COMPREHENSIVE ANNUAL

FINANCIAL

REPORT

FISCAL YEAR ENDED

JUNE 30, 2002

CITY OF BRENTWOOD

708 THIRD STREET, BRENTWOOD, CALIFORNIA 94513

PREPARED BY FINANCE DEPARTMENT

INTRODUCTORY SECTION

City of Brentwood – 2001/ 02 CAFR i

City of Brentwood

COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS

INTRODUCTORY SECTION

Page

Table of Contents ............................................................................................................................... ......................................................................... i

Certificate of Achievement.................................................................................................................... .................................................................... iv

List of Principal Officials ............................................................................................................................... ........................................................... v

City Organizational Chart ............................................................................................................................... ....................................................... vi

City Community Services Location Map ............................................................................................................................... ................................ vii

City of Brentwood Parks Map ............................................................................................................................... ............................................... viii

Letter of Transmittal ............................................................................................................................... ................................................................. ix

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT ............................................................................................................................... ............................... 1

MANAGEMENT’S DISCUSSION AND ANALYSIS ............................................................................................................................... ............. 3

BASIC FINANCIAL STATEMENTS

Government- Wide Financial Statements

Statement of Net Assets ............................................................................................................................... ...................................................... 19

Statement of Activities and Changes in Net Assets ............................................................................................................................... ......... 20

FUND FINANCIAL STATEMENTS

Governmental Fund Financial Statements

Balance Sheet – Governmental Funds ............................................................................................................................... .............................. 21

Reconciliation of the Governmental Funds Balance Sheet to the

Government- Wide Statement of Net Assets ............................................................................................................................... ..................... 22

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds................................................................. 23

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund

Balances to the Government- Wide Statement of Activities and Changes in Net Assets ........................................................................... 24

City of Brentwood – 2001/ 02 CAFR ii

City of Brentwood

COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS ( CONTINUED)

Page

Proprietary Funds

Statement of Net Assets ............................................................................................................................... ................................................. 25

Statement of Revenues, Expenses and Changes in Fund Net Assets ................................................................................................................. 26

Statement of Cash Flows ............................................................................................................................... ................................................. 27

Fiduciary Funds

Statement of Fiduciary Net Assets ............................................................................................................................... ..................................... 29

Statement of Changes in Assets and Liabilities ............................................................................................................................... ................. 30

NOTES TO THE FINANCIAL STATEMENTS..................................................................................................................... .............................. 31

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Information ............................................................................................................................... ........................................................... 75

Budgetary Comparison Schedule, General Fund ............................................................................................................................... ..................... 76

Budgetary Comparison Schedule, Thoroughfares ............................................................................................................................... ................... 77

Budgetary Comparison Schedule, Community Development ............................................................................................................................... . 78

Budgetary Comparison Schedule, Engineering ............................................................................................................................... ....................... 79

Defined Benefit Pension Plan ............................................................................................................................... ................................................. 80

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Non- Major Governmental Funds

Combining Balance Sheet ............................................................................................................................... ..................................................... 81

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................ 85

Internal Service Funds

Combining Statement of Net Assets ............................................................................................................................... ....................................... 89

Combining Statement of Activities and Changes in Net Assets ............................................................................................................................. 90

Combining Statement of Cash Flows ............................................................................................................................... ..................................... 91

Combining Financial Statements Governmental Activities by Fund Type

Balance Sheet – General Fund ............................................................................................................................... ............................................... 93

Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - General Fund ........................................................ 94

Special Revenue Funds

Combining Balance Sheet ............................................................................................................................... ....................................................... 95

City of Brentwood – 2001/ 02 CAFR iii

City of Brentwood

COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS ( CONTINUED)

Page

Combining Statement of Revenues, Expenditures and Changes in Fund Balances................................................................................................ 97

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ............................................. ............. 99

Debt Service Funds

Combining Balance Sheet ............................................................................................................................... .................................................. 105

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................... 106

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .......................................................... 107

Capital Projects Funds

Combining Balance Sheet.......................................................................................................................... ......................................................... 111

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................... 113

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................ 115

STATISTICAL SECTION ( Unaudited)

Reference Page

General Governmental Expenditures by Function....................................................................................................................... .......... Table 1 ...... S- 1

General Governmental Revenues by Source ............................................................................................................................... .......... Table 2....... S- 2

General Governmental Tax Revenues by Source ............................................................................................................................... ... Table 3....... S- 3

General Property Tax Levies & Collections ............................................................................................................................... ........... Table 4....... S- 4

Assessed and Estimated Actual Value of Taxable Property ................................................................................................................... Table 5....... S- 5

Property Tax Rates – All Direct and Overlapping Governments............................................................................................................ Table 6....... S- 6

Special Assessment Tax Revenue........................................................................................................................ .................................. Table 7....... S- 7

Computation of Legal Debt Margin......................................................................................................................... .............................. Table 8....... S- 8

Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita ..................................................................... Table 9....... S- 9

Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures....................... Table 10..... S- 10

Computation of Direct and Overlapping Debt........................................................................................................................... .......... Table 11..... S- 11

Revenue Bond Coverage....................................................................................................................... ............................................... Table 12..... S- 12

Demographic Statistics ............................................................................................................................... ......................................... Table 13..... S- 13

Property Value and Construction Activity....................................................................................................................... .................... Table 14..... S- 14

Largest Property Taxpayers ............................................................................................................................... ................................. Table 15..... S- 15

Miscellaneous Statistical Information.................................................................................................................... .............................. Table 16..... S- 16

City of Brentwood – 2001/ 02 CAFR iv

City of Brentwood – 2001/ 02 CAFR v

LIST OF PRINCIPAL OFFICIALS

City Officials

Michael A. McPoland, Sr............................................................................................................................. ......................................................... Mayor

Pete Petrovich ............................................................................................................................... ............................................................... Vice- Mayor

Annette Beckstrand..................................................................................................................... ......................................................... Council Member

Wade Gomes.......................................................................................................................... .............................................................. Council Member

Bill Hill ............................................................................................................................... ................................................................. Council Member

Administrative Staff

John Stevenson...................................................................................................................... .................................................................... City Manager

Dennis Beougher....................................................................................................................... ................................................................ City Attorney

Pamela Ehler ............................................................................................................................... ............... Director of Finance & Information Systems

Craig Bronzan ............................................................................................................................... ................................. Director of Parks & Recreation

Mike Davies......................................................................................................................... ................................................................... Chief of Police

Karen Diaz ............................................................................................................................... ........... City Clerk / Director of Administrative Services

Bailey Grewal ............................................................................................................................... ........................................................... City Engineer

Tom Haglund ............................................................................................................................... ............................................. Assistant City Manager

Mitch Oshinsky....................................................................................................................... ............................ Director of Community Development

Howard Sword ............................................................................................................................... ....................... Director of Economic Development

Paul Zolfarelli ............................................................................................................................... ........................................ Director of Public Works

CITIZENS

CITY COUNCIL

City Manager

Boards &

Commissions

City Attorney

Engineering

Community

Development

Finance

Parks and

Recreation

Police Public Works Administration

Traffic

Safety

Police

Explorers

Chaplain

B. A. C. U. P.

Volunteers

Streets

Water

Wastewater

Solid Waste

Accounting

Operations

Purchasing

Information

Systems

Utility Billing

Grants

Treasury

( Development/

Redevelopment)

Traffic

Development

Engineering

Construction

Inspection

Capital

Improvement

Program

NPDES

Building

Planning

City Wide

Park District

Recreation

Enterprise

Park Planning

Landscape

Lighting &

Landscape

Districts

Village Drive

Resource

Center

City Clerk Redevelopment

Human

Resources

Facilities

Management

Asset

Management

Economic

Development

City of Brentwood - Organizational Chart

City of Brentwood – 2001/ 02 CAFR ix

October 31, 2002

The Honorable Mayor and City Council Members

City of Brentwood

Brentwood, California 94513

Dear Mayor McPoland and Members of the City Council:

I am pleased to submit the Comprehensive Annual Financial Report ( CAFR) of the City of Brentwood, California for the fiscal year ended June

30, 2002. The City of Brentwood has taken a leadership role in implementing GASB 34. This early implementation, before the 2003 deadline,

will enable the City Council and residents to become more aware of the benefits and information contained in the new financial reporting model.

This is the first year that the City’s Department of Finance has prepared this report using the new reporting requirements as prescribed by GASB

Statement No. 34. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures,

rests with the City. To the best of City Staff’s knowledge and belief, the enclosed data are accurate in all material respects and are reported in a

manner designed to fairly present the financial position and results of operations of the various activities of the City of Brentwood. All disclosures

necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

City Hall - 708 Third Street, Brentwood, California 94513- 1396 Phone: ( 925) 516- 5400 Fax: ( 925) 516- 5401

Public Works – 161 Sycamore Avenue, Brentwood, California 94513- 1396 Phone: ( 925) 516- 5498 Fax: ( 925) 516- 5497

Community Development – 104 Oak Street, Brentwood, California 94513- 1396 Phone: ( 925) 516- 5405 Fax: ( 925) 516- 5407

Police Department – 500 Chestnut Street, Brentwood, California 94513- 1306 Phone: ( 925) 634- 6911 Fax: ( 925) 516- 5247

Parks and Recreation – 740 Third Street, Brentwood, California 94513- 1396 Phone: ( 925) 516- 5444 Fax: ( 925) 516- 5445

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR x

In addition to fund- by- fund financial information currently presented in the City’s financial statements, we are now including government- wide

financial statements. The government- wide financial statements include a Statement of Net Assets that provides the total net equity of the City

including infrastructure and the Statement of Net Activities that shows the cost of providing government services. These statements have been

prepared using the accrual basis of accounