which advises the Contra Costa County Planning Commission and Board of Supervisors in matters pertaining to planning and zoning in Diablo. 22.1.2 AGENCY STAFFING Administrative staffing for the CSD is provided by the District General Manager. The Diablo CSD has no employees; all services are provided by contract. 22.1.3 JOINT POWERS AUTHORITIES The Diablo CSD is not a member of any joint powers authorities. 22.1.4 AWARDS AND RECOGNITION The Diablo CSD has not reported receiving any awards since the 2009 Municipal Service Review (MSR). 1 American Community Survey, 2016 estimate. Available at: https://censusreporter.org Contra Costa LAFCO Municipal Service Review Update 22-1 Figure 22.1. Diablo Community Services District Boundary Contra Costa LAFCO Directory of Local Agencies August 2017 and Sphere of InPaflgeu 0e3n‐4 ce June 2019 Diablo CSD 22.2 MUNICIPAL SERVICES OVERVIEW The Diablo CSD primarily provides police/security; road, bridge, and culvert maintenance; and recreation services within its service area through various service contracts. As shown in Table 22.1, other municipal services for the Diablo community are provided by other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 22.1 DIABLO CSD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning Contra Costa County Law Enforcement Contra Costa County, Diablo CSD Library Contra Costa County Lighting Contra Costa County, Diablo CSD Parks and Recreation Diablo CSD Solid Waste Contra Costa County Sanitary District, Republic Services Stormwater Contra Costa County Streets Diablo CSD Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: Diablo CSD The Diablo CSD identified the following challenge related to the provision of services—although they expect to meet goals related to service provision (roads, law enforcement/security, and parks and recreation), the cost of defending the CSD against a lawsuit filed at the end of 2017 and subsequent judicial rulings may affect the CSD’s ability to meet those goals. 22.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the Diablo CSD and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a Contra Costa LAFCO Municipal Service Review Update 22-3 Chapter 22 smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 22.2.2 BROADBAND The Diablo CSD does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers for the CSD.3 These providers use a variety of wired technologies including cable and DSL. The Diablo CSD did not indicate concerns about the availability or reliability of high-speed internet services, although there have been informal complaints from residents with regard to both speed and reliability. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. Contra Costa County received a grade of C+, which indicates that internet service providers meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 At this time, the Diablo CSD is not indicating concerns about the ability of broadband providers to serve the CSD’s existing or growing population. 22.2.3 BUILDING/PLANNING The Contra Costa County Department of Conservation and Development provides building and planning services for the County, including the Diablo CSD. Department expenditures for FY 2017 were not reported or were unavailable at the time of this MSR update. The County issued 57 residential and 1 commercial building permits for the Diablo CSD in 2017. Total building permit valuation in FY 2017 is estimated at approximately $3 million. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 22-4 Municipal Service Review Update Diablo CSD 22.2.4 LAW ENFORCEMENT The Diablo CSD provides police/security services to the residents of Diablo through a contract with the Contra Costa County Sheriff’s Office. The CSD has its own police vehicle and a dedicated County deputy, plus a contract with the Sheriff’s Office to provide additional hours of patrol. FY 2017 expenditures for the Sheriff’s Office were approximately $229.3 million, up from approximately $217.8 million in FY 2015. The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 Crime clearance rates are a measure of crimes solved.6 Total property crime clearances were reported at 125 and total violent crime clearances were reported at 340 for FY 2017. Diablo CSD is staffed by 1 Resident Deputy who works 40 hours per week; the area is also covered by a larger beat that is staffed by 1 Deputy. The property crime closure rate was reported as 63% in FY 2017, down from 100% in FY 2016. There were no violent crime cases assigned to the Sheriff’s Department in FY 2017 or FY 2016. 22.2.5 LIBRARY Contra Costa County provides library services for the Diablo CSD at its nearby Danville Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 22-5 Chapter 22 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 22.2.6 LIGHTING The Diablo CSD has the power to provide street lighting. The CSD allows landscape lighting only. Traffic lights are provided and maintained by the Contra Costa County Public Works Department. 22.2.7 PARKS AND RECREATION The Diablo CSD provides maintenance services for the equestrian/pedestrian path (Kay’s Trail) between Alameda Diablo and Mt. Diablo Scenic Boulevard, the road island on Alameda Diablo, and contributes to maintenance of Diablo’s entrances. FY 2017 expenditures for parks were $3,500. The number of park acres per 1,000 residents, recreation centers per 20,000 residents, and miles of recreation trails for the CSD were not reported or were unavailable at the time of this MSR update. Major park facilities in the County are owned by the federal and State governments, along with an extensive system owned and operated by East Bay Regional Park District. The State Department of Parks and Recreation owns Mt. Diablo State Park, Cowell Ranch State Historic Park, and Franks Tract State Recreation Area. The East Bay Regional Park District currently maintains numerous parks with internal trail systems in addition to regional trails within or partially within the County. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The County’s General Plan identifies the neighborhood park standard as 2.5 acres per 1,000 population and the community park standard as 1.5 acres per 1,000 population, with the goal of achieving a level of park and recreational facilities at 4 acres per 1,000 population. 22.2.8 SOLID WASTE The Diablo CSD does not provide solid waste services. Contra Costa County Sanitary District has responsibility for solid waste services. Republic Services provides waste disposal and trash pick-up. The FY 2017 waste disposal rates were not reported or were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 22.2.9 STORMWATER/DRAINAGE The Contra Costa County Public Works Department maintains the Diablo CSD stormwater drainage system. Contra Costa LAFCO 22-6 Municipal Service Review Update Diablo CSD 22.2.10 STREETS/ROADS According to its formation document, the Diablo CSD maintains “certain roads . . . which are subject to right-of-way by the public but have not been accepted into the county road system,” as well as the bridges and culverts in Diablo.8 Routine and emergency maintenance is contracted out to the MCE Corporation and large projects are contracted out through a bidding process. The number of street miles were not reported or were unavailable at the time of this MSR update. There are no bike lanes within the CSD. FY 2017 expenditures for roads, bridges, and culverts were $595,837. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect the pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in Contra Costa County was 70 (good) in 2017, up from 69 in 2015, but remains below the target PCI of 75 (good) MTC has established.9 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. The Diablo CSD is part of the unincorporated area of the County, as are the roadways that run through the CSD. The County has not accepted the roads within the Diablo CSD into the County road system. And with the exception of a portion of Caballo Ranchero Drive, the County does not maintain the roads in Diablo. Thus, pursuant to the Streets and Highways Code, the County is not liable for failure to maintain these roads. The roads within the CSD are, on occasion, used by individuals who do not live in the CSD, including U.S. Postal Service customers, guests of the residents and Diablo Country Club, individuals providing services to the residents, as well as bicycling enthusiasts and other members of the general public seeking access to Mt. Diablo State Park. At the end of 2017, seven residents who live along Calle Arroyo sued the CSD, the Diablo Country Club and other Calle Arroyo property owners, seeking to prohibit public access to that road.10 The complaint consisted of three causes of action: one action for quiet title and two causes of action requesting declaratory relief. In the quiet title action, the plaintiff-property owners sought to establish that Calle Arroyo is not burdened by an easement for general public use. The complaint claimed that Calle Arroyo is a private road owned by the homeowners on that road and the Diablo Country Club, and that there is no express or implied dedication of an easement to the public in the roadway. A motion for summary adjudication of the quiet title cause of action was heard in the Contra Costa County Superior Court on February 9, 2018. On November 19, 2018, an order was filed granting the motion and finding that there is no express or implied easement giving the general public to the right use Calle Arroyo. 8 Available online at: https://www.diablocsd.org/ 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 10 Tiernan, et al., v. Diablo Community Services District, et al., Contra Costa County Superior Court Case No. MSC 17-02529. Contra Costa LAFCO Municipal Service Review Update 22-7 Chapter 22 As of the date of this report, the remainder of the case, asking the court to declare that a portion of Calle Arroyo road is private property and determine whether Diablo CSD is obligated to close a cut-through path from Alameda Diablo to Mt. Diablo Scenic, is still pending. The court has not been asked to decide whether limited public use of Calle Arroyo by residents, people going to the Diablo Country Club, utility workers, delivery people, landscapers and other guests is sufficient to justify the continued expenditure of public funds on that road. The resolution of that issue is beyond the scope of this report and is left to the judgment of governing body of the Diablo CSD. There is ongoing discord in the Diablo community regarding public use on Calle Arroyo. It would be beneficial to the community for the Diablo CSD to seek a legal opinion to resolve this issue. There is also the issue of ongoing maintenance of Mt. Diablo Scenic Blvd. This road is deteriorating due to lack of maintenance and other challenges. LAFCO encourages the District, County, and State Parks to work together to develop a plan for short and long term maintenance of this road. 22.2.11 UTILITIES Diablo CSD is a member of the Marin Clean Energy (MCE) Community Choice Aggregation program. MCE provides Pacific Gas & Electric (PG&E) customers the choice of having 50% to 100% of their electricity supplied from renewable sources. Both MCE and PG&E provide electricity service to the CSD, and customers may choose either service provider. PG&E also provides gas service to the Diablo CSD. The Diablo CSD did not indicate concerns about the ability of utility service providers to serve the CSD’s existing or growing population. 22.3 FINANCIAL OVERVIEW This section provides an overview of the Diablo CSD’s financial health and assesses the CSD’s financial ability to provide services. Key financial information for municipal operations derives from 2015 through 2017 Audited Financial Reports, current budget documents, and CSD staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 22.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the CSD. According to the CSD's FY 2018-19 budget, the District’s General Fund revenues of $734,000 are $116,000 less than recurring General Fund expenditures of $850,800.11 The primary factor for the shortfall and use of reserves is a budgeted periodic $315,000 expenditure for road maintenance. The budget projects a FY 2019 ending fund balance of $290,000 which is approximately 43% of FY 2019 expenditures. The FY 2019 budget allocates $102,000 of its net position to capital 11 Diablo Community Services District (CSD) 2018-2019 Draft Budget, amended August 2018. Note: budget includes $9,063 depreciation. Contra Costa LAFCO 22-8 Municipal Service Review Update Diablo CSD reserves. Table 22.2 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. TABLE 22.2 DIABLO CSD SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $364,000 $395,000 $424,000 Other Revenues (including Transfers) $230,000 $235,000 $254,000 Total General Fund Revenues $594,000 $630,000 $678,000 Change from Prior Year -10.2% 6.1% 7.6% GENERAL FUND EXPENDITURES General Government and $76,000 $84,000 $86,000 Administration Public Safety $333,000 $357,000 $361,000 Public Works $685,000 $323,000 $599,000 Capital Outlay $43,000 Total Expenditures $1,094,000 $764,000 $1,089,000 Change from Prior Year 51.3% -30.2% 42.5% Expenditures per capita $1,355 $946 $1,350 LIQUIDITY RATIO 1 Governmental Activities 21.7 17.7 6.8 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 22.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. In FY 2017 the CSD's governmental activities' liquidity ratio was 6.8, indicating that short-term resources were greater than current liabilities.12 The ratio declined significantly due to reductions in current assets; the liquidity ratio was 21.7 in FY 2015 and 17.7 in FY 2016 (see Attachment C). 12 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO Municipal Service Review Update 22-9 Chapter 22 The CSD's Audited Financial Reports report no outstanding debt obligations. 22.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The CSD’s positive net position declined from $780,000 in FY 2015 to $271,000 in FY 2017; the unrestricted portion, which accounts for the majority of the net assets, also declined over that period (see Attachment C). 22.3.4 LOCAL REVENUE MEASURES Ad valorem taxes represent nearly two-thirds of the CSD's revenues. The balance had been composed largely of non-tax "Road and Security Fees" charged to residents. Voters approved Measure B, a special tax replacing Road Security Fees, in 2018. The funds from this tax must be used to provide security/police protection services, as well as to maintain roads, bridges, culverts, and trails within the Diablo CSD. A CSD is not authorized to adopt voter-approved local tax measures or other voter-approved General Fund revenue sources, other than rates and charges for services, and assessment, e.g., for landscape and lighting maintenance. 22.3.5 ENTERPRISE ACTIVITIES The District has no enterprise activities. 22.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When an agency’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. The CSD does not provide a pension or other post-employment benefits as it has no employees, and therefore has no related obligations or unfunded liabilities. The CSD’s FY 2019 budget shows two independent consultants, a General Manager and a General Counsel. 22.3.7 CAPITAL ASSETS AND DEPRECIATION The CSD's primary asset is its patrol vehicle which is replaced periodically using its allocated fund balance. With the exception of County-owned Caballo Ranchero Drive, the roads, bridges, and culverts within the CSD are owned by the adjacent property owners and are not listed as Diablo CSD assets, The CSD maintains most of the privately owned roads. For example, from FY 2015 through FY 2017 the CSD expended about $1.3 million for road, bridge, and culvert maintenance, which explains the reduction in the CSD's fund balance over that period as noted above. Contra Costa LAFCO 22-10 Municipal Service Review Update Diablo CSD The CSD's seven-year forecast shows annual expenditures for road maintenance ranging from $126,000 to $401,000 annually, in addition to periodic bridge maintenance. The purchase of a new vehicle is projected to occur in FY22. The forecast estimates a growing ending fund balance through FY25.13 22.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the Governmental Accounting Standards Board (GASB) by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The CSD’s budgets and Audited Financial Reports are prepared in a timely manner. The Diablo CSD prepares a 7-year forecast to assist with financial planning and budgeting. Only the most recent budget, audit and financial transactions report are posted on the agency's website. 22.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the Diablo CSD. 22.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2016 American Community Survey data, the Diablo CSD serves 807 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent 13 Diablo CSD 2018-2019 Draft Budget, 7 Year Budget, 2019-2025. Contra Costa LAFCO Municipal Service Review Update 22-11 Chapter 22 with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. ABAG projects that unincorporated Contra Costa County will grow at an annual rate of approximately 0.7% to a population of 199,105 between 2010 and 2040.14 Unincorporated Contra Costa County is also projected to experience an approximate 0.5% annual growth rate in jobs between 2010 and 2040. Projected growth data specific to the CSD is not included in the ABAG projections. JOBS AND HOUSING The Bay Area Census does not provide jobs and employment data for the Diablo CSD.15 The ABAG Projections data16 for 2010 provides jobs and employment estimates for unincorporated Contra Costa County only. For 2010, ABAG estimated 35,790 jobs and 76,035 employed residents in unincorporated areas of the County, which equates to approximately 0.47 job for every employed resident. The jobs/housing ratio is 0.62. Bay Area Census data17 estimates for 2010 indicate that the Diablo CSD has 439 housing units (Table 22.3). The number of owner-occupied units in the CSD is greater than the number of renter- occupied housing units, indicating that the rate of homeownership exceeds the rental household rate. TABLE 22.3 DIABLO CSD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 380 Renter-occupied housing units 32 Vacant housing units 27 Total existing housing units 439 Source: ABAG Bay Area Census. Available at: http://www.bayareacensus.ca.gov/cdp/cdp.htm California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.18 The Diablo CSD was not assigned a RHNA; therefore, Contra Costa County data is provided. 14 ABAG. Projections 2017. 15 A Bay Area Census data are derived from US Census data specific to the Bay Area and includes mostly population and housing characteristics for Census Designated Places. 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO 22-12 Municipal Service Review Update Diablo CSD Contra Costa County adopted its General Plan in 2000 and its Housing Element in 2015. The County’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 3,590 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA of 1,367 housing units. The Central County Subregion of the County, which includes the Diablo CSD, accounts for 1,090 of the housing unit potential. The Contra Costa County 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.19 The Diablo CSD does not provide specific programs for adults age 50 and older. ANTICIPATED GROWTH PATTERNS PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified for the Diablo CSD in Plan Bay Area or the County General Plan. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Diablo CSD has not identified any Priority Conservation Areas in Plan Bay Area or the County’s General Plan. The Diablo CSD did not report that current or projected growth patterns will expand beyond its existing service area boundary and SOI. 22.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Diablo CSD’s service boundary and SOI are coterminous (see Figure 22.1). The CSD does not request any changes to its SOI and indicates that it does not provide services to any areas outside its service area boundary or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. 19 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 22-13 Chapter 22 There are no disadvantaged communities within or contiguous to the SOI for the Diablo CSD and therefore, no disadvantaged communities are relevant to this analysis. 22.4.3 CSD SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Diablo CSD appears to adequately serve all areas within its service area and SOI and is likely to continue to do so in the foreseeable future based on available information. There are no disadvantaged communities within or contiguous to the CSD’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of services, obstacles to maintaining existing service levels or meeting infrastructure needs are not anticipated for the CSD. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The CSD did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The CSD is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the County’s General Plan. The County’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. Contra Costa LAFCO 22-14 Municipal Service Review Update Diablo CSD STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The CSD provides police/security, street lighting parks and recreation, and streets services through various contracts. All other services for the CSD—including those related to animal control, broadband, building/planning, law enforcement, library, traffic lighting, solid waste, stormwater, and utilities—are provided through Contra Costa County, public vendors, or private vendors. The CSD does not share facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. 22.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the Diablo CSD appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The Diablo CSD has been operating with a deficit in their General Fund, and the FY 2019 budget shows that expenditures exceed revenues. Contra Costa LAFCO Municipal Service Review Update 22-15 Chapter 22 The CSD’s reserve goal is unknown, and therefore it is unknown whether they meet their goal. The FY 2019 ending fund balance is projected to be approximately 30% of expenditures. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether an agency has the means available to cover its existing obligations in the short run. The CSD reported a liquidity ratio of 6.8, which indicates the CSD has the means available to cover its existing obligations in the short run. The CSD has no outstanding debt obligations. The CSD does not provide a pension or other post-employment retirement benefits and has no related liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The CSD issued its Audited Financial Report approximately 6 months after fiscal year end, which is considered timely. The Financial Report was audited by an independent CPA and received a clean opinion. 22.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CSD GOVERNANCE INFORMATION The Diablo CSD website provides public access to the agendas and minutes for the CSD Board meetings as well as for the Diablo Municipal Advisory Council meetings; the CSD’s current budget; and the CSD’s annual audit report. The CSD therefore adequately provides accountability with regard to governance and operations. ONLINE AVAILABILITY OF CSD PLANNING INFORMATION The Diablo CSD website provides public access to the CSD’s governance, including meetings, reports, and policies. Building and planning services are provided by Contra Costa County, whose website includes information on its general plan as well as various development plans and projects. The CSD therefore adequately provides accountability with regard to planning. PUBLIC INVOLVEMENT The Diablo CSD website provides public access to public hearing notices, including the time and place at which CSD residents may provide input, as well as other opportunities for public Contra Costa LAFCO 22-16 Municipal Service Review Update Diablo CSD involvement in the CSD decision-making process. The CSD therefore adequately provides accountability with regard to citizen participation. 22.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 22.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Diablo CSD is coterminous with the service area boundary, as shown in Figure 22.1. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Diablo CSD. 22.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE DIABLO CSD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Diablo CSD MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) Contra Costa County, of which the Diablo CSD is a part, plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan. PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the Diablo CSD. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the Diablo CSD appears adequate. The CSD is likely to continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the Diablo CSD. Contra Costa LAFCO Municipal Service Review Update 22-17 Chapter 22 PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the Diablo CSD and therefore no present or probable need for the CSD to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. NATURE, LOCATION, EXTENT, FUNCTIONS, AND CLASSES OF SERVICES TO BE PROVIDED The DCSD service boundary encompasses approximately 1.4+ square miles. The District is authorized to provide recreation, street lighting, police/security services, road maintenance and Municipal Advisory Council services. Contra Costa LAFCO 22-18 Municipal Service Review Update C 23 HAPTER D B C S ISCOVERY AY OMMUNITY ERVICES D ISTRICT 23.1 AGENCY OVERVIEW The Discovery Bay Community Services District (CSD), formed in 1998, covers an area of approximately 9 square miles. With an estimated population of 14,765, the CSD has a population density of approximately 1,641 persons per square mile.1 The Discovery Bay CSD lies in eastern Contra Costa County with the City of Brentwood to the west, and County lands to the north, south, and east. The Sphere of Influence (SOI) for the Discovery Bay CSD extends beyond its service boundary to the north (Learning Lane area), as shown in Figure 23.1. Land uses in the CSD include a mix of residential, commercial, recreation, open space, as well as some agricultural land uses as designated in the Contra Costa County General Plan for grazing livestock or dry grain farming. The agricultural uses are within the SOI for the CSD, but not in the service boundary. 23.1.1 FORM OF GOVERNMENT The publicly elected CSD Board of Directors consists of five members; members serve staggered four-year terms. The Discovery Bay CSD meets twice monthly on the first and third Wednesday of each month at 7:00 p.m. at the Community Center located at 1601 Discovery Bay Boulevard in Discovery Bay. 23.1.2 AGENCY STAFFING Total CSD staffing for fiscal year (FY) 2017 included 18 full-time equivalent (FTE) employees. The administrative function and parks and landscape function had the highest staffing levels in the Discovery Bay CSD, with 7.0 FTE employees each. 1 American Community Survey, 2016 estimate. Available at: https://censusreporter.org Contra Costa LAFCO Municipal Service Review Update 23-1 Figure 23.1. Discovery Bay Community Services District Boundary Contra Costa LAFCO Directory of Local Agencies August 2017 and Sphere of InPaflgeu 0e3‐n6 ce June 2019 Discovery Bay CSD 23.1.3 JOINT POWERS AUTHORITIES The Discovery Bay CSD is a member of one joint powers authority—Discovery Bay Public Financing Authority. The Discovery Bay CSD formed a local Groundwater Sustainability Agency (GSA) for the purpose of preparing a Groundwater Sustainability Plan pursuant to the Sustainable Groundwater Management Act. The Discovery Bay GSA has entered into a Memorandum of Understanding with seven local GSAs to work together in the development of a Groundwater Sustainability Plan. 23.1.4 AWARDS AND RECOGNITION The awards the Discovery Bay CSD has reported receiving since the 2009 Municipal Service Review (MSR) include the Gold-Level District of Distinction and the District of Transparency Certificate of Excellence. 23.2 MUNICIPAL SERVICES OVERVIEW The Discovery Bay CSD is authorized to provide water, wastewater, flood control/levee services2, lighting, landscape maintenance, and park and recreation services within its service area. As shown in Table 23.1, other municipal services for the Discovery Bay CSD are provided by other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 23.1 DISCOVERY BAY CSD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast Building / Planning Contra Costa County Law Enforcement Contra Costa County Library Contra Costa County Lighting Contra Costa County Parks and Recreation Discovery Bay CSD Solid Waste Mt. Diablo Resource Recovery Stormwater Contra Costa County 2 Specifically to Discovery Bay West Village II, III, and IV. Contra Costa LAFCO Municipal Service Review Update 23-3 Chapter 23 SERVICE SERVICE PROVIDER Streets Contra Costa County Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice n/a Source: Discovery Bay CSD The Discovery Bay CSD did not report specific challenges or opportunities related to its provision of services. 23.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the Discovery Bay CSD and most all of Contra Costa County. Animal licensing services are provided via CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.3 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 23.2.2 BROADBAND The Discovery Bay CSD does not provide public broadband service. XFINITY from Comcast and AT&T Internet are the main internet providers for the CSD.4 These providers use a variety of wired technologies including cable and DSL. The Discovery Bay CSD did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. Contra Costa County received a grade of C+, which indicates that internet service providers 3 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 4 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Contra Costa LAFCO 23-4 Municipal Service Review Update Discovery Bay CSD did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.5 While broadband services are available to the CSD, no specific data exist regarding whether service providers for the CSD meet the CPUC’s minimum download and upload standards. The Discovery Bay CSD did not indicate concerns about the ability of broadband providers to serve the CSD’s existing or growing population. 23.2.3 BUILDING/PLANNING The Contra Costa County Department of Conservation and Development provides building and planning services for the County, including the Discovery Bay CSD. Although the CSD has no land use or zoning authority, the CSD does advise the County on decisions related to residential and commercial development. The County issued 821 residential and 13 commercial building permits for the Discovery Bay CSD in 2017. Total building permit valuation in FY 2017 is estimated at approximately $52.3 million. Planning for the CSD has been captured in their mission statement, and five-year master plans, and other water and wastewater services plans and studies. Discovery Bay CSD reports that it will be developing a recreation master plan. Two projects (Newport Pointe and Pantages Bay) have been approved by the County and will require annexation to the Discovery Bay CSD. 23.2.4 LAW ENFORCEMENT The Contra Costa County Office of the Sheriff provides law enforcement and dispatch services for the County, including the Discovery Bay CSD. Although the CSD has no land use or zoning authority, a police advisory committee (P-6) does advise the County on decisions related to police services. FY 2017 expenditures for the Sheriff’s Department were approximately $229.3 million, up from approximately $217.8 million in FY 2015. The Sheriff’s Office reported 677 FTE for FY 2017, up from 664 FTE in FY 2016, with an average of 1.02 sworn staff per 1,000 population. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.6 Crime clearance rates are a measure of crimes solved.7 Total property crime clearances were reported at 125 and total violent crime clearances were reported at 340 for FY 2017. 5 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. 6 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 7 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. Contra Costa LAFCO Municipal Service Review Update 23-5 Chapter 23 The CSD is staffed by 2 Resident Deputies, each of whom works 40 hours per week. Discovery Bay CSD is also part of a larger regular beat that is staffed by one Deputy. The property crime closure rate was reported as 80% in FY 2017, up from 75% in FY 2016; the violent crime closure rate was reported as 47% for FY 2017, down from 49% in FY 2016. 23.2.5 LIBRARY Contra Costa County provides library services for the Discovery Bay CSD via its Discovery Bay Library Connection, which is a free library service that gives residents the opportunity to request items online and pick them up at the Discovery Bay Community Center. The nearby Brentwood Branch Library location also provides services for the CSD. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.8 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 23.2.6 LIGHTING Lighting is provided and maintained by the CSD, Contra Costa County Public Works Department, and homeowners associations. The CSD owns and maintains eight street poles and lights in the Cove Lane area. Throughout its boundaries, the CSD owns and maintains 692 light poles; Pacific Gas and Electric owns and maintains the luminaire, control facilities, and internal pole wiring. Remaining lighting is owned and maintained by Contra Costa County Public Works (street and traffic) and by private homeowners associations (street lighting). 23.2.7 PARKS AND RECREATION The Discovery Bay CSD is the service provider for parks and recreation facilities and programs, as well as public landscaping. FY 2017 expenditures for parks were approximately $1.3 million in FY 2017, down slightly from approximately $1.4 million in FY 2015. 8 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO 23-6 Municipal Service Review Update Discovery Bay CSD In 2003, the CSD took on the responsibility of maintaining the “Common” landscape areas/parks within a portion of the community that is known as the “Discovery Bay Proper Area-Service Area M-8,” which is now called Discovery Bay Lighting & Landscaping Zone #8. The landscape zone #8 encompasses Cornell Park, Roberta Fuss Tot Lot, all common landscape streetscapes, levees, and islands on the east side of Discovery Bay. In 2006, the CSD formed the Discovery Bay Lighting & Landscaping Zone #9 in the Ravenswood Housing Development area, located off of Newport Drive and Slifer Drive, consisting of common landscape areas and a park. The Discovery Bay CSD provides contract services through a maintenance agreement with Contra Costa County to provide maintenance and landscape services to County Zones 35, 57, and 61, which are located within the geographic boundaries of the CSD. These independently funded zones are as follows: • Zone 35: Trail/pathway between Newport Drive and Safeway & the median landscaping on Bixler Road. • Zone 57: Common landscape areas, parking areas & Regatta Park in the Discovery Bay Southwest (Centex) Development. Porthole Drive, Bixler Road – From Regatta Drive South to Highway 4, Pedestrian Walk • Zone 61: Common landscape areas & Slifer Park in the area of the Discovery Bay West housing development from Slifer Park on Newport Drive to the Lakes Home Development on Bixler Road. Park and Ride – Bixler Road Westside to The Lakes Northern most exit (Doesn’t include entries or exits). Point of Timber both sides, Preston Drive, Slifer Drive, Sussex Court, Plymouth Court, Sterling Court, Dorchester Court, Coronado Court, Cambridge Court, Birmingham Court, Berkshire Lane, Sheffield Court, Amesbury Court, and Emerson Court. The CSD provides and maintains 6 park acres per 1,000 residents and 1 recreation center per 20,000 residents. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The County’s General Plan identifies the neighborhood park standard as 2.5 acres per 1,000 population and the community park standard as 1.5 acres per 1,000 population, with the goal of achieving a level of park and recreational facilities at 4 acres per 1,000 population. 23.2.8 SOLID WASTE Solid waste services are provided to the Discovery Bay CSD via franchise agreement with Mt. Diablo Resource Recovery (formerly Discovery Bay Disposal Service). The Discovery Bay CSD FY 2017 expenditures for solid waste services were not reported or were unavailable at the time of this MSR update. The CSD waste disposal rates for 2017 were not reported or were unavailable at the time of this MSR update. Contra Costa LAFCO Municipal Service Review Update 23-7 Chapter 23 Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 23.2.9 STORMWATER/DRAINAGE The Contra Costa County Public Works Department maintains the Discovery Bay CSD stormwater drainage system. 23.2.10 STREETS/ROADS The Contra Costa County Public Works Department maintains public roads in the Discovery Bay CSD. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. The PCI for streets in Contra Costa County was 70 (good) in 2017, up from 69 in 2015, but remains below the target PCI of 75 (good) MTC has established.9 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 23.2.11 UTILITIES Pacific Gas & Electric provides electricity and gas service to the Discovery Bay CSD. The Discovery Bay CSD did not indicate concerns about the ability of utility service providers to serve the CSD’s existing or growing population. 23.3 FINANCIAL OVERVIEW This section provides an overview of the Discovery Bay CSD’s financial health and assesses the CSD’s financial ability to provide services. Key financial information for municipal operations derives from audited 2015 through 2017 Special District Financial Transaction Reports, current budget documents, and CSD staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 23.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the CSD. 9 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition Contra Costa LAFCO 23-8 Municipal Service Review Update Discovery Bay CSD According to the CSD's FY 2018-19 budget, the total revenues of $11.3 million are equal to total expenditures which include operations and debt service of $7.5 million, capital improvements of $3.3 million and funding of infrastructure replacement at $525,000.10 The projected FY 2019 ending operations and contingency reserve balances total $2.9 million or about 39% of total operations and debt service. The FY 2019 budget does not allocate additional funds to reserves pending the finalization of actual FY 2018 ending balances, but proposes a $1.7 million allocation for Capital Improvement Program (CIP) projects (above the total $11.3 million budget noted above).11 Table 23.2 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. Governmental activities include administration and operation of Lighting and Landscaping Zones, largely funded by property taxes and assessments. The CSD did not identify any significant financing issues in light of the "slight" increase in reimbursement revenues from the County's assessment collections.12 In addition to user charges for enterprise services, the CSD collects connection charges from new development; these revenues are dedicated to capital improvements. TABLE 23.2 DISCOVERY BAY CSD SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax1 $0 $0 $0 Other Revenues (excluding Transfers In) $629,000 $473,000 $272,000 Total General Fund Revenues $629,000 $473,000 $272,000 Change from Prior Year n/a 24.8% -42.5% GENERAL FUND EXPENDITURES General Government and Administration $396,000 $349,000 $147,000 Other (includes Transfers Out) $93,000 $39,000 $391,000 Total Expenditures $489,000 $388,000 $538,000 Change from Prior Year n/a -20.7% 38.7% Expenditures per capita $33 $26 $36 10 Discovery Bay Community Services District (CSD) Adopted Operating, Capital Improvement, and revenue budgets for Fiscal Year 2018-19 (Reso. 2018-08), pg. 17. 11 Note: the FY19 Budget summary table on pg. 17 does not show any "Contributions to Reserves"; "Proposed Financing/Reserves for CIP projects" is listed at $1.7 million but not added into the $11.3 million total. 12 ibid, Discovery Bay CSD FY19 budget, pg. 30. Contra Costa LAFCO Municipal Service Review Update 23-9 Chapter 23 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 LIQUIDITY RATIO 1 Governmental Activities 10.5 10.7 11.1 Business-type Activities 7.2 11.4 9.6 Source: Attachment C 1 Property Taxes in the CSD’s financial statements are assessments collected by the County and are deposited to Lighting and Landscape Zone special revenue funds. 2 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 23.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. The District's Governmental Activities current obligations are nominal; therefore, its cash and investments provide significant liquidity by comparison. The FY 2017 Enterprise Activity liquidity ratio was 9.6, indicating adequate cash and investments (see Attachment C).13 The CSD reported $22.3 million total outstanding debt in FY 2017; no outstanding debt was reported in the prior 2 fiscal years. 23.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). Information about the CSD’s net position was not available at the time of the MSR Update. 23.3.4 LOCAL REVENUE MEASURES A CSD is not authorized to adopt voter-approved local tax measures or other voter-approved General Fund revenue sources, other than rates and charges for services, and assessment, e.g., for landscape and lighting maintenance. 23.3.5 ENTERPRISE ACTIVITIES Enterprise facilities, including water and wastewater, show net increases in value cumulatively from FY 2015 through FY 2017 (see Attachment C). 13 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. Contra Costa LAFCO 23-10 Municipal Service Review Update Discovery Bay CSD 23.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When an agency’s General Fund revenue is insufficient to cover pension expenses, the agency may pass that expense on to taxpayers. The CSD has no pension or other post-employment benefit plans or related liabilities. 23.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of Governmental Fund depreciable capital assets declined over FY 2016 and FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation (see Attachment C). The FY 2019 budget indicates that pool renovation will be occurring in FY 2019. Other governmental facilities include a community center and tennis courts. Parks and play structures are funded by the Lighting and Landscaping Zones. The CSD FY 2019 anticipates ending balances in its Infrastructure Replacement Fund of $3.9 million, and Developer Fee Funds also totaling $3.9 million. 23.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the GASB by the users of state and local government financial reports. According to the GASB, financial report information retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The CSD prepares budgets in a timely manner. Its Special District Financial Transaction Report was submitted to the State Controller by January 31 as required. The budgets and audits are available on the Financial Services Division page of the website. The budget does not provide a summary showing department revenues and expenditures, and starting and ending balances. A summary table shows proposed allocations to capital reserves, but apparently these are not added into the totals at the bottom of the table. The sources and uses of funds from the capital accounts (e.g., developer fees received each year, and fee transfers into other funds) are not clear. 23.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below. The following analysis informs the determinations which have been prepared for the Discovery Bay CSD. Contra Costa LAFCO Municipal Service Review Update 23-11 Chapter 23 23.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2016 American Community Survey data, the Discovery Bay CSD serves 14,765 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. ABAG projects that unincorporated Contra Costa County will grow at an annual rate of approximately 0.7% to a population of 199,105 between 2010 and 2040.14 Unincorporated Contra Costa County is also projected to experience an approximate 0.5% annual growth rate in jobs between 2010 and 2040. Overall, the CSD is expected to accommodate its share of the County growth projected by ABAG. JOBS AND HOUSING The Bay Area Census does not provide jobs and employment data for the Discovery Bay CSD.15 The ABAG Projections data16 for 2010 provides jobs and employment estimates for unincorporated Contra Costa County only. For 2010, ABAG estimated 35,790 jobs and 76,035 employed residents in unincorporated areas of the County, which equates to approximately 0.47 job for every employed resident. The jobs/housing ratio is 0.62. Bay Area Census data17 estimates for 2010 indicate that the Discovery Bay CSD has 5,403 housing units (Table 23.3). The number of owner-occupied units in the CSD is greater than the number of renter-occupied housing units, indicating that the rate of homeownership exceeds the rental household rate. 14 ABAG. Projections 2017. 15 A Bay Area Census data are derived from US Census data specific to the Bay Area and includes mostly population and housing characteristics for Census Designated Places. 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. Contra Costa LAFCO 23-12 Municipal Service Review Update Discovery Bay CSD TABLE 23.3 DISCOVERY BAY CSD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 3,873 Renter-occupied housing units 829 Vacant housing units 701 Total existing housing units 5,403 Source: ABAG Bay Area Census. Available at: http://www.bayareacensus.ca.gov/cdp/cdp.htm California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.18 The Discovery Bay CSD was not assigned a RHNA; therefore, Contra Costa County data is provided. Contra Costa County adopted its General Plan in 2000 and its Housing Element in 2015. The County’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 3,590 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA of 1,367 housing units. The East County Subregion of the County, which includes the Discovery Bay CSD, accounts for 2,011 of the housing unit potential. The Contra Costa County 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.19 The Discovery Bay CSD provides some activities and resource information programs for adults age 50 and older, as described in the CSD’s activity guide. ANTICIPATED GROWTH PATTERNS The future development of the Pantages Bay residential waterfront homes project will be in an area surrounded by Discovery Bay and the Newport Pointe residential homes project will be in an area adjoining Discovery Bay. These development projects have been approved by Contra Costa County and the Discovery Bay CSD anticipates these areas will be brought into the Town’s SOI and service 18 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. 19 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO Municipal Service Review Update 23-13 Chapter 23 boundary. The CSD also recognizes the potential for future residential and commercial development surrounding the SOI and Town boundary, which may necessitate future expansion and annexation. PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified for the Discovery Bay CSD in Plan Bay Area or the County General Plan. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Discovery Bay CSD has not identified any Priority Conservation Areas in Plan Bay Area or the County’s General Plan. 23.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Discovery Bay CSD’s SOI extends beyond its service boundary to the north (Learning Lane area; see Figure 23.1). The CSD does not request any changes to its SOI at this time. Discovery Bay CSD reports that it has one out of boundary service agreement for sewer services only and one out of boundary service agreement for water and sewer services. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the Discovery Bay CSD and therefore, no disadvantaged communities are relevant to this analysis. Contra Costa LAFCO 23-14 Municipal Service Review Update Discovery Bay CSD 23.4.3 CSD SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Discovery Bay CSD reports that it adequately serves all areas within its service area boundary and SOI and anticipates it will continue to do so in the foreseeable future. There are no disadvantaged communities within or contiguous to the CSD’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of services, obstacles to maintaining existing service levels or meeting infrastructure needs are not anticipated for the CSD. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A CIP sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The CSD’s CIP provides a five-year outlook and is anticipated to be sufficient to maintain and expand facilities and infrastructure consistent with projected needs in conjunction with the wastewater master plan currently in process. As noted above in Section 23.3.7, the net value of Governmental Fund depreciable capital assets declined over FY 2016 and FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation (see Attachment C). CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The CSD is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the County’s General Plan. The County’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. Contra Costa LAFCO Municipal Service Review Update 23-15 Chapter 23 STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES Of the services reviewed in this MSR, the CSD is authorized to provide park and recreation services, landscaping, and lighting. All other services for the CSD—including those related to animal control, broadband, building/planning, library, lighting, stormwater, streets, and utilities— are provided through Contra Costa County, public vendors, or private vendors. The CSD does not share facilities or services. They do lease an old fire house station from East Contra Costa Fire Protection District for landscaping services (i.e., crew and equipment). No areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities. AVAILABILITY OF EXCESS CAPACITY No excess service or facility capacity was identified as part of this review. 23.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the Discovery Bay CSD appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The Discovery Bay CSD has been operating with a surplus in their General Fund until the deficit in FY 2017. Contra Costa LAFCO 23-16 Municipal Service Review Update Discovery Bay CSD The CSD’s reserve goal is unknown, and therefore it is unknown whether they meet their goal; however, the projected FY 2019 reserve balances are 39% of total operations and debt service. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The CSD reported a liquidity ratio of 11.1, which indicates the CSD has the means available to cover its existing obligations in the short run. Total debt has been increasing and was approximately $1,514 per capita for FY 2017. The CSD does not provide a pension or other post-employment retirement benefits and has no related liabilities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The CSD prepares a Special District Financial Transaction Report which is due on January 31 each year. The District has always submitted financial transactions data to the State Controller by January 31 as required. There have been delays issuing the financial statements due to the County’s time requirements, as the County serves as the District’s treasurer. Overall, the financial reports are clearly presented. The financial statements were audited by an independent CPA and received a clean opinion. 23.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CSD GOVERNANCE INFORMATION The Discovery Bay CSD website provides public access to the agendas and minutes for the CSD Board and its various committees; the CSD’s budgets; and the CSD’s annual audit. The CSD therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CSD PLANNING INFORMATION The Discovery Bay CSD website provides public access to various plans, studies, and projects. The CSD therefore adequately provides accountability with regard to planning within and for the district. Contra Costa LAFCO Municipal Service Review Update 23-17 Chapter 23 PUBLIC INVOLVEMENT The Discovery Bay CSD website provides public access to public hearing notices, including the time and place at which CSD residents may provide input, as well as other opportunities for public involvement in the CSD decision-making process. The CSD sponsors open houses and town halls and distributes newsletters to its residents. The CSD therefore adequately provides accountability with regard to citizen participation. 23.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 23.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Discovery Bay CSD extends beyond its service boundary to the north (Learning Lane area, as shown in Figure 23.1. The Discovery Bay CSD is surrounded by the City of Brentwood to the west, and County lands to the north, south, and east. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Discovery Bay CSD. 23.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE DISCOVERY BAY CSD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Discovery Bay CSD MSR profile. PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) Contra Costa County, of which the Discovery Bay CSD is a part, plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with agricultural and open space uses, as demonstrated in the General Plan. PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES Specific to the services provided by the Discovery Bay CSD, there are no anticipated changes in the type of public services and facilities required within the SOI. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES Specific to the services provided by the Discovery Bay CSD, the present capacity of public facilities appears adequate. The Discovery Bay CSD anticipates it will continue to have adequate capacity during the next five years. Contra Costa LAFCO 23-18 Municipal Service Review Update Discovery Bay CSD EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the Discovery Bay CSD. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE The Discovery Bay CSD does not provide structural fire protection facilities and services within its SOI; it does provide sewer and water facilities and services. There are no disadvantaged communities within or contiguous to the SOI for the Discovery Bay CSD and therefore no present or probable need for these facilities and services for disadvantaged communities. NATURE, LOCATION, EXTENT, FUNCTIONS, AND CLASSES OF SERVICES TO BE PROVIDED The DBCSD service boundary encompasses approximately 6.2+ square miles. The District is authorized to provide water supply; sewage collection, treatment and disposal; levee maintenance; recreation; lighting; landscaping; and maintenance. Contra Costa LAFCO Municipal Service Review Update 23-19 This page intentionally left blank. C 24 HAPTER K P P ENSINGTON OLICE ROTECTION AND C S D OMMUNITY ERVICES ISTRICT 24.1 AGENCY OVERVIEW The Kensington Police Protection and Community Services District (CSD), formed in 1946 and reorganized in 1953, covers an area of approximately 0.9 square mile. With an estimated combined population of 5,602, the CSD has a population density of approximately 5,913 persons per square mile.1 The Kensington CSD lies in western Contra Costa County and is bounded by the City of El Cerrito to the northwest, City of Richmond to the north, the Alameda County cities of Berkeley and Albany to the south, and unincorporated lands to the east. The Sphere of Influence (SOI) for the Kensington CSD is coterminous with the service area boundary, as shown in Figure 24.1. Land uses in the CSD are almost entirely residential, with some open space and commercial uses. There are no agricultural land uses in the Kensington CSD. 24.1.1 FORM OF GOVERNMENT The publicly elected CSD Board of Directors consists of five members; members serve staggered four-year terms. The CSD district has several committees including finance, park planning and recreation, and solid waste. These committees are composed of board members and members of the public. The CSD reports that, in the current draft revision of the Policies and Procedures manual, the Board is proposing to retain only the Finance Committee. 24.1.2 AGENCY STAFFING Total CSD staffing for fiscal year (FY) 2017 was 12 employees and included 9 full-time officers, 1 part-time General Manager, 1 part-time District Administrator, and 1 part-time Police Services Aide. 24.1.3 JOINT POWERS AUTHORITIES The Kensington CSD is a member of one joint powers authority, the East Bay Regional Communications System. 1 American Community Survey, 2016 estimate. Available at: https://censusreporter.org Contra Costa LAFCO Municipal Service Review Update 24-1 Contra Costa LAFCO Directory of Local Agencies Figure 24.1. Keninsgton Police Protection and Community Services District August 2017 Page 03‐10 Boundary and Sphere of Influence June 2019 Kensington CSD 24.1.4 AWARDS AND RECOGNITION The Kensington CSD reports that it did not receive any awards in 2017. 24.2 MUNICIPAL SERVICES OVERVIEW The Kensington CSD provides police protection, waste management, and parks and recreation services within its service area. As shown in Table 24.1, other municipal services for the Kensington community are provided by other service providers. Municipal services considered in this update are discussed individually below. Fire and emergency medical, water, and wastewater services have been reviewed as part of recent MSRs. For comparative purposes, FY 2015 and FY 2017 information is also included where available. TABLE 24.1 KENSINGTON CSD MUNICIPAL SERVICES AND SERVICE PROVIDERS SERVICE SERVICE PROVIDER Animal Control Contra Costa County Broadband AT&T, Comcast, Sonic Building / Planning Contra Costa County Law Enforcement Kensington CSD Library Contra Costa County Lighting Contra Costa County Parks and Recreation Kensington CSD Solid Waste Bay Refuse and Recycling, Kensington CSD Stormwater Contra Costa County Streets Contra Costa County Utilities: Electricity Pacific Gas & Electric Gas Pacific Gas & Electric Community Choice Marin Clean Energy Source: Kensington CSD Opportunities or challenges related to the provision of services for the Kensington CSD were not reported or were unavailable at the time of this MSR update. 24.2.1 ANIMAL CONTROL Contra Costa County Animal Services (CCAS) is the animal control service provider for the Kensington CSD and most all of Contra Costa County. Animal licensing services are provided via Contra Costa LAFCO Municipal Service Review Update 24-3 Chapter 24 CCAS contract with PetData. CCAS operates two shelter locations—the main location is in Martinez and a smaller facility is in Pinole. Expenditures for animal services were not reported or were unavailable at the time of this MSR update. CCAS monthly year-over-year performance reports compare operational performance in various areas against performance from the prior year.2 The August 2018 report indicates a total live intake of 4,783 animals from January through August, down from 8,002 for the same period in 2015. The number of animals adopted from January through August was 1,810, down from a high of 2,283 for the same period in 2017 and 2,017 adoptions in 2015. The overall live release rate was reported as 87.8% in 2017, up from 78.08% in 2015. 24.2.2 BROADBAND The Kensington CSD does not provide public broadband service. XFINITY from Comcast, AT&T Internet, and Sonic are the main internet providers for the CSD.3 These providers use a variety of wired technologies including cable and DSL. The Kensington CSD did not indicate concerns about the availability or reliability of high-speed internet services. The California Public Utilities Commission (CPUC) currently considers 6 megabits per second (Mbps) download and 1.5 Mbps upload speeds to be the standard for adequate residential broadband service. The East Bay Broadband Consortium conducted a study to gather information about broadband availability, infrastructure, and adoption in Alameda, Contra Costa, and Solano counties, using data submitted by Internet service providers to the CPUC, and developed a comparative report card for 2013. Contra Costa County received a grade of C+, which indicates that internet service providers did not meet the CPUC’s minimum 6 Mbps download and 1.5 Mbps upload standard, with one provider advertising maximum download/upload speeds of at least 10/6 Mbps.4 The Kensington CSD did not indicate concerns about the ability of broadband providers to serve the CSD’s existing or growing population. 24.2.3 BUILDING/PLANNING The Contra Costa County Department of Conservation and Development provides building and planning services for the County, including the Kensington CSD. Department expenditures for FY 2017 were not reported or were unavailable at the time of this MSR update. The County issued 398 residential and 4 commercial building permits for the Kensington CSD in 2017. Total building permit valuation in FY 2017 is estimated at approximately $11.4 million. 2 Accessed via: http://www.co.contra-costa.ca.us/6820/Monthly-Year-Over-Year-Performance-Repor 3 Reese, Nick. Internet Access in California: Stats & Figures Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. 4 East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. Contra Costa LAFCO 24-4 Municipal Service Review Update Kensington CSD 24.2.4 LAW ENFORCEMENT The Kensington CSD provides law enforcement and dispatch services and has a dispatch agreement with the City of Albany. FY 2017 expenditures were approximately $2.4 million. The CSD is currently investigating the potential benefits of contracting with another agency for police services. The Kensington CSD has 1.6 FTE sworn personnel per 1,000 population for FY 2017. The national average in 2012 was 2.39 FTE sworn personnel per 1,000 population.5 There were 462.29 crimes per sworn FTE in 2017. The property crime clearance rate (a measure of crimes solved) was 4.9% and the violent crime clearance rate for 2017 was 5%.6 24.2.5 LIBRARY Contra Costa County provides library services for the Kensington CSD at its Kensington Branch Library location. County library expenditures were $25.36 per capita for FY 2017, up slightly from $24.48 per capita in FY 2013. The County’s average circulation per capita was 5.99 in FY 2017, down from 7.79 in FY 2013. Contra Costa County libraries had 3.15 visits per capita in FY 2017, reflecting a downward trend from 4.20 in FY 2013. The Contra Costa County library system had 0.1775 FTE staff per 1,000 population in FY 2017. The State of California Library provides a compilation of statistical data from public libraries throughout the state.7 Select state statistical data are provided in this MSR Update for comparative purposes. The state averaged 5.56 library visits per capita in FY 2017, which represents a slight downward trend from 6.13 in FY 2013. Average circulation was 7.25 per capita, also reflecting a downward trend from 8.30 in FY 2013. California public libraries spent an average of $51.21 per capita in FY 2017, representing an increase of nearly $5 per capita since FY 2013 when operating expenditures were $46.54 per capita. The state average for FTE staff per 1,000 population was 0.4557 in FY 2017. The state average expenditures and staffing per capita are nearly double the County’s. 24.2.6 LIGHTING Lighting (street and traffic) is provided and maintained by the Contra Costa County Public Works Department. 5 National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf 6 Common indicators used as metrics for evaluating law enforcement service provision have limitations. The information is presented as a reference and can be used for comparative purposes with the caveat that different jurisdictions can have different characteristics (e.g., a dense urban area and a suburban residential city), rendering the comparison less meaningful. 7 California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Contra Costa LAFCO Municipal Service Review Update 24-5 Chapter 24 24.2.7 PARKS AND RECREATION The Kensington CSD is the service provider for parks and recreation facilities, and the Kensington Community Council is the service provider for recreation programs. FY 2017 expenditures for parks were $126,930. The Kensington Community Council provides educational and recreational programs for the community such as the Kensington After School Enrichment Program, Summer Day Camp, and adult physical fitness classes. The CSD provides and maintains 1 park acre per 1,000 residents and 0.25 mile of recreation trails. Kensington CSD has one community center. The Quimby Act allows California cities and counties to require from 3 to 5 acres of land for every 1,000 new residents. The Act also authorizes jurisdictions to require the dedication of land or to impose fees for park or recreational purposes as a condition of the approval of a tentative or parcel subdivision map. The County’s General Plan identifies the neighborhood park standard as 2.5 acres per 1,000 population and the community park standard as 1.5 acres per 1,000 population, with the goal of achieving a level of park and recreational facilities at 4 acres per 1,000 population. 24.2.8 SOLID WASTE Solid waste services are provided to the Kensington CSD via franchise agreement with Bay View Refuse and Recycling. The Kensington CSD FY 2017 expenditures for solid waste services were $4,251. The solid waste disposal rates for FY 2017 were unavailable at the time of this MSR update. Under Assembly Bill 939, the annual goal for solid waste disposal is 6.3 pounds/person/day, and the per capita diversion rate is 50% for all California local jurisdictions. Assembly Bill 341 identified a statewide recycling goal of 75% or 2.7 pounds/person/day by 2020. 24.2.9 STORMWATER/DRAINAGE The Contra Costa County Public Works Department maintains the Kensington CSD stormwater drainage system. 24.2.10 STREETS/ROADS The Contra Costa County Public Works Department maintains public roads in the Kensington CSD. MTC tracks street pavement conditions throughout the Bay Area as a measure of how well local streets are being maintained. Many factors affect a city’s pavement condition index, or PCI score. These include pavement age, climate and precipitation, traffic loads and available maintenance funding. Contra Costa LAFCO 24-6 Municipal Service Review Update Kensington CSD The PCI for streets in Contra Costa County was 70 (good) in 2017, up from 69 in 2015, but remains below the target PCI of 75 (good) MTC has established.8 Pavement in the good (70-79) range requires mostly preventive maintenance and shows only low levels of distress. 24.2.11 UTILITIES Pacific Gas & Electric provides electricity and gas service to the Kensington CSD. The Kensington CSD did not indicate concerns about the ability of utility service providers to serve its existing or growing population. 24.3 FINANCIAL OVERVIEW This section provides an overview of the Kensington CSD’s financial health and assesses the CSD’s financial ability to provide services. Key financial information for municipal operations derives from 2015 through 2017 Audited Financial Reports, current budget documents, and CSD staff review and input. The MSR Fiscal Profiles used for this section are provided in Attachment C. 24.3.1 GENERAL FUND BALANCES AND RESERVES Municipal services are funded via the General Fund, which is the primary operating fund for the CSD. According to the CSD's FY 2018-19 budget, the total revenues of $3.3 million slightly exceed $3.2 million of total expenditures.9 The FY 2019 projected ending cash balance of $2.5 million represents about 78% of expenditures. Table 24.2 summarizes prior year changes in General Fund expenditures and revenues from FY 2015 to FY 2017, and liquidity ratios in each year. TABLE 24.2 KENSINGTON CSD SUMMARY OF GENERAL FUND AND LIQUIDITY, 2015 – 2017 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND REVENUES Property Tax $1,483,000 $1,562,000 $1,673,000 Other Revenues (including Transfers) $1,533,000 $1,593,000 $1,815,000 Total General Fund Revenues $3,016,000 $3,155,000 $3,488,000 Change from Prior Year n/a 4.6% 10.6% 8 MTC Vital Signs: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition 9 Kensington Police Protection and Community Services District, Adopted Budget Fiscal Year 2018-19, pg. 6. Contra Costa LAFCO Municipal Service Review Update 24-7 Chapter 24 ITEM FISCAL YEAR 2014- FISCAL YEAR 2015- FISCAL YEAR 2016- 2015 2016 2017 GENERAL FUND EXPENDITURES General Government and $420,000 $442,000 $434,000 Administration Public Safety $2,317,000 $2,295,000 $2,413,000 Other (includes Transfers Out) $147,000 $171,000 $202,000 Total Expenditures $2,884,000 $2,908,000 $3,049,000 Change from Prior Year n/a 0.8% 4.8% Expenditures per capita $544 $549 $575 LIQUIDITY RATIO 1 Governmental Activities 9.0 6.6 9.3 Business-type Activities n/a n/a n/a Source: Attachment C 1 Calculated by combining cash and short-term investments, then dividing by current liabilities. The liquidity ratio indicates the necessary cash the agency has to fund its current liabilities; the higher the number, the greater the degree of liquidity. 24.3.2 LIQUIDITY AND LONG-TERM DEBT Standard and Poor’s suggests that high debt levels can overburden a municipality while low debt levels may indicate underutilized capital investment capacity. The CSD's governmental activities current obligations are nominal; therefore, its cash and investments provide significant liquidity by comparison. The FY 2017 enterprise activity liquidity ratio was 9.3, indicating adequate cash and investments (see Attachment C).10 Governmental activities include administration, police protection, parks and recreation (including a community center), and solid waste.11 In addition to property tax, revenues include voter-approved special taxes (special police tax and Measure G Supplemental Tax for general purposes). A landscape and lighting assessment helps to fund parks and recreation facilities. Franchise fee revenues are paid to the CSD by the waste disposal company contracted by the CSD. The CSD's total outstanding debt has been declining over time. Total outstanding debt was approximately $111 per capita in FY 2017, indicating slight reductions compared to the $160 per capita reported for FY 2015. Governmental activities' outstanding debt represents about 17% of total General Fund Revenues (see Attachment C). 10 Liquidity ratio is defined as cash and short-term investments/total current liabilities. A ratio of less than 1.0 indicates insufficient short-term resources to cover short-term liabilities. 11 Kensington Police Protection and Community Services District, Adopted Budget Fiscal Year 2018-19, pg. 30. Contra Costa LAFCO 24-8 Municipal Service Review Update Kensington CSD 24.3.3 NET POSITION Net position may serve over time as a useful indicator of a government's financial position (i.e., whether it is improving or deteriorating). The CSD’s positive net position for governmental activities improved from $2.6 million in FY 2015 to $3.7 million FY 2017; the negative unrestricted portion improved from $1.3 million in FY 2015 to $300,000 in FY 2017 (see Attachment C). 24.3.4 LOCAL REVENUE MEASURES A CSD is not authorized to adopt voter-approved local tax measures or other voter-approved General Fund revenue sources, other than rates and charges for services, and assessment, e.g., for landscape and lighting maintenance. 24.3.5 ENTERPRISE ACTIVITIES The CSD has no enterprise funds. 24.3.6 PENSION AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES Pension plans are funded by employee contributions, municipal contributions, and investment income. These sources are intended to provide enough revenue to fully fund the plan liabilities, otherwise a plan would be considered underfunded. When a city’s General Fund revenue is insufficient to cover pension expenses, the city may pass that expense on to taxpayers. Increasing California Public Employees Retirement System costs “are anticipated to have severe negative impacts on future budgets.”12 The CSD reports a net unfunded pension liability in FY 17 of $3.5 million and unfunded other post-employment benefit (OPEB) liability of $3 million (see Attachment C). These liabilities grew by comparison to an FY 2015 pension liability of $2.6 million and OPEB liability of $2.6 million. In FY 2019, the District contributed about $247,000 towards an OPEB trust to help fund future OPEB obligations. 24.3.7 CAPITAL ASSETS AND DEPRECIATION The net value of Governmental Fund depreciable capital assets declined from FY 2015 through FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation (see Attachment C). The FY 2019 budget indicates that its Community Center project is scheduled for construction during FY 2019, which will increase the value of net depreciable assets. 24.3.8 FINANCIAL PLANNING AND REPORTING The timeliness of financial reporting is a common concern expressed to the GASB by the users of state and local government financial reports. According to the GASB, financial report information 12 ibid, pg. 3. Contra Costa LAFCO Municipal Service Review Update 24-9 Chapter 24 retains some of its usefulness to municipal bond analysts, legislative fiscal staff, and researchers at taxpayer associations and citizen groups for up to 6 months after fiscal year end. The CSD prepares budgets in a timely manner. Its Audited Financial Report was not completed within 6 months of the end of the prior fiscal year reviewed in the Audited Financial Report, which is not considered timely.13 24.4 SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires the Contra Costa Local Agency Formation Commission (LAFCO) to prepare a written statement of determination with respect to the key areas discussed below.The following analysis informs the determinations which have been prepared for the Kensington CSD. 24.4.1 GROWTH AND POPULATION PROJECTIONS The efficient provision of public services is linked to an agency’s ability to plan for future needs. Such factors as projected growth in and around the agency’s service areas and impact of land use plans and growth patterns on service demands may be reviewed. In making a determination on growth and population projections, LAFCO may consider an agency’s ability to plan for future need. According to the 2016 American Community Survey data, the Kensington CSD serves 5,602 residents. PROJECTED GROWTH AND DEMOGRAPHIC CHANGES As required by California law, the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) prepared a Sustainable Communities Strategy that considers how the San Francisco Bay Area will accommodate projected growth while also reducing regional generation of greenhouse gases pursuant to state greenhouse gas reduction goals. Plan Bay Area, is the Sustainable Communities Strategy for the region. Plan Bay Area seeks to accommodate the majority of growth in Priority Development Areas (PDAs; e.g., infill areas), which is consistent with the overall goals of LAFCOs, and includes 30-year growth projections for population, housing, and jobs. ABAG projects that unincorporated Contra Costa County will grow at an annual rate of approximately 0.7% to a population of 199,105 between 2010 and 204014 Unincorporated Contra Costa County is also projected to experience an approximate 0.5% annual growth rate in jobs between 2010 and 2040. 13 The FY 2017 CPA letter is dated April 1, 2018 for the prior fiscal year ending June 30, 2017. 14 ABAG. Projections 2017. Contra Costa LAFCO 24-10 Municipal Service Review Update Kensington CSD JOBS AND HOUSING The Bay Area Census does not provide jobs and employment data for the Kensington CSD.15 The ABAG Projections data16 for 2010 provides jobs and employment estimates for unincorporated Contra Costa County only. For 2010, ABAG estimated 35,790 jobs and 76,035 employed residents in unincorporated areas of the County, which equates to approximately 0.47 job for every employed resident. The jobs/housing ratio is 0.62. Bay Area Census data17 estimates for 2010 indicate that the Kensington CSD has 2,305 housing units (Table 24.3). The number of owner-occupied units in the CSD is greater than the number of renter-occupied housing units, indicating that the rate of homeownership exceeds the rental household rate. TABLE 24.3 KENSINGTON CSD HOUSING OVERVIEW HOUSING STATISTIC NUMBER Owner-occupied housing units 1,823 Renter-occupied housing units 376 Vacant housing units 106 Total existing housing units 2,385 Source: ABAG Bay Area Census. Available at: http://www.bayareacensus.ca.gov/cdp/cdp.htm California cities and counties are required to demonstrate in their Housing Element how they will meet their Regional Housing Need Allocation (RHNA) as assigned in the Regional Housing Need Plan.18 The Kensington CSD was not assigned a RHNA; therefore, Contra Costa County data is provided. Contra Costa County adopted its General Plan in 2000 and its Housing Element in 2015. The County’s 2015–2023 Housing Element identifies adequate sites, anticipated to yield over 3,590 units, which are appropriately zoned to address the affordable housing demand and anticipated to meet and exceed its 2014–2022 assigned RHNA of 1,367 housing units. The West County Subregion of the County, which includes the Kensington CSD, accounts for 489 of the housing unit potential. The Contra Costa County 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State Housing Element law by adequately planning to meet the existing and projected housing needs of all economic segments of the community. 15 A Bay Area Census data are derived from US Census data specific to the Bay Area and includes mostly population and housing characteristics for Census Designated Places. 16 ABAG. Projections 2017. 17 ABAG. Bay Area Census data are derived from US Census data specific to the Bay Area. 18 ABAG. Regional Housing Need Plan, San Francisco Bay Area, 2014-2022. Contra Costa LAFCO Municipal Service Review Update 24-11 Chapter 24 PLANNING FOR AN AGING POPULATION The number of adults age 50 and older in Contra Costa County is projected to increase approximately 45% by 2040, growing from 339,438 in 2010 to 493,300, representing 36.9% of the total population in Contra Costa County, up from 32.3% in 2010.19 The Kensington CSD does not provide programs for adults age 50 and older. ANTICIPATED GROWTH PATTERNS PDAs help form the implementing framework for Plan Bay Area. No PDAs have been identified for the Kensington CSD in Plan Bay Area or the County General Plan. Priority Conservation Areas, which are areas of regionally significant open space facing development pressure, also help form the implementing framework for Plan Bay Area. The Kensington CSD has not identified any Priority Conservation Areas in Plan Bay Area or the County’s General Plan. The Kensington CSD did not report that current or projected growth patterns will expand beyond its existing service area boundary and SOI. 24.4.2 BOUNDARIES, ISLANDS, AND DISADVANTAGED COMMUNITIES The Kensington CSD’s service boundary and SOI are coterminous (see Figure 24.1). The CSD did not report whether it requests any changes to its SOI or whether it provides services to any areas outside its service area boundary or SOI. DISADVANTAGED COMMUNITIES Identifying disadvantaged communities allows cities and counties to address infrastructure deficiencies related to municipal services—specifically, water, sewer, and structural fire protection—that are known to exist in some disadvantaged communities. Although water, sewer, and structural fire protection are not services considered in this MSR Update, an effort was made to identify any disadvantaged communities within or adjacent to cities in Contra Costa County. There are no disadvantaged communities within or contiguous to the SOI for the Kensington CSD and therefore, no disadvantaged communities are relevant to this analysis. 19 ABAG. Projections 2013. https://abag.ca.gov/planning/housing/projections13.html. Contra Costa LAFCO 24-12 Municipal Service Review Update Kensington CSD 24.4.3 CSD SERVICES MSR DETERMINATIONS PRESENT AND PLANNED CAPACITY OF FACILITIES, ADEQUACY OF PUBLIC SERVICE, INFRASTRUCTURE NEEDS OR DEFICIENCIES The present and planned capacity of public facilities and services is linked to an agency’s ability to plan for future needs, including infrastructure (e.g., water, sewer, fire, broadband, etc.). The term “infrastructure needs and deficiencies” refers to the status of existing and planned infrastructure and its relationship to the quality of levels of service that can or need to be provided. In making a determination on infrastructure needs or deficiencies, LAFCO may consider ways in which the agency has the ability and capacity to provide service. LAFCO shall consider service and infrastructure needs related to sewer, water, and fire protection within a disadvantaged community as defined by LAFCO. The Kensington CSD appears to adequately serve all areas within its service area and SOI and is likely to continue to do so in the foreseeable future based on available information. There are no disadvantaged communities within or contiguous to the CSD’s SOI. CAPACITY AND CONDITION OF INFRASTRUCTURE AND ABILITY TO MEET SERVICE-LEVEL NEEDS When accounting for the projected growth and population increases over the next five years, as well as the available information related to its provision of services, obstacles to maintaining existing service levels or meeting infrastructure needs are not anticipated for the CSD. The CSD notes that its population and demand for services have remained relatively stable as the Kensington area is built-out. CONSISTENCY WITH CAPITAL IMPROVEMENT PLANS A Capital Improvement Program (CIP) sets priorities for building infrastructure such as parks, sewer/storm drain improvements, pedestrian/bicycle network, traffic/street improvements, affordable housing, and community facilities. The CSD has developed a master plan for public facilities and for Kensington Park. Plans to renovate the Community Center have been presented to the public. The CSD did not report on the sufficiency of its CIP to maintain and expand facilities and infrastructure consistent with projected needs. The net value of Governmental Fund depreciable capital assets declined from FY 2015 through FY 2017, indicating that capital investments generally were not keeping pace with asset depreciation. CONSISTENCY WITH LOCAL AND REGIONAL LAND USE PLANS AND POLICIES The CSD is planning for continued growth, which is expected to be accommodated by way of regional plans such as Plan Bay Area and local plans such as the County’s General Plan. The County’s 2015–2023 Housing Element has been found by the California Housing and Community Development Department to comply with State housing element law by adequately Contra Costa LAFCO Municipal Service Review Update 24-13 Chapter 24 planning to meet the existing and projected housing needs of all economic segments of the community. STATUS AND OPPORTUNITIES FOR SHARED FACILITIES If service providers develop strategies for sharing resources, public service costs may be reduced and service efficiencies increased. In making a determination on opportunities for shared facilities, LAFCO may consider if an agency’s facilities are currently being utilized to capacity and whether efficiencies can be achieved by accommodating the facility needs of adjacent agencies. The sharing of municipal services and facilities involves centralizing functions and facilities. Municipalities will collaborate through joint-use and shared services agreements for the joint provision of public services and joint use of public facilities as a way to save resources. CURRENT SHARED SERVICES The CSD provides law enforcement, parks and recreation, and solid waste services. All other services for the CSD—including those related to animal control, broadband, building/planning, library, lighting, stormwater, streets, and utilities—are provided through Contra Costa County, public vendors, or private vendors. The CSD also has a dispatch agreement with the City of Albany in Alameda County. Kensington CSD has a lease agreement with the Kensington Fire Protection District to house its police department and administration. The CSD does not share other facilities or services. Based on available information, no areas of overlapping responsibilities or opportunities to share services or facilities were identified as a part of this review. DUPLICATION OF EXISTING OR PLANNED FACILITIES This review did not identify any duplication of existing or planned facilities based on the information available. AVAILABILITY OF EXCESS CAPACITY Based on available information, no excess service or facility capacity was identified as part of this review. The CSD is currently investigating whether contracting with another agency for police services may be beneficial. Contra Costa LAFCO 24-14 Municipal Service Review Update Kensington CSD 24.4.4 FINANCIAL DETERMINATIONS LAFCOs must weigh a community’s public service needs against the resources available to fund the services. In making a determination on the financial ability of an agency to provide services, LAFCO may review such factors as an agency’s potential for shared financing and/or joint funding applications, cost avoidance opportunities, rate structures, and other fiscal constraints and opportunities. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES Overall, the Kensington CSD appears to have sufficient financial resources to continue providing services and to accommodate infrastructure expansion, improvements, or replacement over the next five years. OPERATING GENERAL FUND AND RESERVES TRENDS The Kensington CSD has been operating with a surplus in their General Fund. The CSD’s reserve goal is unknown, and therefore it is unknown whether they meet their goal. The FY 2019 projected ending cash balance of $2.5 million represents about 78% of expenditures. LIQUIDITY, DEBT, AND PENSION LIABILITIES The liquidity ratio indicates whether a city has the means available to cover its existing obligations in the short run. The CSD reported a liquidity ratio of 9.3, which indicates the CSD has the means available to cover its existing obligations in the short run. Total debt was approximately $111 per capita for FY 2017 and has been declining. The CSD's unfunded pension and OPEB liabilities continue to grow; however, the CSD has not identified measures to address the increasing pension liabilities. The District does contribute to an OPEB trust to fund future obligations. As with other agencies in Contra Costa County, rising pension costs are expected to continue to reduce funding for other priorities. TIMELINESS AND ACCURACY OF FINANCIAL REPORTING The CSD did not issue its Audited Financial Report in a timely manner (within 6 months of fiscal year end). The Financial Report was audited by an independent CPA and received a clean opinion. Contra Costa LAFCO Municipal Service Review Update 24-15 Chapter 24 24.4.5 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES The service review may include options to provide more logical service boundaries to the benefit of customers and regional planning goals and objectives. In making a determination on government structure, LAFCO may consider possible consolidations, mergers and/or reorganizations. The service review may also consider the agency’s management efficiencies in terms of operations and practices in relation to the agency’s ability to meet current and future service demands. ONLINE AVAILABILITY OF CSD GOVERNANCE INFORMATION The Kensington CSD website provides public access to the agendas and minutes for the CSD Board meetings and its various committees and commissions; the CSD’s current budget; and the CSD’s annual audit report. The CSD therefore adequately provides accountability with regard to governance and municipal operations. ONLINE AVAILABILITY OF CSD PLANNING INFORMATION The Kensington CSD website provides public access to the CSD’s governance, including meetings, reports, and policies. Building and planning services are provided by Contra Costa County, whose website includes information on its general plan as well as various development plans and projects. The CSD therefore adequately provides accountability with regard to planning. PUBLIC INVOLVEMENT The Kensington CSD website provides public access to public hearing notices, including the time and place at which CSD residents may provide input, as well as other opportunities for public involvement in the CSD decision-making process. The CSD therefore adequately provides accountability with regard to citizen participation. 24.5 SPHERE OF INFLUENCE REVIEW AND DETERMINATIONS 24.5.1 SPHERE OF INFLUENCE RECOMMENDATION The SOI for the Kensington CSD is coterminous with the service area boundary, as shown in Figure 24.1. This report recommends that Contra Costa LAFCO maintain and reaffirm the existing SOI for the Kensington CSD. 24.5.2 SPHERE OF INFLUENCE DETERMINATIONS FOR THE KENSINGTON CSD Government Code §56425(e) requires Contra Costa LAFCO to prepare a written statement of determination for each of the factors below. These determinations are made as part of the review of the existing SOI and are based on the information in this Kensington CSD MSR profile. Contra Costa LAFCO 24-16 Municipal Service Review Update Kensington CSD PRESENT AND PLANNED LAND USES (INCLUDING AGRICULTURAL AND OPEN SPACE LANDS) Contra Costa County, of which the Kensington CSD is a part, plans for a variety of urban uses within its boundary, representing a continuation of the current mix of uses. Present and planned land uses are adequate for existing residents as well as future growth, maintaining compatibility with open space uses, as demonstrated in the General Plan. PRESENT AND PROBABLE NEED FOR PUBLIC FACILITIES AND SERVICES There are no anticipated changes in the type of public services and facilities required within the SOI for the Kensington CSD. The level of demand for these services and facilities, however, will increase commensurate with anticipated population growth over the next five years. PRESENT AND PROBABLE FUTURE CAPACITY OF PUBLIC FACILITIES AND SERVICES The present capacity of public facilities in the Kensington CSD appears adequate. The CSD is likely to continue to have adequate capacity during the next five years. EXISTENCE OF ANY SOCIAL OR ECONOMIC COMMUNITIES OF INTEREST Contra Costa LAFCO has not identified specific social or economic communities of interest relevant to the Kensington CSD. PRESENT AND PROBABLE NEED FOR SEWER, MUNICIPAL AND INDUSTRIAL WATER, OR STRUCTURAL FIRE PROTECTION PUBLIC FACILITIES AND SERVICES OF ANY DISADVANTAGED COMMUNITIES WITHIN THE EXISTING SPHERE OF INFLUENCE There are no disadvantaged communities within or contiguous to the SOI for the Kensington CSD and therefore no present or probable need for the CSD to provide structural fire protection, sewer, or water facilities and services to any disadvantaged communities. NATURE, LOCATION, EXTENT, FUNCTIONS, AND CLASSES OF SERVICES TO BE PROVIDED The KPPCSD service boundary encompasses approximately 1.2+ square miles. The District is authorized to provide law enforcement, parks and recreation, and solid waste collection services. 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C 25 HAPTER A , G , CRONYMS LOSSARY AND B IBLIOGRAPHY 25.1 ACRONYMS ABAG Association of Bay Area Governments AOSPP Agricultural and Open Space Policy CAFR comprehensive annual financial report CalPERS California Public Employees' Retirement System CEQA California Environmental Quality Act CIP Capital Improvement Program CKH Act Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 CPUC California Public Utilities Commission EBMUD East Bay Municipal Utility District EBRPD East Bay Regional Park District FTE full-time equivalent FY fiscal year GASB Governmental Accounting Standards Board GHG greenhouse gas JPA Joint Powers Authority LAFCO Local Agency Formation Commission Mbps megabits per second MSR municipal service review MTC Metropolitan Transportation Commission Contra Costa LAFCO Municipal Service Review Update 25-1 Chapter 25 NPDES National Pollutant Discharge Elimination System OPEB other post-employment benefits PCA priority conservation area PCI pavement condition index PDA priority development area PG&E Pacific Gas & Electric RHNA regional housing need allocation SOI Sphere of Influence Contra Costa LAFCO 25-2 Municipal Service Review Update Acronyms and Terms, Bibliography 25.2 GLOSSARY Affordable housing: An affordable unit is one which a household at the defined income threshold can rent without paying more than 30% of its income on housing and utility costs. A unit is affordable and available if that unit is both affordable and vacant, or is currently occupied by a household at or below the defined income threshold. Annexation: The inclusion, attachment, or addition of territory to a city or district. Assigned fund balance: The amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Capital Improvement Plan: A multi-year financial plan containing appropriations for major construction projects and other fixed assets. Charter city: Organizational form of certain California cities. Areas in which a charter city has greater control over its own affairs than a general law city include, for example, the conduct of municipal elections, procedures for initiatives, referendum and recall, procedures for adopting ordinances, bidding by public works contracts, making charitable gifts, organizational structure of city government, and regulations and government of the police force. Class 1 bike lane: Provides a right-of-way completely separated from streets for the exclusive use of bicycles and pedestrians with a limited number of cross streets and driveways. These paths are often called mixed-use paths. Class 2 bike lane: Provides striped lanes for one-way bike travel on a street or highway. Deficit: An excess of expenditures over revenues. Direct debt: The total amount of general obligation debt of a municipality or local government. Disadvantaged community: A disadvantaged community includes Census Tracts, Block Groups, and Places where the median household income is less than 80% of the statewide median household income. According to U.S. Census data, the statewide median household income is $63,783; 80% of that amount is $51,026. Disposal: Management of solid waste through landfilling, incineration, or other means at permitted solid waste facilities. Diversion: The total quantity of solid waste, generated within the jurisdiction (State agency or large State facility), that is diverted from permitted solid waste transformation and disposal facilities, through existing source reduction, recycling, and composting programs. Diversion rate: The amount of materials recycled as a percentage of the solid waste stream. Expenditure: The use of fund resources. Fiscal year: The 12-month period of time to which a budget applies. Contra Costa LAFCO Municipal Service Review Update 25-3 Chapter 25 Fund: A group of related accounts used to manage resources assigned for specific activities or objectives. General fund: The main operating fund of the city. General law city: Standard organizational form for California cities. While a general law city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law, it is subject to constraints imposed by the general law, even those which are applicable to municipal affairs. General Plan: A local government’s long-term blueprint for the community’s vision of future growth. Infrastructure needs and deficiencies: The term, “infrastructure” is defined as public services and facilities, such as sewage-disposal systems, water-supply systems, other utility systems, and roads (General Plan Guidelines). Any area needing or planned for service must have the infrastructure necessary to support the provision of those services. The term, “infrastructure needs and deficiencies,” refer to the status of existing and planned infrastructure and its relationship to the quality and levels of service that can or need to be provided. Intergovernmental tax revenue: Transfers of funds from one level of government to another. This may be to fund general government operations or for specific purposes. Joint Powers Authority: A joint powers agency or joint powers authority is a new, separate government organization created by the member agencies, but is legally independent from them. A JPA is generally formed by any two or more governmental entities (federal, state, or local) to provide a common service. Many are financing tools that let government agencies pool their scarce resources. Some run programs jointly. Councils of government are JPAs. Liquidity ratio: Calculated by combining cash and short-term investments, then dividing by current liabilities. This ratio measures the short-term financial strength or liquidity position of the city. The higher the ratio, the greater the degree of liquidity. Long-term: Within 15 years or longer. Metropolitan Transportation Commission: The transportation planning, financing, and coordinating agency for the nine counties that touch San Francisco Bay. Municipal services: The full range of services that a public agency provides, or is authorized to provide, except general county government functions such as courts, special services and tax collection. Municipal service reviews are triggered by requirements to create or update SOIs for public agencies. Therefore, a LAFCO will review services that are provided by public agencies that have, or are required to have, SOIs with review and consideration of the operations of other providers that service the same region. Municipal Service Review: A study and evaluation of municipal service(s) by specific area, sub- region or region culminating in written determinations regarding nine specific evaluation categories. An MSR study is prepared before a LAFCO revises an SOI for cities and special districts. Contra Costa LAFCO 25-4 Municipal Service Review Update Acronyms and Terms, Bibliography Net position: The excess of all the City’s assets over all its liabilities, regardless of fund. Open space: Any parcel or area of land or water, which is substantially unimproved and devoted to an open-space use. Priority Conservation Area: Open space that provides agricultural, natural resource, scenic, recreational, and/or ecological values and ecosystem functions. A Priority Conservation Area is identified through consensus by local jurisdictions and park/open space districts as land in need of protection due to pressure from urban development or other factors, and is categorized by four designations: Natural Landscapes, Agricultural Lands, Urban Greening and Regional Recreation. Priority Development Area: A place, or infill development opportunity area, identified by Bay Area communities as an area for investment, new homes and job growth. Priority Development Areas are typically within walking distance of frequent transit service, and can accommodate a variety of housing options and amenities. Quimby Act: California law originally proposed by former Assemblyman John P. Quimby (Government Code §66477) authorizing cities and counties to pass ordinances requiring that new development set aside park land (from 3 to 5 acres per 1,000 new population), donate conservation easements, or pay fees in lieu of dedication of park land. Recycling: Under Assembly Bill 341, recycling includes source reduction, composting, and recycling. Reserve: (1) For governmental type funds, an account used to earmark a portion of fund balance, which is legally or contractually restricted for a specific use or not appropriable for expenditure. (2) For proprietary type/enterprise funds, the portion of retained earnings set aside for specific purposes. Unnecessary reserves are those set aside for purposes that are not well defined or adopted or retained earnings that are not reasonably proportional to annual gross revenues. Short-term: One year or less. Sphere of Influence: is a plan that designates an agency’s probable future boundary and service area. SOIs are intended to encourage efficient provision of organized community services and prevent duplication of service delivery. Annexation of a territory to a city or district cannot occur unless the territory is within that agency's SOI. Unassigned general fund: Represents residual amounts that have not been restricted, committed, or assigned. The unassigned general fund balance serves as a useful measure of a government’s net resources available for discretionary use at the end of the fiscal year. Unqualified opinion: An unqualified opinion is also known as a clean opinion. The auditor reports an unqualified opinion if the financial statements are presumed to be free from material misstatements. Contra Costa LAFCO Municipal Service Review Update 25-5 Chapter 25 25.3 BIBLIOGRAPHY Antioch, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, November 2003. _________. Housing Element, April 2015. Association of Bay Area Governments (ABAG). Bay Area Census 2010. Website accessed at: http://www.bayareacensus.ca.gov/cities/cities.htm _________. Regional Housing Need Plan, San Francisco Bay Area: 2014–2022. July 2013. ABAG and Metropolitan Transportation Commission (MTC). Plan Bay Area Regional Transportation Plan and Sustainable Communities Strategy for the San Francisco Bay Area 2013–2040. 2013. _________. Plan Bay Area. Forecast of Jobs, Population, and Housing. 2013. _________. Plan Bay Area. Housing Growth by Jurisdiction and PDA/Investment Area. 2013. Brentwood, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, July 2014. _________. Housing Element, April 2015. California Department of Finance. E-1 Population Estimates for Cities, Counties, and the State — January 1, 2018. Website accessed at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-1/ California State Library, Library Statistics. http://www.library.ca.gov/services/to-libraries/statistics/ Clayton, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, 1985, as amended February 2007. _________. Housing Element, November 2014 Concord, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, October 2007, as amended 2012. _________. Housing Element, November 2014. Danville, Town of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, March 2013. _________. Housing Element, April 2015. East Bay Broadband Consortium, East Bay Broadband Report Card. www.bit.ly/broadbandreportcard. East Bay Economic Development Alliance. Regional Intelligence Report, November 2016. _________. East Bay Economic Outlook: 2016-2017. 2016. El Cerrito, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, August 1999. _________. Housing Element, April 2015. Government Finance Officers Association. Fund Balance Guidelines for the General Fund. Website accessed at: http://www.gfoa.org/fund-balance-guidelines-general-fund. Hercules, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, September 1998. _________. Housing Element, April 2015. Contra Costa LAFCO 25-6 Municipal Service Review Update Acronyms and Terms, Bibliography Lafayette, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, October 2002. _________. Housing Element, March 2015. Martinez, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, 2016. _________. Housing Element, May 2015. MTC. MTC Vital Signs: Street Pavement Condition. Website accessed at: http://www.vitalsigns.mtc.ca.gov/street-pavement-condition. MTC and ABAG. Plan Bay Area 2040: Final Land Use Modeling Report. July 2017 Moraga, Town of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, June 2002. _________. Housing Element, January 2015. National Sources of Law Enforcement Employment Data. April 2016. http://www.bjs.gov/content/pub/pdf/nsleed.pdf Oakley, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, December 2002, as amended February 2016. _________. Housing Element, January 2015. Orinda, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, May 1987. _________. Housing Element, April 2015. Pinole, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, October 2010. _________. Housing Element, May 2015. Pittsburg, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, November 2001. _________. Housing Element, May 2015. Pleasant Hill, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, July 2003. _________. Housing Element, April 2015. Reese, Nick. Internet Access in California: Stats & Figures. Broadband Now. Last modified November 30, 2017. Accessed May 24, 2018. https://broadbandnow.com/California. Richmond, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, April 2012. _________. Housing Element, May 2015. San Pablo, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, April 2014. _________. Housing Element, April 2015 San Ramon, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, April 2015. _________. Housing Element, April 2015. Contra Costa LAFCO Municipal Service Review Update 25-7 Chapter 25 Walnut Creek, City of. Comprehensive Annual Financial Reports. Fiscal Years 2015 – 2017. _________. General Plan, April 2006. _________. Housing Element, September 2014. Contra Costa LAFCO 25-8 Municipal Service Review Update A A TTACHMENT A O S P GRICULTURE AND PEN PACE OLICIES This page intentionally left blank. COMPILATION OF GENERAL PLAN POLICIES RELATED TO THE PRESERVATION OF AGRICULTURAL RESOURCES AND OPEN SPACE FOR CITIES IN CONTRACT COSTA COUNTY CITY OF BRENTWOOD GENERAL PLAN PROVISIONS Relevant Land Use categories in the General Plan include: • Public Facility (PF) • Semi Public Facility (SPF) • Parks (P) • Schools (SCH) • Community College (CC) • Permanent Open Space (POS) • Agricultural Conservation (AC) • Urban Reserve (UR) General Plan policies related to agriculture and open space are contained in Section 4 of the City’s General Plan, Conservation and Open Space (COS) element. The opening paragraph of the COS Element reflects the City’s view that conservation and open space are assets of high value that need to be protected but balanced against the City’s readiness to accommodate growth: Natural resources, including open space lands, agricultural lands, waterways, hillsides, scenic views, wildlife habitat, and historical resources form an important part of Brentwood’s unique character and represent some of its greatest assets. The Conservation and Open Space Element provides the framework to protect, maintain, and enhance Brentwood’s natural resources. The Conservation and Open Space Element balances the overall vision of the General Plan for preserving Brentwood’s high living standards, agricultural heritage, and natural resources while simultaneously providing for economic development and balanced growth. Examples of Goals and Policies set forth in the COS Element are: • Goal COS 1: Ensure the provision and preservation of diverse and accessible open spaces throughout the Brentwood Planning Area Policy COS 1-1: General Plan land use designations that include agriculture, permanent open o space, parks, and similar uses, as well as waterways (i.e., Marsh Creek, Dry Creek, Deer Creek, and Sand Creek), shall be considered open space. Policy COS 1-2: Preserve open space for conservation, recreation, and agricultural uses. o Policy COS 1-3: Conversion of open space, as defined under Policy COS 1-1, to developed o residential, commercial, industrial, or other similar types of uses, shall be strongly discouraged. Undeveloped land that is designated for urban uses may be developed if needed to support economic development, and if the proposed development is consistent with the General Plan Land Use Map. Goals and Policies specific to agricultural lands are: • Goal COS 2: Preserve designated agricultural lands in Brentwood’s Planning Area Policy COS 2-1: Support and encourage the preservation of agricultural lands throughout o Brentwood’s Planning Area, particularly in areas to the south and east of the city limits. Policy COS 2-2: Maintain permanent agricultural lands surrounding the city limits to serve as o community separators and continue the agricultural heritage of Brentwood. Policy COS 2-3: Encourage and support programs that create or establish permanent o agricultural areas in Brentwood’s Planning Area. Policy COS 2-4: Participate in regional planning efforts with agencies and organizations such o as Contra Costa County, land trusts, and other regional partners to establish and maintain permanent agricultural areas to the south and east of Brentwood. Policy COS 2-5: Work with the Local Agency Formation Commission (LAFCO) on issues of o mutual concern including the conservation of agricultural land through consistent use of LAFCO policies, particularly those related to conversion of agricultural lands and establishment of adequate buffers between agricultural and non-agricultural uses, and the designation of a reasonable and logical Sphere of Influence (SOI) boundary for the City. Policy COS 2-6: Minimize conflicts between agricultural and urban land uses. o The City’s General Plan also addresses agricultural lands in the Land Use element. Following are representative Goals and Policies from the Land Use element: • Goal LU 5: Preserve Brentwood’s agricultural heritage by protecting and maintaining significant areas of agricultural lands around the city. Policy LU 5-1: Maintain significant areas of permanent agricultural lands and open space o surrounding the city limits. Policy LU 5-2: Protect agricultural land from urban development except where the General o Plan Land Use Map has designated the land for urban uses. CITY OF CLAYTON GENERAL PLAN PROVISIONS Section VI Conservation/Open Space Element • Goal: To maintain a system of active open space along stream channels and passive open space within hillsides as a means to preserve the rural character of the community. Objective 1: To promote the City’s greenbelts as the basis of its open space system. o Objective 2: To develop neighborhood parks within the greenbelt system adjacent to other o community facilities. Objective 3: To establish an open space conservation designations to preserve natural o resources, to manage resources, to provide for outdoor recreation, to promote health and safety and to ensure orderly growth. General Plan Open Space Designations The City of Clayton seeks to preserve open space and provide recreational opportunities to Clayton residents within the City limits. Four designations have been created to fulfill these goals: Private Open Space, Public Park/Open Space, Quarry and Agriculture. 1. Private Open Space (PR) 2. Public Park/Open Space/Open Space and Recreational (PU) a. Regional Parks b. Greenbelts c. Community Park d. Neighborhood Park 3. Quarry 4. Agriculture (AG) Many land owners in the Clayton planning area have entered into the Williamson Act contract with Contra Costa County. The contracts are self-perpetuating 10-year agreements that preclude non- agricultural development. Use of these County designations will reinforce the Preserve Designation used by the County and promote a conservation context to future development analysis on these sites. Acres to the northeast and east of the City limits include rugged terrain that is primarily used as rangeland for livestock and other similar open uses. The City supports and encourages the continuation of agriculture in these areas. Given the low intensity of agricultural activities, the City encourages large lot zoning of at least 20 to 40 acres to ensure agriculturally viable sized lots. The purpose of the Agriculture designation is to preserve and protect lands capable of and generally used for the production of food, fiber and plant materials. The title is intended to be descriptive of the predominant land extensive agricultural uses that take place in these areas, but the land use title or description shall not be used to exclude or limit other types of agricultural, open space or non-urban uses. CITY OF CONCORD GENERAL PLAN PROVISIONS The General Plan includes a land use category for Open Space (Parks, Recreation and Open Space) but no category specifically related to agriculture or agricultural preservation. A new category – CRP (Concord Reuse Project) is used to designate the former Concord Naval Weapons Station and the designated land uses etc. that the City is intending to adopt for that area. A large part of the CRP area is Conservation Open Space, applied to the south and west-facing slopes of the hills that separate Concord from Pittsburg. There is no agricultural land or land uses in Concord although the vast amount of Open Space land (mostly outside of City limits, in the City’s Planning Area - Los Medanos Hills and Mt. Diablo foothills) is available for low intensity grazing. These open space lands account for about 1/3rd of the land area in the City’s Planning Area. Specifically: the Open Space (OS) land use designation is intended for large areas that are necessary for natural resource protection, the managed production of natural resources, the provision of natural resources, outdoor recreation (including trails), scenic value, and the assurance of public health and safety. This designation includes private recreation facilities and larger privately-owned areas dedicated as permanent open space within residential subdivisions. Another land use category - Rural Conservation (RCON) is intended to provide for protection of rural hillside areas. Single family residential development of up to 1 unit per 20 developable net acres would be allowed, with clustering encouraged to minimize impacts on views of the area. The General Plan Parks, Open Space and Conservation (POS) element addresses issues related to open space: 6.3 OPEN SPACE Concord’s setting—within a valley surrounded by gently sloping foothills and laced with creeks—includes natural resources that are important, not only for aesthetic value, but also for environmental quality, habitat protection, and water resources. In addition, preserving the general configuration of the hills, creeks, and natural topographic features fosters a sense of place for the community, and this affords current and future residents an understanding of the City’s natural setting and native topography. Classification of Open Space • Open space for the preservation of natural resources including, but not limited to, areas required for the preservation of plant and animal life, such as: habitat for fish and wildlife species; areas required for ecologic and other scientific study purposes; rivers, streams, bays and estuaries; coastal beaches, lakeshores, banks of rivers and streams; and watershed lands. • Open space for outdoor recreation including, but not limited to, areas of outstanding scenic, historic and cultural value; areas particularly suited for park and recreation purposes, such as access to lakeshores, beaches, rivers and streams; and areas that serve as links between major recreation and open space reservations, including utility easements, banks of rivers and streams, trails, and scenic highway corridors. • Open space for public health and safety including, but not limited to, areas that require special management or regulation due to hazardous or special conditions. This type of open space might include: earthquake fault zones, unstable soil areas, floodplains, watersheds, areas presenting high fire risks, areas required for the protection of water quality and water reservoirs, and areas required for the protection and enhancement of air quality. • Open space used for the managed production of resources including, but not limited to, forest lands, rangeland, agricultural lands and areas of economic importance for the production of food or fiber; areas required for recharge of ground water basins; bays, estuaries, marshes, rivers and Concord 2030 General Plan 6-12 streams that are important for the management of commercial fisheries; and areas containing major mineral deposits. CITY OF MARTINEZ GENERAL PLAN PROVISIONS One of the few areas in Martinez where agriculture and open space issues arise is the Alhambra Valley located in the southwestern corner of the City. The Alhambra Valley Specific Plan is part of the City’s General Plan and sets forth land use policies and regulations for that area. Excerpts from the City’s draft General Plan Update describe the different land use categories that are applied to parts of the AV area: Alhambra Valley Estate Residential – Very Low Density (AV/ER-VL): The primary land use envisioned in this designation on is detached single-family homes on lots typically one acre or larger, with the keeping of a limited number of livestock, consistent with a rural or semi-rural lifestyle. Alhambra Valley Estate Residential -Low Density (AV/ER-L) The primary land use envisioned in this designation is detached single-family on lots typically one-half acre or larger. Alhambra Valley Agricultural Lands (AV/AL) This land use designation applies to privately owned rural lands, generally in hilly areas that are used for grazing livestock or dry grain farming. The primary purposes of the Agricultural Lands designation is to: a) preserve and protect lands capable of and generally used for the production of food, fiber and plant materials; and b) provide opportunities for rural residential single family homes. Open Space Preservation (OS/P). This designation is for public and private lands preserved as a scenic or environmental resource, either by public or common interest ownership, or through dedication of scenic open space or other easements or through conditions of development approval or previous designation and zoning action. While alteration of such properties for active recreation is typically not envisioned, naturalistic and agricultural plantings, and trails, may be possible if consistent with the intent of preserving the intended scenic resource and as may be permitted by any easements. Alhambra Valley Open Space (AV/OS) This designation applies to publicly owned open space lands and includes areas of significant ecological resources or geologic hazards that are unique to the Alhambra Valley community. The Alhambra Valley Open Space designation also includes privately owned properties for which development rights have been deeded to a public or private agency or which have been previously designated as open space. Examples are the steep, unbuildable portions of approved subdivisions which may be deeded to agencies such as the East Bay Regional Park District but which have not been developed as park facilities. Agricultural Lands Land Use Designation - Agricultural Lands (AG) The Agricultural Lands designation is specific to areas currently used for agricultural production (specifically the Viano Vineyards). While similar to the Open Space categories in that Agricultural Lands have scenic value, structures for agricultural production and residential use are permitted and integral to the desirable preservation of viable agricultural uses. • Goal LU-G-7: Encourage the preservation of existing agricultural businesses and minimize and resolve conflicts between agricultural and urban uses within and adjacent to the Alhambra Valley semi-rural residential community. Policy LU-P-7.1: Agriculture shall be protected to maintain the semi-rural atmosphere and to o retain a balance of land uses in Alhambra Valley. TOWN OF MORAGA GENERAL PLAN PROVISIONS The Town’s most recent General Plan was adopted June 2002. Provisions relevant to agriculture and open space are excerpted below. • Land Use Goal LU 5 Agriculture: Promotion and preservation of Moraga’s remaining agricultural resources as an important part of the Town’s heritage and character. Policy LU5.1 Agricultural Uses and Activities: Allow agricultural and horticultural uses and o activities on lands within the Town so long as they are low intensity and compatible with adjacent uses. Examples include small orchards and cattle grazing. Implementing Programs: IP-B1 Zoning and Subdivision Ordinances LU5.2 Preservation of Agricultural Resources. Strive to preserve the Town’s remaining agricultural resources, such as pear and walnut orchards. Section 7 of the General Plan is entitled Open Space and Conservation. Relevant excerpts follow. • Goal OS-1 Open Space Preservation: Preserve as much open space land as possible, including protection of all major and minor ridgelines and lands that help meet residents’ recreational needs. Policy OS 1.1 Open Space Preservation: Preserve open space to the maximum extent o possible, using tools such as acquisition, lease, dedication, easements, donations regulation or tax incentive programs. Policy OS 1.2 Major Ridgelines. o Policy OS 1.3 Development Densities. (Maximum allowed is 1 DU per 20 acres) o CITY OF OAKLEY GENERAL PLAN PROVISIONS Oakley’s General Plan includes two categories of agricultural lands: AL - Agriculture Limited (allowing light intensity agricultural operations - vineyards, orchards, row crops animal husbandry) AG – Agriculture - applies to areas historically engaged in more intense ag operations with either active cultivation of crops or some other type of use that is substantially agricultural in nature. In both cases residential development is allowed at low densities. The General Plan reflects how the City values agricultural resources: [A]griculture is a fundamental component of the community’s character. Historically, agriculture has been the primary economic activity in and around Oakley. At this time, the community is transitioning to a more urban setting and large-scale agriculture is becoming a less prevalent use throughout Oakley. However, the agricultural heritage of Oakley remains strong and is evident in the numerous remaining orchards and vineyards in town, as well as the strong equestrian interest of Oakley residents. As new development occurs, the City will seek to protect the varied remaining agricultural activities of Oakley and to maintain the cultural connection to the community’s agricultural heritage through design standards, development project reviews, construction of community entry monuments and the design of public facilities serving Oakley residents. CITY OF PITTSBURG GENERAL PLAN PROVISIONS Pittsburg’s General Plan includes land use categories for Open Space but not for agriculture; the City’s zoning ordinance and map includes Open Space (OS) zoning, but no agriculture zoning. The City has numerous goals and policies related to open space [Chapter 8 of the General Plan (Open Space, Youth & Recreation) and Chapter 9 (Natural Resources)]. In Chapter 8, the General Plan describes two types of Open Space: Regional Preserves (e.g., Black Diamond Regional Preserve, managed by East Bay Regional Park District) and Open Space which applies to “privately owned, undeveloped land . . . typically consisting of steep, unstable hillside areas and large tracts of open land beyond the proposed limits of urban growth.” Section 8.3, Trails and Open Space, includes a brief description of the importance of open space: Vacant, rolling hills in the southern portion of the Planning Area are used intermittently for livestock grazing. The preservation of local hillsides as open space areas is important for several reasons: marginal agricultural value resulting from grazing activities; undisturbed grasslands habitat; preservation of ridgeline views from developed areas within the City; and quality-of-life value due to open space acreage accessible to local residents. Relevant Goals and Policies in Section 8 include: GOALS: TRAILS AND OPEN SPACE • 8-G-3. Promote a local trail and linear park system to provide access to regional open space areas, as well as connections between neighborhoods. • 8-G-4. Support and promote the active use of regional open space areas, such as Black Diamond Mines Regional Preserve, by local residents. Policies: 8-P-21. Encourage new residential development in hillside areas to develop public trails and/or o trailheads providing connections to other regional and local open spaces. 8-P-22. Preserve land under Williamson Act contract in agriculture, consistent with State law, o until urban services are available and expansion of development would occur in an orderly and contiguous fashion. Section 9 of the General Plan, Natural Resources, begins with a description of Open Space: The Planning Area contains a significant amount of open space, which is valuable as both a visual resource and as habitat for oak woodlands, wetlands and riparian wildlife. Intermittent streams and uninhabited areas also contribute to air and water quality in the hills and tidelands… Relevant Goals and Policies include: GOALS: Biological Resources and Habitat • 9-G-1. Protect conservation areas, particularly habitats that support special status species, including species that are State or Federally listed as endangered, threatened, or rare. • 9-G-2. Guide development in such a way that preserves significant ecological resources. POLICIES: 9-P-1. Ensure that development does not substantially affect special status species, as required o by State and federal agencies. Conduct assessments of biological resources as required by CEQA prior to approval of development within habitat areas of identified special status species. Section 9 also addresses concerns related to drainage and erosion, water quality, air quality, and historical and cultural resources. CITY OF WALNUT CREEK GENERAL PLAN PROVISIONS Walnut Creek has two designations relevant to this issue: Open Space – Agriculture (OS/A) and Open Space – Recreation (OS/R). OS/A: The City’s General Plan describes OS/A as: “Open Space/Agriculture, OS/A, 0.1 du/ac.” The designation is applied to areas currently undeveloped or used for grazing, equestrian, or agricultural pursuits. The intent is to maintain open space/agricultural character. The allowable density of 0.1 units per net acre translates to a population of one person per 4 acres. This policy was adopted in 1991 under Measure P Ordinance 1781. OS/R: The General Plan description of this category is “Open Space/Recreation (OS/R), not to exceed 0.1 du/ac or an FAR of 0.1, density to be determined on a case-by-case basis. Designates existing publicly owned open space, parks, and golf courses. Includes some County-owned land designated for open space use.” With a few exceptions, these designations apply to all City-owned parks and open space areas. The City’s Zoning Ordinance includes an O-S-R, Open Space/Recreation Zoning District that applies to all of the areas designated as OS/R by the General Plan (parks and most of the open space areas), and an H-P-D, Hillside Planned Development Zoning District which applies to all of the areas designated as OS/A by the General Plan (these are all City-owned open space areas; the H-P-D name is a bit of a misnomer that is a relic of a voter initiative that cannot be changed without an election). This page intentionally left blank. A B TTACHMENT S L S ERVICE EVEL TATISTICS This page intentionally left blank. CITY OF ANTIOCH MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 43.5 Animals handled at shelter per year 3,632 Calls for service 1,587 Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 2,424 Commercial Building Permits Issued 184 Law Enforcement Violent crimes 607 Property crimes 3,838 Violent crime clearance rate 45% Property crime clearance rate 11% Sworn personnel (FTE) per 1,000 population 0.9 Crimes per sworn FTE (violent and property) 43.16 Violent crime rates per 1,000 population 5.31 Property crime rates per 1,000 population 33.6 Residential population per station *1 station serves all of Antioch Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 87 Maintained traffic lights 3,122 Maintained street lights 5,441 Parks and Recreation Park acres per 1,000 population 2.9 Recreation centers per 20,000 residents 0.895 Miles of recreation trails 24.9 Solid Waste Solid waste diversion rate not calculated Tons of waste disposed per capita 63,482 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.1 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 12% trash capture Miles of closed storm drain 283 Miles of open channel storm drain 67.5 Storm drain inlets 7,015 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 10 Provision for stormwater reclamation not available Streets Street Miles 310 FY Pavement condition index 68 Bike lane miles (Class 1 and Class 2) 0 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF BRENTWOOD MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 2,669 Commercial Building Permits Issued 71 Law Enforcement Violent crimes 597 Property crimes 1,489 Violent crime clearance rate 69% Property crime clearance rate 16% Sworn personnel (FTE) per 1,000 population 1 Crimes per sworn FTE (violent and property) 32.6 Violent crime rates per 1,000 population 9.8 Property crime rates per 1,000 population 24.4 Residential population per station 61,055 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 76 Maintained traffic lights 71 Maintained street lights 6,693 Parks and Recreation Park acres per 1,000 population 4.23 Recreation centers per 20,000 residents 0.65 Miles of recreation trails 19.52 Solid Waste Solid waste diversion rate 70% Tons of waste disposed per capita 39,028 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.5 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 1.03% trash capture Miles of closed storm drain 257.56 Miles of open channel storm drain 0.21 Storm drain inlets 2,000 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 7 Provision for stormwater reclamation No Streets Street Miles 192 FY Pavement condition index 83 Bike lane miles (Class 1 and Class 2) not available Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF CLAYTON MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 115 Commercial Building Permits Issued 4 Law Enforcement Violent crimes 26 Property crimes 113 Violent crime clearance rate 42% Property crime clearance rate 8% Sworn personnel (FTE) per 1,000 population 1 Crimes per sworn FTE (violent and property) 12.63 Violent crime rates per 1,000 population 2.36 Property crime rates per 1,000 population 10.27 Residential population per station 11,431 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 12 Maintained traffic lights unknown Maintained street lights 1,353 Parks and Recreation Park acres per 1,000 population 1.2 Recreation centers per 20,000 residents 0.61.75 Miles of recreation trails 19.5227 Solid Waste Solid waste diversion rate not available Tons of waste disposed per capita 0.55 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.0 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 0.04 trash capture Miles of closed storm drain 50 Miles of open channel storm drain 25 Storm drain inlets 650 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 0 Provision for stormwater reclamation 0 Streets Street Miles 45 FY Pavement condition index 84 Bike lane miles (Class 1 and Class 2) 10 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF CONCORD MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not reported System average interruption duration index not reported Building / Planning Residential Building Permits 4,178 Commercial Building Permits Issued 458 Law Enforcement Violent crimes 463 Property crimes 4,419 Violent crime clearance rate 47 Property crime clearance rate 12 Sworn personnel (FTE) per 1,000 population 1.2 Crimes per sworn FTE (violent and property) 31.7 Violent crime rates per 1,000 population 3.58 Property crime rates per 1,000 population 34.21 Residential population per station not available Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 150 Maintained traffic lights not reported Maintained street lights 8,233 Parks and Recreation Park acres per 1,000 population not reported Recreation centers per 20,000 residents not reported Miles of recreation trails not reported Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita not reported SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 4.2 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 7.4 trash capture Miles of closed storm drain 240 Miles of open channel storm drain 7 Storm drain inlets ~6,000 Capacity of stormwater drain, if available not reported Stormwater recharge facilities not reported Stormwater detention basins not reported Provision for stormwater reclamation not reported Streets Street Miles 310 FY Pavement condition index 60 Bike lane miles (Class 1 and Class 2) 28 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 TOWN OF DANVILLE MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 626 Commercial Building Permits Issued 68 Law Enforcement Violent crimes 14 Property crimes 363 Violent crime clearance rate not available Property crime clearance rate 41 Sworn personnel (FTE) per 1,000 population 0.7 Crimes per sworn FTE (violent and property) 8.6 Violent crime rates per 1,000 population 0.3 Property crime rates per 1,000 population 8.3 Residential population per station 43,691 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 54 Maintained traffic lights unknown Maintained street lights 3,483 Parks and Recreation Park acres per 1,000 population 6.6 Recreation centers per 20,000 residents 2.25 Miles of recreation trails 6.88 Solid Waste Solid waste diversion rate 60% Tons of waste disposed per capita 0.52 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.7 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 1.5 trash capture Miles of closed storm drain 125 Miles of open channel storm drain 4.5 Storm drain inlets 4,700 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 3 Provision for stormwater reclamation 0 Streets Street Miles 157.9 FY Pavement condition index 77 Bike lane miles (Class 1 and Class 2) 21.55 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF EL CERRITO MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 1,188 Commercial Building Permits Issued 116 Law Enforcement Violent crimes 164 Property crimes 1,252 Violent crime clearance rate not tracked Property crime clearance rate not tracked Sworn personnel (FTE) per 1,000 population 1.6 Crimes per sworn FTE (violent and property) 30.78 Violent crime rates per 1,000 population 152.1 Property crime rates per 1,000 population 19.9 Residential population per station 24,939 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 11 Maintained traffic lights 11 Maintained street lights 1,606 Parks and Recreation Park acres per 1,000 population 6 Recreation centers per 20,000 residents 10.83 Miles of recreation trails 3.6 Solid Waste Solid waste diversion rate 55% Tons of waste disposed per capita 0.74 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.8 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 7.6 trash capture Miles of closed storm drain 38.75 Miles of open channel storm drain 3.84 Storm drain inlets 1,205 Capacity of stormwater drain, if available variable Stormwater recharge facilities not available Stormwater detention basins 3 Provision for stormwater reclamation 1 Streets Street Miles 68 FY Pavement condition index 84 Bike lane miles (Class 1 and Class 2) 4 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF HERCULES MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 61 Commercial Building Permits Issued 0 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate 7 Property crime clearance rate 45 Sworn personnel (FTE) per 1,000 population 0.917 Crimes per sworn FTE (violent and property) 20.25 Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections not reported Maintained traffic lights not reported Maintained street lights 10 (County maintains) Parks and Recreation Park acres per 1,000 population 45.9 Recreation centers per 20,000 residents 3 Miles of recreation trails 6 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita not reported SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not reported Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 80% of high trash trash capture generation areas Miles of closed storm drain 40 Miles of open channel storm drain not reported Storm drain inlets 39 Capacity of stormwater drain, if available not reported Stormwater recharge facilities not reported Stormwater detention basins not reported Provision for stormwater reclamation not reported Streets Street Miles not reported FY Pavement condition index 69 Bike lane miles (Class 1 and Class 2) not reported Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF LAFAYETTE MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 22 Commercial Building Permits Issued 71 Law Enforcement (2016 data) Violent crimes 24 Property crimes 317 Violent crime clearance rate 37.5 Property crime clearance rate 6.94 Sworn personnel (FTE) per 1,000 population 0.7 Crimes per sworn FTE (violent and property) 20.1 Violent crime rates per 1,000 population 1.0 Property crime rates per 1,000 population 13.3 Residential population per station 23,893 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 26 Maintained traffic lights 240 Maintained street lights 358 Parks and Recreation Park acres per 1,000 population 3.5 Recreation centers per 20,000 residents 1 Miles of recreation trails 9 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita not reported SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not reported Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 35% downtown trash capture Miles of closed storm drain 57 Miles of open channel storm drain 18 Storm drain inlets 1,686 Capacity of stormwater drain, if available not available Stormwater recharge facilities not available Stormwater detention basins 3 Provision for stormwater reclamation not available Streets Street Miles 92 FY Pavement condition index 79 Bike lane miles (Class 1 and Class 2) 21.5 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF MARTINEZ MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 1,635 Commercial Building Permits Issued 73 Law Enforcement Violent crimes 57 Property crimes 619 Violent crime clearance rate 0.54 Property crime clearance rate 0.10 Sworn personnel (FTE) per 1,000 population 1.0 Crimes per sworn FTE (violent and property) 18 Violent crime rates per 1,000 population 1.5 Property crime rates per 1,000 population 16.3 Residential population per station 38,097 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 27 Maintained traffic lights 331 Maintained street lights 550 Parks and Recreation Park acres per 1,000 population 6.22 Recreation centers per 20,000 residents 5 Miles of recreation trails 3 Solid Waste Solid waste diversion rate 0.48 Tons of waste disposed per capita 20 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 5.8 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 7.85 trash capture Miles of closed storm drain 37 Miles of open channel storm drain 5 Storm drain inlets 1,350 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 1 Provision for stormwater reclamation none Streets Street Miles 122 FY Pavement condition index 51 Bike lane miles (Class 1 and Class 2) not available Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 TOWN OF MORAGA MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 518 Commercial Building Permits Issued 25 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearances (County) 340 Property crime clearance rates (County) 125 Sworn personnel (FTE) per 1,000 population 1.02 (County) Crimes per sworn FTE (violent and property) not reported Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections not reported Maintained traffic lights not reported Maintained street lights not reported Parks and Recreation Park acres per 1,000 population 20 Recreation centers per 20,000 residents not reported Miles of recreation trails not reported Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita not reported SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not reported Population Stormwater Compliant with NPDES standards not reported Percent of storm drainage inlets equipped with not reported trash capture Miles of closed storm drain not reported Miles of open channel storm drain not reported Storm drain inlets not reported Capacity of stormwater drain, if available not reported Stormwater recharge facilities not reported Stormwater detention basins not reported Provision for stormwater reclamation not reported Streets Street Miles not reported FY Pavement condition index 68 Bike lane miles (Class 1 and Class 2) not reported Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF OAKLEY MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 1,426 Commercial Building Permits Issued 11 Law Enforcement Violent crimes 52 Property crimes 489 Violent crime clearance rate 15% Property crime clearance rate 7% Sworn personnel (FTE) per 1,000 population 0.76 Crimes per sworn FTE (violent and property) 15.02 Violent crime rates per 1,000 population 0.052 Property crime rates per 1,000 population 0.489 Residential population per station 43,000 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 21 Maintained traffic lights not reported Maintained street lights 1,450 Parks and Recreation Park acres per 1,000 population 235 Recreation centers per 20,000 residents 1 (under construction) Miles of recreation trails 6 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita 19,273 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 2.6 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 3% trash capture Miles of closed storm drain ~110 Miles of open channel storm drain 0.5 Storm drain inlets 2,610 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 12 Provision for stormwater reclamation C.3 Streets Street Miles 136 FY Pavement condition index 77 Bike lane miles (Class 1 and Class 2) 27 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF ORINDA MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 889 (combined with commercial) Commercial Building Permits Issued — Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate 0.5% Property crime clearance rate 7.8% Sworn personnel (FTE) per 1,000 population not reported Crimes per sworn FTE (violent and property) not reported Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 19 Maintained traffic lights 17 Maintained street lights not reported Parks and Recreation Park acres per 1,000 population 7.45 Recreation centers per 20,000 residents 1 Miles of recreation trails 12 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita not reported SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not reported Population Stormwater Compliant with NPDES standards not reported Percent of storm drainage inlets equipped with 0.4% trash capture Miles of closed storm drain 19 Miles of open channel storm drain not reported Storm drain inlets not reported Capacity of stormwater drain, if available not reported Stormwater recharge facilities not reported Stormwater detention basins not reported Provision for stormwater reclamation not reported Streets Street Miles 92.7 FY Pavement condition index 60 Bike lane miles (Class 1 and Class 2) 1 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF PINOLE MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 261 Commercial Building Permits Issued 5 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate not reported Property crime clearance rate not reported Sworn personnel (FTE) per 1,000 population 1.45 Crimes per sworn FTE (violent and property) 74.2 Violent crime rates per 1,000 population 78.7 Property crime rates per 1,000 population 16.8 Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 29 Maintained traffic lights 21 Maintained street lights 523 Parks and Recreation Park acres per 1,000 population 14 Recreation centers per 20,000 residents 3 Miles of recreation trails 3.5 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita 0.68 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.7 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 10.3 trash capture Miles of closed storm drain 34 Miles of open channel storm drain not reported Storm drain inlets 1,048 Capacity of stormwater drain, if available not reported Stormwater recharge facilities not reported Stormwater detention basins not reported Provision for stormwater reclamation not reported Streets Street Miles 51.75 FY Pavement condition index 68 Bike lane miles (Class 1 and Class 2) 1.5 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF PITTSBURG MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 96.1 (2015, County) Animals handled at shelter per year 10,459 (2015, County) Calls for service 4,350 (2015, County) Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 150 Commercial Building Permits Issued 90 Law Enforcement Violent crimes 341 Property crimes 1,795 Violent crime clearance rate 42.2 Property crime clearance rate 6.5 Sworn personnel (FTE) per 1,000 population 1.1 Crimes per sworn FTE (violent and property) 37 Violent crime rates per 1,000 population 4.9 Property crime rates per 1,000 population 25.9 Residential population per station 69,272 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 62 Maintained traffic lights 620 Maintained street lights 4,286 Parks and Recreation Park acres per 1,000 population 258.12 Recreation centers per 20,000 residents 1 Miles of recreation trails 26.37 Solid Waste Solid waste diversion rate not available Tons of waste disposed per capita 0.99 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 5.5 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 3.5 trash capture Miles of closed storm drain 1.5 Miles of open channel storm drain 3 Storm drain inlets 3,676 Capacity of stormwater drain, if available not available Stormwater recharge facilities not available Stormwater detention basins 10 Provision for stormwater reclamation not available Streets Street Miles 164 FY Pavement condition index 67 Bike lane miles (Class 1 and Class 2) 44 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF PLEASANT HILL MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 1,330 Commercial Building Permits Issued 151 Law Enforcement Violent crimes 71 Property crimes 1,580 Violent crime clearance rate 40 Property crime clearance rate 376 Sworn personnel (FTE) per 1,000 population 1.3 Crimes per sworn FTE (violent and property) 37.5 Violent crime rates per 1,000 population 2.2 Property crime rates per 1,000 population 47.8 Residential population per station not available Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 46 Maintained traffic lights 39 Maintained street lights 505 (1,614 maintained by PG&E) Parks and Recreation Park acres per 1,000 population not available Recreation centers per 20,000 residents not available Miles of recreation trails not available Solid Waste SERVICE MEASURE STATISTIC Solid waste diversion rate not available Tons of waste disposed per capita not available Pounds of solid waste per person per day – not available Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 8 trash capture Miles of closed storm drain 49 Miles of open channel storm drain 23.3 Storm drain inlets 1,363 Capacity of stormwater drain, if available not available Stormwater recharge facilities not available Stormwater detention basins 1 Provision for stormwater reclamation not reported Streets Street Miles 110 FY Pavement condition index 66 Bike lane miles (Class 1 and Class 2) 20.7 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF RICHMOND MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 2,783 Commercial Building Permits Issued 1,513 Law Enforcement Violent crimes 1,633 Property crimes 4,126 Violent crime clearance rate 17.5 Property crime clearance rate 3.2 Sworn personnel (FTE) per 1,000 population 1.49 Crimes per sworn FTE (violent and property) 31.81 Violent crime rates per 1,000 population 14.8 Property crime rates per 1,000 population 37.4 Residential population per station 110,378 Library Items circulated per capita 1.66 Visits per capita not available Lighting Signalized intersections not reported Maintained traffic lights not reported Maintained street lights 9,000 Parks and Recreation Park acres per 1,000 population 7.1 Recreation centers per 20,000 residents 1.68 Miles of recreation trails 35 Solid Waste Solid waste diversion rate 45% Tons of waste disposed per capita 0.89 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.9 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 4.8 trash capture Miles of closed storm drain 165.4 Miles of open channel storm drain 21.4 Storm drain inlets 5,215 Capacity of stormwater drain, if available not available Stormwater recharge facilities 4 Stormwater detention basins 21 Provision for stormwater reclamation not reported Streets Street Miles 280 FY Pavement condition index 62 Bike lane miles (Class 1 and Class 2) 35.3 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF SAN PABLO MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 330 Commercial Building Permits Issued 47 Law Enforcement Violent crimes 180 Property crimes 1,060 Violent crime clearance rate 32.8% Property crime clearance rate 6.1% Sworn personnel (FTE) per 1,000 population 659 Crimes per sworn FTE (violent and property) 27 Violent crime rates per 1,000 population 6.9 Property crime rates per 1,000 population 35 Residential population per station 10,100 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 29 Maintained traffic lights 29 Maintained street lights 1,051 Parks and Recreation Park acres per 1,000 population < 3.0 Recreation centers per 20,000 residents 6 Miles of recreation trails 0.55 Solid Waste Solid waste diversion rate not reported Tons of waste disposed per capita 0.38 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.9 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 14% trash capture Miles of closed storm drain 16.4 Miles of open channel storm drain 0.76 Storm drain inlets 539 Capacity of stormwater drain, if available not available Stormwater recharge facilities not available Stormwater detention basins not available Provision for stormwater reclamation No Streets Street Miles 48 FY Pavement condition index 75 Bike lane miles (Class 1 and Class 2) 4.4 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF SAN RAMON MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 7,567 Commercial Building Permits Issued 843 Law Enforcement Violent crimes 56 Property crimes 981 Violent crime clearance rate not available Property crime clearance rate not available Sworn personnel (FTE) per 1,000 population 0.84 Crimes per sworn FTE (violent and property) 15.71 Violent crime rates per 1,000 population 0.71 Property crime rates per 1,000 population 12.42 Residential population per station 79,000 Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 99 Maintained traffic lights not available Maintained street lights 7,300 Parks and Recreation Park acres per 1,000 population 4.7 Recreation centers per 20,000 residents 1.08 Miles of recreation trails 57.1 Solid Waste Solid waste diversion rate 73% Tons of waste disposed per capita 0.57 SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – 3.1 Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with < 1% trash capture Miles of closed storm drain 152 Miles of open channel storm drain 3.5 Storm drain inlets 4,400 Capacity of stormwater drain, if available not available Stormwater recharge facilities not available Stormwater detention basins 10 Provision for stormwater reclamation not available Streets Street Miles 498 FY Pavement condition index 80 Bike lane miles (Class 1 and Class 2) 4.3 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CITY OF WALNUT CREEK MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits 3,171 Commercial Building Permits Issued 1,585 Law Enforcement Violent crimes 407 Property crimes 2,295 Violent crime clearance rate not tracked Property crime clearance rate not tracked Sworn personnel (FTE) per 1,000 population 1.1 Crimes per sworn FTE (violent and property) 3.92 Violent crime rates per 1,000 population 0.59 Property crime rates per 1,000 population 3.33 Residential population per station not available Library (County statistics) Items circulated per capita 5.99 Visits per capita 3.15 Lighting Signalized intersections 99 Maintained traffic lights 99 Maintained street lights 1,650 Parks and Recreation Park acres per 1,000 population 44 Recreation centers per 20,000 residents 2 Miles of recreation trails 52 Solid Waste Solid waste diversion rate not available Tons of waste disposed per capita not available SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not available Population Stormwater Compliant with NPDES standards Yes Percent of storm drainage inlets equipped with 4% trash capture Miles of closed storm drain 100 Miles of open channel storm drain 18 Storm drain inlets 4,010 Capacity of stormwater drain, if available not available Stormwater recharge facilities 0 Stormwater detention basins 0 Provision for stormwater reclamation No Streets Street Miles 713 FY Pavement condition index 73 Bike lane miles (Class 1 and Class 2) 32 Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 CROCKETT COMMUNITY SERVICES DISTRICT MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits (County-issued) 121 Commercial Building Permits (County-issued) 6 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate 100% Property crime clearance rate 59% Sworn personnel (FTE) per 1,000 population 1.02 Crimes per sworn FTE (violent and property) not reported Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Public access computers per 1,000 population 3.15 Lighting Signalized intersections County Maintained traffic lights County Maintained street lights 29 decorative streetlamps Parks and Recreation Park acres per 1,000 population 1.8 Recreation centers per 20,000 residents 0.33 Miles of recreation trails 0 Solid Waste Solid waste diversion rate not available SERVICE MEASURE STATISTIC Tons of waste disposed per capita not available Pounds of solid waste per person per day – not available Population Streets Street Miles County FY Pavement condition index (County) 70 Bike lane miles (Class 1 and Class 2) County Stormwater Compliant with NPDES standards County Percent of storm drainage inlets equipped with County trash capture Miles of closed storm drain County Miles of open channel storm drain County Storm drain inlets County Capacity of stormwater drain, if available County Stormwater recharge facilities County Stormwater detention basins County Provision for stormwater reclamation County Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 DIABLO COMMUNITY SERVICES DISTRICT MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits (County-issued) 57 Commercial Building Permits (County-issued) 1 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate n/a Property crime clearance rate 63% Sworn personnel (FTE) per 1,000 population 1.02 (County) Crimes per sworn FTE (violent and property) not reported Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Public access computers per 1,000 population 3.15 Lighting Signalized intersections County Maintained traffic lights County Maintained street lights County Parks and Recreation Park acres per 1,000 population not reported Recreation centers per 20,000 residents not reported Miles of recreation trails not reported Solid Waste Solid waste diversion rate not available SERVICE MEASURE STATISTIC Tons of waste disposed per capita not available Pounds of solid waste per person per day – not available Population Streets Street Miles County FY Pavement condition index (County) 70 Bike lane miles (Class 1 and Class 2) County Stormwater Compliant with NPDES standards County Percent of storm drainage inlets equipped with County trash capture Miles of closed storm drain County Miles of open channel storm drain County Storm drain inlets County Capacity of stormwater drain, if available County Stormwater recharge facilities County Stormwater detention basins County Provision for stormwater reclamation County Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 TOWN OF DISCOVERY BAY COMMUNITY SERVICES DISTRICT MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits (County-issued) 821 Commercial Building Permits (County-issued) 13 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate 47% Property crime clearance rate 80% Sworn personnel (FTE) per 1,000 population 1.02 (County) Crimes per sworn FTE (violent and property) not reported Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Public access computers per 1,000 population 3.15 Lighting Signalized intersections County Maintained traffic lights County Maintained street lights 692 light poles Parks and Recreation Park acres per 1,000 population 6 Recreation centers per 20,000 residents 1 Miles of recreation trails not reported Solid Waste Solid waste diversion rate not available SERVICE MEASURE STATISTIC Tons of waste disposed per capita not available Pounds of solid waste per person per day – not available Population Streets Street Miles County FY Pavement condition index (County) 70 Bike lane miles (Class 1 and Class 2) County Stormwater Compliant with NPDES standards County Percent of storm drainage inlets equipped with County trash capture Miles of closed storm drain County Miles of open channel storm drain County Storm drain inlets County Capacity of stormwater drain, if available County Stormwater recharge facilities County Stormwater detention basins County Provision for stormwater reclamation County Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 KENSINGTON POLICE PROTECTION AND COMMUNITY SERVICES DISTRICT MUNICIPAL SERVICE LEVEL STATISTICS, FY2017 SERVICE MEASURE STATISTIC Animal Control Dog licenses issued per 1,000 County Animals handled at shelter per year County Calls for service County Broadband System average interruption frequency index not available System average interruption duration index not available Building / Planning Residential Building Permits (County-issued) 398 Commercial Building Permits (County-issued) 4 Law Enforcement Violent crimes not reported Property crimes not reported Violent crime clearance rate 5% Property crime clearance rate 4.9% Sworn personnel (FTE) per 1,000 population 1.6 Crimes per sworn FTE (violent and property) 462.29 Violent crime rates per 1,000 population not reported Property crime rates per 1,000 population not reported Residential population per station not reported Library (County statistics) Items circulated per capita 5.99 Public access computers per 1,000 population 3.15 Lighting Signalized intersections County Maintained traffic lights County Maintained street lights County Parks and Recreation Park acres per 1,000 population 1 Recreation centers per 20,000 residents 0.25 Miles of recreation trails 1 Solid Waste Solid waste diversion rate not available Tons of waste disposed per capita not available SERVICE MEASURE STATISTIC Pounds of solid waste per person per day – not available Population Streets Street Miles County FY Pavement condition index (County) 70 Bike lane miles (Class 1 and Class 2) County Stormwater Compliant with NPDES standards County Percent of storm drainage inlets equipped with County trash capture Miles of closed storm drain County Miles of open channel storm drain County Storm drain inlets County Capacity of stormwater drain, if available County Stormwater recharge facilities County Stormwater detention basins County Provision for stormwater reclamation County Utilities (PG&E system-wide) System average interruption frequency index 0.958 System average interruption duration index 113.4 A C TTACHMENT A F P GENCY ISCAL ROFILES This page intentionally left blank. Antioch SUMMARY PROFILE Table S Summary of Financial Conditions City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 28 sq.mi. 28 sq.mi. 28 sq.mi. Population (2) 111,973 113,495 112,280 Change from Prior Year na 1.4% -1.1% Assessed Value (A.V.) (3) $7,664.1 mill. $8,323.4 mill. $8,833.8 mill. Change from Prior Year na 8.6% 6.1% A.V. per capita $68,400 $73,300 $78,700 General Fund Revenues (4) Property Tax $15,099,000 $16,363,000 $18,196,000 Sales Tax 17,595,000 19,973,000 19,395,000 Other 17,910,000 20,810,000 15,263,000 Total GF Revenues $50,604,000 $57,146,000 $52,854,000 Change from Prior Year na 12.9% -7.5% General Fund Expenditures (5) General Government & Admin. $5,198,000 $7,749,000 $928,000 Public Safety 30,312,000 33,597,000 35,460,000 Other (inc. Transfers Out) 12,503,000 13,008,000 12,136,000 Total GF Expenditures $48,013,000 $54,354,000 $48,524,000 Change from Prior Year na 13.2% -10.7% GF Expenditures per capita $429 $479 $432 Ending Balance, General Fund (6) $17,179,000 $22,904,000 $31,015,000 Change from Prior Year 36.9% 25.0% 26.2% as % of GF Expenditures 35.8% 42.1% 63.9% Enterprise Expenditures (7) Water Utility $23,308,000 $22,334,000 $24,457,000 Sewer Utility $5,439,000 $5,528,000 $5,863,000 Marina $1,016,000 $1,108,000 $1,026,000 Prewett Water Park $1,983,000 $2,024,000 $2,167,000 Total Enterprise Expenditures $31,746,000 $30,994,000 $33,513,000 Change from Prior Year na -2.4% 8.1% Total Enterprise Net Position (8) $174,870,000 $180,116,000 $186,035,000 Position/Enterprise Expenditures 5.5 5.8 5.6 Liquidity Ratio (9) Governmental Activities 3.7 5.4 7.4 Business-type Activities 17.5 18.7 22.9 Net Capital Assets (end of year) (10) Governmental Funds & Activities $317,519,000 $311,567,000 $303,346,000 Net Change from Prior Year 2.8% -1.9% -2.6% Business-type Activities 143,420,000 146,143,000 145,241,000 Net Change from Prior Year -1.3% 1.9% -0.6% Total Pension Liability (11) Net Liability $78,450,000 $83,840,000 $101,730,000 City of Antioch 12/31/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 1 of 138 Antioch (5) See Table 2. FY17 CAFR shows cost allocations as reductions in charges to servicing dept. (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability not reported in CAFR. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax (1) $15,099,060 $16,363,367 $18,195,628 Sales tax (2) 17,594,990 19,973,270 19,395,351 Franchise tax 2,824,143 2,969,922 3,109,778 Other Taxes 2,450,812 3,692,150 4,483,178 Intergovernmental revenues (3) 43,626 43,696 50,608 Licenses & Permits 1,178,138 1,149,614 1,243,093 Fines and penalties 55,357 103,552 160,564 Investment income and rentals 552,328 713,341 559,693 Revenue from other agencies 1,565,675 963,184 1,237,450 Current service charges (5) 7,879,340 8,599,259 2,009,228 Other 1,360,936 2,575,326 2,409,693 Total Revenues 50,604,405 57,146,681 52,854,264 Change from Prior Year na 12.9% -7.5% OTHER FINANCING SOURCES Transfers In 3,753,423 2,932,725 3,780,876 Total Other Financing Sources 3,753,423 2,932,725 3,780,876 TOTAL REVENUES AND TRANSFERS IN $54,357,828 $60,079,406 $56,635,140 Source: City of Antioch CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Includes Property Tax in lieu of VLF. (2) Includes Measure C. (3) Includes transient lodging, business tax, transfer tax. (4) Includes State Motor Vehicle In-lieu. (5) Method of accounting for service charges changed in FY17 CAFR. ---------- City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 2 of 138 Antioch GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government (1) $5,197,636 $7,749,109 $928,281 Community development 2,864,734 2,708,845 2,995,742 Public safety 30,312,461 33,596,541 35,460,035 Public works 6,356,503 6,989,183 6,027,009 Capital outlay 1,365,646 1,156,061 471,930 Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 46,096,980 52,199,739 45,882,997 Change from Prior Year na 13.2% -12.1% OTHER FINANCING USES Transfers Out 1,916,393 2,154,288 2,641,350 Total Other Financing Uses 1,916,393 2,154,288 2,641,350 TOTAL USES AND TRANSFERS OUT $48,013,373 $54,354,027 $48,524,347 Source: City of Antioch CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) FY17 CAFR shows cost allocations as reductions in charges to servicing dept. (see explanation in CAFR pg. 11). ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $10,834,595 $17,179,050 $22,904,429 Net Change 6,344,455 5,725,379 8,110,793 % Change from Prior Year 58.6% 33.3% 35.4% Ending Balance, General Fund $17,179,050 $22,904,429 $31,015,222 Ending Balance/Total GF Operating Expenditures 37.3% 43.9% 67.6% Unassigned $11,530,696 $17,590,147 $25,979,579 Total Governmental Activities Ending Net Position $315,675,548 $319,841,198 $317,344,808 Unrestricted ($49,845,837) ($40,948,110) ($34,184,377) Source: City of Antioch CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, and Balance Sheet; Statement of Net Position. ---------- City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 3 of 138 Antioch ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Table 4 Summary of Enterprise Changes in Net Position City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services (1) $30,747,640 $32,788,173 $36,932,294 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 2,297,929 2,402,956 683,190 Other Non-Operating 450,821 732,399 528,554 Total $33,496,390 $35,923,528 $38,144,038 Change from Prior Year na 7.2% 6.2% ENTERPRISE EXPENDITURES Water Utility $23,308,383 $22,334,168 $24,457,466 Sewer Utility 5,438,916 5,528,283 5,862,714 Marina 1,015,771 1,108,139 1,026,304 Prewett Water Park 1,982,609 2,024,309 2,167,281 Total $31,745,679 $30,994,899 $33,513,765 Change from Prior Year na -2.4% 8.1% Transfers and Special Items ($797,654) $317,102 $1,288,267 Beginning Net Position (July 1) 173,917,359 $174,870,416 $180,116,147 Change in Net Position 953,057 5,245,731 5,918,540 Ending Net Position $174,870,416 $180,116,147 $186,034,687 % Change from Prior Year 0.5% 3.0% 3.3% Ending Net Position/Total Expenditures 5.51 5.81 5.55 Source: City of Antioch CAFRs - Statement of Changes in Net position (1) Water service charges in increased from FY16 to FY17. ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Water $97,206,727 $102,011,194 $107,770,156 Sewer Utility 68,842,822 69,977,820 69,328,871 Marina 4,702,864 4,277,706 3,808,905 Prewett Water Park 6,063,675 5,631,073 6,838,290 Total Net Position 176,816,088 181,897,793 187,746,222 % change from prior year (1) n/a 2.9% 3.2% Source: City of Antioch CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds (1) Totals do not match Statement of Activities due to reporting of certain internal service funds (CAFR FY15, pg. 35). ---------- City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 4 of 138 Antioch LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 3.7 5.4 7.4 Cash and Short-term Investments 45,556,148 48,292,309 56,978,795 Total Current Liabilities 12,162,539 8,889,878 7,685,264 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 17.5 18.7 22.9 Cash and Short-term Investments 47,182,737 50,975,247 54,796,385 Total Current Liabilities (2) 2,701,536 2,719,260 2,395,612 Source: City of Antioch CAFRs - Statement of Net position (1) Liquidity Ratio equals Cash and Short-term Investments/Total Current Liabilities. (2) FY17 Statement of Net Position (pg.32) includes long-term due within one year vs. pg. 19. ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $308,934,258 $317,519,407 $311,567,414 Ending Net Value of Capital Assets 317,519,407 311,567,414 303,346,242 Change in Net Value of Capital Assets 934,258 (5,951,993) (8,221,172) % Change in Net Value of Capital Assets 0.3% -1.9% -2.6% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $145,319,371 $143,420,496 $146,142,929 Ending Net Value of Capital Assets 143,420,496 146,142,929 145,240,774 Change in Net Value of Capital Assets (1,898,875) 2,722,433 (902,155) % Change in Net Value of Capital Assets -1.3% 1.9% -0.6% Source: City of Antioch CAFRs - Notes to Basic Financial Statements (Note 8) (1) Assets being depreciated (excludes land). ---------- City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 5 of 138 Antioch PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liability $78,446,363 $83,836,025 $101,728,332 Net OPEB Liability $6,720,816 $9,113,571 $12,471,058 Source: City of Antioch CAFRs - Notes to Basic Financial Statements (1) CAFR doesn't report total pension liability or % funded for total or separate funds. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Antioch Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 6,813,000 6,219,000 5,563,000 Business Type Activities 6,875,000 6,458,000 6,262,000 Total Outstanding Debt 13,688,000 12,677,000 11,825,000 Total Debt per Capita $122 $112 $105 Assessed Value $7,664,094,000 $8,323,370,000 $8,833,818,000 Coverage Ratio (pledged revenues) (1) N/A N/A N/A Source: CAFRs - Ratios of Outstanding Debt by Type, and Pledged Revenue Coverage. (1) No debt service reported for revenue bonds. ---------- City/CSD MSR Update City of Antioch Fiscal Data May 7, 2019 pg. 6 of 138 Brentwood SUMMARY PROFILE Table S Summary of Financial Conditions City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 14.8 sq.mi. 14.8 sq.mi. 14.8 sq.mi. Population (2) 57,072 59,058 61,383 Change from Prior Year na 3.5% 3.9% Assessed Value (A.V.) (3) $7,051.0 mill. $7,918.1 mill. $8,560.0 mill. Change from Prior Year na 12.3% 8.1% A.V. per capita $123,500 $134,100 $139,500 General Fund Revenues (4) Property Tax $9,949,000 $11,106,000 $12,239,000 Sales Tax $6,837,000 $7,319,000 $8,188,000 Other Revenues 22,295,000 23,832,000 24,753,000 Total GF Revenues $39,081,000 $42,257,000 $45,180,000 Change from Prior Year na 8.1% 6.9% General Fund Expenditures (5) General Government & Admin. $5,616,000 $5,968,000 $6,633,000 Public Safety $18,089,000 $19,246,000 $21,417,000 Other (inc. Transfers Out) 15,215,000 16,006,000 18,138,000 Total GF Expenditures $38,920,000 $41,220,000 $46,188,000 Change from Prior Year na 5.9% 12.1% GF Expenditures per capita $682 $698 $752 Ending Balance, General Fund (6) $18,907,000 $22,547,000 $23,406,000 Change from Prior Year 9.3% 16.1% 3.7% as % of GF Expenditures 48.6% 54.7% 50.7% Enterprise Expenditures (7) Wastewater $10,001,000 $10,003,000 $10,328,000 Solid Waste $10,373,000 $10,681,000 $11,494,000 Water $19,539,000 $22,129,000 $20,972,000 City Rentals $175,000 $179,000 $197,000 Housing $657,000 $724,000 $797,000 Total Enterprise Expenditures $40,745,000 $43,716,000 $43,788,000 Change from Prior Year na 7.3% 0.2% Total Enterprise Net Position (8) $247,681,000 $252,520,000 $263,521,000 Position/Enterprise Expenditures 6.1 5.8 6.0 Liquidity Ratio (9) Governmental Activities 6.5 8.5 9.8 Business-type Activities 10.6 9.8 8.5 Net Capital Assets (end of year) (10) Governmental Funds & Activities $458,597,000 $454,735,000 $453,103,000 Net Change from Prior Year -0.6% -0.8% -0.4% Business-type Activities 237,967,000 242,816,000 246,143,000 Net Change from Prior Year 3.9% 2.0% 1.4% Total Pension Liability (11) n/a Net Pension Liability $32,430,000 $42,855,000 n/a City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 7 of 138 Brentwood City of Brentwood MSR Fiscal Profile (Comprehensive Annual Financial Reports) 12/31/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) CAFRs do not provide detail for "taxes", which includes property tax, sales tax, etc. (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax $9,949,104 $11,105,913 $12,238,838 Sales tax 6,836,917 7,319,217 8,188,046 Other taxes 923,950 1,063,828 1,069,606 Permits, licenses, and fees 6,898,003 7,467,505 7,389,264 Use of money and property 427,072 789,168 234,704 Intergovernmental revenues 3,568,544 3,794,652 4,683,506 Franchises 1,400,350 1,473,443 1,487,179 Charges for other services 306,603 287,150 561,815 Charges for other funds 6,705,041 6,811,651 7,538,724 Fees and Other revenues 2,065,406 2,144,717 1,787,913 Total Revenues 39,080,990 42,257,244 45,179,595 Change from Prior Year na 8.1% 6.9% OTHER FINANCING SOURCES Transfers In 6,616,104 9,471,813 9,520,696 Total Other Financing Sources 6,616,104 9,471,813 9,520,696 TOTAL REVENUES AND TRANSFERS IN $45,697,094 $51,729,057 $54,700,291 Source: City of Brentwood CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 8 of 138 Brentwood GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $5,616,074 $5,967,866 $6,633,141 Public safety 18,088,964 19,245,916 21,417,144 Community development 4,049,004 4,071,224 4,368,437 Engineering 2,741,148 2,865,976 3,227,631 Public works 2,814,945 2,999,793 3,213,775 Parks and Rec 5,022,452 5,091,656 5,576,169 Community Services 587,726 619,740 536,357 Debt service: Principal 0 357,796 1,215,818 Interest and fiscal charges 0 0 0 Total Expenditures 38,920,313 41,219,967 46,188,472 Change from Prior Year na 5.9% 12.1% OTHER FINANCING USES Transfers Out 5,008,808 6,869,646 7,652,826 Total Other Financing Uses 5,008,808 6,869,646 7,652,826 TOTAL USES AND TRANSFERS OUT $43,929,121 $48,089,613 $53,841,298 Source: City of Brentwood CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $17,139,493 $18,907,466 $22,546,910 Net Change 1,767,973 3,639,444 858,993 % Change from Prior Year 10.3% 19.2% 3.8% Ending Balance, General Fund $18,907,466 $22,546,910 $23,405,903 Ending Balance/Total GF Operating Expenditures 48.6% 54.7% 50.7% Unassigned $12,318,912 $13,120,085 $15,673,545 Total Governmental Activities Ending Net Position $527,686,968 $537,509,067 $547,764,208 Unrestricted $22,429,161 $28,537,948 $29,172,068 Source: City of Brentwood CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 9 of 138 Brentwood ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $40,448,753 $39,224,107 $41,397,807 Operating Grants and Contributions 0 918,028 1,024,113 Capital Grants and Contributions 4,382,019 7,414,680 11,863,994 Other Non-Operating (1) 719,108 1,759,735 233,539 Total $45,549,880 $49,316,550 $54,519,453 Change from Prior Year na 8.3% 10.6% ENTERPRISE EXPENDITURES Wastewater 10,000,905 10,003,159 10,328,357 Solid Waste 10,373,325 10,680,780 11,493,599 Water 19,538,589 22,129,063 20,972,101 City Rentals 174,597 178,558 196,829 Housing 656,778 723,908 797,400 Total $40,744,194 $43,715,468 $43,788,286 Change from Prior Year na 7.3% 0.2% Transfers ($702,328) ($762,119) $270,142 Beginning Net Position 243,577,802 $247,681,160 $252,520,123 Change in Net Position 4,103,358 4,838,963 11,001,309 Ending Net Position $247,681,160 $252,520,123 $263,521,432 % Change from Prior Year 1.7% 2.0% 4.4% Ending Net Position/Total Expenditures 6.08 5.78 6.02 Source: City of Brentwood CAFRs - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Wastewater $98,508,001 $103,943,662 $108,501,996 Solid Waste 15,168,947 14,780,713 14,789,359 Water 124,944,823 123,589,934 129,485,478 City Rentals 179,693 183,674 178,083 Housing 8,879,696 10,022,140 10,566,516 Total Net Position $247,681,160 $252,520,123 $263,521,432 % change from prior year n/a 2.0% 4.4% Source: City of Brentwood CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds (1) ---------- City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 10 of 138 Brentwood LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 6.5 8.5 9.8 Cash and Short-term Investments 61,024,969 71,364,530 91,057,217 Total Current Liabilities 9,413,946 8,364,921 9,259,342 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 10.6 9.8 8.5 Cash and Short-term Investments 74,703,962 76,040,331 73,832,501 Total Current Liabilities 7,061,594 7,786,470 8,733,708 Source: City of Brentwood CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $461,227,152 $458,597,484 $454,735,324 Ending Net Value of Capital Assets 458,597,484 $454,735,324 453,102,594 Change in Net Value of Capital Assets (2,629,668) (3,862,160) (1,632,730) % Change in Net Value of Capital Assets -0.6% -0.8% -0.4% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $228,931,078 $237,967,110 $242,815,634 Ending Net Value of Capital Assets 237,967,110 $242,815,634 246,143,348 Change in Net Value of Capital Assets 9,036,032 4,848,524 3,327,714 % Change in Net Value of Capital Assets 3.9% 2.0% 1.4% Source: City of Brentwood CAFRs - Notes to Basic Financial Statements (Note 5) ---------- City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 11 of 138 Brentwood PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (misc. only) $103,157,066 $112,379,297 n/a Plan Fiduciary Net Position (misc. only) 81,082,764 83,231,411 n/a % Funded (misc. only) 78.6% 74.1% n/a Net Pension Liability (total) $32,430,187 $42,854,631 n/a Misc. $22,074,302 $29,147,886 n/a Public Safety $10,355,885 $13,706,745 n/a Net OPEB Liability $41,843,000 n/a n/a Source: City of Brentwood CAFRs - Required Supplementary Information ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Brentwood Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities (1) 75,084,744 99,085,447 95,350,040 Business Type Activities (1) 69,625,973 66,076,797 62,426,933 Total Outstanding Debt 144,710,717 165,162,244 157,776,973 Total Debt per Capita $2,536 $2,797 $2,570 Assessed Value (2) $7,051,011,254 $7,918,068,152 $8,560,048,612 Coverage Ratio (pledged revenues) 1.73 2.05 1.56 Source: CAFRs - Statistical Section (1) see CAFR FY17, S-14 (2) see CAFR FY17, S-5 City/CSD MSR Update City of Brentwood Fiscal Data May 7, 2019 pg. 12 of 138 Clayton SUMMARY PROFILE Table S Summary of Financial Conditions City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 4.2 sq.mi. 4.2 sq.mi. 4.2 sq.mi. Population (2) 11,159 11,262 11,342 Change from Prior Year na 0.9% 0.7% Assessed Value (A.V.) (3) $1,866.4 mill. $1,990.3 mill. $2,077.2 mill. Change from Prior Year na 6.6% 4.4% A.V. per capita $167,300 $176,700 $183,100 General Fund Revenues (4) Property Tax $2,302,000 $2,257,000 $2,339,000 Sales Tax $398,000 $373,000 $455,000 Other Revenues (exc. Transfers in) $1,541,000 $1,757,000 $1,553,000 Total GF Revenues $4,241,000 $4,387,000 $4,347,000 Change from Prior Year na 3.4% -0.9% General Fund Expenditures (5) General Government & Admin. $1,019,000 $1,069,000 $1,178,000 Public Safety $1,926,000 $2,138,000 $2,104,000 Other (exc. Transfers Out) $897,000 $802,000 $874,000 Total GF Expenditures $3,842,000 $4,009,000 $4,156,000 Change from Prior Year na 4.3% 3.7% GF Expenditures per capita $344 $356 $366 Ending Balance, General Fund (6) $5,739,000 $5,849,000 $5,917,000 Change from Prior Year 10.3% 7.5% 5.1% as % of GF Expenditures 149.4% 145.9% 142.4% Enterprise Expenditures (7) Endeavor Hall & Community Gym $67,000 $68,000 $67,000 Total Enterprise Expenditures $67,000 $68,000 $67,000 Change from Prior Year na 1.5% -1.5% Total Enterprise Net Position (8) $1,206,000 $1,166,000 $1,121,000 Position/Enterprise Expenditures 18.0 17.1 16.7 Liquidity Ratio (9) Governmental Activities 17.7 27.9 18.4 Business-type Activities - - - Net Capital Assets (end of year) (10) Governmental Funds & Activities $26,515,000 $26,769,000 $25,894,000 Net Change from Prior Year -2.7% 1.0% -3.3% Business-type Activities 1,083,000 1,054,000 1,017,000 Net Change from Prior Year -3.2% -2.7% -3.5% Total Pension Liability (11) Net Liability $3,690,000 $3,590,000 $4,410,000 City of Clayton MSR Fiscal Profile (Comprehensive Annual Financial Reports) 12/31/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 13 of 138 Clayton (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability not reported in CAFR. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax (1) $2,302,278 $2,256,780 $2,339,221 Sales and use taxes 397,544 372,705 455,387 Business license taxes 0 0 135,866 Permits, licenses and fees 264,764 283,626 161,443 Fines, forfeitures and penalties 72,635 84,270 92,662 Intergovernmental 107,724 250,025 98,451 Motor vehicle in-lieu fees 4,590 4,554 0 Other in-lieu fees 151,816 154,852 157,949 Franchise fees 501,597 516,607 541,138 Service charges 366,080 342,308 311,796 Use of money and property 39,186 104,016 35,326 Other revenue 32,637 16,523 18,186 Total Revenues 4,240,851 4,386,266 4,347,425 Change from Prior Year na 3.4% -0.9% OTHER FINANCING SOURCES Transfers In 190,867 104,565 107,400 Total Other Financing Sources 190,867 104,565 107,400 TOTAL REVENUES AND TRANSFERS IN $4,431,718 $4,490,831 $4,454,825 Source: City of Clayton CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Property tax includes "VLF backfill". ---------- City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 14 of 138 Clayton GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $1,018,852 $1,068,970 $1,178,444 Public works 167,282 152,280 249,006 Parks and recreation services 349,862 295,284 325,187 Community and economic development 379,348 354,083 288,962 Public safety 1,926,479 2,138,283 2,104,174 Capital Outlay 0 0 9,830 Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 3,841,823 4,008,900 4,155,603 Change from Prior Year na 4.3% 3.7% OTHER FINANCING USES Transfers Out 0 46,243 0 Total Other Financing Uses 0 46,243 0 TOTAL USES AND TRANSFERS OUT $3,841,823 $4,055,143 $4,155,603 Source: City of Clayton CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $5,148,737 $5,413,157 $5,618,059 Net Change 589,895 435,688 299,222 % Change from Prior Year 11.5% 8.0% 5.3% Ending Balance, General Fund $5,738,632 $5,848,845 $5,917,281 Ending Balance/Total GF Operating Expenditures 149.4% 145.9% 142.4% Unassigned $4,509,255 $5,031,142 $5,429,524 Total Governmental Activities Ending Net Position $35,459,216 $43,741,625 $44,916,424 Unrestricted $4,781,508 $7,028,670 $7,835,030 Source: City of Clayton CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds; Statement of Net Position ---------- City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 15 of 138 Clayton ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $25,818 $27,253 $22,251 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 0 0 0 Other Non-Operating 4,491 0 0 Total $30,309 $27,253 $22,251 Change from Prior Year na -10.1% -18.4% ENTERPRISE EXPENDITURES Endeavor Hall & Community Gym $66,606 $67,668 $67,393 Total $66,606 $67,668 $67,393 Change from Prior Year na 1.6% -0.4% Transfers and Special Items (1) $4,696 $0 $0 Beginning Net Position 1,237,710 $1,206,109 $1,165,694 Change in Net Position (31,601) (40,415) (45,142) Ending Net Position $1,206,109 $1,165,694 $1,120,552 % Change from Prior Year -2.6% -3.4% -3.9% Ending Net Position/Total Expenditures 18.11 17.23 16.63 Source: City of Clayton CAFRs - Recap of Statement of Activities and Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Endeavor Hall and Community Gym $1,206,109 $1,165,694 $1,120,552 Total Net Position 1,206,109 1,165,694 1,120,552 % change from prior year n/a -3.4% -3.9% Source: City of Clayton CAFRs - Statement of Net Position ---------- City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 16 of 138 Clayton LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 17.7 27.9 18.4 Cash and Short-term Investments 10,047,587 10,515,485 10,777,647 Total Current Liabilities 566,720 377,491 586,511 BUSINESS-TYPE ACTIVITIES (2) Liquidity Ratio (1) - - - Cash and Short-term Investments 0 0 0 Total Current Liabilities 8,823 6,692 8,634 Source: City of Clayton CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities. (2) No cash and investments reported for business-type activities. ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $27,256,072 $26,515,029 $26,769,092 Ending Net Value of Capital Assets 26,515,029 $26,769,092 $25,893,912 Change in Net Value of Capital Assets (741,043) 254,063 (875,180) % Change in Net Value of Capital Assets -2.7% 1.0% -3.3% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $1,119,010 $1,082,943 $1,054,261 Ending Net Value of Capital Assets 1,082,943 $1,054,261 $1,017,004 Change in Net Value of Capital Assets (36,067) (28,682) (37,257) % Change in Net Value of Capital Assets -3.2% -2.6% -3.5% Source: City of Clayton CAFRs - Notes to Basic Financial Statements (Note 5) ---------- City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 17 of 138 Clayton PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (1) n/a n/a n/a Plan Fiduciary Net Position (1) n/a n/a n/a % Funded 77.60% 78.40% 74.06% Net Pension Liability $3,693,394 $3,593,771 $4,413,357 Net OPEB Liability $99,656 $129,544 $142,547 Source: City of Clayton CAFRs - Notes to Basic Financial Statements (note 11) (1) Per GASB 68, Clayton is part of a small employer cost sharing plan and CAFR doesn't report total pension liability or net position. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Clayton Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 0 0 0 Business Type Activities 0 0 0 Total Outstanding Debt (1) 0 0 0 Total Debt per Capita $0 $0 $0 Assessed Value $1,866,376,581 $1,990,290,592 $2,077,224,159 Coverage Ratio (pledged revenues)(1) - - - Source: CAFRs - Statistical Section, Ratios of Debt Outstanding, and Legal Debt Margin. (1) No debt reported. ---------- City/CSD MSR Update City of Clayton Fiscal Data May 7, 2019 pg. 18 of 138 Concord SUMMARY PROFILE Table S Summary of Financial Conditions City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 31.13 sq.mi. 31.13 sq.mi. 31.13 sq.mi. Population (2) 124,977 129,707 128,370 Change from Prior Year na 3.8% -1.0% Assessed Value (A.V.) (3) $13,721.7 mill. $14,702.1 mill. $15,539.1 mill. Change from Prior Year na 7.1% 5.7% A.V. per capita $109,800 $113,300 $121,000 General Fund Revenues (4) Property Tax $13,600,000 $14,300,000 $15,400,000 Sales Tax $41,200,000 $45,900,000 $46,000,000 Other Revenues $38,100,000 $37,700,000 $39,900,000 Total GF Revenues $92,900,000 $97,900,000 $101,300,000 Change from Prior Year na 5.4% 3.5% General Fund Expenditures (5) General Government & Admin. $19,000,000 $15,500,000 $15,300,000 Public Safety $45,200,000 $49,900,000 $53,700,000 Other (inc. Transfers Out) $19,500,000 $30,600,000 $28,600,000 Total GF Expenditures $83,700,000 $96,000,000 $97,600,000 Change from Prior Year na 14.7% 1.7% GF Expenditures per capita $670 $740 $760 Ending Balance, General Fund (6) $33,900,000 $35,800,000 $39,500,000 Change from Prior Year 27.1% 5.3% 9.4% as % of GF Expenditures 40.5% 37.3% 40.5% Enterprise Expenditures (7) Sewer Utility $25,800,000 $26,700,000 $27,800,000 Golf Course $1,300,000 $1,500,000 $1,500,000 Total Enterprise Expenditures $27,100,000 $28,200,000 $29,300,000 Change from Prior Year na 4.1% 3.9% Total Enterprise Net Position (8) $65,800,000 $66,500,000 $68,800,000 Position/Enterprise Expenditures 2.4 2.4 2.3 Liquidity Ratio (9) Governmental Activities 3.5 2.8 2.7 Business-type Activities 1.4 1.6 1.8 Net Capital Assets (end of year) (10) Governmental Funds & Activities $620,879,000 $621,266,000 $615,322,000 Net Change from Prior Year -2.7% 0.1% -1.0% Business-type Activities 73,710,000 69,157,000 64,709,000 Net Change from Prior Year -4.8% -6.2% -6.4% Total Pension Liability (11) $455,933,359 $466,885,639 $484,038,710 % Pension Funded 68.5% 66.6% 63.4% Net Pension Liability $143,658,161 $156,165,452 $177,205,341 City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 19 of 138 Concord City of Concord MSR Fiscal Profile (Comprehensive Annual Financial Reports) 6/14/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) City edits to MSR Fiscal Profile. (3) See Table 9 (4) See Table 1. Includes Transfers In. (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax $13,600,000 $14,300,000 $15,400,000 In Lieu Property Taxes - VLF 8,900,000 9,500,000 10,100,000 Sales Taxes 41,200,000 45,900,000 46,000,000 Other Taxes 12,200,000 12,800,000 13,700,000 Licenses and Permits 1,500,000 1,700,000 2,100,000 Intergovernmental 2,100,000 1,400,000 1,400,000 Charges for Services 5,200,000 5,500,000 6,200,000 Investment Earnings 1,700,000 1,700,000 1,700,000 Miscellaneous Revenues 5,300,000 4,600,000 4,200,000 Total Revenues 91,700,000 97,400,000 100,800,000 Change from Prior Year na 6.2% 3.5% OTHER FINANCING SOURCES Transfers In 1,200,000 500,000 500,000 Total Other Financing Sources 1,200,000 500,000 500,000 TOTAL REVENUES AND TRANSFERS IN $92,900,000 $97,900,000 $101,300,000 Source: City of Concord CAFRs - Changes in General Fund (Table 8) ---------- City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 20 of 138 Concord GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $19,000,000 $15,500,000 $15,300,000 Public Safety 45,200,000 49,900,000 53,700,000 Public Works 6,600,000 7,300,000 8,000,000 Community and Economic Development 5,500,000 7,700,000 8,900,000 Parks and Recreation Services 4,600,000 5,000,000 5,300,000 Interest on Long-Term Debt 200,000 200,000 300,000 Total Expenditures 81,100,000 85,600,000 91,500,000 Change from Prior Year na 5.5% 6.9% OTHER FINANCING USES Transfers Out 2,600,000 10,400,000 6,100,000 Total Other Financing Uses 2,600,000 10,400,000 6,100,000 TOTAL USES AND TRANSFERS OUT $83,700,000 $96,000,000 $97,600,000 Source: City of Concord CAFRs - Changes in General Fund (Table 8) ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $24,700,000 $33,900,000 $35,800,000 Net Change 9,200,000 1,900,000 3,700,000 % Change from Prior Year 37.2% 5.6% 10.3% Ending Balance, General Fund $33,900,000 $35,800,000 $39,500,000 Ending Balance/Total GF Operating Expenditures 41.8% 41.8% 43.2% Unassigned $27,300,000 $23,600,000 $28,200,000 Total Governmental Activities Ending Net Position $570,354,680 $582,293,478 $578,381,415 Unrestricted ($56,475,621) ($47,811,573) ($75,116,464) Source: City of Concord CAFRs - Changes in General Fund (Table 8); Statement of Net Position. ---------- City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 21 of 138 Concord ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $25,800,000 $28,700,000 $31,300,000 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 100,000 0 0 Other Non-Operating 100,000 200,000 300,000 Total $26,000,000 $28,900,000 $31,600,000 Change from Prior Year na 11.2% 9.3% ENTERPRISE EXPENDITURES Sewer Utility $25,800,000 $26,700,000 $27,800,000 Golf Course $1,300,000 1,500,000 1,500,000 Total $27,100,000 $28,200,000 $29,300,000 Change from Prior Year na 4.1% 3.9% Transfers $0 $0 $0 Beginning Net Position $66,900,000 $65,800,000 $66,500,000 Change in Net Position (1,100,000) 700,000 2,300,000 Ending Net Position $65,800,000 $66,500,000 $68,800,000 % Change from Prior Year -1.6% 1.1% 3.5% Ending Net Position/Total Expenditures 2.43 2.36 2.35 Source: City of Concord CAFRs - Citywide Changes in Net position (Table 2). ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Sewer Utility $63,800,000 $64,500,000 $66,900,000 Golf Course 2,000,000 2,000,000 1,900,000 Total Net Position 65,800,000 66,500,000 68,800,000 % change from prior year n/a 1.1% 3.5% Source: City of Concord CAFRs - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position ---------- City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 22 of 138 Concord LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 3.5 2.8 2.7 Cash and Short-term Investments 89,093,141 84,564,296 94,634,149 Total Current Liabilities (2) 25,375,999 29,997,855 34,530,515 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 1.4 1.6 1.8 Cash and Short-term Investments 25,445,032 33,189,158 37,891,313 Total Current Liabilities 17,914,198 21,372,277 20,567,570 Source: City of Concord CAFRs - Governmental Funds Balance Sheet and Proprietary Funds Statement of Net position (1) Ratio = Cash and Short-term Investments/Total Current Liabilities (2) Total liabilities (including advances from other funds). ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets (1) $638,173,991 $620,879,011 $621,265,734 Ending Net Value of Capital Assets (1) 620,879,011 621,265,734 615,321,945 Change in Net Value of Capital Assets (17,294,980) 386,723 (5,943,789) % Change in Net Value of Capital Assets -2.7% 0.1% -1.0% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets (1) $77,440,693 $73,710,099 $69,156,859 Ending Net Value of Capital Assets (1) 73,710,099 69,156,859 64,709,219 Change in Net Value of Capital Assets (3,730,594) (4,553,240) (4,447,640) % Change in Net Value of Capital Assets -4.8% -6.2% -6.4% Source: City of Concord CAFRs - Notes to Basic Financial Statements (Note 6 - CAPITAL ASSETS). (1) Assets being depreciated (excludes land). ---------- City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 23 of 138 Concord PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (1) $455,933,359 $466,885,639 $484,038,710 Plan Fiduciary Net Position (1) 312,275,198 310,720,187 306,833,369 % Funded 68.5% 66.6% 63.4% Net Pension Liability $143,658,161 $156,165,452 $177,205,341 Net OPEB Asset or (Liability) ($50,277,000) ($37,683,000) na Source: City of Concord CAFRs - Notes to Basic Financial Statements (Notes 10-12). (1) Includes Concord Retirement System and CALPERS. Early retirement plan is fully funded. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Concord Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 35,900,000 32,000,000 28,100,000 Business Type Activities 19,400,000 18,300,000 17,200,000 Total Outstanding Debt 55,300,000 50,300,000 45,300,000 Total Debt per Capita $442 $388 $353 Assessed Value $13,721,683,000 $14,702,051,000 $15,539,072,000 Coverage Ratio (pledged revenues) (1) 4.13 5.98 7.53 Source: CAFRs - Outstanding Debt (Table 10) and Bond Coverage (Table 12) (1) Sewer revenue bonds. ---------- City/CSD MSR Update City of Concord Fiscal Data May 7, 2019 pg. 24 of 138 Danville SUMMARY PROFILE Table S Summary of Financial Conditions Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 18.8 sq.mi. 18.8 sq.mi. 18.8 sq.mi. Population (2) 42,491 44,048 44,048 Change from Prior Year na 3.7% 0.0% Assessed Value (A.V.) (3) $10,450.2 mill. $11,156.9 mill. $11,825.4 mill. Change from Prior Year na 6.8% 6.0% A.V. per capita $245,900 $253,300 $268,500 General Fund Revenues (4) Property Tax $13,593,000 $14,154,000 $13,979,000 Sales Tax $4,080,000 $4,559,000 $5,535,000 Other Revenues $6,268,000 $10,127,000 $6,090,000 Total GF Revenues $23,941,000 $28,840,000 $25,604,000 Change from Prior Year na 20.5% -11.2% General Fund Expenditures (5) General Government & Admin. $1,526,000 $1,591,000 $1,623,000 Public Safety $8,061,000 $8,456,000 $8,753,000 Other (before Transfers) $8,865,000 $9,068,000 $9,443,000 Total GF Expenditures $18,452,000 $19,115,000 $19,819,000 Change from Prior Year na 3.6% 3.7% GF Expenditures per capita $434 $434 $450 Ending Balance, General Fund (6) $27,275,000 $29,957,000 $27,800,000 Change from Prior Year -0.5% 9.0% -7.8% as % of GF Expend. (before transfers) 147.8% 156.7% 140.3% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 9.4 8.4 9.9 Business-type Activities na na na Net Capital Assets (end of year) (10) Governmental Funds & Activities $158,163,000 $162,964,000 $163,427,000 Net Change from Prior Year 2.2% 3.0% 0.3% Pension Liability (11) % Pension Funded na na na Net Pension Liability na na na Town of Danville MSR Fiscal Profile (Comprehensive Annual Financial Reports) 12/31/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1. Includes one-time special item: Cooperative loan from Successor Agency of former CDA. FY16 one- time amount = $3,195,604 (5) See Table 2 (6) See Table 3 (7) See . No enterprises. (8) See . No enterprises. City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 25 of 138 Danville (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) Town of Danville provides a defined contribution 401(a) plan. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax (1) $13,593,483 $14,153,561 $13,978,818 Sales tax 4,080,378 4,558,712 5,535,422 Other taxes 2,138,914 2,224,862 2,348,777 Charges for services 2,081,890 1,985,185 2,139,419 Permits, licenses, and fees 391,856 404,744 371,212 Intergovernmental 93,138 8,433 5,381 Fines and forfeitures 242,325 267,732 163,825 Use of money and property 947,700 1,347,953 774,087 Miscellaneous 372,349 692,541 287,179 Special Items (1) 0 3,195,604 0 Total Revenues 23,942,033 28,839,327 25,604,120 Change from Prior Year na 20.5% -11.2% OTHER FINANCING SOURCES Transfers In 297,553 297,553 306,553 Total Other Financing Sources 297,553 297,553 306,553 TOTAL REVENUES AND TRANSFERS IN $24,239,586 $29,136,880 $25,910,673 Source: City of Danville CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Cooperative loan from Successor Agency of former CDA. ---------- City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 26 of 138 Danville GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $1,526,324 $1,591,047 $1,622,521 Police services 8,061,311 8,456,134 8,753,474 Maintenance services 1,792,635 1,837,916 2,005,242 Lighting and landscape 0 0 0 Development services 944,084 831,846 902,452 Administrative services 2,710,169 2,964,182 2,977,230 Recreation, arts, & community services 3,405,099 3,385,848 3,558,015 Capital outlay 12,797 48,445 0 Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 18,452,419 19,115,418 19,818,934 Change from Prior Year na 3.6% 3.7% OTHER FINANCING USES Transfers Out 5,923,161 7,339,097 8,248,600 Total Other Financing Uses 5,923,161 7,339,097 8,248,600 TOTAL USES AND TRANSFERS OUT $24,375,580 $26,454,515 $28,067,534 Source: City of Danville CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $27,410,585 $27,274,591 $29,956,956 Net Change (135,994) 2,682,365 (2,156,861) % Change from Prior Year -0.5% 9.8% -7.2% Ending Balance, General Fund $27,274,591 $29,956,956 $27,800,095 Ending Balance/Total GF Expend. (before transfers) 147.8% 156.7% 140.3% Unassigned Total Governmental Activities Ending Net Position $243,321,728 $250,543,966 $252,486,782 Unrestricted $48,182,320 $68,855,495 $72,257,190 Source: City of Danville CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 27 of 138 Danville ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Danville reports no enterprises or business type activities ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Danville reports no enterprises or business type activities ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 9.4 8.4 9.9 Cash and Short-term Investments 61,023,117 62,232,934 67,557,502 Total Current Liabilities 6,517,749 7,404,753 6,857,785 BUSINESS-TYPE ACTIVITIES (2) Liquidity Ratio (1) na na na Cash and Short-term Investments 0 Total Current Liabilities 0 Source: City of Danville CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Town of Danville reports no enterprises or business type activities. ---------- City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 28 of 138 Danville CAPITAL ASSETS Table 7 Capital Assets Being Depreciated Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 154,718,983 158,162,964 $162,964,051 Ending Net Value of Capital Assets 158,162,964 162,964,051 163,427,439 Change in Net Value of Capital Assets 3,443,981 4,801,087 463,388 % Change in Net Value of Capital Assets 2.2% 3.0% 0.3% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES (1) Source: City of Danville CAFRs - Notes to Basic Financial Statements (1) Town of Danville reports no enterprises or business type activities. ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Danville provides a defined contribution 401(a) plan Source: ---------- City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 29 of 138 Danville DEBT AND VALUE Table 9 Debt and Assessed Value Town of Danville Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 8,860,000 8,055,000 7,635,000 Business Type Activities (1) 0 0 0 Total Outstanding Debt 8,860,000 8,055,000 7,635,000 Total Debt per Capita $209 $183 $173 Assessed Value $10,450,225,417 $11,156,935,072 $11,825,407,073 Coverage Ratio (pledged revenues) (2) Source: Town of Danville CAFRs - Ratios of Outstanding Debt by Type, Assessed Value History, and Pledged Revenue Coverage (1) Town of Danville reports no enterprises or business type activities. (2) No coverage ratio reported for taxable revenue bond. ---------- City/CSD MSR Update Town of Danville Fiscal Data May 7, 2019 pg. 30 of 138 El Cerrito SUMMARY PROFILE Table S Summary of Financial Conditions City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 3.9 sq.mi. 3.9 sq.mi. 3.9 sq.mi. Population (2) 24,132 24,490 24,674 Change from Prior Year na 1.5% 0.8% Assessed Value (A.V.) (3) $3,264.2 mill. $3,589.4 mill. $3,830.5 mill. Change from Prior Year na 10.0% 6.7% A.V. per capita $135,300 $146,600 $155,200 General Fund Revenues (4) Property Tax $8,800,000 $9,843,000 $9,082,000 Sales Tax $6,455,000 $7,551,000 $7,477,000 Other Revenues $14,752,000 $14,975,000 $17,972,000 Total GF Revenues $30,007,000 $32,369,000 $34,531,000 Change from Prior Year na 7.9% 6.7% General Fund Expenditures (5) General Government & Admin. $3,728,000 $4,359,000 $4,927,000 Public Safety $18,461,000 $19,326,000 $20,277,000 Other (inc. Transfers Out) $7,627,000 $8,252,000 $9,123,000 Total GF Expenditures $29,816,000 $31,937,000 $34,327,000 Change from Prior Year na 7.1% 7.5% GF Expenditures per capita $1,236 $1,304 $1,391 Ending Balance, General Fund (6) $1,462,000 $1,894,000 $5,068,000 Change from Prior Year 13.1% 22.8% -0.1% as % of GF Expenditures 4.9% 5.9% 14.8% Enterprise Expenditures (7) Integrated waste management $1,788,000 $1,941,000 $2,377,000 Total Enterprise Expenditures $1,788,000 $1,941,000 $2,377,000 Change from Prior Year na 8.6% 22.5% Total Enterprise Net Position (8) $688,000 $746,000 $865,000 Position/Enterprise Expenditures 0.4 0.4 0.4 Liquidity Ratio (9) Governmental Activities 0.4 1.2 0.8 Business-type Activities 0.5 0.5 0.5 Net Capital Assets (end of year) (10) Governmental Funds & Activities $73,405,000 $69,565,000 $74,209,000 Net Change from Prior Year -4.7% -5.2% -5.1% Business-type Activities 3,790,000 3,566,000 3,504,000 Net Change from Prior Year -5.8% -5.9% -4.8% Total Pension Liability (11) Net Liability $39,310,000 $45,990,000 $54,840,000 City of El Cerrito MSR Fiscal Profile (Comprehensive Annual Financial Reports) 12/31/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 31 of 138 El Cerrito (5) See Table 2. Public Safety includes police and fire services. (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability not reported in CAFR. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Sales Taxes $6,455,436 $7,550,789 $7,477,393 Property taxes 8,799,514 9,843,000 9,082,380 Taxes other than property and sales (1) 4,300,378 4,050,661 Licenses and permits 493,244 607,729 719,843 Fines and forfeitures 276,759 326,544 350,855 Use of money and property 349,916 311,786 Intergovernmental 4,036,613 3,621,780 Charges for services 4,275,245 4,391,219 Other revenues 119,300 768,149 16,845,970 Total Revenues 29,106,405 31,471,657 34,476,441 Change from Prior Year na 8.1% 9.5% OTHER FINANCING SOURCES Transfers In (1) 900,857 897,484 54,583 Total Other Financing Sources 900,857 897,484 54,583 TOTAL REVENUES AND TRANSFERS IN $30,007,262 $32,369,141 $34,531,024 107.9% 106.7% Source: City of El Cerrito CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) CAFR does not show detail for all items; amounts shown are from budgets or supplemental historic data in CAFR. (2) Includes proceeds from sale of assets. ---------- City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 32 of 138 El Cerrito GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 City council $89,694 $81,554 $104,158 City manager 819,640 1,041,334 972,422 City attorney 256,771 449,455 393,196 Financial services 1,207,388 1,218,873 1,365,523 City clerk 264,054 254,275 287,395 Information systems 404,493 519,468 595,204 Employee services 686,417 794,079 1,209,586 Public works 642,199 1,116,997 1,443,104 Recreation 4,153,881 4,465,879 4,818,238 Community development 1,687,744 1,769,422 2,157,162 Police 9,861,386 10,348,446 10,758,096 Fire 8,599,206 8,977,541 9,518,949 Capital outlay 135,283 182,594 45,770 Payment of sales tax to City of Richmond 245,599 Principal retirement 90,858 93,373 95,959 Interest and fiscal charges 0 0 106,389 Total Expenditures 29,144,613 31,313,290 33,871,151 Change from Prior Year na 7.4% 8.2% OTHER FINANCING USES Transfers Out 671,603 623,733 456,668 Total Other Financing Uses 671,603 623,733 456,668 TOTAL USES AND TRANSFERS OUT $29,816,216 $31,937,023 $34,327,819 Source: City of El Cerrito CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds and General Fund ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance (1) $1,270,466 $1,461,512 $5,072,058 Net Change 191,046 432,118 (3,639) % Change from Prior Year 15.0% 29.6% -0.1% Ending Balance, General Fund (1) $1,461,512 $1,893,630 $5,068,419 Ending Balance/Total GF Operating Expenditures 4.9% 5.9% 14.8% Unassigned (2) $1,323,100 1,893,842 2,097,036 Total Governmental Activities Ending Net Position (3) 31,579,940 31,034,867 Unrestricted (3) (46,508,497) (45,697,103) Source: City of El Cerrito CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 33 of 138 El Cerrito (1) FY17 from CAFR (pg. 32) "as restated" (2) FY18-19, FY19-20 budget, pg. 5. (3) FY16 and FY17 from FY17 CAFR (pg. 8, 9) City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 34 of 138 El Cerrito ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $2,203,157 $2,318,342 $2,366,205 Operating Grants and Contributions 1,250 37,213 25,683 Capital Grants and Contributions 0 Other Non-Operating 0 Total $2,204,407 $2,355,555 $2,391,888 Change from Prior Year na 6.9% 1.5% ENTERPRISE EXPENDITURES Integrated waste management $1,787,896 $1,940,519 $2,376,867 Total $1,787,896 $1,940,519 $2,376,867 Change from Prior Year na 8.5% 22.5% Transfers ($346,319) ($356,418) ($9,671) Beginning Net Position 617,632 $687,824 $746,442 Change in Net Position 70,192 58,618 119,002 Ending Net Position $687,824 $746,442 865,444 % Change from Prior Year 11.4% 8.5% 15.9% Ending Net Position/Total Expenditures 0.38 0.38 0.36 Source: City of El Cerrito CAFRs - Statement of Changes in Net position (1) FY16 and FY17 from FY17 CAFR (pg. 8, 9) ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Integrated waste management Total Net Position 687,824 746,442 865,444 % change from prior year n/a 8.5% 15.9% Source: City of El Cerrito CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 35 of 138 El Cerrito LIQUIDITY (CAFR) Table 6 Liquidity Measures City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 0.4 1.2 0.8 Cash and Short-term Investments (2) 1,626,978 9,704,963 6,839,865 Total Current Liabilities 3,837,617 8,021,995 8,786,072 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 0.5 0.5 0.5 Cash and Short-term Investments 224,725 287,367 434,705 Total Current Liabilities 431,567 553,813 863,982 Source: City of El Cerrito CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities. (2) FY17 Cash and Investments (inc. w/fiscal agents). ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets (1) $77,016,693 $73,405,129 $78,163,857 Ending Net Value of Capital Assets $73,405,129 $69,565,283 $74,208,670 Change in Net Value of Capital Assets (3,611,564) (3,839,846) (3,955,187) % Change in Net Value of Capital Assets -4.7% -5.2% -5.1% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets (1) $4,021,783 $3,790,317 $3,679,248 Ending Net Value of Capital Assets $3,790,317 $3,565,597 $3,504,108 Change in Net Value of Capital Assets (231,466) (224,720) (175,140) % Change in Net Value of Capital Assets -5.8% -5.9% -4.8% Source: City of El Cerrito CAFRs - Notes to Basic Financial Statements (Note 6) (1) FY17 start of year "as restated" in FY17 CAFR. ---------- City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 36 of 138 El Cerrito PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY (1) Total Pension Liability (1) Plan Fiduciary Net Position % Funded (1) 78.4% 79.8% Net Pension Liability $39,314,773 $45,992,107 $54,843,000 % of General Fund Revenues 159% Net OPEB Liability (2) na na na Source: City of El Cerrito CAFRs - Notes to Basic Financial Statements (1) Total CALPERS pension liability not reported. (2) City does not provide OPEB to retirees (allows continuation at employee cost). ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of El Cerrito Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 22,181,119 21,120,338 18,405,738 Business Type Activities 3,349,648 2,998,657 2,347,900 Total Outstanding Debt 25,530,767 24,118,995 20,753,638 Total Debt per Capita $1,058 $985 $841 Assessed Value $3,264,235,176 $3,589,412,806 $3,830,500,000 Coverage Ratio (pledged revenues) (1) na na na Source: (1) City made a final payment on its revenue bond in fiscal year 2013-14. ---------- City/CSD MSR Update City of El Cerrito Fiscal Data May 7, 2019 pg. 37 of 138 Hercules SUMMARY PROFILE Table S Summary of Financial Conditions City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 8.1 sq.mi. 8.1 sq.mi. 8.1 sq.mi. Population (2) 24,578 24,909 26,185 Change from Prior Year na 1.3% 5.1% Assessed Value (A.V.) (3) na na $3,254.2 mill. Change from Prior Year A.V. per capita $124,300 General Fund Revenues (4) Property Tax $1,173,000 $1,057,000 $1,110,000 Sales Tax $2,518,000 $1,803,000 $1,943,000 Other Revenues (inc. transfers in) $9,999,000 $11,260,000 $11,907,000 Total GF Revenues $13,690,000 $14,120,000 $14,960,000 Change from Prior Year na 3.1% 5.9% General Fund Expenditures (5) General Government & Admin. $2,636,000 $3,826,000 $3,974,000 Public Safety $5,152,000 $5,590,000 $6,022,000 Other (inc. Transfers Out) $3,308,828 $2,734,553 $2,658,808 Total GF Expenditures $11,096,828 $12,150,553 $12,654,808 Change from Prior Year na 9.5% 4.2% GF Expenditures per capita $451 $488 $483 Ending Balance, General Fund (6) $37,139,000 $39,106,000 $41,695,000 Change from Prior Year 7.0% 5.0% 5.5% as % of GF Expenditures 334.7% 321.8% 329.5% Enterprise Expenditures (7) Wastewater $2,835,000 $3,855,000 $3,092,000 Total Enterprise Expenditures $2,835,000 $3,855,000 $3,092,000 Change from Prior Year na 36.0% -19.8% Total Enterprise Net Position (8) $32,874,000 $34,280,000 $37,033,000 Position/Enterprise Expenditures 11.6 8.9 12.0 Liquidity Ratio (9) Governmental Activities 2.7 0.9 1.0 Business-type Activities 32.3 4.4 6.3 Net Capital Assets (end of year) (10) Governmental Funds & Activities $71,807,000 $73,330,000 $78,918,000 Net Change from Prior Year 3.9% 2.1% 7.6% Business-type Activities 13,711,000 14,674,000 23,112,000 Net Change from Prior Year 2.2% 7.0% 57.5% Total Pension Liability (11) $48,082,409 $49,531,155 n/a (1) % Pension Funded 74.7% 70.6% n/a (1) Net Pension Liability $12,152,748 $14,541,817 $0 City of Hercules MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 38 of 138 Hercules (4) See Table 1. (5) See Table 2. General Gov. includes debt service allocations. (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property Tax $1,173,027 $1,057,005 $1,110,268 Sales Tax 2,517,519 1,803,355 1,942,854 Other Taxes 4,698,466 6,172,225 6,149,566 Licenses and Permits 480,645 344,374 496,355 Fines, Forfeits and Penalties 62,069 60,434 47,824 Revenue from Use of Money and Property 247,365 339,973 237,235 Aid from Other Governments 0 0 2,458,474 Charges for Services 2,210,036 1,999,726 2,140,443 Miscellaneous Revenue 0 0 276,501 Intergovernmental 1,710,260 1,707,098 0 Other Revenues 474,228 533,922 0 Total Revenues 13,573,615 14,018,112 14,859,520 Change from Prior Year na 3.3% 6.0% OTHER FINANCING SOURCES Transfers In 111,779 100,000 100,000 Total Other Financing Sources 111,779 100,000 100,000 TOTAL REVENUES AND TRANSFERS IN $13,685,394 $14,118,112 $14,959,520 Source: City of Hercules CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 39 of 138 Hercules GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government (1) City Council 220,652 $230,664 $121,260 City Manager 335,458 268,778 266,050 Legal Services 259,370 552,942 398,516 Management Services 229,195 369,744 258,578 City Clerk 215 244 299 Cable TV 55,144 58,562 57,510 Risk Management 512,328 480,843 667,989 Other 1,023,339 1,863,841 2,203,467 Public Safety 5,152,092 5,589,583 6,021,830 Streets and Public Works 203,145 187,032 213,999 Parks and Recreation 1,827,391 1,961,669 1,883,159 Community Development 394,923 355,309 512,151 Debt service: Principal retirement 0 0 0 Prior Period Adjustments 6,370 Interest and fiscal charges 0 0 0 Total Expenditures 10,219,622 11,919,211 12,604,808 Change from Prior Year na 16.6% 5.8% OTHER FINANCING USES Transfers Out (1) 877,206 231,342 50,000 Total Other Financing Uses 877,206 231,342 50,000 TOTAL USES AND TRANSFERS OUT $11,096,828 $12,150,553 $12,654,808 Source: City of Hercules CAFRs - Budgetary Comparisons, and Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) FY16 CAFR pg. 18 Transfers Out are $1.1 mill vs. pg. 74 $200k (due to debt, see pg. 74. reconciliation). ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $34,550,345 $37,138,911 $39,390,220 Net Change (1) 2,588,566 1,967,559 2,304,712 % Change from Prior Year 7.5% 5.3% 5.9% Ending Balance, General Fund $37,138,911 $39,106,470 $41,694,932 Ending Balance/Total GF Operating Expenditures 363.4% 328.1% 330.8% Unassigned $7,969,320 8,291,363 9,426,610 Total Governmental Activities Ending Net Position $103,232,574 $109,322,386 $118,672,536 Unrestricted $16,564,422 $34,482,114 $27,146,535 City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 40 of 138 Hercules Source: City of Hercules CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) CAFR FY16 Gen'l Gov't detail about $200k higher on pg. 73 vs. pg. 18, resulting in lower change shown here. ---------- ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $6,028,122 $5,595,044 $5,797,766 General Revenues 23,484 24,058 47,424 Total $6,051,606 $5,619,102 $5,845,190 Change from Prior Year na -7.1% 4.0% ENTERPRISE EXPENDITURES Wastewater $2,834,835 $3,854,974 $3,092,380 Total $2,834,835 $3,854,974 $3,092,380 Change from Prior Year na 36.0% -19.8% Transfers $92,736 $10,452 $0 Beginning Net Position 29,564,510 $32,505,864 $34,280,444 Change in Net Position 3,309,507 1,774,580 2,752,810 Ending Net Position $32,874,017 $34,280,444 $37,033,254 % Change from Prior Year 11.2% 5.5% 8.0% Ending Net Position/Total Expenditures 11.60 8.89 11.98 Source: City of Hercules CAFRs - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Wastewater $32,874,017 $34,280,444 37,033,254 Total Net Position 32,874,017 34,280,444 37,033,254 % change from prior year n/a 4.3% 8.0% Source: City of Hercules CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 41 of 138 Hercules LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 2.7 0.9 1.0 Cash and Short-term Investments $12,324,323 $11,096,828 11,865,406 Total Current Liabilities (2) 4,523,091 11,827,411 11,827,411 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 32.3 4.4 6.3 Cash and Short-term Investments $20,140,233 $12,379,389 $16,164,274 Total Current Liabilities 623,316 2,822,049 2,550,917 Source: City of Hercules CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Includes amounts due to other funds. ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $69,082,117 $71,806,545 $73,330,454 Ending Net Value of Capital Assets 71,806,545 73,330,454 78,918,108 Change in Net Value of Capital Assets 2,724,428 1,523,909 5,587,654 % Change in Net Value of Capital Assets 3.9% 2.1% 7.6% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $13,411,371 $13,710,590 $14,674,260 Ending Net Value of Capital Assets 13,710,590 14,674,260 23,112,231 Change in Net Value of Capital Assets 299,219 963,670 8,437,971 % Change in Net Value of Capital Assets 2.2% 7.0% 57.5% Source: City of Hercules CAFRs - Notes to Basic Financial Statements (Note 5) ---------- City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 42 of 138 Hercules PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (1) $48,082,409 $49,531,155 n/a (1) Plan Fiduciary Net Position (1) $35,929,661 $34,989,338 n/a (1) % Funded (2) 74.7% 70.6% n/a (1) Net Pension Liability $12,152,748 $14,541,817 Net OPEB Liability (2) $638,000 n/a (2) n/a (2) Source: City of Hercules CAFRs - Notes to Basic Financial Statements (1) Misc. and Safety Plans (calculated from net liability of each). FY17 not reported. (2) OPEB as of 6/30/14 per FY17 CAFR; subsequent years not reported. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Hercules Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities $22,439,587 $22,371,605 $21,896,875 Business Type Activities 10,648,206 10,439,224 16,993,613 Total Outstanding Debt 33,087,793 32,810,829 38,890,488 Total Debt per Capita $1,346 $1,317 $1,485 Assessed Value (2) na na $3,254,207,172 Coverage Ratio (pledged revenues) (2) Source: City of Hercules CAFRs - Notes to Basic Financial Statements (1) Assessed value not reported in CAFRs; value is from County Roll Rpt 3211. (2) FY17 CAFR pg.19 reports $15,261,777 revenue bonds, but does not show revenue coverage. ---------- City/CSD MSR Update Hercules Fiscal Data May 7, 2019 pg. 43 of 138 Lafayette SUMMARY PROFILE Table S Summary of Financial Conditions City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 15.39 sq.mi. 15.39 sq.mi. 15.39 sq.mi. Population (2) 24,690 24,924 25,199 Change from Prior Year na 0.9% 1.1% Assessed Value (A.V.) (3) $6,474.8 mill. $6,973.4 mill. $7,478.1 mill. Change from Prior Year na 7.7% 7.2% A.V. per capita $262,200 $279,800 $296,800 General Fund Revenues (4) Property Tax $4,005,000 $4,441,000 $4,722,000 Sales Tax $2,877,000 $3,194,000 $3,008,000 Other Revenues (inc. transfers in) $7,915,000 $8,633,000 $9,293,000 Total GF Revenues $14,797,000 $16,268,000 $17,023,000 Change from Prior Year na 9.9% 4.6% General Fund Expenditures (5) General Government & Admin. $3,268,000 $3,667,000 $4,136,000 Public Safety $4,551,000 $4,603,000 $4,691,000 Other (inc. Transfers Out) $5,558,560 $6,632,324 $7,573,380 Total GF Expenditures $13,377,560 $14,902,324 $16,400,380 Change from Prior Year na 11.4% 10.1% GF Expenditures per capita $542 $598 $651 Ending Balance, General Fund (6) $17,495,000 $18,861,000 $19,483,000 Change from Prior Year 8.1% 7.2% 3.2% as % of GF Expenditures 130.8% 126.6% 118.8% Enterprise Expenditures (7) Recreation $1,224,000 $1,289,000 $1,201,000 Total Enterprise Expenditures $1,224,000 $1,289,000 $1,201,000 Change from Prior Year na 5.3% -6.8% Total Enterprise Net Position (8) $362,000 $433,000 $478,000 Position/Enterprise Expenditures 0.3 0.3 0.4 Liquidity Ratio (9) Governmental Activities 4.0 3.7 3.0 Business-type Activities 2.0 0.6 1.5 Net Capital Assets (end of year) (10) Governmental Funds & Activities $89,354,000 $90,173,000 $88,391,000 Net Change from Prior Year -2.0% 0.9% -2.0% Total Pension Liability (11) na na na City of Lafayette MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) City of Lafayette (revisions to LAFCO directory) (2) City of Lafayette (revisions to Dept of Finance E-1_2018, 2017, 2016 for most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 (includes transfers in). (5) See Table 2. Gen'l Gov. includes Council and Admin. (6) See Table 3 City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 44 of 138 Lafayette (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) City provides a 401(a) defined contribution plan (10% plus up to 5% match). ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes $4,004,653 $4,441,434 $4,721,526 Sales tax 2,876,935 3,193,914 3,008,076 Other taxes 5,231,370 3,245,115 3,334,677 Charges for services 1,192,055 1,178,572 1,562,345 Intergovernmental 24,587 2,554,915 2,792,558 Licenses and permits 269,669 327,362 302,561 Fines, forfeitures and penalties 126,241 108,791 75,819 Use of money and property 165,266 250,034 340,918 Miscellaneous 905,564 943,514 833,854 Total Revenues 14,796,340 16,243,651 16,972,334 Change from Prior Year na 9.8% 4.5% OTHER FINANCING SOURCES Transfers In 0 25,000 50,000 Total Other Financing Sources 0 25,000 50,000 TOTAL REVENUES AND TRANSFERS IN $14,796,340 $16,268,651 $17,022,334 Source: City of Lafayette CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 45 of 138 Lafayette GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Council, commissions, community support $1,198,457 $1,339,477 $1,346,360 Police services 4,550,675 4,602,565 4,691,205 Parking services 0 0 0 Public works 1,440,157 1,849,403 1,601,742 Senior transportation 0 0 0 Library operations 715,880 775,776 825,482 Planning 620,735 670,380 766,303 Engineering 249,096 373,979 306,371 Administration 2,070,041 2,327,342 2,789,757 Capital outlay 0 0 491,541 Total Expenditures 10,845,041 11,938,922 12,818,761 Change from Prior Year na 10.1% 7.4% OTHER FINANCING USES Transfers Out 2,532,519 2,963,402 3,581,619 Total Other Financing Uses 2,532,519 2,963,402 3,581,619 TOTAL USES AND TRANSFERS OUT $13,377,560 $14,902,324 $16,400,380 Source: City of Lafayette CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $16,075,975 $17,494,755 $18,861,082 Net Change 1,418,780 1,366,327 621,954 % Change from Prior Year 8.8% 7.8% 3.3% Ending Balance, General Fund $17,494,755 $18,861,082 $19,483,036 Ending Balance/Total GF Operating Expenditures 130.8% 126.6% 118.8% Unassigned $8,267,328 $9,766,041 $9,522,319 Total Governmental Activities Ending Net Position $130,088,610 $131,869,851 $134,474,174 Unrestricted $23,081,608 $24,796,206 $26,382,458 Source: City of Lafayette CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, ---------- City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 46 of 138 Lafayette ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $1,300,023 $1,389,294 $1,300,301 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 0 0 0 Other 466 762 421 Total $1,300,489 $1,390,056 $1,300,722 Change from Prior Year na 6.9% -6.4% ENTERPRISE EXPENDITURES Recreation $1,224,490 $1,288,899 $1,200,758 Total $1,224,490 $1,288,899 $1,200,758 Change from Prior Year na 5.3% -6.8% Transfers ($30,000) ($30,000) ($55,000) Beginning Net Position 315,532 $361,531 $432,688 Change in Net Position 45,999 71,157 44,964 Ending Net Position $361,531 $432,688 $477,652 % Change from Prior Year 14.6% 19.7% 10.4% Ending Net Position/Total Expenditures 0.30 0.34 0.40 Source: City of Lafayette CAFRs - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Recreation $361,531 $432,688 $477,652 Total Net Position 361,531 432,688 477,652 % change from prior year n/a 19.7% 10.4% Source: City of Lafayette CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 47 of 138 Lafayette LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 4.0 3.7 3.0 Cash and Short-term Investments 12,805,416 13,891,920 13,014,497 Total Current Liabilities (2) 3,192,030 3,715,007 4,404,939 BUSINESS-TYPE ACTIVITIES (3) Liquidity Ratio (1) 2.0 0.6 1.5 Cash and Short-term Investments 728,896 270,877 641,793 Total Current Liabilities 357,158 427,583 421,458 Source: City of Lafayette CAFRs - Balance Sheet, and Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Revised by City to include interest payable and other due within 1 yr. (3) Recreation programs. CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 91,150,290 89,353,851 90,172,656 Ending Net Value of Capital Assets 89,353,851 90,172,656 88,390,838 Change in Net Value of Capital Assets (1,796,439) 818,805 (1,781,818) % Change in Net Value of Capital Assets -2.0% 0.9% -2.0% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets Ending Net Value of Capital Assets Change in Net Value of Capital Assets % Change in Net Value of Capital Assets Source: City of Lafayette CAFRs - Notes to Basic Financial Statements (Note 6) ---------- City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 48 of 138 Lafayette PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY (1) NA City of Lafayette provides a defined contribution 401(a) plan Net OPEB Liability or (assets) (2) ($4,899) ($4,899) ($4,899) Source: City of Lafayette CAFRs - Notes to Basic Financial Statements (Notes 8-9) (1) City provides a 401(a) defined contribution plan (10% plus up to 5% match). (2) CAFRs only report net assets in OPEB account. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Lafayette Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 6,610,000 6,120,000 4,835,000 Business Type Activities 0 0 0 Total Outstanding Debt 6,610,000 6,120,000 4,835,000 Total Debt per Capita $268 $246 $192 Assessed Value $6,474,849,153 $6,973,421,248 $7,478,118,355 Coverage Ratio (pledged revenues) (1) Source: CAFRs - Ratios of Debt Outstanding, and Assessed Value, over Ten Years (1) No revenue bonds or pledged revenues reported. ---------- City/CSD MSR Update City of Lafayette Fiscal Data May 7, 2019 pg. 49 of 138 Martinez SUMMARY PROFILE Table S Summary of Financial Conditions City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 12.5 sq.mi. 12.5 sq.mi. 12.5 sq.mi. Population (2) 36,931 37,224 37,831 Change from Prior Year na 0.8% 1.6% Assessed Value (A.V.) (3) $4,802.4 mill. $5,184.3 mill. $5,445.2 mill. Change from Prior Year na 8.0% 5.0% A.V. per capita $130,000 $139,300 $143,900 General Fund Revenues (4) Property Tax $7,165,000 $7,755,000 $8,212,000 Sales Tax $3,088,000 $4,018,000 $4,729,000 Other Revenues $10,894,000 $11,123,000 $9,270,000 Total GF Revenues $21,147,000 $22,896,000 $22,211,000 Change from Prior Year na 8.3% -3.0% General Fund Expenditures (5) General Government & Admin. $3,359,000 $3,968,000 $4,518,000 Public Safety $9,327,000 $10,396,000 $10,576,000 Other (inc. Transfers Out) $6,160,000 $6,080,000 $6,328,000 Total GF Expenditures $18,846,000 $20,444,000 $21,422,000 Change from Prior Year na 8.5% 4.8% GF Expenditures per capita $510 $549 $566 Ending Balance, General Fund (6) $10,574,000 $12,962,000 $13,751,000 Change from Prior Year 21.8% 18.9% 5.7% as % of GF Expenditures 56.1% 63.4% 64.2% Enterprise Expenditures (7) Water System $11,259,000 $10,649,000 $10,456,000 Marina Services $120,000 $138,000 $308,000 Parking Services $200,000 $243,000 $247,000 Other $0 $0 $294,000 Total Enterprise Expenditures $11,579,000 $11,030,000 $11,305,000 Change from Prior Year na -4.7% 2.5% Total Enterprise Net Position (8) $37,416,000 $38,126,000 $37,817,000 Position/Enterprise Expenditures 3.2 3.5 3.3 Liquidity Ratio (9) Governmental Activities 6.7 7.1 10.3 Business-type Activities 7.4 4.6 4.6 Net Capital Assets (end of year) (10) Governmental Funds & Activities $42,905,000 $42,059,000 $45,585,000 Net Change from Prior Year -4.6% -2.0% 8.4% Business-type Activities 26,147,000 28,820,000 27,278,000 Net Change from Prior Year 1.7% 10.2% -5.3% Total Pension Liability (11) Net Liability $27,330,000 $29,460,000 $36,410,000 City of Martinez MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 50 of 138 Martinez (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability not reported in CAFR. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property Tax (1) $7,165,086 $7,755,254 $8,212,232 Sales Tax (1) 3,088,342 4,017,775 4,728,669 Other Taxes (1) 7,139,293 7,434,262 6,361,279 Licenses, permits, and fees 796,903 840,050 705,510 Intergovernmental 1,181,627 670,768 608,282 Charges for services 1,006,584 1,209,399 859,924 Fines and forfeits 419,100 450,563 345,998 Use of money and property 134,954 243,033 238,577 Miscellaneous 215,647 275,250 150,152 Total Revenues 21,147,536 22,896,354 22,210,623 Change from Prior Year na 8.3% -3.0% OTHER FINANCING SOURCES Transfers In 0 0 0 Total Other Financing Sources 0 0 0 TOTAL REVENUES AND TRANSFERS IN $21,147,536 $22,896,354 $22,210,623 Source: City of Martinez CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) CAFRs don't detail taxes; amounts derived from "Changes in Net Position Last 10 Yrs". ---------- City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 51 of 138 Martinez GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $1,311,797 $1,234,239 $1,367,650 Nondepartmental services 1,151,381 1,389,052 1,857,896 Administrative services 895,776 1,345,127 1,292,152 Public works 3,754,724 3,657,350 3,699,160 Community & economic development 2,359,215 2,161,219 2,316,034 Police 9,326,888 10,395,574 10,576,113 Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 18,799,781 20,182,561 21,109,005 Change from Prior Year na 7.4% 4.6% OTHER FINANCING USES Transfers Out 46,238 261,054 313,068 Total Other Financing Uses 46,238 261,054 313,068 TOTAL USES AND TRANSFERS OUT $18,846,019 $20,443,615 $21,422,073 Source: City of Martinez CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $8,272,585 $10,509,493 $12,962,232 Net Change 2,301,517 2,452,739 788,550 % Change from Prior Year 27.8% 23.3% 6.1% Ending Balance, General Fund $10,574,102 $12,962,232 $13,750,782 Ending Balance/Total GF Operating Expenditures 56.2% 64.2% 65.1% Unassigned $7,736,927 $9,826,549 $8,634,938 Total Governmental Activities Ending Net Position $42,891,994 $46,114,628 $47,608,471 Unrestricted ($13,666,690) ($8,401,847) ($7,757,618) Source: City of Martinez CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, ---------- City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 52 of 138 Martinez ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $12,041,560 $11,706,158 $11,010,378 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 1,019,923 0 0 Other Non-Operating 185,215 158,551 Total $13,061,483 $11,891,373 $11,168,929 Change from Prior Year na -9.0% -6.1% ENTERPRISE EXPENDITURES Water System $11,259,352 $10,649,350 $10,455,791 Marina Services 119,657 138,468 307,885 Parking Services 199,791 242,805 247,202 Other Expenses 294,411 Total $11,578,800 $11,030,623 $11,305,289 Change from Prior Year na -4.7% 2.5% Transfers (net) $21,238 $70,454 $155,218 Beginning Net Position (1) 35,911,925 $37,195,126 $37,798,621 Change in Net Position 1,503,921 931,204 18,858 Ending Net Position (1) $37,415,846 $38,126,330 $37,817,479 % Change from Prior Year 4.2% 2.5% 0.0% Ending Net Position/Total Expenditures 3.23 3.46 3.35 Source: City of Martinez CAFRs - Statement of Changes in Net position (1) Note: totals may differ from Statement of Activities due to Internal Fund allocations. ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Water System $38,472,838 $38,765,641 $39,221,184 Marina Services (3,367,692) (3,387,680) (3,325,878) Parking Services 2,089,980 2,420,660 2,745,604 Total Net Position 37,195,126 37,798,621 38,640,910 % change from prior year n/a 1.6% 2.2% Source: City of Martinez CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 53 of 138 Martinez LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 6.7 7.1 10.3 Cash and Short-term Investments (2) $21,354,153 $22,995,447 $23,525,041 Total Current Liabilities 3,164,913 3,243,181 2,278,243 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 7.4 4.6 4.6 Cash and Short-term Investments (2) $17,414,726 $12,390,464 $12,345,000 Total Current Liabilities 2,346,889 2,682,081 2,688,961 Source: City of Martinez CAFRs - Balance Sheet, and Statement of Net Position (1) Cash and Short-term Investments/Total Current Liabilities (2) Available for operations. ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $44,974,957 $42,905,384 $42,058,558 Ending Net Value of Capital Assets 42,905,384 42,058,558 45,584,651 Change in Net Value of Capital Assets (2,069,573) (846,826) 3,526,093 % Change in Net Value of Capital Assets -4.6% -2.0% 8.4% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $25,706,096 $26,146,986 $28,819,620 Ending Net Value of Capital Assets 26,146,986 28,819,620 27,278,015 Change in Net Value of Capital Assets 440,890 2,672,634 (1,541,605) % Change in Net Value of Capital Assets 1.7% 10.2% -5.3% Source: City of Martinez CAFRs - Notes to Basic Financial Statements (Note 6 - CAPITAL ASSETS) ---------- City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 54 of 138 Martinez PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liability $27,329,187 $29,458,741 $36,408,168 Net OPEB Asset or (Liability) (1) 4,306,976 4,071,910 4,064,683 Source: City of Martinez CAFRs - Notes to Basic Financial Statements Notes 11-12 (1) Total liability not reported in CAFR. (2) FY17 CAFR indicates net OPEB assets in CERBT. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Martinez Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 23,055,000 22,945,000 22,820,000 Business Type Activities 13,121,103 12,244,353 11,332,604 Total Outstanding Debt 36,176,103 35,189,353 34,152,604 Total Debt per Capita $980 $945 $903 Assessed Value $4,802,400,460 $5,184,258,980 $5,445,221,010 Coverage Ratio (pledged revenues) 1.99 2.27 2.49 Source: CAFRs - Ratio of Outstanding Debt, Assessed and Estimated Actual Value of Taxable Property, Revenue Bond Coverage. ---------- City/CSD MSR Update City of Martinez Fiscal Data May 7, 2019 pg. 55 of 138 Moraga SUMMARY PROFILE Table S Summary of Financial Conditions City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 9.5 sq.mi. 9.5 sq.mi. 9.5 sq.mi. Population (2) 16,434 16,581 16,866 Change from Prior Year na 0.9% 1.7% Assessed Value (A.V.) (3) $3,380.3 mill. $3,581.3 mill. $3,790.8 mill. Change from Prior Year na 5.9% 5.8% A.V. per capita $205,700 $216,000 $224,800 General Fund Revenues (4) Property Tax $1,854,000 $1,983,000 $2,111,000 Sales Tax $2,755,000 $1,069,000 $1,007,000 Other Revenues $4,876,637 $7,274,759 $5,118,817 Total GF Revenues $9,485,637 $10,326,759 $8,236,817 Change from Prior Year na 8.9% -20.2% General Fund Expenditures (5) General Government & Admin. $1,439,000 $1,609,000 $1,676,000 Public Safety $2,494,000 $2,537,000 $2,564,000 Other (inc. Transfers Out) $5,529,465 $4,232,700 $4,306,480 Total GF Expenditures $9,462,465 $8,378,700 $8,546,480 Change from Prior Year na -11.5% 2.0% GF Expenditures per capita $576 $505 $507 Ending Balance, General Fund (6) $5,363,000 $7,311,000 $7,001,000 Change from Prior Year 0.4% 26.6% -4.4% as % of GF Expenditures 56.7% 87.3% 81.9% Total Enterprise Net Position (8) $0 $0 $0 Liquidity Ratio (9) Governmental Activities 8.0 8.9 8.4 Net Capital Assets (end of year) (10) Governmental Funds & Activities $26,267,000 $29,737,000 $29,861,000 Net Change from Prior Year 14.2% 13.2% 0.4% Total Pension Liability (11) Net Liability $3,614,505 $3,840,323 $5,226,347 Town of Moraga MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1. $1.7 mill. of Measure K (gen'l tax) in FY17 shifted to Pavement Management Fund. (5) See Table 2. $1.7 mill. Measure K shown as transfer out in FY15. (6) See Table 3 (7) See Table 4. No enterprises. (8) See Table 4. No enterprises. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 56 of 138 Moraga ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Other revenues (1) $187,924 $2,396,511 $168,523 Property taxes and assessments $1,853,970 $1,982,959 $2,110,849 Property tax - in lieu 1,448,086 1,533,346 1,622,029 Sales and use tax 2,755,146 1,069,161 1,006,620 Franchise fees 955,183 1,007,135 1,023,530 Real property transfer fees 149,620 157,140 155,746 Motor vehicle license fees 6,772 6,644 7,398 Planning and permits 528,548 535,714 476,409 Interest 12,228 20,164 40,582 Property rentals 41,285 89,867 92,653 Parks and recreation 357,278 387,884 436,950 Police services 72,379 83,766 69,026 Public works services 255,857 253,065 231,808 Total Revenues 8,624,276 9,523,356 7,442,123 Change from Prior Year na 10.4% -21.9% OTHER FINANCING SOURCES Transfers In 861,361 803,403 794,694 Total Other Financing Sources 861,361 803,403 794,694 TOTAL REVENUES AND TRANSFERS IN $9,485,637 $10,326,759 $8,236,817 Source: City of Moraga CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) $1.7 mill. of Measure K (gen'l tax) in FY17 shifted to Pavement Management Fund. ---------- City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 57 of 138 Moraga GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General administration $1,438,996 $1,608,798 $1,675,824 Planning 720,128 550,689 686,417 Public safety 2,493,681 2,537,267 2,564,426 Public works 940,691 904,917 1,036,004 Parks and recreation 1,146,108 1,187,465 1,220,187 Debt service: Principal retirement 11,864 12,221 12,592 Interest and fiscal charges 1,402 1,046 673 Total Expenditures 6,752,870 6,802,403 7,196,123 Change from Prior Year na 0.7% 5.8% OTHER FINANCING USES Transfers Out (1) 2,709,595 1,576,297 1,350,357 Total Other Financing Uses 2,709,595 1,576,297 1,350,357 TOTAL USES AND TRANSFERS OUT $9,462,465 $8,378,700 $8,546,480 Source: City of Moraga CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) $1.7 mill. Measure K shown as "transfer out" in FY15. ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $5,339,788 $5,362,960 $7,311,019 Net Change 23,172 1,948,059 (309,663) % Change from Prior Year 0.4% 36.3% -4.2% Ending Balance, General Fund $5,362,960 $7,311,019 $7,001,356 Ending Balance/Total GF Operating Expenditures 79.4% 107.5% 97.3% Unassigned $3,071,555 $4,116,870 $2,309,276 Total Governmental Activities Ending Net Position $40,429,929 $44,100,956 $47,588,576 Unrestricted $792,542 $1,471,051 $2,260,694 Source: City of Moraga CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental ---------- City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 58 of 138 Moraga ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Moraga reports no enterprises or business type activities FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Moraga reports no enterprises or business type activities LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 8.0 8.9 8.4 Cash and Short-term Investments $9,904,178 $12,458,153 $10,271,302 Total Current Liabilities 1,239,288 1,401,884 1,229,032 BUSINESS-TYPE ACTIVITIES (2) Source: City of Moraga CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Town of Moraga reports no enterprises or business type activities. ---------- City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 59 of 138 Moraga CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $23,005,194 $26,266,609 $29,737,197 Ending Net Value of Capital Assets 26,266,609 29,737,197 29,860,866 Change in Net Value of Capital Assets 3,261,415 3,470,588 123,669 % Change in Net Value of Capital Assets 14.2% 13.2% 0.4% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES (1) Source: City of Moraga CAFRs - Notes to Basic Financial Statements (Note 5) (1) Town of Moraga reports no enterprises or business type activities. ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY (1) Net Pension Liability $3,614,505 $3,840,323 $5,226,347 Net OPEB Liability (2) Source: City of Moraga CAFRs - Notes to Basic Financial Statements (1) The CAFRs do not report total pension liability or % funded. (2) The Town of Moraga does not offer OPEB. ---------- City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 60 of 138 Moraga DEBT AND VALUE Table 9 Debt and Assessed Value City of Moraga Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 8,696,489 8,328,118 7,949,280 Total Outstanding Debt 8,696,489 8,328,118 7,949,280 Total Debt per Capita $529 $502 $471 Assessed Value $3,380,306,397 $3,581,316,597 $3,790,771,853 Coverage Ratio (pledged revenues) (2) na na na Source: City of Moraga CAFRs - Notes to Basic Financial Statements (1) Town of Moraga reports no enterprises or business type activities. (2) No revenue bonds reported. ---------- City/CSD MSR Update Town of Moraga Fiscal Data May 7, 2019 pg. 61 of 138 Oakley SUMMARY PROFILE Table S Summary of Financial Conditions City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 16.08 sq.mi. 16.08 sq.mi. 16.08 sq.mi. Population (2) 39,609 40,237 41,116 Change from Prior Year na 1.6% 2.2% Assessed Value (A.V.) (3) $3,161.0 mill. $3,417.0 mill. $3,693.0 mill. Change from Prior Year na 8.1% 8.1% A.V. per capita $79,800 $84,900 $89,800 General Fund Revenues (4) Property Tax $4,833,000 $5,324,000 $5,796,000 Sales Tax $1,506,000 $1,753,000 $1,774,000 Other Revenues $4,441,000 $8,683,000 $5,060,000 Total GF Revenues $10,780,000 $15,760,000 $12,630,000 Change from Prior Year na 46.2% -19.9% General Fund Expenditures (5) General Government & Admin. $1,737,000 $1,818,000 $2,323,000 Public Safety $4,523,000 $4,499,000 $4,009,000 Other (inc. Transfers Out) $3,860,000 $4,913,000 $9,178,000 Total GF Expenditures $10,120,000 $11,230,000 $15,510,000 Change from Prior Year na 11.0% 38.1% GF Expenditures per capita $255 $279 $377 Ending Balance, General Fund (6) $13,042,000 $17,570,000 $14,696,000 Change from Prior Year 5.1% 25.8% -19.6% as % of GF Expenditures 128.9% 156.5% 94.8% Enterprise Expenditures (7) Liquidity Ratio (9) Governmental Activities 5.4 6.6 7.1 Net Capital Assets (end of year) (10) Governmental Funds & Activities $140,316,000 $142,459,000 $154,123,000 Net Change from Prior Year -0.4% 1.5% 8.2% Total Pension Liability (11) x $6,123,455 $6,945,283 Net Liability $1,100,000 $1,380,000 $1,730,000 City of Oakley MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4. No enterprises. (8) See Table 4. No enterprises. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability not reported in CAFR. City/CSD MSR Update Fiscal Data May 7, 2019 pg. 62 of 138 Oakley ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes $4,832,574 $5,323,685 $5,796,258 Sales tax 1,506,300 1,752,799 1,773,662 Other taxes 1,494,472 1,645,472 1,810,495 Licenses and permits 1,284,503 2,024,190 2,347,562 Charges for services 74,901 108,808 207,009 Fines and forfeits 135,352 138,383 132,602 Motor vehicle in lieu 15,603 15,651 17,983 Other Intergovernmental 527,342 399,284 583,035 Use of money and property 238,815 248,225 210,675 Miscellaneous 935,706 1,115,821 977,509 Assets transferred from Successor Agency (274,305) 2,903,630 (1,293,715) Total Revenues 10,771,263 15,675,948 12,563,075 Change from Prior Year na 45.5% -19.9% OTHER FINANCING SOURCES Transfers In (1) 11,852 79,628 67,718 Total Other Financing Sources 11,852 79,628 67,718 TOTAL REVENUES AND TRANSFERS IN $10,783,115 $15,755,576 $12,630,793 Source: City of Oakley CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Includes "gain from sale of property held for resale" ---------- City/CSD MSR Update Fiscal Data May 7, 2019 pg. 63 of 138 Oakley GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Legislative $449,349 $482,763 $613,712 Administrative Services 1,287,373 1,335,242 1,709,410 Community Development 1,345,552 1,592,691 1,633,110 Public Works 611,690 618,182 925,202 Housing programs 0 0 0 Law Enforcement 4,523,333 4,498,740 4,008,919 Recreation 433,155 492,798 521,441 Capital outlay 40,000 676,829 793,521 Total Expenditures 8,690,452 9,697,245 10,205,315 Change from Prior Year na 11.6% 5.2% OTHER FINANCING USES Transfers Out 1,432,500 1,530,000 5,300,000 Total Other Financing Uses 1,432,500 1,530,000 5,300,000 TOTAL USES AND TRANSFERS OUT $10,122,952 $11,227,245 $15,505,315 Source: City of Oakley CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $12,381,961 $13,042,124 $17,570,455 Net Change 660,163 4,528,331 (2,874,522) % Change from Prior Year 5.3% 34.7% -16.4% Ending Balance, General Fund $13,042,124 $17,570,455 $14,695,933 Ending Balance/Total GF Operating Expenditures 150.1% 181.2% 144.0% Unassigned $7,938,168 $9,067,909 $8,769,443 Total Governmental Activities Ending Net Position $188,234,059 $198,498,356 $222,479,638 Unrestricted $13,897,885 $17,748,114 $20,394,741 Source: City of Oakley CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental ---------- City/CSD MSR Update Fiscal Data May 7, 2019 pg. 64 of 138 Oakley ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Oakley reports no enterprises or business type activities FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Moraga reports no enterprises or business type activities ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 5.4 6.6 7.1 Cash and Short-term Investments (2) 31,396,255 30,753,425 37,823,597 Total Current Liabilities (3) 5,795,429 4,671,844 5,303,799 BUSINESS-TYPE ACTIVITIES (4) Source: City of Oakley CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Available for operations. (3) Excludes long-term debt. (4) Town of Oakley reports no enterprises or business type activities. City/CSD MSR Update Fiscal Data May 7, 2019 pg. 65 of 138 Oakley CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 140,931,286 140,316,250 $142,459,351 Ending Net Value of Capital Assets 140,316,250 142,459,351 154,122,670 Change in Net Value of Capital Assets (615,036) 2,143,101 11,663,319 % Change in Net Value of Capital Assets -0.4% 1.5% 8.2% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES (1) Source: City of Oakley CAFRs - Notes to Basic Financial Statements (1) Town of Oakley reports no enterprises or business type activities. ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (1) 5,847,433 6,123,455 6,945,283 Plan Fiduciary Net Position (1) 4,745,200 4,743,045 5,215,960 % Funded 81.2% 77.5% 75.1% Net Pension Liability $1,102,233 $1,380,410 $1,729,323 Net OPEB Liability (2) Source: City of Oakley CAFRs - Notes to Basic Financial Statements (1) City edits to Fiscal Profile (2) The City has no OPEB liabilities. ---------- City/CSD MSR Update Fiscal Data May 7, 2019 pg. 66 of 138 Oakley DEBT AND VALUE Table 9 Debt and Assessed Value City of Oakley Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 6,690,000 6,415,000 9,715,000 Business Type Activities Total Outstanding Debt 6,690,000 6,415,000 9,715,000 Total Debt per Capita $169 $159 $236 Assessed Value $3,161,000,000 $3,417,000,000 $3,693,000,000 Coverage Ratio (pledged revenues) (1) Source: CAFRs - Ratio of Outstanding Debt, Assessed and Estimated Value (1) No revenues bonds reported except former redevelopment agency. ---------- City/CSD MSR Update Fiscal Data May 7, 2019 pg. 67 of 138 Orinda SUMMARY PROFILE Table S Summary of Financial Conditions City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 12.8 sq.mi. 12.8 sq.mi. 12.8 sq.mi. Population (2) 18,578 18,838 19,012 Change from Prior Year na 1.4% 0.9% Assessed Value (A.V.) (3) $5,387.1 mill. $5,835.1 mill. $6,157.6 mill. Change from Prior Year na 8.3% 5.5% A.V. per capita $290,000 $309,800 $323,900 General Fund Revenues (4) Property Tax $5,653,000 $6,123,000 $6,543,000 Sales Tax $2,067,000 $2,121,000 $2,107,000 Other Revenues (inc. Transfers In) $5,324,183 $5,581,236 $5,114,653 Total GF Revenues $13,044,183 $13,825,236 $13,764,653 Change from Prior Year na 6.0% -0.4% General Fund Expenditures (5) General Government & Admin. $1,834,000 $2,015,000 $1,977,000 Public Safety $3,960,000 $4,034,000 $4,112,000 Other (inc. Transfers Out) $6,368,067 $6,444,523 $9,791,389 Total GF Expenditures $12,162,067 $12,493,523 $15,880,389 Change from Prior Year na 2.7% 27.1% GF Expenditures per capita $655 $663 $835 Ending Balance, General Fund (6) $7,972,000 $9,304,000 $6,939,000 Change from Prior Year 3.3% 14.3% -38.5% as % of GF Expenditures 65.5% 74.5% 43.7% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 5.6 3.6 2.5 Net Capital Assets (end of year) (10) Governmental Funds & Activities $40,328,000 $40,092,000 $47,860,000 Net Change from Prior Year -1.5% -0.6% 19.4% Total Pension Liability (11) City of Orinda MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/1/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1, minus debt payments (FY16). (5) See Table 2, minus debt payments. (6) See Table 3 (7) See Table 7. Net depreciable assets only. (8) See Table 4. No enterprises. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) Town of Orinda provides a defined contribution 401(a) plan. ---------- City/CSD MSR Update City of Orinda Fiscal Data May 7, 2019 pg. 68 of 138 Orinda GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax and assessments $5,653,003 $6,123,408 $6,543,094 Sales tax 2,067,331 2,121,297 2,106,881 Franchise tax 1,034,647 1,082,218 1,118,568 Property transfer tax 316,208 250,992 262,260 Rent and interest 114,210 157,267 138,496 Unrealized loss on investments 0 0 (100,919) Recreation fees 1,964,749 2,115,214 2,052,855 Service fees 1,228,464 1,565,470 1,267,340 Other agencies 33,721 33,589 33,200 Miscellaneous 407,007 136,028 119,665 Total Revenues 12,819,340 13,585,483 13,541,440 Change from Prior Year na 6.0% -0.3% OTHER FINANCING SOURCES Transfers In 224,843 8,407,754 223,213 Total Other Financing Sources 224,843 8,407,754 223,213 TOTAL REVENUES AND TRANSFERS IN $13,044,183 $21,993,237 $13,764,653 Source: City of Orinda CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Includes bonds for 2015-16 (excluded in summary). ---------- City/CSD MSR Update City of Orinda Fiscal Data May 7, 2019 pg. 69 of 138 Orinda GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 City management $445,054 $517,396 $573,468 City attorney 529,400 390,800 440,664 City clerk 217,899 245,716 234,249 Administrative services 641,474 860,805 728,704 Parks and recreation 2,386,392 2,557,929 2,761,601 Public works and engineering 2,155,688 2,503,302 3,548,211 Police services 3,959,757 4,033,935 4,112,216 Planning 903,543 1,007,036 921,671 Debt service: Principal retirement 369,660 8,030,000 295,000 Interest and fiscal charges 250,000 138,001 262,044 Total Expenditures 11,858,867 20,284,920 13,877,828 Change from Prior Year na 71.1% -31.6% OTHER FINANCING USES Transfers Out 922,860 376,604 2,559,605 Total Other Financing Uses 922,860 376,604 2,559,605 TOTAL USES AND TRANSFERS OUT $12,781,727 $20,661,524 $16,437,433 Source: City of Orinda CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) FY16 includes $7,945,000 + $223,001 transfers in for debt service (excluded from summary table). ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $7,709,599 $7,972,055 $9,611,395 Net Change 262,456 1,331,713 (2,672,780) % Change from Prior Year 3.4% 16.7% -27.8% Ending Balance, General Fund $7,972,055 $9,303,768 $6,938,615 Ending Balance/Total GF Operating Expenditures 67.2% 45.9% 50.0% Unassigned $7,972,055 $9,204,680 $612,210 Total Governmental Activities Ending Net Position $58,288,650 $60,696,792 $66,161,081 Unrestricted $9,622,488 $10,916,822 $7,248,745 Source: City of Orinda CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental City/CSD MSR Update City of Orinda Fiscal Data May 7, 2019 pg. 70 of 138 Orinda ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Orinda reports no enterprises or business type activities ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Orinda reports no enterprises or business type activities ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 5.6 3.6 2.5 Cash and Short-term Investments (2) 13,816,336 17,722,097 14,250,418 Total Current Liabilities 2,449,555 4,920,650 5,675,441 Source: City of Orinda CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Excludes "restricted cash". ---------- City/CSD MSR Update City of Orinda Fiscal Data May 7, 2019 pg. 71 of 138 Orinda CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $40,930,024 $40,328,390 $40,091,524 Ending Net Value of Capital Assets 40,328,390 40,091,524 47,860,216 Change in Net Value of Capital Assets (601,634) (236,866) 7,768,692 % Change in Net Value of Capital Assets -1.5% -0.6% 19.4% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES (1) Source: City of Orinda CAFRs - Notes to Basic Financial Statements (lNote 3c) (1) Town of Orinda reports no enterprises or business type activities. ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of Orinda provides a defined contribution 401(a) plan Net OPEB Liability Source: City of Orinda CAFRs - Notes to Basic Financial Statements ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Orinda Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities $18,280,000 $17,630,000 $51,270,000 Total Outstanding Debt 18,280,000 17,630,000 51,270,000 Total Debt per Capita $984 $936 $2,697 Assessed Value $5,387,051,165 $5,835,129,469 $6,157,578,113 Coverage Ratio (pledged revenues) (1) na na na Source: City of Orinda CAFRs - Notes to Basic Financial Statements (1) Certificates of Participation and debt secured by voter approved non-General Fund revenue. (2) CAFRs report no revenue bonds. ---------- City/CSD MSR Update City of Orinda Fiscal Data May 7, 2019 pg. 72 of 138 Pinole SUMMARY PROFILE Table S Summary of Financial Conditions City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 11.61 sq.mi. 11.61 sq.mi. 11.61 sq.mi. Population (2) 18,660 18,827 19,101 Change from Prior Year na 0.9% 1.5% Assessed Value (A.V.) (3) $1,974.5 mill. $2,112.8 mill. $2,232.0 mill. Change from Prior Year na 7.0% 5.6% A.V. per capita $105,800 $112,200 $116,900 General Fund Revenues (4) Property Tax $5,132,000 $3,413,000 $3,491,000 Sales Tax $6,120,000 $7,859,000 $7,597,000 Other Revenues $6,066,000 $6,120,000 $6,065,000 Total GF Revenues $17,317,575 $17,391,787 $17,152,904 Change from Prior Year na 0.4% -1.4% General Fund Expenditures (5) General Government & Admin. $2,136,000 $2,685,000 $2,708,000 Public Safety $8,336,000 $9,025,000 $9,459,000 Other (inc. Transfers Out) $1,550,000 $2,808,000 $2,348,000 Total GF Expenditures $12,022,000 $14,518,000 $14,515,000 Change from Prior Year na 20.8% 0.0% GF Expenditures per capita $644 $771 $760 Ending Balance, General Fund (6) $5,292,000 $9,070,000 $11,707,000 Change from Prior Year 100.1% 31.7% 22.5% as % of GF Expenditures 44.0% 62.5% 80.7% Enterprise Expenditures (7) Wastewater Utility $4,883,000 $5,316,000 $4,597,000 Total Enterprise Expenditures $4,883,000 $5,316,000 $4,597,000 Change from Prior Year na 8.9% -13.5% Total Enterprise Net Position (8) $16,207,000 $18,454,000 $20,014,000 Position/Enterprise Expenditures 3.3 3.5 4.4 Liquidity Ratio (9) Governmental Activities 4.9 6.0 6.6 Business-type Activities 7.0 30.9 4.6 Net Capital Assets (end of year) (10) Governmental Funds & Activities $35,100,000 $27,460,000 $26,200,000 Net Change from Prior Year 18.6% -2.6% -4.7% Business-type Activities 16,900,000 16,100,000 15,800,000 Net Change from Prior Year -3.4% -4.7% -1.9% Total Pension Liability (11) Net Liability $18,570,000 $21,150,000 $27,120,000 City of Pinole MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/2/18 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 73 of 138 Pinole (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability and net position not reported in CAFR. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property Taxes $5,132,285 $3,412,893 $3,491,463 Sales Taxes 6,120,157 7,859,195 7,596,645 Other Taxes $2,891,347 $3,023,447 $3,411,313 Intergovernmental revenues 1,515,953 1,785,007 83,902 Loan repayments 0 0 0 Contributions 125 1,125 924 Investment earnings 1,045 85,311 (17,854) Rents and ground leases 95,901 52,285 117,721 Charges for services 999,977 887,723 2,233,571 Fines, forfeitures and penalties 58,863 41,564 43,051 Other revenues 81,988 241,328 192,168 Total Revenues 16,897,641 17,389,878 17,152,904 Change from Prior Year na 2.9% -1.4% OTHER FINANCING SOURCES Transfers In (1) 419,934 1,909 0 Total Other Financing Sources 419,934 1,909 0 TOTAL REVENUES AND TRANSFERS IN $17,317,575 $17,391,787 $17,152,904 Source: City of Pinole CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Includes proceeds from sale of property. ---------- City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 74 of 138 Pinole GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General administration $2,135,828 $2,684,966 $2,708,417 Public safety 8,335,562 9,024,926 9,458,536 Public works 724,765 1,303,324 813,107 Recreation 0 2,964 12,784 Community development 0 4,785 7,959 Capital outlay 117,519 376,350 141,640 Debt service: Principal retirement 373,007 369,177 363,151 Interest and fiscal charges 290,860 305,569 338,507 Total Expenditures 11,977,541 14,072,061 13,844,101 Change from Prior Year na 17.5% -1.6% OTHER FINANCING USES Transfers Out 44,375 446,000 671,364 Total Other Financing Uses 44,375 446,000 671,364 TOTAL USES AND TRANSFERS OUT $12,021,916 $14,518,061 $14,515,465 Source: City of Pinole CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance ($3,664) $6,195,836 $9,069,562 Net Change 5,295,659 2,873,726 2,637,439 % Change from Prior Year na 46.4% 29.1% Ending Balance, General Fund $5,291,995 $9,069,562 $11,707,001 Ending Balance/Total GF Operating Expenditures 44.2% 64.5% 84.6% Unassigned $4,261,995 $9,062,287 $11,700,289 Total Governmental Activities Ending Net Position $15,735,207 $19,340,737 $19,307,804 Unrestricted ($21,819,095) ($17,014,950) ($31,148,654) Source: City of Pinole CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental ---------- City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 75 of 138 Pinole ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $6,912,213 $7,541,964 $6,315,563 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 0 0 0 Investment Earnings 8,266 20,137 3,570 Total $6,920,479 $7,562,101 $6,319,133 Change from Prior Year na 9.3% -16.4% ENTERPRISE EXPENDITURES Wastewater utility $4,883,256 $5,316,022 $4,597,454 Total $4,883,256 $5,316,022 $4,597,454 Change from Prior Year na 8.9% -13.5% Transfers Beginning Net Position 14,170,227 $16,207,450 $18,292,291 Change in Net Position 2,037,223 2,246,079 1,721,679 Ending Net Position $16,207,450 $18,453,529 $20,013,970 % Change from Prior Year 14.4% 13.9% 9.4% Ending Net Position/Total Expenditures 3.32 3.47 4.35 Source: City of Pinole CAFRs - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Wastewater utility $16,200,000 $18,500,000 $20,000,000 Total Net Position 16,200,000 18,500,000 20,000,000 % change from prior year n/a 14.2% 8.1% Source: City of Pinole CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 76 of 138 Pinole LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 4.9 6.0 6.6 Cash and Short-term Investments (2) 16,191,657 21,383,988 24,513,896 Total Current Liabilities (3) 3,330,733 3,568,849 3,698,343 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 7.0 30.9 4.6 Cash and Short-term Investments 6,833,339 5,579,861 10,241,196 Total Current Liabilities 977,980 180,542 2,216,136 Source: City of Pinole CAFRs - Balance Sheet, Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Includes funds held by fiscal agents. (3) Includes advances from trust fund. CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 29,600,000 28,200,000 $27,500,000 Ending Net Value of Capital Assets 35,100,000 27,460,000 26,200,000 Change in Net Value of Capital Assets 5,500,000 (740,000) (1,300,000) % Change in Net Value of Capital Assets 18.6% -2.6% -4.7% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets 17,500,000 16,900,000 $16,100,000 Ending Net Value of Capital Assets 16,900,000 16,100,000 15,800,000 Change in Net Value of Capital Assets (600,000) (800,000) (300,000) % Change in Net Value of Capital Assets -3.4% -4.7% -1.9% Source: City of Pinole CAFRs - Notes to Basic Financial Statements ---------- City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 77 of 138 Pinole PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liability $18,565,336 $21,152,561 $27,123,752 Net OPEB Liability $16,056,989 $19,477,288 $19,477,288 Source: City of Pinole CAFRs - Notes to Basic Financial Statements (1) The CAFRs do not report total pension liability or % funded. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Pinole Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 4,713,668 4,344,491 3,981,339 Business Type Activities 8,775,000 8,251,000 7,866,000 Total Outstanding Debt 13,488,668 12,595,491 11,847,339 Total Debt per Capita $723 $669 $620 Assessed Value $1,974,488,120 $2,112,755,713 $2,231,990,406 Coverage Ratio (pledged revenues) (1) Source: CAFRs - Ratios of Outstanding Debt. (1) Wastewater revenue bond coverage not reported. ---------- City/CSD MSR Update City of Pinole Fiscal Data May 7, 2019 pg. 78 of 138 Pittsburg SUMMARY PROFILE Table S Summary of Financial Conditions City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 19.75 sq.mi. 19.75 sq.mi. 19.75 sq.mi. Population (2) 67,119 68,133 71,342 Change from Prior Year na 1.5% 4.7% Assessed Value (A.V.) (3) $2,138.4 mill. $2,238.3 mill. $2,271.4 mill. Change from Prior Year na 4.7% 1.5% A.V. per capita $31,900 $32,900 $31,800 General Fund Revenues (4) Property Tax $3,205,000 $3,301,000 $3,574,000 Sales Tax $11,746,000 $13,113,000 $13,372,000 Other Revenues 21,828,757 24,207,941 25,467,362 Total GF Revenues $36,779,757 $40,621,941 $42,413,362 Change from Prior Year na 10.4% 4.4% General Fund Expenditures (5) General Government & Admin. $8,752,000 $7,411,000 $8,104,000 Public Safety $21,485,000 $22,848,000 $24,110,000 Other (inc. Transfers Out) $9,100,172 $9,152,934 $9,582,867 Total GF Expenditures $39,337,172 $39,411,934 $41,796,867 Change from Prior Year na 0.2% 6.1% GF Expenditures per capita $586 $578 $586 Ending Balance, General Fund (6) $18,056,000 $19,266,000 $19,883,000 Change from Prior Year -14.2% 6.3% 3.1% as % of GF Expenditures 45.9% 48.9% 47.6% Enterprise Expenditures (7) Water Utility $17,478,000 $18,553,000 $25,930,000 Sewer Utility $2,264,000 $2,583,000 $3,176,000 Marina $2,352,000 $2,424,000 $2,471,000 Pittsburg Power $6,670,000 $6,597,000 $6,570,000 Waterfront Operations $751,000 $972,000 $1,512,000 Total Enterprise Expenditures $29,515,000 $31,129,000 $39,659,000 Change from Prior Year na 5.5% 27.4% Total Enterprise Net Position (8) $125,195,000 $129,754,000 $130,302,000 Position/Enterprise Expenditures 4.2 4.2 3.3 Liquidity Ratio (9) Governmental Activities 3.8 4.1 3.3 Business-type Activities 4.0 4.4 5.3 Net Capital Assets (end of year) (10) Governmental Funds & Activities $218,899,000 $212,522,000 $202,984,000 Net Change from Prior Year 0.9% -2.9% -4.5% Business-type Activities 120,485,000 119,606,000 118,182,000 Net Change from Prior Year 11.7% -0.7% -1.2% Total Pension Liability (11) $153,173,389 $167,532,521 $175,801,634 % Pension Funded 73.7% 74.2% 71.3% Net Pension Liability $40,285,022 $43,257,523 $50,402,455 City of Pittsburg MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/2/19 (1) Email from Brad Farmer, City of Pittsburg, Aug. 6, 2018. Includes 3 sq.mi. of water. (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 79 of 138 Pittsburg (3) See Table 9 (4) See Table 1 (5) See Table 2. Public safety includes police and fire. (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property tax $3,204,965 $3,300,776 $3,573,822 Sales tax 11,745,524 13,112,880 13,372,246 Franchise tax 4,171,756 4,476,832 4,545,452 Other taxes 5,662,960 6,104,751 1,712,450 Intergovernmental revenues 1,344,024 2,046,540 7,494,882 Permits, licenses, and fees 981,810 1,093,626 1,056,906 Fines and forfeitures 172,374 307,427 292,235 Special assessments 0 0 0 Service fees 3,426,535 3,859,696 3,685,279 Use of money and property 257,699 366,048 142,904 Other revenues 1,829,070 1,969,896 2,103,960 Service Charges Total Revenues 32,796,717 36,638,472 37,980,136 Change from Prior Year na 11.7% 3.7% OTHER FINANCING SOURCES Transfers In 3,983,040 3,983,469 4,433,226 Total Other Financing Sources 3,983,040 3,983,469 4,433,226 TOTAL REVENUES AND TRANSFERS IN $36,779,757 $40,621,941 $42,413,362 Source: City of Pittsburg CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 80 of 138 Pittsburg GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $4,364,158 $2,732,149 $3,143,562 City Council 80,833 70,516 83,145 City Manager and City Clerk 524,063 696,190 687,648 City Attorney 543,898 321,834 459,513 Human resources 815,515 870,737 880,116 Finance and services 2,423,502 2,719,441 2,850,111 Community development and services 5,627,635 5,662,666 5,829,914 Public safety 21,484,994 22,848,398 24,110,402 Public works - administration 85,968 66,518 92,639 Public works - streets 2,036,911 2,013,465 2,243,733 Public works - parks 100,214 120,266 131,094 Capital outlay and improvements Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 38,087,691 38,122,180 40,511,877 Change from Prior Year na 0.1% 6.3% OTHER FINANCING USES Transfers Out 1,249,481 1,289,754 1,284,990 Total Other Financing Uses 1,249,481 1,289,754 1,284,990 TOTAL USES AND TRANSFERS OUT $39,337,172 $39,411,934 $41,796,867 Source: City of Pittsburg CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $20,613,670 $18,056,255 $19,266,262 Net Change (2,557,415) 1,210,007 616,495 % Change from Prior Year -12.4% 6.7% 3.2% Ending Balance, General Fund $18,056,255 $19,266,262 $19,882,757 Ending Balance/Total GF Operating Expenditures 47.4% 50.5% 49.1% Unassigned $14,613,983 $15,957,212 $17,037,283 Total Governmental Activities Ending Net Position $258,489,784 $244,865,938 $244,926,583 Unrestricted ($37,752,882) ($39,107,180) ($33,347,842) Source: City of Pittsburg CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds; Statement of Net Position. ---------- City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 81 of 138 Pittsburg ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $33,956,795 $35,597,165 $36,333,258 Operating Grants and Contributions 2,145,271 1,780,581 200,127 Capital Grants and Contributions 0 0 6,026,102 Other Non-Operating (1) 504,216 665,412 421,910 Total $36,606,282 $38,043,158 $42,981,397 Change from Prior Year na 3.9% 13.0% ENTERPRISE EXPENDITURES Water Utility $17,477,524 $18,552,726 $25,929,659 Sewer Utility 2,264,022 2,583,101 3,176,015 Marina 2,352,274 2,424,083 2,471,440 Pittsburg Power 6,670,282 6,597,065 6,569,528 Waterfront Operations 750,765 972,469 1,512,250 Total $29,514,867 $31,129,444 $39,658,892 Change from Prior Year na 5.5% 27.4% Transfers ($2,677,386) ($2,354,972) ($2,774,890) Beginning Net Position (w/GASB adj.) 124,646,855 $125,195,471 $129,754,213 Change in Net Position (2) 548,616 4,558,742 547,615 Ending Net Position $125,195,471 $129,754,213 $130,301,828 % Change from Prior Year 0.4% 3.6% 0.4% Ending Net Position/Total Expenditures 4.24 4.17 3.29 Source: City of Pittsburg CAFRs - Statement of Changes in Net position (1) Investment earnings and sale of assets. (2) Change includes GASB adjustment -$3,865,413 FY2015. ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Water Utility $64,807,943 $67,157,022 $66,725,655 Sewer Utility 32,771,882 34,908,741 36,032,110 Marina 13,975,992 13,478,812 13,007,826 Pittsburg Power 13,757,093 13,871,833 14,251,615 Waterfront Operations (117,439) 337,805 284,622 Total Net Position 125,195,471 129,754,213 130,301,828 % change from prior year 0.4% 3.6% 0.4% Source: City of Pittsburg CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 82 of 138 Pittsburg LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 3.8 4.1 3.3 Cash and Short-term Investments 44,182,634 43,387,480 38,847,021 Total Current Liabilities 11,670,778 10,606,118 11,773,638 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 4.0 4.4 5.3 Cash and Short-term Investments 31,524,241 35,002,430 41,742,841 Total Current Liabilities 7,970,852 8,012,332 7,867,897 Source: City of Pittsburg CAFRs - Statement of Net position ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $217,010,706 $218,899,376 $212,521,792 Ending Net Value of Capital Assets 218,899,376 212,521,792 202,983,986 Change in Net Value of Capital Assets 1,888,670 (6,377,584) (9,537,806) % Change in Net Value of Capital Assets -2.9% -4.5% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $107,874,608 $120,485,056 $119,606,042 Ending Net Value of Capital Assets 120,485,056 119,606,042 118,181,560 Change in Net Value of Capital Assets 12,610,448 (879,014) (1,424,482) % Change in Net Value of Capital Assets -0.7% -1.2% Source: City of Pittsburg CAFRs - Notes to Basic Financial Statements ---------- City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 83 of 138 Pittsburg PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability $153,173,389 $167,532,521 $175,801,634 Plan Fiduciary Net Position 112,888,367 124,274,998 125,399,179 % Funded 73.7% 74.2% 71.3% Net Pension Liability $40,285,022 $43,257,523 $50,402,455 Net OPEB Liability $22,111,508 $24,674,996 $27,226,475 Source: City of Pittsburg CAFRs - Notes to Basic Financial Statements (Note 11 - DEFINED BENEFIT PENSION PLANS) ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Pittsburg Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities $34,365,661 $34,683,232 $34,608,747 Business Type Activities 47,563,398 45,516,171 43,655,216 Total Outstanding Debt 81,929,059 80,199,403 78,263,963 Total Debt per Capita $1,221 $1,177 $1,097 Assessed Value $2,138,417,124 $2,238,252,364 $2,271,410,220 Coverage Ratio (pledged revenues) 3.72 3.07 3.40 Source: CAFRs - Direct and Overlapping Debt, Ratio of Outstanding Debt, Revenue Bond Coverage ---------- City/CSD MSR Update City of Pittsburg Fiscal Data May 7, 2019 pg. 84 of 138 Pleasant Hill SUMMARY PROFILE Table S Summary of Financial Conditions City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 8.1 sq.mi. 8.1 sq.mi. 8.1 sq.mi. Population (2) 33,918 34,232 34,944 Change from Prior Year na 0.9% 2.1% Assessed Value (A.V.) (3) $4,982.1 mill. $5,317.9 mill. $5,581.9 mill. Change from Prior Year na 6.7% 5.0% A.V. per capita $146,900 $155,300 $159,700 General Fund Revenues (4) Property Tax $5,518,000 $5,760,000 $6,111,000 Sales Tax $7,737,000 $8,598,000 $8,437,000 Other Revenues $7,939,000 $8,583,000 $9,596,000 Total GF Revenues $21,194,000 $22,941,000 $24,144,000 Change from Prior Year na 8.2% 5.2% General Fund Expenditures (5) General Government & Admin. $4,283,000 $4,323,000 $5,099,000 Public Safety $8,758,000 $9,499,000 $10,190,000 Other (inc. Transfers Out) $8,160,000 $8,870,000 $9,808,000 Total GF Expenditures $21,201,000 $22,692,000 $25,097,000 Change from Prior Year na 7.0% 10.6% GF Expenditures per capita $625 $663 $718 Ending Balance, General Fund (6) $14,060,000 $14,310,000 $13,357,000 Change from Prior Year 0.0% 1.7% -7.1% as % of GF Expenditures 66.3% 63.1% 53.2% Enterprise Expenditures (7) Water Utility $253,000 $218,000 $244,000 Total Enterprise Expenditures $253,000 $218,000 $244,000 Change from Prior Year na -13.8% 11.9% Total Enterprise Net Position (8) $1,063,000 $1,166,000 $1,261,000 Position/Enterprise Expenditures 4.2 5.3 5.2 Liquidity Ratio (9) Governmental Activities 3.9 7.9 2.9 Business-type Activities 46.7 14.8 13.4 Net Capital Assets (end of year) (10) Governmental Funds & Activities $66,700,000 $67,100,000 $66,600,000 Net Change from Prior Year -2.3% 0.6% -0.7% Business-type Activities 533,000 524,000 508,000 Net Change from Prior Year 27.5% -1.6% -3.1% Total Pension Liability (11) Net Liability $24,410,000 $26,950,000 $34,710,000 City of Pleasant Hill MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/4/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability and % funded not reported. City/CSD MSR Update City of Pleasant Hill Fiscal Data May 7, 2019 pg. 85 of 138 Pleasant Hill ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes $5,517,709 $5,760,391 $6,111,248 Sales taxes 7,736,714 8,598,230 8,437,462 Measure K transactions & use tax 0 0 794,882 special assessments 6,509,744 6,830,248 7,130,833 Licenses and permits 532,040 713,527 672,519 Intergovernmental 236,878 138,457 50,657 Charges for services 437,359 541,702 468,557 Fines and forfeitures 53,895 59,158 88,328 Use of money and property 45,595 61,080 14,645 Other 24,548 17,578 274,902 Total Revenues 21,094,482 22,720,371 24,044,033 Change from Prior Year na 7.7% 5.8% OTHER FINANCING SOURCES Transfers In 100,000 221,023 100,069 Total Other Financing Sources 100,000 221,023 100,069 TOTAL REVENUES AND TRANSFERS IN $21,194,482 $22,941,394 $24,144,102 Source: City of Pleasant Hill CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Pleasant Hill Fiscal Data May 7, 2019 pg. 86 of 138 Pleasant Hill GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $4,283,009 $4,322,865 $5,099,075 Public safety 8,758,244 9,499,370 10,190,049 Transportation 2,835,800 3,084,479 3,631,821 Community development 2,041,476 2,346,799 2,449,110 Debt service: Principal retirement 789,000 815,000 843,000 Interest and fiscal charges 101,262 74,554 46,875 Total Expenditures 18,808,791 20,143,067 22,259,930 Change from Prior Year na 7.1% 10.5% OTHER FINANCING USES Transfers Out 2,391,777 2,548,576 2,837,440 Total Other Financing Uses 2,391,777 2,548,576 2,837,440 TOTAL USES AND TRANSFERS OUT $21,200,568 $22,691,643 $25,097,370 Source: City of Pleasant Hill CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $14,066,351 $14,060,265 $14,310,016 Net Change (6,086) 249,751 (953,268) % Change from Prior Year 0.0% 1.8% -6.7% Ending Balance, General Fund $14,060,265 $14,310,016 $13,356,748 Ending Balance/Total GF Operating Expenditures 74.8% 71.0% 60.0% Unassigned $5,031,285 $5,175,170 $3,386,999 Total Governmental Activities Ending Net Position $56,656,048 $59,882,828 $55,473,031 Unrestricted ($19,918,513) ($18,511,367) ($20,106,826) Source: City of Pleasant Hill CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds; Statement of Net Position ---------- City/CSD MSR Update City of Pleasant Hill Fiscal Data May 7, 2019 pg. 87 of 138 Pleasant Hill ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $134,520 $134,235 $134,235 Other Non-Operating 169,628 186,664 204,854 Total $304,148 $320,899 $339,089 Change from Prior Year na 5.5% 5.7% ENTERPRISE EXPENDITURES Diablo Vista Water System $253,159 $217,928 $244,104 Total $253,159 $217,928 $244,104 Change from Prior Year na -13.9% 12.0% Beginning Net Position 1,011,895 $1,062,884 $1,165,855 Change in Net Position (1) 50,989 102,971 94,985 Ending Net Position $1,062,884 $1,165,855 $1,260,840 % Change from Prior Year 5.0% 9.7% 8.1% Ending Net Position/Total Expenditures 4.20 5.35 5.17 Source: City of Pleasant Hill CAFRs - Statement of Changes in Net position (1) Note: change in position in CAFR FY17 does not match revenue and expenditure changes ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Diablo Vista Water System $1,062,884 $1,165,855 $1,260,840 Total Net Position 1,062,884 1,165,855 1,260,840 % change from prior year n/a 9.7% 8.1% Source: City of Pleasant Hill CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 3.9 7.9 2.9 Cash and Short-term Investments 20,742,673 18,387,306 17,451,674 Total Current Liabilities (2) 5,298,555 2,333,867 5,934,104 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 46.7 14.8 13.4 Cash and Short-term Investments 553,731 687,062 811,565 Total Current Liabilities 11,863 46,431 60,748 Source: City of Pleasant Hill CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities. (2) Includes compensated absences due within one year. City/CSD MSR Update City of Pleasant Hill Fiscal Data May 7, 2019 pg. 88 of 138 Pleasant Hill ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $68,300,000 $66,700,000 $67,100,000 Ending Net Value of Capital Assets 66,700,000 67,100,000 66,600,000 Change in Net Value of Capital Assets (1,600,000) 400,000 (500,000) % Change in Net Value of Capital Assets -2.3% 0.6% -0.7% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $418,115 $532,590 $524,375 Ending Net Value of Capital Assets 532,590 524,375 508,158 Change in Net Value of Capital Assets 114,475 (8,215) (16,217) % Change in Net Value of Capital Assets 27.4% -1.5% -3.1% Source: City of Pleasant Hill CAFRs - Notes to Basic Financial Statements ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liabiliy $24,412,267 $26,950,066 $34,709,774 Net OPEB Liability (2) na na na Source: City of Pleasant Hill CAFRs - Notes to Basic Financial Statements (1) The CAFRs do not report total pension liability or % funded. (2) No OPEB obligations. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Pleasant Hill Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 4,090,000 2,540,000 872,000 Total Outstanding Debt 4,090,000 2,540,000 872,000 Total Debt per Capita $121 $74 $25 Assessed Value $4,982,119,158 $5,317,935,076 $5,581,884,642 Coverage Ratio (pledged revenues) na na na Source: CAFRs - Ratio of Outstanding Debt, Assessed and Actual Assessed Value (1) No revenue bonds reported in CAFR. ---------- City/CSD MSR Update City of Pleasant Hill Fiscal Data May 7, 2019 pg. 89 of 138 Richmond SUMMARY PROFILE Table S Summary of Financial Conditions City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 52.6 sq.mi. 52.6 sq.mi. 52.6 sq.mi. Population (2) 109,568 110,866 110,114 Change from Prior Year na 1.2% -0.7% Assessed Value (A.V.) (3) $12,429.6 mill. $13,539.6 mill. $14,322.8 mill. Change from Prior Year na 8.9% 5.8% A.V. per capita $113,400 $122,100 $130,100 General Fund Revenues (4) Property Tax $30,905,000 $33,232,000 $36,970,000 Sales Tax $33,131,000 $40,877,000 $41,620,000 Other Revenues $80,494,000 $72,466,000 $85,815,000 Total GF Revenues $144,529,612 $146,575,079 $164,405,410 Change from Prior Year na 1.4% 12.2% General Fund Expenditures (5) General Government $21,242,000 $22,372,000 $25,517,000 Public Safety $83,960,000 $86,860,000 $92,617,000 Other (inc. Transfers Out) $38,188,000 $36,627,420 $40,251,915 Total GF Expenditures $143,389,704 $145,859,420 $158,385,915 Change from Prior Year na 1.7% 8.6% GF Expenditures per capita $1,309 $1,316 $1,438 Ending Balance, General Fund (6) $28,682,000 $29,397,000 $35,417,000 Change from Prior Year 4.0% 2.4% 17.0% as % of GF Expenditures 20.0% 20.2% 22.4% Enterprise Expenditures (7) Richmond Housing Authority $28,049,000 $26,385,000 $26,242,000 Port of Richmond $9,923,000 $8,265,000 $10,102,000 Richmond Marina $235,000 $0 $231,000 Municipal Sewer $15,966,000 $11,752,000 $17,721,000 Storm Sewer $3,282,000 $4,618,000 $2,321,000 Cable TV $948,000 $0 $1,028,000 Total Enterprise Expenditures $58,403,000 $51,020,000 $57,645,000 Change from Prior Year na -12.6% 13.0% Total Enterprise Net Position (8) $65,898,000 $49,032,000 $56,345,000 Position/Enterprise Expenditures 1.1 1.0 1.0 Liquidity Ratio (9) Governmental Activities 0.3 0.4 0.7 Business-type Activities 1.3 0.4 0.9 Net Capital Assets (end of year) (10) Governmental Funds & Activities $237,534,000 $216,807,000 $213,949,000 Net Change from Prior Year 2.7% -8.7% -1.3% Business-type Activities 152,994,000 143,679,000 136,919,000 Net Change from Prior Year -4.3% -6.1% -4.7% Total Pension Liability (11) $989,701,420 $1,026,410,696 n/a % Pension Funded 77.7% 75.5% n/a Net Pension Liability $220,268,195 $251,364,766 $311,999,225 City of Richmond MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/4/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 90 of 138 Richmond (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8 ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes $30,904,650 $33,232,037 $36,970,269 Sales taxes 33,131,486 40,877,125 41,620,189 Utility user taxes 48,299,958 43,365,249 44,966,489 Other taxes 9,918,447 11,628,519 12,566,579 Licenses, permits and fees 2,439,359 2,542,704 5,038,585 Fines, forfeitures and penalties 482,567 398,098 1,048,582 Use of money and property 77,228 35,493 73,408 Intergovernmental 4,097,963 1,954,943 4,056,470 Charges for services 9,141,441 8,284,694 7,264,336 Rent 809,113 765,753 836,221 Other 768,619 353,991 440,174 Total Revenues 140,070,831 143,438,606 154,881,302 Change from Prior Year na 2.4% 8.0% OTHER FINANCING SOURCES Transfers In 4,458,781 3,136,473 9,524,108 Total Other Financing Sources 4,458,781 3,136,473 9,524,108 TOTAL REVENUES AND TRANSFERS IN $144,529,612 $146,575,079 $164,405,410 Source: City of Richmond CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 91 of 138 Richmond GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General government $21,241,969 $22,371,710 $25,516,856 Public safety 83,960,461 86,859,602 92,616,949 Public works 18,686,952 17,899,366 21,827,896 Community development 0 0 0 Cultural and recreational 9,658,457 9,952,449 10,091,329 Housing and redevelopment 0 0 0 Capital outlay 256,353 404,053 100,891 Debt service: Principal retirement 1,320,695 1,079,062 790,346 Interest and fiscal charges 610,575 318,574 282,512 Total Expenditures 135,735,462 138,884,816 151,226,779 Change from Prior Year na 2.3% 8.9% OTHER FINANCING USES Transfers Out 7,654,242 6,974,604 7,159,136 Total Other Financing Uses 7,654,242 6,974,604 7,159,136 TOTAL USES AND TRANSFERS OUT $143,389,704 $145,859,420 $158,385,915 Source: City of Richmond CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $27,541,828 $28,681,736 $29,397,395 Net Change 1,139,908 715,659 6,019,495 % Change from Prior Year 4.1% 2.5% 20.5% Ending Balance, General Fund $28,681,736 $29,397,395 $35,416,890 Ending Balance/Total GF Operating Expenditures 21.1% 21.2% 23.4% Unassigned $9,949,120 $10,988,266 $19,709,197 Total Governmental Activities Ending Net Position ($207,237,330) ($210,366,203) ($194,173,097) Unrestricted ($479,961,080) ($508,981,299) ($504,602,583) Source: City of Richmond CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, (1) calculated ---------- City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 92 of 138 Richmond ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Operating Revenues $34,141,000 $35,494,000 $37,890,000 Grants 22,112,000 21,951,000 22,637,000 Other Non-Operating (grants, settlements) 2,190,000 2,657,000 970,000 Interest (net) (563,000) (10,838,000) 3,549,000 Total $57,880,000 $49,264,000 $65,046,000 Change from Prior Year na -14.9% 32.0% ENTERPRISE OPERATING EXPENDITURES Richmond Housing Authority $28,049,000 $26,385,000 $26,242,000 Port of Richmond 9,923,000 8,265,000 10,102,000 Richmond Marina 235,000 231,000 Municipal Sewer 15,966,000 11,752,000 17,721,000 Other 3,282,000 4,618,000 2,321,000 Cable TV 948,000 1,028,000 Total $58,403,000 $51,020,000 $57,645,000 Change from Prior Year na -12.6% 13.0% Transfers and Special Items ($179,000) ($15,110,000) ($87,000) Beginning Net Position (1) 66,600,000 $65,898,000 $49,031,000 Change in Net Position (1) (702,000) (16,866,000) 7,314,000 Ending Net Position (1) $65,898,000 $49,032,000 $56,345,000 % Change from Prior Year -1.1% -25.6% 14.9% Ending Net Position/Total Expenditures 1.13 0.96 0.98 Source: City of Richmond CAFRs - Statement of Changes in Net position (1) Note: totals may differ slightly from CAFRs due to rounding. ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Richmond Housing Authority $38,890,311 $23,152,215 $22,773,813 Port of Richmond 7,678,574 7,139,943 7,231,960 Municipal Sewer 19,876,011 20,883,832 28,248,897 Other Enterprises (546,946) (2,145,383) (1,909,316) Total Net Position 65,897,950 49,030,607 56,345,354 % change from prior year n/a -25.6% 14.9% Source: City of Richmond CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 93 of 138 Richmond LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 0.3 0.4 0.7 Cash and Short-term Investments 22,387,954 33,542,030 55,633,622 Total Current Liabilities 88,538,000 92,803,000 81,909,000 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 1.3 0.4 0.9 Cash and Short-term Investments 27,034,707 25,066,043 18,230,691 Total Current Liabilities 20,581,000 57,409,000 20,917,000 Source: City of Richmond CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 231,286,772 237,534,283 216,806,867 Ending Net Value of Capital Assets 237,534,283 216,806,867 $213,949,181 Change in Net Value of Capital Assets 6,247,511 (20,727,416) (2,857,686) % Change in Net Value of Capital Assets 2.7% -8.7% -1.3% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets 159,789,090 152,994,468 143,678,600 Ending Net Value of Capital Assets 152,994,468 143,678,600 $136,918,776 Change in Net Value of Capital Assets (6,794,622) (9,315,868) (6,759,824) % Change in Net Value of Capital Assets -4.3% -6.1% -4.7% Source: City of Richmond CAFRs - Notes to Basic Financial Statements (Note 6 - CAPITAL ASSETS) ---------- City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 94 of 138 Richmond PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability (1) $989,701,420 $1,026,410,696 n/a Plan Fiduciary Net Position n/a % Funded 77.7% 75.5% n/a Net Pension Liability (2) $220,268,195 $251,364,766 $311,999,225 Net OPEB Liability (3) not reported not reported 182,135,389 Source: City of Richmond CAFRs - Statement of Net Position and Notes 10-12 (1) Total liability for Misc. and Safety Plans. (2) Statement of Net Position, Gov'l and Enterprises. (3) Net OPEB liability not reported until GASB 74 req'ment FY17. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Richmond Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 265,879,160 280,377,609 275,199,962 Business Type Activities 131,713,319 126,775,985 122,303,791 Total Outstanding Debt 397,592,479 407,153,594 397,503,753 Total Debt per Capita $3,629 $3,672 $3,610 Assessed Value $12,429,550,000 $13,539,643,000 $14,322,848,000 Coverage Ratio (pledged revenues) 1.44 1.50 1.51 Source: CAFRs - Ratio of Oustanding Debt by Type, Assessed and Actual Value, Revenue Bond Coverage ---------- City/CSD MSR Update City of Richmond Fiscal Data May 7, 2019 pg. 95 of 138 San Pablo SUMMARY PROFILE Table S Summary of Financial Conditions City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 2.5 sq.mi. 2.5 sq.mi. 2.5 sq.mi. Population (2) 29,499 30,829 31,053 Change from Prior Year na 4.5% 0.7% Assessed Value (A.V.) (3) $1,464.2 mill. $1,727.7 mill. $1,840.1 mill. Change from Prior Year na 18.0% 6.5% A.V. per capita $49,600 $56,000 $59,300 General Fund Revenues (4) Property Tax $837,000 $720,000 $873,000 Sales Tax $3,199,000 $3,304,000 $3,747,000 Other Revenues $34,722,000 $39,504,000 $36,449,000 Total GF Revenues $38,757,685 $43,527,828 $41,068,515 Change from Prior Year na 12.3% -5.6% General Fund Expenditures (5) General Government & Admin. $5,803,000 $9,612,000 $9,418,000 Public Safety $15,436,000 $13,735,000 $14,928,000 Other (inc. Transfers Out) $6,696,000 $5,909,000 $13,629,000 Total GF Expenditures $27,935,000 $29,256,000 $37,975,000 Change from Prior Year na 4.7% 29.8% GF Expenditures per capita $947 $949 $1,223 Ending Balance, General Fund (6) $43,144,000 $57,416,000 $60,509,000 Change from Prior Year 25.1% 24.9% 5.1% as % of GF Expenditures 154.4% 196.3% 159.3% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 11.8 12.1 9.2 Net Capital Assets (end of year) (10) Governmental Funds & Activities $58,539,000 $65,241,000 $67,231,000 Net Change from Prior Year 10.3% 11.4% 3.1% Total Pension Liability (11) Net Pension Liability $22,070,000 $27,190,000 $34,870,000 City of San Pablo MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/4/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) City of San Pablo Comments on MSR Fiscal Profile. (3) See Table 9 (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4. No enterprises. (8) See Table 4. No enterprises. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. CAFR does not report total liability or % funded. City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 96 of 138 San Pablo ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Intergovernmental 6,125,560 2,749,495 Property taxes $836,806 $719,960 $872,985 Sales tax 3,199,425 3,304,334 3,746,816 In-lieu sales tax 490,239 406,799 Utility users tax 2,467,509 2,572,145 2,686,980 Business license tax 19,390,922 22,665,705 23,876,317 Other taxes 3,304,319 3,334,876 3,474,030 Fines and forfeitures 250,670 253,290 242,120 Motor vehicle in lieu 1,961,310 0 0 Other 2,518,713 0 0 Charges for services 691,632 629,254 599,671 Use of money and property 642,072 1,063,595 1,094,542 Miscellaneous 167,020 211,478 294,696 Total Revenues 35,920,637 41,286,996 39,637,652 Change from Prior Year na 14.9% -4.0% OTHER FINANCING SOURCES Transfers In 2,837,048 2,240,832 1,430,863 Total Other Financing Sources 2,837,048 2,240,832 1,430,863 TOTAL REVENUES AND TRANSFERS IN $38,757,685 $43,527,828 $41,068,515 Source: City of San Pablo CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 97 of 138 San Pablo GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General government $5,803,306 $9,612,295 $9,418,355 Recreation 1,321,969 1,490,995 73,015 Development 0 0 2,496,976 Public Works & Engineering 283,809 275,565 275,878 Police 15,435,567 13,735,117 14,927,935 Capital outlay 529,202 308,912 182,901 Debt service: Principal retirement 85,000 144,982 160,234 Interest and fiscal charges 0 25,882 10,630 Total Expenditures 23,458,853 25,593,748 27,545,924 Change from Prior Year na 9.1% 7.6% OTHER FINANCING USES Transfers Out (1) 4,475,960 3,662,125 10,429,280 Total Other Financing Uses 4,475,960 3,662,125 10,429,280 TOTAL USES AND TRANSFERS OUT $27,934,813 $29,255,873 $37,975,204 Source: City of San Pablo CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) See CAFR Note 4A re: transfers (primarily to fund capital). ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $32,321,326 $43,144,198 $57,416,153 Net Change 10,822,872 14,271,955 3,093,311 % Change from Prior Year 33.5% 33.1% 5.4% Ending Balance, General Fund $43,144,198 $57,416,153 $60,509,464 Ending Balance/Total GF Operating Expenditures 183.9% 224.3% 219.7% Unassigned $37,596,248 $50,715,535 $54,246,048 Total Governmental Activities Ending Net Position $115,023,046 $126,830,398 $130,642,337 Unrestricted $30,508,198 $41,969,726 $39,526,263 Source: City of San Pablo CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 98 of 138 San Pablo ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of San Pablo reports no enterprises or business type activities ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Town of San Pablo reports no enterprises or business type activities ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 11.8 12.1 9.2 Cash and Short-term Investments (2) $44,977,565 $58,384,405 $65,933,925 Total Current Liabilities 3,810,827 4,806,767 7,161,607 Source: City of San Pablo CAFRs - Governmental Funds Balance Sheet (1) Cash and Short-term Investments/Total Current Liabilities (2) Available for operations. (3) CAFR reports no enterprises. City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 99 of 138 San Pablo CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $53,094,772 $58,538,540 $65,240,811 Ending Net Value of Capital Assets 58,538,540 65,240,811 67,231,310 Change in Net Value of Capital Assets 5,443,768 6,702,271 1,990,499 % Change in Net Value of Capital Assets 10.3% 11.4% 3.1% Source: City of San Pablo CAFRs - Notes to Basic Financial Statements (Note 6A - CAPITAL ASSETS) ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Total Pension Liability $123,017,040 $125,692,251 132,030,081 Plan Fiduciary Net Position $100,949,542 $98,501,954 97,157,344 % Funded 82% 78% 74% Net Pension Liability $22,067,498 $27,190,297 $34,872,747 Net OPEB Liability (Asset) ($4,271,510) ($4,409,069) ($4,291,233) Source: City of San Pablo CAFRs - Notes to Basic Financial Statements (Note 9-10 PENSION PLANS) (1) CAFR does not report total liability or % funded. (2) Irrevocable trust. ---------- City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 100 of 138 San Pablo DEBT AND VALUE Table 9 Debt and Assessed Value City of San Pablo Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 25,922,750 25,865,708 25,700,486 Total Outstanding Debt 25,922,750 25,865,708 25,700,486 Total Debt per Capita $879 $839 $828 Assessed Value $1,464,234,968 $1,727,734,829 $1,840,113,313 Coverage Ratio (pledged revenues) Source: CAFRs - Ratio of Outstanding Debt, Assessed and Actual Value ---------- City/CSD MSR Update City of San Pablo Fiscal Data May 7, 2019 pg. 101 of 138 San Ramon SUMMARY PROFILE Table S Summary of Financial Conditions City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 18.66 sq.mi. 18.66 sq.mi. 18.66 sq.mi. Population (2) 78,561 78,363 80,550 Change from Prior Year na -0.3% 2.8% Assessed Value (A.V.) (3) $16,984.0 mill. $18,513.0 mill. $19,411.5 mill. Change from Prior Year na 9.0% 4.9% A.V. per capita $216,200 $236,200 $241,000 General Fund Revenues (4) Property Tax $16,092,000 $17,241,000 $18,479,000 Sales Tax $9,143,000 $10,485,000 $9,329,000 Other Revenues $20,614,000 $23,300,000 $22,516,000 Total GF Revenues $45,849,000 $51,026,000 $50,324,000 Change from Prior Year na 11.3% -1.4% General Fund Expenditures (5) General Government & Admin. $4,807,000 $5,587,000 $5,944,000 Public Safety $11,381,000 $12,041,000 $12,579,000 Other (inc. Transfers Out) $30,723,000 $31,187,000 $35,038,000 Total GF Expenditures $46,911,000 $48,815,000 $53,561,000 Change from Prior Year na 4.1% 9.7% GF Expenditures per capita $597 $623 $665 Ending Balance, General Fund (6) $10,679,000 $13,147,000 $9,910,000 Change from Prior Year -9.9% 16.8% -32.7% as % of GF Expenditures 22.8% 26.9% 18.5% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 5.1 3.9 5.4 Net Capital Assets (end of year) (10) Governmental Funds & Activities $369,697,000 $384,770,000 $393,419,000 Net Change from Prior Year 1.2% 4.1% 2.2% Total Pension Liability (11) $220,642,000 $229,975,000 Net Liability (all plans) $14,490,000 $23,390,000 n/a City of San Ramon MSR Fiscal Profile (Comprehensive Annual Financial Reports) 2/22/19 (1) City of San Ramon edits to MSR Profile. (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1. CAFRs do not distinguish General Fund property or sales tax. (5) See Table 2 (6) See Table 3 (7) See Table 4. No enterprises. (8) See Table 4. No enterprises. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. (Safety Plan Total Liability and % Funded not reported in CAFR). City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 102 of 138 San Ramon ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property Tax (1) $16,091,598 $17,240,799 $18,478,700 Sales Tax (1) 9,142,892 10,484,639 9,328,801 Licenses and permits 1,371,771 1,712,228 2,005,548 Intergovernmental 450,788 353,783 346,197 Charges for services 6,157,283 7,703,805 6,537,626 Fines and forfeitures 336,050 415,083 341,487 Investment income 425,939 167,411 59,969 Miscellaneous 2,137,781 2,435,622 2,558,531 Other Taxes (1) 7,467,297 8,144,757 8,389,545 Total Revenues 43,581,399 48,658,127 48,046,404 Change from Prior Year na 11.6% -1.3% OTHER FINANCING SOURCES Transfers In 2,267,507 2,368,194 2,278,004 Total Other Financing Sources 2,267,507 2,368,194 2,278,004 TOTAL REVENUES AND TRANSFERS IN $45,848,906 $51,026,321 $50,324,408 Source: City of San Ramon CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) See CAFR17 pg. 157 for "Tax" detail. ---------- City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 103 of 138 San Ramon GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General Government $4,807,260 $5,587,406 $5,943,627 Community development 3,410,224 3,559,111 3,051,027 Police services 11,380,748 12,041,075 12,579,008 Public works 11,864,097 12,498,880 14,054,064 Parks and community services 7,894,989 8,464,188 8,052,418 Debt service: Principal retirement 35,822 37,208 38,648 Interest and fiscal charges 7,489 6,103 4,663 Total Expenditures 39,400,629 42,193,971 43,723,455 Change from Prior Year na 7.1% 3.6% OTHER FINANCING USES Transfers Out (1) 7,510,449 6,620,897 9,837,779 Total Other Financing Uses 7,510,449 6,620,897 9,837,779 TOTAL USES AND TRANSFERS OUT $46,911,078 $48,814,868 $53,561,234 Source: City of San Ramon CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) See CAFR Note 4c for transfers. ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $11,741,501 $10,935,176 $13,146,629 Net Change (1,062,172) 2,211,453 (3,236,826) % Change from Prior Year -9.0% 20.2% -24.6% Ending Balance, General Fund $10,679,329 $13,146,629 $9,909,803 Ending Balance/Total GF Operating Expenditures 27.1% 31.2% 22.7% Unassigned $5,975,668 $6,890,959 $9,399,666 Total Governmental Activities Ending Net Position $476,302,181 $486,530,043 $504,277,905 Unrestricted ($16,685,507) ($11,892,459) ($11,565,936) Source: City of San Ramon CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 104 of 138 San Ramon ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA City of San Ramon reports no enterprises or business type activities ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA City of San Ramon reports no enterprises or business type activities ---------- LIQUIDITY (CAFR) Table 6 Liquidity Measures City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 5.1 3.9 5.4 Cash and Short-term Investments (2) $67,509,686 $68,146,337 $70,661,339 Total Current Liabilities (3) 13,287,576 17,570,122 13,095,151 Source: City of San Ramon CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Unrestricted. (3) Total liabilities (includes advances from other funds). City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 105 of 138 San Ramon CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $365,379,762 $369,696,685 $384,770,194 Ending Net Value of Capital Assets 369,696,685 384,770,194 393,419,227 Change in Net Value of Capital Assets 4,316,923 15,073,509 8,649,033 % Change in Net Value of Capital Assets 1.2% 4.1% 2.2% Source: City of San Ramon CAFRs - Notes to Basic Financial Statements (Note 7 - CAPITAL ASSETS) ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY (1) Total Pension Liability (Misc. Plan) $115,635,997 $124,159,270 n/a Plan Fiduciary Net Position (Misc. Plan) 105,006,502 105,815,832 n/a % Funded (Misc. Plan) 90.8% 85.2% n/a Net Liability (Misc. Plan) $10,629,495 $18,343,438 n/a Net Liability (Public Safety) $3,861,735 $5,049,024 n/a Net OPEB Liability (Asset) $1,865 ($1,885,781) ($235,125) Source: City of San Ramon CAFRs - Notes to Basic Financial Statements (Notes 10-12) (1) Balances valued end of prior FY and rolled forward to end of FY shown. ---------- City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 106 of 138 San Ramon DEBT AND VALUE Table 9 Debt and Assessed Value City of San Ramon Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 29,703,399 27,750,915 25,672,456 Business Type Activities na na na Total Outstanding Debt 29,703,399 27,750,915 25,672,456 Total Debt per Capita $378 $354 $319 Assessed Value $16,983,981,965 $18,512,979,526 $19,411,536,727 Coverage Ratio (pledged revenues) (1) Source: CAFRs - Ratios of Debt Outstanding, Assessed Value and Actual Value (1) No bonds requiring pledged revenues reported in CAFR. ---------- City/CSD MSR Update City of San Ramon Fiscal Data May 7, 2019 pg. 107 of 138 Walnut Creek SUMMARY PROFILE Table S Summary of Financial Conditions City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 19.5 sq.mi. 19.5 sq.mi. 19.5 sq.mi. Population (2) 66,319 70,018 70,974 Change from Prior Year na 5.6% 1.4% Assessed Value (A.V.) (3) $14,204.4 mill. $15,304.8 mill. $16,470.3 mill. Change from Prior Year na 7.7% 7.6% A.V. per capita $214,200 $218,600 $232,100 General Fund Revenues (4) Property Tax $22,261,000 $24,923,000 $24,022,000 Sales Tax $18,492,000 $19,961,000 $21,596,000 Other Revenues $45,387,000 $44,086,000 $42,699,000 Total GF Revenues $86,140,000 $88,970,000 $88,317,000 Change from Prior Year na 3.3% -0.7% General Fund Expenditures (5) General Government & Admin. $4,950,000 $4,733,000 $5,602,000 Public Safety $23,250,000 $24,385,000 $25,338,000 Other (inc. Transfers Out) $49,340,000 $52,689,000 $54,136,000 Total GF Expenditures $77,540,000 $81,807,000 $85,076,000 Change from Prior Year na 5.5% 4.0% GF Expenditures per capita $1,169 $1,168 $1,199 Ending Balance, General Fund (6) $44,337,000 $51,499,000 $54,740,000 Change from Prior Year 19.4% 13.9% 5.9% as % of GF Expenditures 57.2% 63.0% 64.3% Enterprise Expenditures (7) Golf Course Administration $299,000 $309,000 $468,000 Boundary Oak Golf Course Operations $4,248,000 $4,411,000 $4,917,000 Downtown Parking $5,340,000 $5,353,000 $6,016,000 Total Enterprise Expenditures $9,887,000 $10,073,000 $11,401,000 Change from Prior Year na 1.9% 13.2% Total Enterprise Net Position (8) $15,982,000 $16,823,000 $16,797,000 Position/Enterprise Expenditures 1.6 1.7 1.5 Liquidity Ratio (9) Governmental Activities 6.8 8.3 6.9 Business-type Activities 7.5 5.2 4.7 Net Capital Assets (end of year) (10) Governmental Funds & Activities $173,578,000 $167,902,000 $159,683,000 Net Change from Prior Year -5.5% -3.3% -4.9% Business-type Activities 9,386,000 8,762,000 8,206,000 Net Change from Prior Year 2.4% -6.7% -6.3% Total Pension Liability (11) Net Pension Liability (12) $73,370,000 $83,000,000 $101,820,000 City of Walnut Creek MSR Fiscal Profile (Comprehensive Annual Financial Reports) 1/4/18 (2) Dept of Finance E-1_2018, 2017, 2016 (most recent estimate is used for a given year) (3) See Table 9 (4) See Table 1 (5) See Table 2 (6) See Table 3 City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 108 of 138 Walnut Creek (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. CAFRs don't report total liability and % funded for each plan. (12) Net of Plan assets. ---------- GENERAL FUND REVENUES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Sales and use $22,260,634 $24,923,015 $24,021,800 Property 18,491,518 19,961,446 21,595,755 Business license 2,223,848 2,395,129 2,429,669 Franchise 3,425,481 3,580,225 3,648,456 Transient occupancy tax 1,941,665 2,077,190 2,093,907 Other 743,599 794,802 942,015 Intergovernmental 692,903 188,509 156,197 Investment and rental income 1,021,718 1,542,157 634,493 Charges for services 18,677,168 18,131,003 18,506,019 Licenses, permits and fees 2,251,823 3,262,566 3,118,723 Fines, forfeitures and penalties 10,828,777 11,064,958 10,323,924 Total Revenues 82,559,134 87,921,000 87,470,958 Change from Prior Year na 6.5% -0.5% OTHER FINANCING SOURCES Transfers In 3,580,729 1,048,951 845,895 Total Other Financing Sources 3,580,729 1,048,951 845,895 TOTAL REVENUES AND TRANSFERS IN $86,139,863 $88,969,951 $88,316,853 Source: City of Walnut Creek CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 109 of 138 Walnut Creek GENERAL FUND EXPENDITURES (CAFR Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of General Fund Expenditures City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Public protection $23,250,156 $24,384,748 $25,337,630 Public works 17,353,746 19,125,449 20,908,147 Community and economic development 6,487,100 6,552,593 7,343,575 Arts, recreation and community services 14,648,772 15,316,110 15,993,376 Administrative services 4,259,920 4,388,092 4,901,030 Human resources 1,270,976 1,262,404 1,176,187 General government 4,949,928 4,732,811 5,601,705 Capital outlay 49,404 0 0 Debt service: Principal retirement 39,498 53,793 61,199 Interest and fiscal charges 0 0 0 Total Expenditures 72,309,500 75,816,000 81,322,849 Change from Prior Year na 4.8% 7.3% OTHER FINANCING USES Transfers Out 5,230,149 5,991,230 3,753,050 Total Other Financing Uses 5,230,149 5,991,230 3,753,050 TOTAL USES AND TRANSFERS OUT $77,539,649 $81,807,230 $85,075,899 Source: City of Walnut Creek CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $35,736,436 $44,336,650 $51,499,371 Net Change 8,600,214 7,162,721 3,240,954 % Change from Prior Year 24.1% 16.2% 6.3% Ending Balance, General Fund $44,336,650 $51,499,371 $54,740,325 Ending Balance/Total GF Operating Expenditures 61.3% 67.9% 67.3% Unassigned $14,082,798 $17,940,395 $3,593,630 Total Governmental Activities Ending Net Position $255,062,521 $275,406,440 $277,447,465 Unrestricted ($19,886,556) ($10,686,182) ($3,856,154) Source: City of Walnut Creek CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds, Balance Sheet ---------- City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 110 of 138 Walnut Creek ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $9,695,139 $9,210,709 $9,904,325 Fines, forfeitures and penalities 2,032,418 1,503,512 1,534,138 Other revenue 40,512 10,321 11,394 Other Non-Operating 162,934 129,075 222,739 Total $11,931,003 $10,853,617 $11,672,596 Change from Prior Year na -9.0% 7.5% ENTERPRISE EXPENDITURES Golf Course Administration $298,507 $308,777 $467,764 Boundary Oak 4,248,470 4,410,625 4,916,930 Downtown Parking 5,340,004 5,353,404 6,016,385 Total $9,886,981 $10,072,806 $11,401,079 Change from Prior Year na 1.9% 13.2% Transfers $421,845 $60,857 ($297,555) Beginning Net Position 13,515,688 $15,981,555 $16,823,223 Change in Net Position 2,465,867 841,668 (26,038) Ending Net Position $15,981,555 $16,823,223 $16,797,185 % Change from Prior Year 18.2% 5.3% -0.2% Ending Net Position/Total Expenditures 1.62 1.67 1.47 Source: City of Walnut Creek CAFRs - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Golf Course Administration $4,101,846 $4,981,144 $5,235,350 Boundary Oak Golf Course Operations (15,198) (419,441) (545,982) Downtown Parking 11,894,907 12,261,520 12,107,817 Total Net Position 15,981,555 16,823,223 16,797,185 % change from prior year n/a 5.3% -0.2% Source: City of Walnut Creek CAFRs - Statement of Revenues, Expenses and Changes in Net Position Proprietary (1) ---------- City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 111 of 138 Walnut Creek LIQUIDITY (CAFR) Table 6 Liquidity Measures City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES Liquidity Ratio (1) 6.8 8.3 6.9 Cash and Short-term Investments 92,764,286 107,476,243 111,949,248 Total Current Liabilities 13,627,463 12,945,021 16,220,737 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 7.5 5.2 4.7 Cash and Short-term Investments 8,688,089 7,296,712 7,966,742 Total Current Liabilities 1,151,539 1,405,889 1,708,788 Source: City of Walnut Creek CAFRs - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $183,707,113 $173,578,114 $167,901,515 Ending Net Value of Capital Assets 173,578,114 167,901,515 159,682,996 Change in Net Value of Capital Assets (10,128,999) (5,676,599) (8,218,519) % Change in Net Value of Capital Assets -5.5% -3.3% -4.9% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $9,165,687 $9,386,490 $8,762,412 Ending Net Value of Capital Assets 9,386,490 8,762,312 8,205,731 Change in Net Value of Capital Assets 220,803 (624,178) (556,681) % Change in Net Value of Capital Assets 2.4% -6.6% -6.4% Source: City of Walnut Creek CAFRs - Notes to Basic Financial Statements (Note 6 - CAPITAL ASSETS) ---------- City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 112 of 138 Walnut Creek PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liability (1, 2) $73,369,867 $82,998,021 $101,822,611 Net OPEB Liability (3) Source: City of Walnut Creek CAFRs - Notes to Basic Financial Statements (Note 11 - DEFINED BENEFIT PENSION PLANS) (1) CAFRs don't report total liability and % funded for each plan. (2) Includes Misc. Plan and Public Safety Plan (3) The City does not provide OPEB and therefore have no OPEB obligations. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value City of Walnut Creek Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities 308,845 444,045 463,227 Business Type Activities 3,323,164 3,345,355 3,244,682 Total Outstanding Debt 3,632,009 3,789,400 3,707,909 Total Debt per Capita $55 $54 $52 Assessed Value $14,204,356,497 $15,304,825,412 $16,470,347,145 Coverage Ratio (pledged revenues) 0.0% 744.0% 134.0% Source: CAFRs - Ratios of Debt Outstanding, Estimated and Actual Values, Pledged Revenue Coverage ---------- City/CSD MSR Update City of Walnut Creek Fiscal Data May 7, 2019 pg. 113 of 138 Crockett CSD SUMMARY PROFILE Table S Summary of Financial Conditions Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 1.07 sq.mi. 1.07 sq.mi. 1.07 sq.mi. Population (2) 2,273 2,273 2,273 Change from Prior Year na 0.0% 0.0% Assessed Value (A.V.) (3) $446,490,898 Change from Prior Year A.V. per capita $196,432 Government Activity Fund Revenues (4) Property Tax $419,000 $177,000 $461,000 Other (Fees and Charges for Service) $539,000 $846,000 $560,000 Total GF Revenues $958,000 $1,023,000 $1,021,000 Change from Prior Year na 6.8% -0.2% Government Activity Fund Expenditures (5) General Government & Admin. $455,000 $464,000 $521,000 Public Safety 0 0 0 Other (inc. Cash Transfers Out) $397,907 $416,088 $487,214 Total Expenditures $853,000 $880,000 $1,008,000 Change from Prior Year na 3.2% 14.5% GF Expenditures per capita $375 $387 $443 Ending Balance, General Fund (6) $789,000 $1,960,000 $1,974,000 Change from Prior Year -129.6% 1.6% 0.6% as % of GF Expenditures 92.5% 222.7% 195.8% Enterprise Expenditures (7) Port Costa $98,000 $143,000 $134,000 Crockett Operating $1,132,000 $935,000 $1,173,000 Crockett Construction Fund $0 $0 $0 Crockett Reserve Fund $0 $0 $0 Total Enterprise Expenditures $1,230,000 $1,078,000 $1,307,000 Change from Prior Year na -12.4% 21.2% Total Enterprise Net Position (8) $7,767,000 $7,281,000 $7,809,000 Position/Enterprise Expenditures 6.3 6.8 6.0 Liquidity Ratio (9) Governmental Activities 147.7 na 216.9 Business-type Activities 7.9 4.7 5.6 Net Capital Assets (end of year) (10) Governmental Funds & Activities $1,484,000 $1,391,000 $1,336,000 Net Change from Prior Year -6.3% -3.9% Business-type Activities 5,350,000 5,328,000 Net Change from Prior Year 0.4% -1.3% Total Pension Liability (11) Net Pension Liability (12) $99,485 Crockett CSD MSR Fiscal Profile (Comprehensive Annual Financial Reports) 6/14/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Contra Costa LAFCO Directory of County and Cities, 2017 City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 114 of 138 Crockett CSD (3) See Table 9. A.V. not reported in Financial Statements. (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. Total liability and plan assets not reported. (12) Net of Plan assets. ---------- GENERAL FUND REVENUES (Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of Governmental Activities Fund Revenues Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Operating Revenue (1) 378,542 360,520 394,622 Property Taxes (2) 419,398 177,485 460,677 Other Non-Operating Revenues (3) 61,339 93,571 111,205 Total Revenues 859,279 631,576 966,504 Change from Prior Year na -26.5% 53.0% OTHER FINANCING SOURCES Transfers In 127,658 349,573 35,326 GASB Adjustments (29,431) 42,328 19,380 TOTAL REVENUES AND TRANSFERS IN $957,506 $1,023,477 $1,021,210 106.9% 99.8% Source: Crockett Community Services District CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Community Services, Recreation & Maintenance Funds. (2) FY16 property taxes appear in Sanitary/Crockett Operating Fund. Property taxes transferred to Sanitary/Crockett Operating Fund; balance of property taxes primarily allocated to Recreation Fund. Transfers In vs. (Out) not separately shown for each fund; transfers shown as "capital contributions". (3) Grants, cost recovery, and interest. ---------- City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 115 of 138 Crockett CSD GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) Table 2 Summary of Governmental Activities Fund Expenditures Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Operating Expenditures (1) $454,506 $463,976 $521,495 Non-Operating Expenditures (2) 131,201 108,260 167,214 Total Expenditures 585,707 572,236 688,709 Change from Prior Year na -2.3% 20.4% OTHER FINANCING USES Transfers (Out) Cash (266,706) (307,828) (320,000) Net Capital Asset Transfers (Out) (1,127,647) (110,908) 0 TOTAL USES AND TRANSFERS OUT $1,980,060 $990,972 $1,008,709 Source: Crockett Community Services District CAFRs - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) Community Services, Recreation & Maintenance Fund. (2) Includes depreciation. FUND BALANCE, GENERAL FUND Table 3 Governmental Activities Net Position Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance (1) $1,811,548 $1,927,675 $1,961,339 Net Change (1,022,554) 32,505 (375,589) % Change from Prior Year 1.7% -19.1% Ending Balance, Governmental $789,002 $1,960,180 $1,973,840 Ending Balance/Total Gov'l Operating Expenditures 134.7% 342.5% 286.6% Unrestricted (2) ($1,035,863) $117,893 $1,798,027 Source: Crockett CSD Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, (1) Note: Beginning Balances may not match prior year due to GASB 68 "restatement". (2) Community Services FY15 long-term liability of $1,138,673 does not appear in FY16, nor any repayment. ---------- City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 116 of 138 Crockett CSD ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Port Costa $220,909 $227,261 $227,776 Crockett Operating 1,422,269 1,434,095 1,469,060 Crockett Construction 0 0 4,850 Crockett Reserve 0 0 0 Total $1,643,178 $1,661,356 $1,701,686 Change from Prior Year na 1.1% 2.4% Non-Operating Revenues $87,040 $342,949 $124,834 ENTERPRISE EXPENDITURES Port Costa $98,276 $142,779 $134,234 Crockett Operating 1,132,216 935,061 1,172,826 Crockett Construction Fund 0 0 39 Crockett Reserve Fund (4) 4 4 Total $1,230,488 $1,077,844 $1,307,103 Change from Prior Year na -12.4% 21.3% Non-Operating Expenditures $280,598 $309,293 $296,393 Transfers in $223,726 $242,620 $284,674 Transfers in or (out) Capital Assets $1,043,118 ($207,326) $0 GASB 68 Adjustment ($67,031) Beginning Net Position (restated) $6,280,965 $6,628,103 $7,300,936 Change in Net Position 1,485,976 652,462 507,698 Ending Net Position $7,766,941 $7,280,565 $7,808,634 % Change from Prior Year (1) 23.7% na 7.0% Ending Net Position/Total Expenditures 6.31 6.75 5.97 Source: Crockett CSD Financial Statements - Statement of Revenues, Expenses, and Changes in Net position (1) FY16 Audited Financial Statements does not show re-statement of beginning position, therefore % change from prior year is not shown here. ---------- City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 117 of 138 Crockett CSD FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Sanitary Fund (Total Net Assets) Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Port Costa $1,296,538 $1,039,888 $895,505 Crockett Operating 5,627,003 5,422,704 6,012,251 Crockett Construction 776,759 809,849 833,740 Crockett Reserve 66,476 66,710 67,138 Total Net Position 7,766,776 7,339,151 7,808,634 % change from prior year n/a -5.5% 6.4% Source: Crockett CSD Financial Statements - Statement of Net Assets ---------- City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 118 of 138 Crockett CSD LIQUIDITY (Audited Financial Statements) Table 6 Liquidity Measures Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL ACTIVITIES (1) Liquidity Ratio (2) 147.7 na 216.9 Cash and Short-term Investments 476,192 620,809 711,284 Total Current Liabilities (3) 3,225 (177) 3,280 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (2) 7.9 4.7 5.6 Cash and Short-term Investments (4) 2,600,661 2,779,118 3,171,818 Total Current Liabilities 328,269 592,068 569,181 Source: Crockett CSD Financial Statements - Statement of Fund Net position (1) See Audited Financial Statements Note 2. Community Services, Recreation & Maintenance Fund. (2) Cash and Short-term Investments/Total Current Liabilities. (3) Excludes pension liability. (4) See Audited Financial Statements Note 2 (includes reserves). CAPITAL ASSETS Table 7 Capital Assets Being Depreciated Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets 1,497,555 1,483,870 1,390,919 Ending Net Value of Capital Assets 1,483,870 1,390,919 $1,336,150 Change in Net Value of Capital Assets (13,685) (92,951) (54,769) % Change in Net Value of Capital Assets -0.9% -6.3% -3.9% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets 5,357,159 5,349,559 5,328,162 Ending Net Value of Capital Assets 5,349,559 5,328,162 5,398,547 Change in Net Value of Capital Assets (7,600) (21,397) 70,385 % Change in Net Value of Capital Assets -0.1% -0.4% 1.3% Source: Crockett CSD Financial Statements - Notes to Financial Statements (1) Community Services & Recreation (2) Sanitary (Financial Statements do not organize by "Enterprise") City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 119 of 138 Crockett CSD PENSIONS (Audited Financial Statements) Table 8 Pension and OPEB Liabilities Crockett CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSION LIABILITY Net Pension Liability (2) na na $99,485 Net OPEB Liability (3) na na na Source: Crockett CSD Financial Statements - Notes to Financial Statements (1) Financial statements don't report total liability and % funded for each plan. (2) Note: pg. 21 of FY17 Statement says $99,584 vs. $99,485 on pg. 15. Prior years not reported in Financial Statements. (3) Financial statements report no OPEB liabilities. ---------- DEBT AND VALUE Table 9 Crockett CSD Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities na na na Business Type Activities (2) $1,071,418 $648,920 $642,412 Enterprise Debt as % of Enterprise Revenues 65% 39% 38% Total Debt per Capita $471 $285 $283 Assessed Value (1) $446,490,898 Coverage Ratio (pledged revenues) (3) Source: Crockett CSD Financial Statements - Notes to Financial Statements (1) Assessed value not reported in Audited Financial Statements; value is from County Roll Rpt 3211 (Dist. 3240) (2) Debt associated with Crockett sewer improvements. (3) No pledged revenues or coverage reported in Financial Statements. City/CSD MSR Update Crockett Fiscal Data May 7, 2019 pg. 120 of 138 Diablo CSD SUMMARY PROFILE Table S Summary of Financial Conditions Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 1.16 sq.mi. 1.16 sq.mi. 1.16 sq.mi. Population (2) 807 807 807 Assessed Value (A.V.) (3) $648,611,577 A.V. per capita $0 $0 $803,700 General Fund Revenues (4) Property Tax $364,371 $394,698 $424,275 Sales Tax Other Revenues $229,193 $235,593 $253,705 Total GF Revenues $593,564 $630,291 $677,980 Change from Prior Year -10.2 6.2% 7.6% General Fund Expenditures (5) General Government & Admin. $75,526 $83,776 $86,219 Public Safety $332,554 $356,547 $361,421 Other $685,487 $323,288 $641,855 Total GF Expenditures $1,093,567 $763,611 $1,089,495 Change from Prior Year 51.4% -30.2% 42.7% GF Expenditures per capita $1,355 $946 $1,350 Ending Balance, General Fund (6) $776,958 $643,638 $232,123 Change from Prior Year -39.2% -17.2% -63.9% as % of GF Expenditures 71.0% 84.3% 21.3% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 21.7 17.7 6.8 Net Capital Assets (end of year) (10) Governmental Funds & Activities $2,763 $3,309 $38,733 Net Change from Prior Year -36.4% 19.8% 1070.5% Total Pension Liability (11) Diablo CSD MSR Fiscal Profile (Comprehensive Annual Financial Reports) 6/14/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Contra Costa LAFCO Directory of County and Cities, 2017 (3) See Table 9. A.V. not reported in Financial Statements. (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) No enterprises reported. (8) No enterprises reported. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) No pension or OPEB obligations reported. ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 121 of 138 Diablo CSD GENERAL FUND REVENUES (Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes $364,371 $394,698 $424,275 Road and security fees 225,733 232,159 239,579 Traffic fines 3,319 3,355 4,478 Interest income 141 79 69 Other income 0 0 9,579 Total Revenues 593,564 630,291 677,980 Change from Prior Year -10.2 6.2% 7.6% OTHER FINANCING SOURCES Transfers In 0 0 0 Total Other Financing Sources 0 0 0 TOTAL REVENUES AND TRANSFERS IN $593,564 $630,291 $677,980 Source: Diablo CSD Financial Statements- Statement of Revenues, Expenditures and Changes in Fund Balances ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 122 of 138 Diablo CSD GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) Summary of General Fund Expenditures Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 General government $75,526 $83,776 $86,219 Public safety 332,554 356,547 361,421 Public works 685,487 323,288 599,038 Capital Outlay 0 0 42,817 Total Expenditures 1,093,567 763,611 1,089,495 Change from Prior Year 51.4% -30.2% 42.7% OTHER FINANCING USES Transfers Out 0 0 0 Total Other Financing Uses 0 0 0 TOTAL USES AND TRANSFERS OUT $1,093,567 $763,611 $1,089,495 Source: Diablo CSD Financial Statements- Statement of Revenues, Expenditures and Changes in Fund Balances ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $1,276,961 $776,958 $643,638 Net Change (500,003) (133,320) (411,515) % Change from Prior Year -39.2% -17.2% -63.9% Ending Balance, General Fund $776,958 $643,638 $232,123 Ending Balance/Total GF Operating Expenditures 71.0% 84.3% 21.3% Unassigned $776,958 $643,638 $232,123 Total Governmental Activities Ending Net Position $779,721 $646,947 $270,856 Unrestricted $776,958 $643,638 $232,123 Source: Diablo CSD Financial Statements- Statement of Revenues, Expenditures and Changes in Fund Balances; Statement of Net Position ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 123 of 138 Diablo CSD ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Diablo CSD reports no enterprises or business type activities ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NA Diablo CSD reports no enterprises or business type activities ---------- LIQUIDITY (Audited Financial Statements) Table 6 Liquidity Measures Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 LIQUIDITY (Audited Financial Statements) Liquidity Ratio (1) 21.7 17.7 6.8 Cash and Short-term Investments 814,134 640,090 269,650 Total Current Liabilities 37,546 36,140 39,943 Source: Diablo CSD Financial Statements - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 124 of 138 Diablo CSD CAPITAL ASSETS Table 7 Capital Assets Being Depreciated Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 $2,763 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets (1) $4,342 $2,763 $3,309 Ending Net Value of Capital Assets $2,763 $3,309 38,733 Change in Net Value of Capital Assets (1,579) 546 35,424 % Change in Net Value of Capital Assets -36.4% 19.8% 1070.5% Source: Diablo CSD Financial Statements ---------- PENSIONS (CAFR) Table 8 Pension and OPEB Liabilities Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSIONS (Audited Financial Statements) Total Pension Liability Plan Fiduciary Net Position % Funded Net OPEB Liability (2) Source: Diablo CSD Financial Statements (1) No pension obligations reported in Financial Statements. (2) No OPEB obligations reported in Financial Statements. ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 125 of 138 Diablo CSD DEBT AND VALUE Table 9 Debt and Assessed Value Diablo CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT (1) Governmental Activities Assessed Value $648,611,577 Coverage Ratio (pledged revenues) (1) Source: (1) No debt reported in Financial Statements. (2) Assessed value not reported in Audited Financial Statements; value is from County Roll Rpt 3211 (Dist. 3260) ---------- City/CSD MSR Update Diablo CSD Fiscal Data May 7, 2019 pg. 126 of 138 Discovery Bay CSD SUMMARY PROFILE Table S Summary of Financial Conditions Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 9 sq.mi. 9 sq.mi. 9 sq.mi. Population (2) 14,765 14,765 14,765 Assessed Value (A.V.) (3) $2,662,217,186 Change from Prior Year A.V. per capita $180,306 General Fund Revenues (4) Property Tax $0 $0 $0 Other Revenues (exc. Transfers In) $629,000 $473,000 $272,000 Total GF Revenues $629,000 $473,000 $272,000 Change from Prior Year na -24.8% -42.5% General Fund Expenditures (5) General Government & Admin. $396,000 $349,000 $147,000 Other (inc. Transfers Out) $93,000 $39,000 $391,000 Total GF Expenditures $489,000 $388,000 $538,000 Change from Prior Year na -20.7% 38.7% GF Expenditures per capita $33 $26 $36 Ending Balance, General Fund (6) $115,000 $527,000 $267,000 Change from Prior Year 121.4% 78.1% -97.5% as % of GF Expenditures 23.5% 135.8% 49.6% Enterprise Expenditures (7) Water $2,341,000 $2,312,000 $2,884,000 Sewer $4,312,000 $4,224,000 $4,572,000 Financing authority $516,000 $508,000 $750,000 Total Enterprise Expenditures $7,169,000 $7,044,000 $8,206,000 Change from Prior Year na -1.7% 16.5% Total Enterprise Net Position (8) $40,296,000 $41,872,000 $42,647,000 Position/Enterprise Expenditures 5.6 5.9 5.2 Liquidity Ratio (9) Governmental Activities 10.5 10.7 11.1 Business-type Activities 7.2 11.4 9.6 Net Capital Assets (end of year) (10) Governmental Funds & Activities $2,053,000 $1,919,000 $1,851,000 Net Change from Prior Year 0.8% -6.5% -3.6% Business-type Activities 30,386,000 35,472,000 43,215,000 Net Change from Prior Year -14.3% -17.9% 4.7% Total Pension Liability (11) Discovery Bay CSD Fiscal Profile (Audited Financial Statements) 6/14/19 (1) CSD Comments on Public Review Draft (2) Public Review Draft (3) See Table 9. A.V. not reported in Audited Financial Statements. (4) See Table 1. Includes transfers from the Lighting and Landscaping Zones. (5) See Table 2 (6) See Table 3 City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 127 of 138 Discovery Bay CSD (7) See Table 4 (8) See Table 4 (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. No pension obligations reported. ---------- GENERAL FUND REVENUES (Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property taxes (1) $0 0 $0 Reimbursements (2) 622,750 467,215 269,395 Other 6,097 5,600 2,650 Total Revenues 628,847 472,815 272,045 Change from Prior Year na -24.8% -42.5% OTHER FINANCING SOURCES Transfers In 0 327,109 5,912 Total Other Financing Sources 0 327,109 5,912 TOTAL REVENUES AND TRANSFERS IN $628,847 $799,924 $277,957 Source: Discovery Bay Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds (1) "Property Taxes" in the Financial Statements are assessments collected by the County and are deposited to Lighting and Landscape Zones special revenue funds. (2) Reimbursements not detailed in financial statements. ---------- City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 128 of 138 Discovery Bay CSD GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) Summary of General Fund Expenditures Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Payroll $176,403 113,546 $114,537 Repairs and maintenance 0 235,883 32,247 Utilities 0 0 0 Other 219,938 0 0 Insurance 0 0 0 Professional fees 0 0 0 Capital outlay 0 0 0 Debt service: Principal retirement 0 0 0 Interest and fiscal charges 0 0 0 Total Expenditures 396,341 349,429 146,784 Change from Prior Year na -11.8% -58.0% OTHER FINANCING USES Transfers Out 92,434 38,751 391,490 Total Other Financing Uses 92,434 38,751 391,490 TOTAL USES AND TRANSFERS OUT $488,775 $388,180 $538,274 Source: Discovery Bay Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance ($24,577) $115,495 $527,239 Net Change 140,072 411,744 (260,317) % Change from Prior Year -569.9% 356.5% -49.4% Ending Balance, General Fund $115,495 $527,239 $266,922 Ending Balance/Total GF Operating Expenditures 29.1% 150.9% 181.8% Unassigned $115,495 $527,239 $266,922 Total Governmental Activities Ending Net Position $3,643,326 $4,008,263 $3,686,397 Unrestricted $1,174,013 $1,672,956 $1,419,801 Source: Discovery Bay Audited Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Balance Sheet ---------- City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 129 of 138 Discovery Bay CSD ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 ENTERPRISE REVENUES Charges for Services $7,501,141 $8,333,833 $8,729,817 Operating Grants and Contributions 0 0 0 Investment income 214 97 2,671 Other 262,608 587,143 78,284 Total $7,763,963 $8,921,073 $8,810,772 Change from Prior Year na 14.9% -1.2% ENTERPRISE EXPENDITURES Water $2,340,562 $2,312,379 $2,884,204 Sewer 4,312,170 4,223,813 4,571,601 Financing authority 515,707 508,210 750,025 Total $7,168,439 $7,044,402 $8,205,830 Change from Prior Year na -1.7% 16.5% Transfers ($21,634) ($301,341) $170,387 Beginning Net Position 39,722,385 $40,296,275 $41,871,605 Change in Net Position 573,890 1,575,330 775,329 Ending Net Position $40,296,275 $41,871,605 $42,646,934 % Change from Prior Year 1.4% 3.9% 1.9% Ending Net Position/Total Expenditures 5.62 5.94 5.20 Source: Discovery Bay Audited Financial Statements - Statement of Changes in Net position ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Water $9,915,784 $11,029,362 $11,749,669 Sewer 30,143,872 30,636,658 31,072,928 Financing authority 236,619 205,585 (175,663) Total Net Position 40,296,275 41,871,605 42,646,934 % change from prior year n/a 3.9% 1.9% Source: Discovery Bay Audited Financial Statements - Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ---------- City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 130 of 138 Discovery Bay CSD LIQUIDITY (Audited Financial Statements) Table 6 Liquidity Measures Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 LIQUIDITY (Audited Financial Statements) Liquidity Ratio (1) 10.5 10.7 11.1 Cash and Short-term Investments $1,190,542 $1,731,599 $1,515,365 Total Current Liabilities 113,921 161,141 136,422 BUSINESS-TYPE ACTIVITIES Liquidity Ratio (1) 7.2 11.4 9.6 Cash and Short-term Investments $10,715,818 $12,192,885 $16,835,785 Total Current Liabilities 1,490,716 1,069,660 1,749,319 Source: Discovery Bay Audited Financial Statements - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities ---------- CAPITAL ASSETS Table 7 Capital Assets Being Depreciated Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets $2,037,095 $2,053,383 $1,919,377 Ending Net Value of Capital Assets 2,053,383 1,919,377 1,850,666 Change in Net Value of Capital Assets 16,288 (134,006) (68,711) % Change in Net Value of Capital Assets 0.8% -6.5% -3.6% ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES Beginning Net Value of Capital Assets $30,385,531 $35,471,576 $43,214,850 Ending Net Value of Capital Assets 35,471,576 43,214,850 41,257,210 Change in Net Value of Capital Assets 5,086,045 7,743,274 (1,957,640) % Change in Net Value of Capital Assets 14.3% 17.9% -4.7% Source: Discovery Bay Audited Financial Statements - Note E ---------- City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 131 of 138 Discovery Bay CSD PENSIONS (Audited Financial Statements) Table 8 Pension and OPEB Liabilities Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSIONS (Audited Financial Statements) Total Pension Liability Plan Fiduciary Net Position % Funded Net Pension Liability (1) Net OPEB Liability (2) Source: Discovery Bay Audited Financial Statements (1) No pension obligations shown in financial statements. (2) No OPEB obligations shown in financial statements. ---------- DEBT AND VALUE Table 9 Debt and Assessed Value Discovery Bay CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities $0 $0 $0 Business Type Activities $22,349,090 Total Outstanding Debt $0 $0 $22,349,090 Total Debt per Capita $0 $0 $1,514 Assessed Value (1) $2,662,217,186 Coverage Ratio (pledged revenues) (2) 164% Source: Discovery Bay Audited Financial Statements - Note F (1) Assessed value not reported in Audited Financial Statements; value is from County Roll Rpt 3211 (Dist. 3428) (2) Financial statements do not report revenue bond coverage ratio. Estimate shown is based on debt service compared to net enterprise revenues before deducting financing authority (debt service). ---------- City/CSD MSR Update Discovery Bay CSD Fiscal Data May 7, 2019 pg. 132 of 138 Kensington CSD Table S Summary of Financial Conditions Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Land Area (1) 1.2 sq.mi. 1.2 sq.mi. 1.2 sq.mi. Population (2) 5,300 5,300 5,300 Change from Prior Year na 0.0% 0.0% Assessed Value (A.V.) (3) $1,159,592,584 Change from Prior Year A.V. per capita General Fund Revenues (4) Property Tax $1,483,000 $1,562,000 $1,673,000 Other Revenues $1,533,000 $1,593,000 $1,815,000 Total GF Revenues $3,016,000 $3,155,000 $3,488,000 Change from Prior Year na 4.6% 10.6% General Fund Expenditures (5) General Government & Admin. $420,000 $442,000 $434,000 Public Safety $2,317,000 $2,295,000 $2,413,000 Other (inc. Transfers Out) $147,000 $171,000 $202,000 Total GF Expenditures $2,884,000 $2,908,000 $3,049,000 Change from Prior Year na 0.8% 4.8% GF Expenditures per capita $544 $549 $575 Ending Balance, General Fund (6) $1,426,000 $1,673,000 $2,112,000 Change from Prior Year 9.3% 14.8% 20.8% as % of GF Expenditures 49.4% 57.5% 69.3% Enterprise Expenditures (7) Total Enterprise Net Position (8) Liquidity Ratio (9) Governmental Activities 9.0 6.6 9.3 Net Capital Assets (end of year) (10) Governmental Funds & Activities $3,873,000 $3,858,000 $3,852,000 Net Change from Prior Year -0.5% -0.4% -0.2% Total Pension Liability (11) Net Pension Liability (12) $2,560,000 $2,880,000 $3,550,000 Kensington CSD Fiscal Profile (Comprehensive Annual Financial Reports) 1/4/19 (1) Contra Costa LAFCO Directory of County and Cities, 2017 (2) Contra Costa LAFCO Directory of County and Cities, 2017 (3) See Table 9. Not reported in Financial Statements. (4) See Table 1 (5) See Table 2 (6) See Table 3 (7) See Table 4. No enterprises reported. (8) See Table 4. No enterprises reported. (9) See Table 6 (10) See Table 7. Net depreciable assets only. (11) See Table 8. CAFRs don't report total liability and % funded for each plan. (12) Net of Plan assets. ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 133 of 138 Kensington CSD GENERAL FUND REVENUES (Statement of Revenues, Expenditures and Changes in Fund Balances) Table 1 Summary of General Fund Revenues Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Property Taxes $1,482,672 $1,561,530 $1,673,283 Special assessments 681,690 681,690 681,630 Measure G supplemental tax revenue 501,950 514,176 527,989 Assets seizure forfeit 138,380 18,526 143,777 Grants-COPS & Other 1,443 100,000 158,951 Charges for services 9,450 3,370 3,369 Kensington Hilltop service reimb. 20,732 28,475 19,468 West County crossing guard reimb. 10,515 12,237 11,151 POST reimb. 25,791 10,515 1,054 Rents and fees 34,473 5,762 31,393 Investment income 1,263 37,520 7,456 Contribution 1,230 4,056 11,000 Franchise fees 35,636 59,559 55,819 Other tax income 25,443 47,227 48,137 Supplemental workers' comp reimb. 44,465 29,354 94,252 Other income 1,001 14,299 19,411 Gain on asset sale 5,779 0 Total Revenues 3,016,134 3,134,075 3,488,140 Change from Prior Year na 3.9% 11.3% OTHER FINANCING SOURCES Transfers In 239 21,076 65 Total Other Financing Sources 239 21,076 65 TOTAL REVENUES AND TRANSFERS IN $3,016,373 $3,155,151 $3,488,205 Source: Kensington District Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 134 of 138 Kensington CSD GENERAL FUND EXPENDITURES GENERAL FUND EXPENDITURES (Statement of Revenues, Expenditures and Changes in Fund Balances) Summary of General Fund Expenditures Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Police Salary $2,033,310 $2,044,406 $2,167,008 Police Expenses 283,563 250,700 246,146 Recreation Salary Benefits 28,517 29,365 30,059 Recreation Expenses 59,882 71,642 86,773 District Expenses 420,315 441,816 434,460 Capital Outlay 47,549 59,358 74,153 Total Expenditures 2,873,136 2,897,287 3,038,599 Change from Prior Year na 0.8% 4.9% OTHER FINANCING USES Transfers Out 10,595 10,495 10,380 Total Other Financing Uses 10,595 10,495 10,380 TOTAL USES AND TRANSFERS OUT $2,883,731 $2,907,782 $3,048,979 Source: Kensington District Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds ---------- FUND BALANCE, GENERAL FUND Table 3 Fund Balance, General Fund Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 Beginning Balance $1,293,322 $1,425,964 $1,673,247 Net Change 132,642 247,369 439,226 % Change from Prior Year 10.3% 17.3% 26.2% Ending Balance, General Fund $1,425,964 $1,673,333 $2,112,473 Ending Balance/Total GF Operating Expenditures 49.6% 57.8% 69.5% Unassigned $1,141,234 $1,249,067 $1,311,306 Total Governmental Activities Ending Net Position $2,590,442 $3,097,405 $3,672,077 Unrestricted ($1,258,418) ($927,983) ($305,320) Source: Kensington District Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances, Governmental Funds; Statement of Net Position ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 135 of 138 Kensington CSD ENTERPRISE FUNDS AND BUSINESS-TYPE ACTIVITIES REVENUE BY FUND Table 4 Summary of Enterprise Changes in Net Position Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NO ENTERPRISE ACTIVITIES REPORTED ---------- FUND BALANCES, PROPRIETARY FUNDS Table 5 Ending Net Position by Enterprise Fund Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 NO ENTERPRISE ACTIVITIES REPORTED ---------- LIQUIDITY (Audited Financial Statements) Table 6 Liquidity Measures Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 LIQUIDITY (Audited Financial Statements) Liquidity Ratio (1) 9.0 6.6 9.3 Cash and Short-term Investments (2) $1,582,897 $1,878,266 $2,147,580 Total Current Liabilities $176,352 $286,197 $229,793 Source: Kensington District Financial Statements - Statement of Net position (1) Cash and Short-term Investments/Total Current Liabilities (2) Note: amounts differ from those shown in Financial Statements Note 2. ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 136 of 138 Kensington CSD CAPITAL ASSETS Table 7 Capital Assets Being Depreciated Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 GOVERNMENTAL FUNDS AND ACTIVITIES Beginning Net Value of Capital Assets (1) $3,894,279 $3,872,547 $3,858,056 Ending Net Value of Capital Assets (2) 3,872,547 3,858,056 3,851,927 Change in Net Value of Capital Assets (21,732) (14,491) (6,129) % Change in Net Value of Capital Assets -0.6% -0.4% -0.2% Source: Kensington District Financial Statements Note 3 - Capital Assets (1) Note: Statements include land in "Total Depreciable Assets". (2) Capital Assets Net of Depreciation. PENSIONS (Audited Financial Statements) Table 8 Pension and OPEB Liabilities Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 PENSIONS (Audited Financial Statements) Total Pension Liability (1) Plan Fiduciary Net Position (1) % Funded 78.4% 78.4% 74.1% Net Pension Liability $2,559,571 $2,878,245 $3,551,469 Net OPEB Liability $2,608,132 $2,679,856 $3,046,797 Source: Kensington District - Financial Statements Supplementary Information - Pensions, and Note 9 (OPEB) (Note 11 - DEFINED BENEFIT PENSION PLANS) (1) Total liability and Net Position not reported in Financial Statements. ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 137 of 138 Kensington CSD DEBT AND VALUE Table 9 Debt and Assessed Value Kensington CSD Fiscal Year Item FY2014-15 FY2015-16 FY2016-17 TOTAL OUTSTANDING DEBT Governmental Activities $846,685 $720,967 $587,766 Total Debt per Capita $160 $136 $111 Assessed Value (1) $1,159,592,584 Coverage Ratio (pledged revenues) (2) na na na Source: Financial Statement Note 4 (1) Assessed value not reported in Audited Financial Statements; value is from County Roll Rpt 3211 (Dist. 3255) (2) No pledged revenue debt shown in financial statements. ---------- City/CSD MSR Update Kensington CSD Fiscal Data May 7, 2019 pg. 138 of 138 A D TTACHMENT R P C ESPONSE TO UBLIC OMMENTS The Contra Costa LAFCO Municipal Service Review Update was published on March 27, 2019, initiating a 30-day public review and comment period that ended April 25, 2019. A public hearing was held on April 17, 2019, from 1:30 – 3:30 PM at the Board of Supervisors Chambers, 651 Pine Street, Martinez, California. A summary of the MSR was presented to the Commissioners and the public at this meeting, where the Commissioners and the public had the opportunity to ask questions and provide comments. Responses to comments are provided in the tables below. Table D.1 contains response to comments received during the public comment period and Table D.2 contains responses to comments received at the public hearing. The Final MSR includes the revisions noted in these tables and was publicly posted on the Contra Costa LAFCO website. Page 1 of 49 TABLE D.1 PUBLIC COMMENTS AND RESPONSES COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 1. 3.27.2019 Alan Kalin Comment: Revision made on page 22-7 in the COL, USA (Ret.) “Ref: Diablo CSD, 22.2.10, page 22-7 Diablo CSD chapter. (925-640-7055) LAFCO has the wrong date in the paragraph below. Should say Diablo CSD in 1969. In conjunction with formation of the Diablo CSD in 1996, the stated purpose of the formation was to provide the territory with lighting services, police protection, and to maintain roads which are subject to right-of- way by the public but have not been accepted into the County road system, and to implement needed safety measures on said roads, as well as to construct and improve bridges, culverts, curbs, gutters, etc.” 2. 3.27.2019 Kathy Torru, Diablo CSD Comment: Revisions made on pp. 22-7 and 22- “On page 485 of the MSR released this month, 11 in the Diablo CSD chapter. the third paragraph from the bottom, first sentence incorrectly reads “1996”. The correct date should be 1969.” Commenter also provided a number of clarifying edits. 3. 3.28.2019 Greg Fuz, City of Pleasant Hill Comment: Revisions made on page 16-7 of the “Attached is the additional information that City of Pleasant Hill chapter. you requested for the MSR. Below is additional information pertaining to street lights/signals that was also requested: Page 2 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED ‘Lighting (street and traffic) is provided by and maintained by the City of Pleasant Hill Maintenance Division, Contra Costa County, and Pacific Gas & Electric. City expenditures for light and signal maintenance were $178,000 in FY 2017, up from $151,000 in FY 2015. Contra Costa County maintains the City’s 40 signalized intersections. The number of street lights maintained by the City is 505. PG&E maintains 1,614 street lights in the City.’” 4. 3.29.2019 Roger Chelemedos Commenter provided a letter from 40 Reliez Recommendations for updating the Valley residents requesting a review and SOI for the cities of Lafayette and ultimate removal from the Pleasant Hill Parks Pleasant Hill are included in the and Recreation District. MSR. This MSR does not cover the Pleasant Hill Recreation & Park District. LAFCO has indicated it will undertake MSR/SOI Updates for Parks and Recreation districts in FY 2020. The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 5. 4.2.2019 Mike Davies, Town of Discovery Bay CSD Comment contained revisions of an editorial Revisions made to pp. 23-1, 23-3, 23- nature for the Town of Discovery Bay CSD. 9, and 23-10 in the Town of Data corrections were also provided. Discovery Bay CSD chapter, and a clarification added regarding the authorization to provide flood control/levee services. Page 3 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED The CSD provided calculations showing change over the current year, not prior year as noted in their comments. Accordingly, we did not make this change. 6. 4.2.2019 Suzie Martinez, City of Walnut Creek Comment: Revisions made to page 1-18 in the “After a review, we found some minor Introduction Chapter and page 20- corrections related to Walnut Creek in the 21 in the City of Walnut Creek LAFCO Report. chapter. · Section 1.3.5, Page 1-18, 4th bullet: This bullet Overall, this MSR Update relied on mentions City owned property that is leased to data provided by individual other agencies. It incorrectly lists "Heather jurisdictions, which may account Farm, " instead of the "Gardens at Heather for minor inconsistencies in the Farm," and "The Walnut Creek Model Railroad information reported and noted by Center" instead of the "Walnut Creek Model the commenter. Railroad Society." · Page 20-20: Again, the Walnut Creek Model Railroad Society as the "Walnut Creek Model Railroad Center." Also in looking at what was reported for Solid Waste Services from other JPA jurisdictions, wondering why the same language for each of city that participates in the JPA (Danville, Orinda, Lafayette, Moraga & Walnut Creek) was not listed the same. Walnut Creek was the only jurisdiction that reported RecycleSmart's waste disposal per capita, for the entire service area. The other jurisdictions just say, " The FY 2017 solid waste disposal rates were not reported or were unavailable at the time of Page 4 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED this MSR." Also worth noting that Danville is the only city that listed expenditures, while other cities reported that expenditure information was not available. We said we don't have any direct solid waste expenditures. Lafayette & Moraga have the wrong provider (Allied Services) listed - Republic Services currently provides services.” 7. 4.3.2019 Kristen Altbaum Commenter provided a letter and related Recommendations for updating the photo regarding a potential SOI change. SOI for the cities of Lafayette and Pleasant Hill are included in the MSR. This MSR does not cover the Pleasant Hill Recreation & Park District. LAFCO has indicated it will undertake MSR/SOI Updates for Parks and Recreation districts in FY 2020. The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 8. 4.3.2019 Kristen Altbaum Commenter provided a petition regarding a Recommendations for updating the potential SOI change. SOI for the cities of Lafayette and Pleasant Hill are included in the MSR. This MSR does not cover the Pleasant Hill Recreation & Park District. LAFCO has indicated it will undertake MSR/SOI Updates for Parks and Recreation districts Page 5 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED in FY 2020. The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 9. 4.9.2019 Commissioner Charles R. Lewis, IV Comment contained requests for additional Clarifying information provided in clarifying information, including with regard Chapter 1 of the MSR (page 1-14) to SOI recommendations, city-provided and on page 15-12 in the City of animal control services, library services, and Pittsburg Chapter. OPEB liabilities. Additional information on City of Antioch-provided animal control services included on page 2-5 in the City of Antioch chapter. Library services are provided by Contra Costa County for all cities except for the City of Richmond and thus the information in those sections is the same. City-specific library service data was available and reported for the Richmond library services. Footnotes were added to the City of Concord chapter (p. 5-23), Town of Moraga chapter (p. 11-22), and City of Richmond chapter (p. 17-23) summarizing the missing information. Page 6 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 10. 4.12.2019 David Biggs, City Manager, City of Comment contained additional data to include Revisions made to pp. 8-6, 8-7, 8-8, Hercules in the City’s MSR chapter. In several areas, the 8-9, 8-11, 8-12, and 8-19 in the City City provided data for Fiscal Year 2018. of Hercules chapter. The FY 2018 data was not included in the MSR revisions as it extended beyond the scope of this MSR Update. 11. 4.17.2019 – Aaron Beardsley, Alex Oei, Andrew Judd, Comment: The MSR contains information 4.25.2019 Andy Hollingsworth, Andy May, Angelo “I am unable to attend your public hearing on regarding the Calle Arroyo issue; Colaci, Arleen Sakamoto, Ben Etling, Ben April 17th but want to express my concerns however, the resolution of the Calle Rohrs, Berit Gamsky, Beth Tirapelli- that public money is being spent to maintain Arroyo use issue is beyond the Morlelan, Bill Gonsalves, Bill Powning, private roads in Diablo. I am happy to have scope of this MSR Update. The Bob Davenport, Brad Crow, Brian Diablo residents use public roads elsewhere in comment is noted and hereby McAndrews, Bridget Moar, Bruce Ohlson, the County, which some of my taxes are used made part of the public record. Bruce Young, carol@carolclick.net, Clive to maintain, but in return I expect to be able Harrison, Dan Leonard, Dan Schaefer, to use other roads maintained with public Daniel Kanaan, Daryl Liggins, Dave funds. Dalton, David Block, David Brown, David I heard that a judge has decided that Calle Douglas, David Fisch, David Sussman, Arroyo in Diablo is private and not subject to David Otten, David Rossiter, David public access. This is of concern to me because Simpson, David Weiner, David Willhoite, I (frequently/occasionally) ride my bike from Deb Donovan, Deepinder Singh, Derek Danville to and from Mt Diablo State Park, Ching, Diana Lowe, Dianne Glynn, and traveling on the roads of the Diablo Domenick Treccase, Donald Palmer, Mark Community Services District (DCSD) Koenen, Elizabeth Hillis, Ellen Booth, Eric represents the only safe route for me. I ride Grove, Erika Rowen, Gary Booth, Gary through Diablo because Diablo Road (1.5miles) Goldhawk, Gary Johnson, Gayle Lightfoot, is too dangerous for bicycles and the only safe Geoffrey Sylvester, Gerald Coil, Gerald route is through Diablo. I am concerned that Smith, Gina Matrone, Gisselle Rullier, the DCSD, as a public entity, takes tax money Glenda Smith, Gregory Kennedy, J.A. but doesn’t believe that it needs to provide a Zaitlin, Jake Michenfelder, Jamey Jacobs, Page 7 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED Jamuel Starkey, Jaynette Rossiter, Jeff public benefit in return. I also don't think it is Mock, Jeffrey Brenner, Jennifer Schulze, right that I must commit a misdemeanor (by Jennifer Tryon, Jim Cooper, Jum Van Dyke, violating the Ordinances of the DCSD) in Joe Allen, Joe Ungerer, Jon Usvathongkul, order to use a road maintained with tax money Kathleen Koos, Kathryn Woodford, Kevin by a public agency in order to protect my own Comerford, Kevin Dielssen, Kevin safety. Metcalfe, Kim Chan, Kit Johnson, Larry I support the conclusions in the LAFCO MSR Feigenbaum, Laurie Anderson, Lenny that the DCSD should no longer be using Lesser, Linda Curtis, Linda Kwong, Lynda public funds to maintain Calle Arroyo. and John Hansen, Mac Rogers, Margie Additionally, I believe that DCSD should be Kirk, Mark Dedon, Mary Hernandez, Matt prevented from using public funds to maintain Beck, Matt Evans, Michael Kinney, any road that the public lacks the right to use. Michael Gill, Michael Koved, Mike Chung, Alternatively, I hope this problem can be Nathan Martin, Nathan Parks, Neil worked out sensibly, allowing taxpayer money Rapmund, Nikki Grimes, Nora Crans, to maintain roads that should allow public Morman Lisy, Olin Timoth Jones, Parry access. Andvik, Pat O’Neil, Patricia Frantz, Thank you for your time and consideration of Patricia Sampson, Patti Davis, Paul my comment.” Cardinet, Peter Culshaw, Philippa Erlank, Rachel McQueen, Richard Angelis, Richard Reed, Rick Edmondson, Rob Williams, Robert Gray, Rod Hooper, Rodrigo Prudencio, Russ Frisk, Rusty Stapp, Ruth Ann Pearsons, Ryan Schmidt, Sara Rowe, Sarah Cyper, Sarah Liron, Scott Bartelebaugh, Sean McCreary, Sean Perry, Shawn Richardson, Shelly Sack, Sheri Bjornson, Sherri O’Neill, Sppshop@mac.com, Stacey Murphy, Stephanie and Tom DiPalma, Stephen Wienker, Steve Whelan, Steven Payne, Ted Selbach, tjipto@sugijoto.com, Tom Magill, Page 8 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED Van Sutton, Vic DeOrnelas, William Monsen, William Stubbs, Adele Madelo, Amanda Rewcastle, Barbara Hailey, Ben Foroodian, Charles Donovan, Chris Pham, Garrett Lew, Gary Hong, Heath Maddox, John Harvey, Karen Martin, Lauren Heumann, Rebecca Woods, Tony Flushce, Tracey Loftus, William Liss, Anthony Ertassi, Betty Simpson, Byron Pogir, Chuck Roncancio, Elizabeth Brathwaite, Jackie Dahlgard, Karin Poe, Roz Duncan, Scott LaPerle 12. 4.17.2019 Brad Crow Comment: The MSR contains information “What a crazy world we live in that I help pay regarding the Calle Arroyo issue; taxes for that road, but can’t ride on it.” however, the resolution of the Calle Arroyo use issue is beyond the scope of this MSR Update. The comment is noted and hereby made part of the public record. 13. 4.17.2019 Brad Williams Comment: The MSR contains information “I am unable to attend your public hearing on regarding the Calle Arroyo issue; April 17th but want to express my concerns however, the resolution of the Calle that public money is being spent to maintain Arroyo use issue is beyond the private roads in Diablo. This is absolutely scope of this MSR Update. The absurd that the wealthy landowners of this comment is noted and hereby community would not allow pedestrians and made part of the public record. cyclists of the area to use the streets but expect public money to fund their community. The fact there is even a hearing on the use of public funds for a private Uber wealthy Page 9 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED community is infuriating.” 14. 4.17.2019 Britt Harvey Comment: The MSR contains information “I have lived in the East Bay for over 30 years. I regarding the Calle Arroyo issue; bike up Mount Diablo several times a year. however, the resolution of the Calle Access from the south is much safer and more Arroyo use issue is beyond the pleasant on Calle Arroyo than Diablo Road. I scope of this MSR Update. The am not surprised that owners of a private road comment is noted and hereby would try to limit access. I am surprised to made part of the public record. learn that taxpayers are funding maintenance of a private road. Any road receiving taxpayer funding should, I would say obviously, be open to the public. It is particularly important in this case, due to the popularity of the bike ride up Mount Diablo and the dangerous alternative to the private road. Please improve bicyclist safety and end public subsidies to private individuals. Thank you for your attention to this matter.” 15. 4.17.2019 Carl Nielson Comment: The MSR contains information “I am a concerned cyclist, taxpayer, and regarding the Calle Arroyo issue; resident of Contra Costa County. On my way however, the resolution of the Calle to Mount Diablo State Park (eastbound), I Arroyo use issue is beyond the cycle on Calle Arroyo. There’s been an effort to scope of this MSR Update. The close this road to public use. However, county comment is noted and hereby funds contribute to the maintenance of this made part of the public record. road. If the residents succeed in closing this road to public use, NO PUBLIC FUNDS SHOULD BE ALLOTTED FOR THE MAINTENANCE OF CALLE ARROYO!” Page 10 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 16. 4.17.2019 Dan Kappes Comment: The MSR contains information “No public money should be spent regarding the Calle Arroyo issue; maintaining private roads in Diablo. This is an however, the resolution of the Calle easy decision.” Arroyo use issue is beyond the scope of this MSR Update. The comment is noted and hereby made part of the public record. 17. 4.17.2019 David Glazer Comment: The MSR contains information “I am unable to attend your public hearing on regarding the Calle Arroyo issue; April 17th but wish to provide this comment, however, the resolution of the Calle in the hope that it will be given consideration. Arroyo use issue is beyond the scope of this MSR Update. The I understand that a lower court ruling has held comment is noted and hereby that one road within the Diablo Country Club made part of the public record. property is private and may be closed to public use. If that is the case, I do not see how public moneys (to which my tax dollars contribute) can be used to maintain that road. There seems to be no legal basis for allowing the residents of Diablo Country Club to have it both ways – barring public use while taking advantage of public money. I therefore strongly support a decision that no further public funds will be spent to maintain this supposedly private road. Thank you for your attention.” 18. 4.17.2019 Gail Fugere Comment: The MSR contains information “I am unable to attend your public hearing on regarding the Calle Arroyo issue; April 17th but want to express my concerns however, the resolution of the Calle that public money is being spent to maintain Arroyo use issue is beyond the Page 11 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED private roads in Diablo. I am happy to have scope of this MSR Update. The Diablo residents use public roads elsewhere in comment is noted and hereby the County, which some of my taxes are used made part of the public record. to maintain, but in return I expect to be able to use other roads maintained with public funds. I heard that a judge has decided that Calle Arroyo in Diablo is private and not subject to public access. This is of concern to me because I frequently ride my bike from Danville to and from Mt Diablo State Park, and traveling on the roads of the Diablo Community Services District (DCSD) represents the only safe route for me. I ride through Diablo because Diablo Road (1.5miles) is too dangerous for bicycles and the only safe route is through Diablo. I am concerned that the DCSD, as a public entity, takes tax money but doesn’t believe that it needs to provide a public benefit in return. I also don't think it is right that I must commit a misdemeanor (by violating the Ordinances of the DCSD) in order to use a road maintained with tax money by a public agency in order to protect my own safety. I support the conclusions in the LAFCO MSR that the DCSD should no longer be using public funds to maintain Calle Arroyo. Additionally, I believe that DCSD should be prevented from using public funds to maintain any road that the public lacks the right to use. Alternatively, I hope this problem can be Page 12 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED worked out sensibly, allowing taxpayer money to maintain roads that should allow public access. Furthermore, I live at the east end of Green Valley Road in Alamo, very close to Macedo staging area. Almost daily the Monte Vista High School cycling team rides up Green Valley, past my house. It brings a smile to my face to see these young people cycling on our public roads. There is no hate in my heart. If you only knew how many times an angry driver has threatened us with an angry horn honk, driving too close, even yelling at us, perhaps you would have a better idea why we choose to ride on Mt. Diablo. If there were a safe route to the mountain, we would take it. Diablo Road is not that route. And, my tax dollars are as equal as the one or two haters that live in Diablo on Calle Arroyo. Thank you for your time and consideration of my comment.” 19. 4.17.2019 Glenn Woodson Comment: The MSR contains information “I was unable the public hearing tonight, April regarding the Calle Arroyo issue; 17, but want to express my concerns about the however, the resolution of the Calle continued use of public funds spent for Arroyo use issue is beyond the maintenance of private roads. As both a scope of this MSR Update. The landowner and taxpayer, I am fully aware my comment is noted and hereby tax money is used to fund the roads in front of made part of the public record. my property and elsewhere in the county. As a community planner, it is unconscionable that Page 13 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED local residents would, after filing a lawsuit to make their road private, want to continue using county funds to maintain their roads in Diablo. As a father of a young cyclist, I find their actions over the past months self-centered and at times abusive to fellow residents who are not privileged enough to live in Diablo. Of specific concern is that traffic entering Mt Diablo State Park is NOT always safe and aware of cyclists. We have ridden Calle Arroyo multiple time because, quite frankly it is quiet and safe. As a public road, Calle Arroyo is a road that provides us access without my having to worry that a slight mistake can cost my son his life. If the local residents on the street are offended and put out by our being there that is their right in this state. If they then take this further, which they have now, and made the road a private road for the entire width (homes on one half and golf course on other half), then they have additional rights to restrict our access since the land and access do not fall under purvey of the California Coastal Commission or similar jurisdictional regulation. BUT they cannot make this private AND then ask us, as fellow taxpayers to provide maintenance to their roads. Where is our community return on investment? Page 14 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED Most importantly, how can the local residents demand continued maintenance when this is in direct conflict with California Code Section 845, which provides that when a private roadway exists for the benefit of multiple owners, the cost of maintaining the road is proportional to the use made by the easement. If the public is no longer an owner of the easement, we, as taxpayers who do not live along Calle Arroyo, have ZERO obligation to pay for their requirements. DCSD must not use public funds to maintain any road the public does not have access. With that in mind, this argument is really about quality of life. Local residents want to maintain a level of solitude and security and local cyclists and hikers desire similar. As such. I would hope that all sides here can work out their differences and not let a minority of residents turn this into a both restrictive area and a costly nightmare. Thank you for taking time to read and consider my comments.” 20. 4.17.2019 Jody and Steve Archer Comment: The MSR contains information “I am not able to attend public hearing to regarding the Calle Arroyo issue; express concerns over public monies being however, the resolution of the Calle used to maintain private roads in Diablo Arroyo use issue is beyond the Country club. I expect to be able to have scope of this MSR Update. The public access to roads which my taxes are comment is noted and hereby used. made part of the public record. Page 15 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED I heard a judge decided that Calle Arroyo in Diablo Country Club is private and not subject to public access. I ride my bike from Alamo to Mtdiablo state park. Traveling through DCSD is the only safe route. Many of my fiends have been run off the road or hit on Diablo rd. With no shoulder it is not safe for ridding with the kids to enjoy the stage park. I am concerned that the DCSD takes public money to maintain a private road and does not believe they need to provide a public benefit in return. I should not have to be threatened by homeowners for prosecution in order to use a road that is paid for with public money for our personal safety. I support the conclusions in the LAFCO MSR that the DCSD should no longer be able to use public funds to maintain their roads. Additionally I feel that DCSD should be prevented from receiving any public funds to maintain roads that do not have public access.” 21. 4.17.2019 Joe Allen Comment: The MSR contains information “I heard about this hearing and I can’t make regarding the Calle Arroyo issue; this date. However, Ms. Sibley, I am a resident however, the resolution of the Calle of CC County and wish that you would pass Arroyo use issue is beyond the along my strong objection to using general scope of this MSR Update. The public taxpayer dollars to support a private, comment is noted and hereby exclusive club. made part of the public record. Thank you for registering my view.” Page 16 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 22. 4.17.2019 Mark Nienberg Comment: The MSR contains information “As a Contra Costa County resident and regarding the Calle Arroyo issue; property owner, I wish to comment on the however, the resolution of the Calle draft MSR that you will discuss at your Arroyo use issue is beyond the meeting on April 17th. Specifically, I am scope of this MSR Update. The interested in the section related to the Diablo comment is noted and hereby Community Services District. I would like to made part of the public record. see the concluding paragraph of Section 22.2.10 strengthened to clarify that public taxpayer money may not be spent to maintain any street in the district unless that street is open to public access, including pedestrians and bicycles. As I'm sure you know, a few residents on Calle Arroyo Road in Diablo have waged a legal battle to declare their street private and prevent public use. They seem particularly hostile to bicyclists, who often use the street to access the public facilities at Mount Diablo State Park. The reason bicyclists use Calle Arroyo is simply that there is no safe alternative. Diablo Road is far too dangerous. But the reasons aren't really important to your decision. If the residents succeed in excluding the public from the road, then clearly they cannot expect the public to pay for maintenance. Please note that in my suggested re-wording of the concluding paragraph I referred to any road that is not open to public access rather than specifying Calle Arroyo. That is because Page 17 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED some residents of other roads in the district have said they may try to replicate the Calle Arroyo restrictions on "their roads". Ultimately, I hope common sense will prevail and DCSD will allow full public access to district roads and public funding will be available to maintain the roads. In the meantime, a clear statement from LAFCO in the MSR will have a positive effect on moving toward that resolution. Thank you for your time and consideration of my comment.” 23. 4.17.2019 Mark Skrivanich Comment: The MSR contains information “Since I am unable to attend the public regarding the Calle Arroyo issue; hearing tonight, April 17th, I'll echo the however, the resolution of the Calle sentiments expressed by Bike East Bay and no Arroyo use issue is beyond the doubt, many, many others (cyclist included!) scope of this MSR Update. The comment is noted and hereby Simply, no one, no community, no association made part of the public record. or organization, etc. can or should have a monopoly on SAFE access for all to Southgate Road, Mt. Diablo STATE Park or any public area. In the horribly inexcusable event of denied access, then not only will public funding of the Diablo Community Services District need to cease, the DCSD must payback all funds used to determine the Diablo Community roads to be private. There is no defensible rationale for using public funds to declare roadways to be private. Nor is there one for taking public Page 18 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED funds yet not providing for public safety at a minimum in return. There is no inherent nuisance in allowing human powered through-traffic. There is no exhaust pollution, no excessive noise, no litter and no visual blight, even taking in to consideration some of poorly designed cyclist jerseys.) I appreciate your time and understanding on this.” 24. 4.17.2019 Matt Jacoby Comment: The MSR contains information “I'm writing you in regard to the question of regarding the Calle Arroyo issue; public access vs public funding on Calle however, the resolution of the Calle Arroyo. Though I have never taken this route, Arroyo use issue is beyond the I ride my bike to Diablo frequently, so this is a scope of this MSR Update. The matter that concerns me. comment is noted and hereby made part of the public record. I was very disappointed that cyclists would be prevented from using this much safer route to access Mt. Diablo State park. It seems like this is really a very unfortunate case of overblown reactions and lack of mutual respect between some cyclists and some property owners. It's a shame, but if this is where it's gotten then here we are. However, it violates my sense of civic fairness that, being denied access to this route, tax- paying cyclists would still have to fund its maintenance. I expect there are many cases where public funds are used for private benefit - but it seems like we should be minimizing Page 19 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED those. And, certainly, it seems unfair and unwise to reward the reactionary behavior that caused the road to be fully privatized. I would ask that the staff and commissioners do what is within their power to deny public funds for this road if it is to remain private, or else help in revisiting the question of shared access and mutual respect.” 25. 4.17.2019 Rick Rickard Comment: The MSR contains information “As you know from our PAC interactions, I am regarding the Calle Arroyo issue; a regular road bicyclist. Although I live in however, the resolution of the Calle Oakland, I do occasionally ride up Mt Diablo, Arroyo use issue is beyond the usually climbing up Southgate Drive, accessed scope of this MSR Update. The through the community of Diablo. Needless to comment is noted and hereby say as a Board Member of Bike East Bay, I have made part of the public record. closely followed the saga of public access to Calle Arroyo. I’m not able to attend tonight’s public hearing, but I do want to share my concerns with you. As you have no doubt heard from many bicyclists, this stretch of Diablo Road is a dangerous and unpleasant place to ride a bicycle, with high-speed traffic and minimal shoulders. The roads through Diablo are a much safer alternative for bicyclists. I have been disappointed to learn that the Diablo Community Services District is using public funds to maintain these private roadways while seeking to restrict public access to the roadways. Thus, I am supportive Page 20 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED of the conclusions of the LAFCO MSR that DCSD should be prevented from using public funds to maintain any road that the public lacks the right to use. Ideally, of course, I would hope this problem can be worked out sensibly, allowing taxpayer money to maintain the roads while also allowing public access. Thanks for hearing me out. Hope you are well.” 26. 4.17.2019 Will Leben Comment: The MSR contains information “As a bicyclist whose only safe option for regarding the Calle Arroyo issue; getting to Mt. Diablo State Park is Calle however, the resolution of the Calle Arroyo (because Diablo Road is too dangerous Arroyo use issue is beyond the for cycling), I think that the Diablo scope of this MSR Update. The Community Services District as a public entity comment is noted and hereby should not be allowed to take tax money, as it made part of the public record. is currently doing, without providing a public benefit in return. Public funds should not be used to maintain Calle Arroyo or any road not fully open to the public.” 27. 4.19.2019 Richard Nicoll Comment: The MSR contains information “I understand that the Local Agency regarding the Calle Arroyo issue; Formation Commission (LAFCO) is reviewing however, the resolution of the Calle whether or not the Diablo Community Service Arroyo use issue is beyond the District, the agency charged with maintaining scope of this MSR Update. The roads in Diablo, should continue funding comment is noted and hereby maintenance of private roads. Apparently, made part of the public record. public funds are used to finance private roads in Diablo. Clearly, such actions constitute a Page 21 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED gift of public funds, which I understand to be prohibited in California. If not, where do the rest of us sign up for public assistance for our private driveway repairs, kitchen remodels or house painting?” 28. 4.20.2019 Craig Hagelin Comment: The MSR contains information “I live in Walnut Creek and frequently ride a regarding the Calle Arroyo issue; loop of up North Gate to the junction and then however, the resolution of the Calle down to South Gate. Being able to cut through Arroyo use issue is beyond the Calle Arroyo in Diablo is a much safer route scope of this MSR Update. The for me to get back to Walnut Creek. Cars on comment is noted and hereby Diablo Road travel very fast and cyclists get hit made part of the public record. there. I am 72 and have been doing the route for years, and if I get hit on Diablo Road I will not heal fast if at all. Please consider the lives at skate here, and do not revoke access that has been in place for long time and does not cause any harm. I support the conclusions in the LAFCO MSR that the DCSD should no longer be using public funds to maintain Calle Arroyo. Additionally, I believe that DCSD should be prevented from using public funds to maintain any road that the public lacks the right to use. Alternatively, I hope this problem can be worked out sensibly, allowing taxpayer money to maintain roads that should allow public access. Thank you for your consideration on this matter.” Page 22 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 29. 4.23.2019 Bryan Montgomery, City Manager, City of Comment: Revisions made to pp. 12-17, 12-19, Oakley “In two locations (pages 12-17 and 12-21), there and 12-21 in the City of Oakley is a reference to "18th St" - which is a street chapter. located in the City of Antioch. I believe the correct reference in both locations should be "Main Street." On page 12-19 under "Liquidity, Debt, ..." there is a reference to OPEB liabilities - the City of Oakley has none (as is previously stated in the MSR). On page 12-21 under the paragraph "Existence of Any Social or Economic Communities of Interest" the verbiage could be re-worded to make clear that the City did proceed with the large annexation of territory in 2006 and only a small portion, now within the existing SOI, that we chose not to annex.” 30. 4.25.2019 Dale McDonald, General Manager, Comments: Revisions made to pp. 21-3, 21-16, Crockett CSD 21.4.3 CSD Services MSR. Determinations - and 21-17 in the Crockett CSD Current Shared Sen/ices - pa. 21-16: The CSD chapter. provides park and recreation services. It does The information provided about not provide solid waste services. As mentioned the probable need for future sewer in section 21.2.8 solid waste services are services was not included in the provided to the Crockett CSD via franchise MSR revisions as sewer services agreement between the County and Richmond were not reviewed as part of this Sanitary Service, doing business as Crockett MSR Update. Garbage Company. For correction we recommend removing the reference to solid waste services from 21.4.3. 21.4.4 Financial Determinations - Operating Page 23 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED General Fund and Reserve Trends - do. 21-17: The second paragraph states that "The CSD's reserve goal is unknown,". To clarify it should state that "The CSD's Port Costa Department reserve goal is unknown," as the remaining departments of the CSD have established reserve funds. This section was specifically discussing Port Costa and it could be misleading if left unchanged. 21.5.2 Sphere of Influence Determination for the Crockett CSD - Present and Probable Need for Public Facilities and Services - oa. 21-20: Within the SOI there are approximately twelve properties at the far west of town off Vista Del Rio that are on septic tank. Currently there is no plan to expand public sewer service to this area but it may be probable if development were to occur on the west end of Vista Del Rio. It is suggested that the following be added to this section: "Public sewers may be extended to properties that are currently on septic tank if future development on Vista Del Rio occurs and it is required by the County." 31. 4.25.2019 Christopher Deppe, Kensington Police Comment contained revisions of an editorial Revisions made to page 24-1 in the Protection and CSD nature for the Kensington Police Protection Kensington Police Protection and and CSD. CSD chapter. 32. 4.25.2019 Bernadette Fatehi Comment: Recommendations for updating the “It is my understanding that Kristen Altbaum SOI for the cities of Lafayette and and Roger Chelemedos are spearheading Pleasant Hill are included in the efforts to get a sphere of influence change for MSR. This MSR does not cover the Page 24 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED our area. They are the first “leaders” to Pleasant Hill Recreation & Park represent our neighborhood for as long as I’ve District. LAFCO has indicated it lived here. Our commute patterns take us in will undertake MSR/SOI Updates and through Lafayette daily - we are for Parks and Recreation districts entrenched in Lafayette, not Pleasant Hill. in FY 2020. Please consider this request.” The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 33. 4.25.2019 Nathan Mahlik Comment: Recommendations for updating the “Please include this message in the MSR public SOI for the cities of Lafayette and review period….I am writing to support an SOI Pleasant Hill are included in the change request by Kristen Altbaum for our MSR. This MSR does not cover the area in north Reliez Valley. We should have Pleasant Hill Recreation & Park been in Lafayette’s SOI years ago, it seems. District. LAFCO has indicated it Our daily shopping, schools to be, commute, will undertake MSR/SOI Updates and entertainment is associated with for Parks and Recreation districts Lafayette, not Pleasant Hill. Thank you for in FY 2020. your help in designing logical boundaries.” The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 34. 4.25.2019 Kathy Hemmenway Comment: Recommendations for updating the “I am writing to voice support for an SOI SOI for the cities of Lafayette and change for neighborhoods between Withers Pleasant Hill are included in the and Grayson in Lafayette. MSR. This MSR does not cover the Pleasant Hill Recreation & Park Our family & our neighbors do not identity District. LAFCO has indicated it Page 25 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED ourselves as Pleasant Hill residents. will undertake MSR/SOI Updates We would be grateful for your support.” for Parks and Recreation districts in FY 2020. The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 35. 4.25.2019 Valerie Barone, City Manager, City of Comment contained revisions of an editorial Revisions made to pp. 5-5, 5-6, 5-7, Concord nature for the City of Concord. Data 5-8, 5-9, 5-11, and 5-23 in the City of corrections were also provided. In several Concord chapter. areas, the City provided data for Fiscal Year The FY 2018 data was not included 2018. in the MSR revisions as it extends beyond the scope of this MSR Update. 36. 4.25.2019 Lara Mahlik Comment: Recommendations for updating the “Hi, please include this message in the MSR SOI for the cities of Lafayette and public review period….I am writing to support Pleasant Hill are included in the an SOI change request by Kristen Altbaum for MSR. This MSR does not cover the our area in north Reliez Valley. We should Pleasant Hill Recreation & Park have been in Lafayette’s SOI years ago, it District. LAFCO has indicated it seems. Thank you for your help in designing will undertake MSR/SOI Updates logical boundaries.” for Parks and Recreation districts in FY 2020. The comment is noted and hereby made part of the public record. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. Page 26 of 49 COMMENT DATE NUMBER COMMENT NAME & ORGANIZATION COMMENTS RESPONSE RECEIVED 37. 4.25.2019 Frank Hanny Comment: The MSR contains information “It appears self evident to me that public tax regarding the Calle Arroyo issue; dollars should not be spent to maintain a however, the resolution of the Calle private road that excludes the public that pays Arroyo use issue is beyond the the taxes.” scope of this MSR Update. The comment is noted and hereby made part of the public record. 38. 4.26.2019 LaShonda White, Administrative Chief, Comment contained revisions of an editorial Revisions made to pp. 17-3, 17-4, 17- City of Richmond nature for the City of Richmond. Data 7, 17-8, 17-13, 17-19, and 17-21 in the corrections were also provided. City of Richmond chapter. Note: Some suggested revisions were not made where they would result in inconsistencies in the information presented. Several agencies provided additional or updated data specific to the current fiscal year; these changes were not made because FY 2017 was identified as the common point of comparison, or the “snapshot in time” for the MSR. Page 27 of 49 TABLE D.2 PUBLIC HEARING COMMENTS APRIL 17, 2019 COMMENT NAME & COMMENTS RESPONSE NUMBER ORGANIZATION 1. Commissioner Commissioner Schroder asked about the additional The cities for which additional study was recommended did Rob Schroder studies recommended. not provide the full range of information that was requested for the MSR; the exception in this short list is El Cerrito, which provided adequate information but the information was such that it warrants further review in the event of any annexation applications. Footnotes were added to the City of Concord chapter (p. 5- 23), Town of Moraga chapter (p. 11-22), and City of Richmond chapter (p. 17-23) summarizing the missing information. 2. Commissioner Commissioner Schroder asked about cities’ islands, and One of the MSR focus areas is infill development/sprawl Rob Schroder whether the consultants have taken these into account, prevention/islands. And while the MSR was more focused on given this Commission’s push to annex islands and the service and financial information provided by the concern about out of area service applications. reviewed agencies, there is a discussion in each chapter for those cities that do have islands, especially of those islands that are 150 acres or less and can be annexed through an expedited process. These discussions encourage those particular cities to annex the islands. 3. Commissioner Commissioner Blubaugh asked if LAFCO should pursue Since the Public Review Draft MSR was published, some of Donald Blubaugh these agencies for further information now, or simply put the agencies reviewed have provided additional information them on notice that if they come forward with annexation which has been included in their respective chapters. The applications, they should be prepared to provide City of Hercules and the Crockett CSD have been removed supplemental material. from the initial list of agencies requiring further study. And while the cities of Concord and Richmond did provide some missing information, enough critical information is missing to warrant them remaining on the list of agencies requiring further study should they come before LAFCO with an annexation application. Page 28 of 49 COMMENT NAME & COMMENTS RESPONSE NUMBER ORGANIZATION 4. Chair Tom Butt Chair Butt asked if the comments received will be All comments received between initial publication of the submitted to the Commission. Public Review Draft MSR and the Final Draft MSR will be included in a comment log and incorporated or responded to appropriately. 5. Chair Tom Butt Chair Butt, referring to the Richmond chapter, noted that While a goal of the data gathering and reporting in the MSR there were a number of years referenced in that chapter, is to maintain consistency (e.g., establishing FY 2017 as the and that there would be value in picking a date with “snapshot in time” for review), adequate 2017 data was not consistency. available for all the data points. Census and ABAG data provided a better opportunity for “apples-to-apples” comparisons, specifically with regard to demographic data. In the financial sections, budgets were reviewed to provide a future look at agency finances. 6. Commissioner Commissioner Blubaugh noted that there are people in the This MSR culminates in the updating of SOIs of each city and Donald Blubaugh audience and communications the Commission has CSD covered in the report; it’s possible that this could result received regarding a change in the SOIs of the cities of in changes in Pleasant Hill’s and Lafayette’s SOIs. PHRPD is Pleasant Hill and Lafayette, as well as removal from not part of this review, however, so there can be no SOI Pleasant Hill Recreation & Park District (PHRPD). How do adjustments until either there is an MSR for Recreation and the Commissioners respond to this? Is this something they Park Districts or a special study for that district. Removing can deal with or is it a separate process? Reliez Valley from the PHRPD would have an effect. LAFCO has indicated it will undertake MSR/SOI Updates for Park and Recreation districts in FY 2020. Recommendations for updating the SOIs for the cities of Lafayette and Pleasant Hill are included in the MSR. Further, the City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. 7. Commissioner Commissioner Blubaugh then asked if the cities of The cities of Pleasant Hill and Lafayette were sent the Donald Blubaugh Pleasant Hill and Lafayette would have an opportunity to residents’ letter when LAFCO received it and were provided weigh in on this sphere request so that Commissioners an opportunity to respond. The City of Pleasant Hill has hear not only from the residents but also from the indicated it will not be taking a position on the SOI request. agencies. The cities will have another opportunity to comment in Page 29 of 49 COMMENT NAME & COMMENTS RESPONSE NUMBER ORGANIZATION response to the Final Draft MSR. Recommendations for updating the SOIs for the cities of Lafayette and Pleasant Hill are included in the MSR. 8. Alan Kalin, Alan Kalin, Danville resident, spoke regarding the issue of The MSR contains information regarding the Calle Arroyo Danville resident private roads, public funds, and public safety in Diablo issue; however, the resolution of the Calle Arroyo use issue is Community Services District (DCSD), where residents beyond the scope of this MSR Update. The comment is noted have secured a court ruling on public use of Calle Arroyo, and hereby made part of the public record. indicating that the road is private; the judge also reminded the district that if the road is private then district funds should not be used for upkeep on the road. His concern, and that of fellow bicyclists, is that closing this road to the public is forcing bicyclists onto a very dangerous road. Diablo residents are trying to intimidate non-residents who come into the district. Mr. Kalin has been threatened and harassed since submitting a complaint to LAFCO. 9. Nicola Place, Nicola Place, resident on Mt. Diablo Scenic Boulevard, Resolution of the Mt. Diablo Scenic Boulevard maintenance resident on Mt. spoke regarding this mile-long stretch of road, which is issue is complex and beyond the scope of this MSR/SOI Diablo Scenic privately owned, but on which Diablo State Park has an Update. LAFCO staff is aware of the history and is willing to Boulevard easement (since 1931). According to State law, if you hold help the interested parties. The comment is noted and hereby an easement you’re required to participate in the made part of the public record. maintenance and upkeep of that property. In all the years since acquiring that easement, the Park has not come to the table to work on an agreement, complaining that there are too many parties involved and they can’t work with that many. In 2011, the remaining eight of about 25 properties were annexed into DCSD in order to more logically address maintenance of this road. Nothing has happened since. She has provided some edits to the DCSD chapter, including that DCSD cannot and will not maintain that stretch of road. What they need from DCSD is assistance in working with Diablo State Park and the Page 30 of 49 COMMENT NAME & COMMENTS RESPONSE NUMBER ORGANIZATION County to figure out what can be done to maintain this road. She has highlighted eight items in the report that are inaccurate about what DCSD is doing—which they are not doing. The residents on Mt. Diablo Scenic Boulevard need help in coming up with an evaluation and a long-term plan on addressing this issue. 10. Kristen Altbaum, Kristen Altbaum, Reliez Valley resident, drew Recommendations for updating the SOI for the cities of Reliez Valley Commissioners’ attention to the letter regarding Lafayette and Pleasant Hill are included in the MSR. This resident unincorporated territory between Pleasant Hill and MSR does not cover the Pleasant Hill Recreation & Park Lafayette (between Withers Avenue and Grayson Road). District. LAFCO has indicated it will undertake MSR/SOI That territory is in Pleasant Hill’s SOI, but it is divided Updates for Parks and Recreation districts in FY 2020. topographically, by school district, and by neighborhood The comment is noted and hereby made part of the public unity. She would like to see the area that she is in moved record. into Lafayette’s SOI. The City of Pleasant Hill has indicated it will not be taking a positon on the SOI request. Page 31 of 49 Subsequent to the public hearing and publication of the Final MSR, LAFCO solicited comments on proposed SOI changes. Several comments were received regarding an SOI change for the cities of Lafayette and Pleasant Hill specific to the Reliez Valley area. No revisions were made to the SOI recommendations as a result of the public comments. The additional comments received are provided in Table D.3. TABLE D.3 ADDITIONAL PUBLIC COMMENTS AND RESPONSES COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED 1. 5.30.19 Andrew Reed Comment: The recommendation for updating the SOI for “Kensington is facing financial and services challenges like the Kensington Police Protection and Community Service District is included in the never before. We desperately need to combine our two public MSR. services districts in order to meet said challenges and set up a governance structure for future success. One governing This MSR also found that the Kensington Police Protection and Community Service District entity would combine all district funds for the betterment of “appears to have sufficient financial resources to the community. It would allow for the hire of professional continue providing services and to management staff that we so desperately need. Our boards accommodate infrastructure expansion, act like super volunteers instead of policy/governance boards improvements, or replacement over the next and this continues to cause serious problems. five years.” What precipitated this email is the Fire District’s need to Although this MSR does not cover the make the Public Safety Building seismically compliant. And Kensington Fire Protection District, it was that means if both Fire and Police are in the same new covered in the 2016 EMS/Fire Services MSR, building, it needs to be relocated. One of the few and maybe which did not find specific financial or service the only option is to locate this new building in the park challenges for the Fire Protection District. owned by the Police Service District. If they are not co- The comment is noted and hereby made part of located in a new space, the fire district says they will remodel the public record. their existing building with only room for their functions, which leaves the police location in limbo. Combining the two districts because of this large capital project - that requires the cooperation of both - makes lots of sense at this time.” Page 32 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED 2. 6.5.19 Rahima and Comment: Recommendations for updating the SOI for the Mashuri “We are unincorporated County residents with a Lafayette cities of Lafayette and Pleasant Hill are included Warren 94549 address between Withers and Grayson, and within the in the MSR. Lafayette/Acalanes school districts. I strongly support an SOI The City of Pleasant Hill has indicated it will change to Lafayette for my neighborhood. I feel that we not be taking a positon on the SOI request. At deserve the effort and cooperation to get this done. I also its May 28, 2019 City Council meeting, the City support a future annexation of our neighborhood and would of Lafayette expressed its opposition to the SOI appreciate it very much if Supervisor Glover could negotiate a request. tax transfer agreement with Lafayette that is fair and The comment is noted and hereby made part of desirable.” the public record. 3. 6.5.19 Jackie and Jeff Comment: Recommendations for updating the SOI for the Mann “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors between Withers in the MSR. and Grayson in getting an up to date SOI change for their The City of Pleasant Hill has indicated it will neighborhood. These neighbors are an integral part not be taking a positon on the SOI request. At Lafayette. They are coaches, school volunteers and help make its May 28, 2019 City Council meeting, the City our community great. They deserve the effort and of Lafayette expressed its opposition to the SOI cooperation to get this done. Looking ahead, I also support a request. future annexation of these Lafayette residents and our city The comment is noted and hereby made part of manager negotiating a tax transfer agreement with County to the public record. make this a win-win for unincorporated residents and city residents.” 4. 6.5.19 Darlene T Comment: Recommendations for updating the SOI for the Sears “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors between Withers in the MSR. and Grayson in getting an up to date SOI change for their The City of Pleasant Hill has indicated it will neighborhood. These neighbors are an integral part not be taking a positon on the SOI request. At Lafayette. They are coaches, school volunteers and help make its May 28, 2019 City Council meeting, the City our community great. They deserve the effort and of Lafayette expressed its opposition to the SOI Page 33 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED cooperation to get this done. Looking ahead, I also support a request. future annexation of these Lafayette residents and our city The comment is noted and hereby made part of manager negotiating a tax transfer agreement with County to the public record. make this a win-win for unincorporated residents and city residents alike.” 5. 6.5.19 Pam Comment: Recommendations for updating the SOI for the Chapman “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors between Withers in the MSR. and Grayson in getting an up to date SOI change for our The City of Pleasant Hill has indicated it will neighborhood. These neighbors are an integral part not be taking a positon on the SOI request. At Lafayette. They are coaches, school volunteers and help make its May 28, 2019 City Council meeting, the City our community great. They deserve the effort and of Lafayette expressed its opposition to the SOI cooperation to get this done. Looking ahead, I also support a request. future annexation of these Lafayette residents and our city The comment is noted and hereby made part of manager negotiating a tax transfer agreement with County to the public record. make this a win-win for unincorporated residents and city residents alike.” 6. 6.6.19 Kim and Comment: Recommendations for updating the SOI for the Harry Stewart “I am a Lafayette resident and have lived on Black Hawk cities of Lafayette and Pleasant Hill are included Road, off Pleasant Hill Road for 19 years. My children in the MSR. attended Acalanes High School. The City of Pleasant Hill has indicated it will I strongly support updating the SOI change for the not be taking a positon on the SOI request. At unincorporated area of Lafayette neighbors between Withers its May 28, 2019 City Council meeting, the City and Grayson. This neighborhood is an integral part of of Lafayette expressed its opposition to the SOI Lafayette. The residents are coaches, school volunteers, local request. students who are contributors and participants in our The comment is noted and hereby made part of Lafayette community. the public record. Looking ahead, I also support a future annexation of this unincorporated area of Lafayette between Withers and Grayson and urge our city manager to negotiate a tax transfer Page 34 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED agreement with CC County to make this a win-win for the unincorporated residents and the city residents.” 7. 6.6.19 Carl Di Comment: Recommendations for updating the SOI for the Giorgio “Please let the LAFCO commissioners know that I support a cities of Lafayette and Pleasant Hill are included change in the SOI promulgated by Kristen Altbaum, et al. I in the MSR. feel a strengthened connection with our neighbors to the The City of Pleasant Hill has indicated it will north would be moving in the right direction. Their kids go not be taking a positon on the SOI request. At to our schools, they drive and shop in downtown Lafayette .... its May 28, 2019 City Council meeting, the City While I respect that our Lafayette City Council feels we are of Lafayette expressed its opposition to the SOI resource-constrained and this isn't an issue that needs to be request. addressed right now, I disagree with their position. SOI The comment is noted and hereby made part of changes could be rolled into our General Plan update starting the public record. later this year. Any annexation process could be pushed off to some future time and costs would be borne by residents wanting to be annexed to Lafayette.” 8. 6.6.19 Marjorie Comment: Recommendations for updating the SOI for the Briner “I am writing to you as a resident of the the unincorporated cities of Lafayette and Pleasant Hill are included area of Lafayette, between Withers and Grayson Road. in the MSR. My husband and I have lived in the same home on Lomas The City of Pleasant Hill has indicated it will Verdes Place for 40 years this May. Our mailing address has not be taking a positon on the SOI request. At always been Lafayette, 94549. The school district was its May 28, 2019 City Council meeting, the City originally Mount Diablo when my daughter first started of Lafayette expressed its opposition to the SOI school. By the time my two sons were old enough to start request. school, it had changed to Lafayette School District. The The comment is noted and hereby made part of biggest reason for the change was that Pleasant Hill High, the the public record. closest high school, was closed, College Park High School was impacted, and high school students from our area would have to be taken all the way to Ygnacio Valley High—from Lafayette across Pleasant Hill through Walnut Creek into Concord, completely unreasonable. It also made sense to Page 35 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED match the school district with the ZIP Code. My children have attended Lafayette School (Originally Springhill, our neighborhood school, was impacted and we were asked to go to Lafayette School), Spring Hill School, Burton Valley School, Stanley Middle School, and Acalanes High School. I have been a room parent, classroom volunteer, carnival organizer/cochair, PTA officer, Girl Scout leader, all in Lafayette schools. My husband coached Lafayette Little League for eleven years. My children played Lafayette soccer, basketball, and baseball. My children were integrated into the Lafayette community in all of their relationships. Today they are in their 30s and have lifelong friendships made in Lafayette schools. Even though all of our orientation was towards Lafayette, we always felt like second-class citizens. We did not vote in the City of Lafayette elections, even though most of the issues affected us. We attended classes through Lafayette Parks and Recreation. We also attended classes through Orinda Parks and Rec and Pleasant Hill Parks and Recreation—and were asked to pay premium non-resident fees. I once signed up for classes at Pleasant Hill Rec and told them that my property taxes contained a line item fee for Pleasant Hill Parks and Recreation. We pay this tax along with our property taxes each year, yet I was asked to pay additional fees as a non-district resident because my mailing address was in Lafayette—even though I informed them that I was actually a Pleasant Hill Park District resident. I gave up arguing and just wanted to enroll in the class. There is too much confusion around this issue. We do not vote in elections that affect us. We are seemingly not really recognized by Pleasant Hill Parks and Rec even though we Page 36 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED pay their fees. Boundaries for playing youth sports have been questioned. We are not “really” Lafayette to many and not Pleasant Hill either. I’m sending this email because I was informed that change of sphere of influence from Pleasant Hill to Lafayette would be the first step towards annexation to the City of Lafayette. We are tired of being second class citizens here. Please change our sphere of influence to Lafayette and help promote the annexation of this unincorporated area to the City of Lafayette. Residents of Lafayette 94549 ZIP Code will never want to be annexed to Pleasant Hill. It simply is not the community in which we live.” 9. 6.7.19 Meagan Comment: Recommendations for updating the SOI for the Hagglund “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors between Withers in the MSR. and Grayson in getting an up to date SOI change for their The City of Pleasant Hill has indicated it will neighborhood. These neighbors are an integral part of not be taking a positon on the SOI request. At Lafayette. They are coaches, school volunteers, and great its May 28, 2019 City Council meeting, the City families who make our community solid!! They deserve the of Lafayette expressed its opposition to the SOI effort and cooperation to get this done. Looking ahead, I also request. support a future annexation of these Lafayette residents and The comment is noted and hereby made part of our city manager negotiating a tax transfer agreement with the public record. County to make this a win-win for unincorporated resident and city residents.” 10. 6.7.19 Tricia and Comment: Recommendations for updating the SOI for the Brian Napper “We are Lafayette city residents and strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighborhoods between in the MSR. Withers and Grayson in getting an up to date SOI change. The City of Pleasant Hill has indicated it will These neighbors are an integral part of Lafayette. They are not be taking a positon on the SOI request. At coaches, school volunteers and students that help make our its May 28, 2019 City Council meeting, the City Page 37 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED community great. They deserve the effort and cooperation to of Lafayette expressed its opposition to the SOI get this done. Looking ahead, we also support a future request. annexation of these Lafayette residents and our city manager The comment is noted and hereby made part of negotiation a tax transfer with the County to make this a win- the public record. win for unincorporated residents and city residents.” 11. 6.8.19 Jocelyn Comment: Recommendations for updating the SOI for the Werner “I'm writing on behalf of my fellow North Lafayette neighbors cities of Lafayette and Pleasant Hill are included asking that you support our request for a sphere of influence in the MSR. change from Pleasant Hill to Lafayette. The City of Pleasant Hill has indicated it will My family has lived in North Lafayette for the past 9 years. not be taking a positon on the SOI request. At We currently have one child at Stanley and one at Springhill its May 28, 2019 City Council meeting, the City Elementary and we are extremely involved in the Lafayette of Lafayette expressed its opposition to the SOI community. My husband has coached BOTH of our sons request. throughout their years in Lafayette Little League. In fact The comment is noted and hereby made part of today he spent his morning in Alameda coaching our younger the public record. sons' team in a district championship game - after winning the Lafayette LL Majors Championship last weekend. He is also one of the coaches of the 10 year old All Star team, so will spend much of the next 2 months volunteering his time at Buckeye Fields. I am quite involved myself at Springhill Elementary, Stanley MS and with LPIE. I volunteer regularly in the classroom and I run the Springhill Science Fair (sponsored by LPIE). I host several fundraising parties for LPIE each year. A sphere of influence change to Lafayette simply makes sense for North Lafayette residents whose children attend Lafayette schools and play on Lafayette sports teams. I would also support a future annexation of our neighborhood to Lafayette and would appreciate any efforts Supervisor Glover could make in negotiating a reasonable and fair tax transfer Page 38 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED agreement with Lafayette." 12. 6.9.19 Barry and Comment: Recommendations for updating the SOI for the Barbara “My name is Barry Silberman. I live at 3279 Gloria Terrace, cities of Lafayette and Pleasant Hill are included Silberman Lafayette, CA 94549. My wife Barbara and I purchased our in the MSR. house in 1970 from a realtor located in downtown Lafayette. The City of Pleasant Hill has indicated it will For the past 49 years we have lived in "Lafayette". Our not be taking a positon on the SOI request. At children went to school in Lafayette. Our activities and focus its May 28, 2019 City Council meeting, the City have been in Lafayette. Early on we discovered that we could of Lafayette expressed its opposition to the SOI not vote on Lafayette city issues because we were not in city request. boundaries. And, just recently we discovered that the The comment is noted and hereby made part of Lafayette home that we have been living in for the past 49 the public record. years is actually in the so called Pleasant Hill "Sphere of Influence". We believe that this anomaly should be corrected. Therefore we strongly support an SOI change to Lafayette that better aligns with our identity and history.” 13. 6.9.19 Laura & Comment: Recommendations for updating the SOI for the Emmett cities of Lafayette and Pleasant Hill are included “We are Lafayette city residents, and we have friends and Bergman neighbors (including Springhill parents and teachers, in the MSR. Acalanes parents and staff, etc.) in the unincorporated area of The City of Pleasant Hill has indicated it will Lafayette between Withers and Grayson. We believe it’s past not be taking a positon on the SOI request. At time to get an up to date SOI change for their neighborhood. its May 28, 2019 City Council meeting, the City I’m sure you would agree that these neighbors deserve the of Lafayette expressed its opposition to the SOI effort and cooperation to get this done. It would also make request. sense to annex this area at some point so that we could all The comment is noted and hereby made part of benefit from additional tax revenues.” the public record. 14. 6.10.19 Marty Martin Comment: Recommendations for updating the SOI for the “Please take the time and effort to move the residents of the cities of Lafayette and Pleasant Hill are included unincorporated Reliez Valley area into Lafayette's SOL rather in the MSR. than the existing PH SOL. these are active residents of our The City of Pleasant Hill has indicated it will Page 39 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED community and we consider them Lafayette residents .” not be taking a positon on the SOI request. At its May 28, 2019 City Council meeting, the City of Lafayette expressed its opposition to the SOI request. The comment is noted and hereby made part of the public record. 15. 6.10.19 Arthur Ungar Comment: Recommendations for updating the SOI for the “I am a Lafayette city resident, and I do not support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors, within the in the MSR. Lafayette and Acalanes school districts, between Withers and The City of Pleasant Hill has indicated it will Grayson in changing their SOI from Pleasant Hill to not be taking a positon on the SOI request. At Lafayette. Since properties in this area do not pay property its May 28, 2019 City Council meeting, the City tax to the City of Lafayette, they should not be included in of Lafayette expressed its opposition to the SOI the sphere of influence.” request. The comment is noted and hereby made part of the public record. 16. 6.10.19 Sean Burke Comment: Recommendations for updating the SOI for the “I am a Lafayette city resident writing to support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors between Withers in the MSR. and Grayson for an updated SOI for this neighborhood. I The City of Pleasant Hill has indicated it will also a future annexation for my fellow residents and the city not be taking a positon on the SOI request. At manager to aligning the interests of the unincorporated and its May 28, 2019 City Council meeting, the City incorporated residents of Lafayette in negotiation a tax of Lafayette expressed its opposition to the SOI transfer agreement with the County.” request. The comment is noted and hereby made part of the public record. 17. 6.10.19 Bill Shurtleff Comment: Recommendations for updating the SOI for the “Since 1988, children of residents in an unincorporated cities of Lafayette and Pleasant Hill are included neighborhood within the 94549 zip code (off Reliez Valley in the MSR. Page 40 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED Road between Withers and Grayson) have been included in The City of Pleasant Hill has indicated it will the Acalanes High School and Lafayette School Districts. Isn’t not be taking a positon on the SOI request. At it about time for this neighborhood to have its Sphere of its May 28, 2019 City Council meeting, the City Influence (SOI) changed from the city of Pleasant Hill to of Lafayette expressed its opposition to the SOI Lafayette as well? request. Save Lafayette feels that these residents deserve our support. The comment is noted and hereby made part of Over the years they have proven to be wonderful, engaged the public record. neighbors: school volunteers, coaches and community activists. They are overwhelmingly engaged in helping to protect students’ access to schools, and share a slow, sustainable development mindset.” 18. 6.10.19 Lindy and Comment: Recommendations for updating the SOI for the Chris Evans “We are Lafayette city residents, and we strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors, within the in the MSR. Lafayette and Acalanes school districts, between Withers and The City of Pleasant Hill has indicated it will Grayson in changing their SOI from Pleasant Hill to not be taking a positon on the SOI request. At Lafayette. We are an integral part of the quality of life in its May 28, 2019 City Council meeting, the City Lafayette. Personally, we have been LMYA coaches, of Lafayette expressed its opposition to the SOI Springhill/Stanley/AHS school volunteers, LAFSD substitute request. teacher, all helping to make our community a better place to The comment is noted and hereby made part of live. We deserve the effort and cooperation to get this done. the public record. Looking ahead, we also support a future annexation of these Lafayette residents. We would appreciate and encourage our next city manager to negotiate a tax transfer agreement with County to make this a win-win for unincorporated residents and city residents.” 19. 6.10.19 Vonis Moore Comment: Recommendations for updating the SOI for the “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors, within the in the MSR. Lafayette and Acalanes school districts, between Withers and The City of Pleasant Hill has indicated it will Page 41 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED Grayson in changing their SOI from Pleasant Hill to not be taking a positon on the SOI request. At Lafayette. These neighbors are an integral part of the quality its May 28, 2019 City Council meeting, the City of life in Lafayette. They are coaches, school volunteers and of Lafayette expressed its opposition to the SOI help make our community great. They deserve the effort and request. cooperation to get this done. Looking ahead, I also support a The comment is noted and hereby made part of future annexation of these Lafayette residents. I would the public record. appreciate and encourage our next city manager to negotiate a tax transfer agreement with County to make this a win-win for unincorporated residents and city residents.” 20. 6.10.19 Ken & Heidi Comment: Recommendations for updating the SOI for the Madderra’s “Please read below and pass on our thoughts to all the other cities of Lafayette and Pleasant Hill are included family LAFCO commissioners that you support our area's request to in the MSR. become Lafayette (SOI) citizens. We would appreciate being The City of Pleasant Hill has indicated it will included and fought for by our friends and neighbors in the not be taking a positon on the SOI request. At City. its May 28, 2019 City Council meeting, the City We strongly support the entire unincorporated area of NE of Lafayette expressed its opposition to the SOI Lafayette neighbors getting an up to date SOI change for request. their neighborhood. The Sphere of Influence (SOI) should be The comment is noted and hereby made part of changed for the entire contiguous island of land from a SOI the public record. of Pleasant Hill to a SOI of Lafayette as recommended in the past by state guidelines for local (county) LAFCO's. Based on the maps displayed at prior meetings it appears to include the entire large NE Lafayette Island, not part of Walnut Creek's sphere of Influence, as you come over the hill at the Pleasant Hill Rd./Taylor Blvd. split (after Rancho View Rd.) going towards Martinez/WC. And though incorporation into the City of Lafayette, PH Park District issues, and school boundary alignments may also be important for many other petitioners, we believe this decision should stand alone and not be dependant on those Page 42 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED potential future issues, as several of those are not controlled by LAFCO process directly. Also, some of the current city staff reports and policies don’t appear to be accurately following the original spirit and intent of the law by overstating costs/requirements. These neighbors are an integral part Lafayette. They are coaches, school and library volunteers that help make our community great. They deserve the effort and cooperation to get this done. Looking ahead, we also support a future annexation of these Lafayette residents and our city manager negotiating a tax transfer agreement with County to make this a win-win for unincorporated residents and city residents alike.” 21. 6.10.19 Elisabeth Azar Comment: Recommendations for updating the SOI for the “I am a Lafayette city resident, and I strongly support the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette neighbors, within the in the MSR. Lafayette and Acalanes school districts, between Withers and The City of Pleasant Hill has indicated it will Grayson in changing their SOI from Pleasant Hill to not be taking a positon on the SOI request. At Lafayette. These neighbors are an integral part of the quality its May 28, 2019 City Council meeting, the City of life in Lafayette. of Lafayette expressed its opposition to the SOI They are coaches, school volunteers and help make our request. community great. They deserve the effort and cooperation to The comment is noted and hereby made part of get this done. Looking ahead, I also support a future the public record. annexation of these Lafayette residents. I would appreciate and encourage our next city manager to negotiate a tax transfer agreement with County to make this a win-win for unincorporated residents and city residents.” 22. 6.11.19 Tom Barber Comment: Recommendations for updating the SOI for the “My name is Tom Barber and I am a resident of the cities of Lafayette and Pleasant Hill are included unincorporated area of Lafayette off of Reliez Valley Road in the MSR. Page 43 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED north of Withers. My wife and I and our four children have The City of Pleasant Hill has indicated it will been residents of this area for seven years and we strongly not be taking a positon on the SOI request. At request that our sphere of influence (SOI) be changed from its May 28, 2019 City Council meeting, the City Pleasant Hill to Lafayette and that our area be considered for of Lafayette expressed its opposition to the SOI annexation into the city limits of Lafayette. My children all request. attend Lafayette schools, they attend Lafayette camps during The comment is noted and hereby made part of the summers, they play in Lafayette sports leagues, all of our the public record. friends live in Lafayette, we shop at Lafayette businesses and we volunteer in Lafayette. We also help support the Lafayette Police Department with a license plate reader on our street (recently resulted in the arrest of a mail thief who had been operating all across Lafayette). Our entire lives are wrapped up in engaging in and supporting the City of Lafayette and, as a result, we feel it is only natural that our SOI should be changed to Lafayette. We have no interaction with Pleasant Hill of any sort. Furthermore, we believe the experience of our neighbors on our immediate street, Reliez Valley Road, Gloria Terrace and Baywood is very similar. Our home values are also more similar to Lafayette homes than to Pleasant Hill homes. Thank you for your consideration of this resolution to what is clearly an outdated and illogical SOI assignment of our area.” 23. 6.11.19 Norm and Comment: Recommendations for updating the SOI for the Janet Haukaas “We have been residents at 18 Attri Court, Lafayette for 45 cities of Lafayette and Pleasant Hill are included in the MSR. years. We strongly support the unincorporated area between Withers and Grayson Avenues getting an up to date SOI The City of Pleasant Hill has indicated it will change for our neighborhood. Since we moved here from San not be taking a positon on the SOI request. At its May 28, 2019 City Council meeting, the City Francisco in 1974 we have been an integral part of Lafayette. of Lafayette expressed its opposition to the SOI We drive up from Downtown Lafayette daily to arrive home, request. our mail box is on Reliez Valley Road across the street from The comment is noted and hereby made part of Page 44 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED the City of Lafayette’s boundary, and we identify with the the public record. City of Lafayette. My wife taught elementary school in Lafayette, our children have received their education in Lafayette, we have been Lafayette School District volunteers, we actively worship in Lafayette, we shop in Lafayette stores as well as volunteer helping with the yearly Lafayette Art & Wine Festival. We support the City of Lafayette. Most of our neighbors continue to do the same. We do not identify with Pleasant Hill. We support a future annexation of our neighborhood to the City of Lafayette. We support the Lafayette City Manager negotiating a tax transfer with the County to make this a win- win for our unincorporated residents and the city alike. We are already supporting Lafayette’s schools, shopping, and community.” 24. 6.11.19 Kent and Comment: Recommendations for updating the SOI for the Kathleen cities of Lafayette and Pleasant Hill are included “My husband and I are residents of the unincorporated area Davis in the MSR. between Lafayette and Pleasant Hill, (the Baywood subdivision), just off of Reliez Valley Road. We have lived The City of Pleasant Hill has indicated it will here for 27 years, raised our children here, sent them to the not be taking a positon on the SOI request. At its May 28, 2019 City Council meeting, the City Lafayette schools, volunteered in all the schools, coached of Lafayette expressed its opposition to the SOI their sports teams, frequented the businesses in Lafayette, request. and not surprisingly, we consider ourselves Lafayette The comment is noted and hereby made part of residents. That said, we love being close to Pleasant Hill, the public record. their businesses have much to offer as well. HOWEVER, we have never been able to participate in an election having anything to do with Lafayette! We cannot vote on school issues, road issues, bond issues, whatever the issue might be. This is just wrong, and not fair to say the least. Not only do Page 45 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED we not get any of the benefits of being Lafayette residents, like the Police Department, but we also do not get any of the Pleasant Hill benefits either!! We cannot vote on Pleasant Hill matters, and we don’t get their Police services either. We get the Sheriff’s Department, which is fine, and they have been great, but we are out of their way too. I guess you could just say that we live in limbo! We think it is about time for the county and the city of Lafayette to get it together and add our little section of the map from Withers to Grayson, between Pleasant Hill Road and Reliez Valley Road to the Lafayette map, the Lafayette Sphere of Influence. It is clearly way past the time to realize that this unincorporated area needs and deserves to become a part of Lafayette! Thank you so much for your help in getting this approved by the appropriate group. We look forward to the day when we can vote in the Lafayette elections!!” 25. 6.11.19 KPPCSD Comment: This comment addresses potential revisions Director “My name is Cyrus Modavi. I am one of five Directors that made to the Kensington Police Protection and Cyrus Modavi Community Service District Chapter. The prior over see the Kensington Police Protection and CSD Table D.1 erroneously included pp. 24-16 and (KPPCSD). 24-17 in the revisions. Only one revision was It recently came to my attention that you received an email made, on p. 24-1 to include additional from KPPCSD Director Christopher Deppe (the Director information under “Form of Governance.” See assigned as the Board's LAFCO Liaison) that "...contained also Comment #31 in Table D.1. revisions of an editorial nature for the Kensington Police The comment is noted and hereby made part of Protection and CSD." and had led to "[r]evisions made to pp. the public record. 24-1, 24-16, and 24-17 in the Kensington Police Protection and CSD chapter", as indicated by your June 12th meeting agenda Page 46 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED packet (item 9, pg 23 of 29, comment 31). I am emailing, in an individual capacity, to inform you of the following: • That the Board of Directors never authorized by majority vote (i.e., in a required Brown Act compliant setting -- as will be evidenced by our agendas over the last few months <link>) for any Directors to make supplemental edits to the MSR. • That Director Deppe gave no indication to the full Board of Directors regarding such action with LAFCO. • Finally, my communications with staff tasked with submitting information to your agency, indicate that they were neither aware of Director Deppe's activities nor conferred with regarding the nature of the edits sent to you. I ask that you forward this email to the LAFCO Board of Directors or other necessary parties so that they may consider this information before accepting any such edits.” 26. 6.11.19 Mark Comment: This comment addresses potential revisions Costantini made to the Kensington Police Protection and “It has come to my attention that Kensington District Board Community Service District Chapter. Only one Director Christoper Deppe has submitted edits to the revision was made, on p. 24-1 to include Kensington portion of the MSR for consideration at the June additional information under “Form of 12, 2019 LAFCO meeting. I wish I could attend this meeting Governance.” See also Comment #31 in Table but am unable to due to a family medical matter. D.1. There was never a meeting or meeting agenda item at any The comment is noted and hereby made part of KPPCSD Board meeting regarding the authorization of a the public record. Board Director to be allowed to make edits to the MSR. As I understand it, the absence of any public meeting-based Page 47 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED authorization that allows Director Deppe to make edits to the MSR may be a violation of the Brown Act and/or other government codes and therefore should not be considered. Furthermore, Director Deppe was investigated by the District Attorney for public corruption and while not ultimately charged with a crime, he was reprimanded by the DA investigators for his conduct. Please see the attached letter (via a link from the KPPCSD website due to its size) from the CC County DA. Also, addressed in Director Deppe's proposed edits to the MSR are various statements regarding Kensington possibly contracting out its police services. One would submit that this is a very divisive and unpopular concept in Kensington. Director Deppe has been on record as a staunch supporter of contracting out Kensington's police services in addition to his legally dubious actions outlined in the DA's letter. Also, what Director Deppe did not include, despite being in full knowledge of, is that there is a duly adopted voting rights ordinance, adopted in 2009, that requires voter approval via an election should the Board decide that it wants to outsource Kensington's police protection services. The Board is governed by this ordinance so it is my belief that its existence should be acknowledged in any changes to the MSR. This is especially important, in my view because of the divisive nature that Director Deppe himself describes in his proposed MSR edits. Please see the attached copy of the ordinance, which is published on the KPPCSD website. Page 48 of 49 COMMENT DATE COMMENTER NUMBER COMMENT COMMENTS RESPONSE NAME RECEIVED If you could please please forward this email to the full LAFCO Board as well as any other relevant party so that the existence of the Kensington voting rights ordinance can be considered for inclusion in and revisions to the MSR I would greatly appreciate it. Thank you in advance for your help and time.” Page 49 of 49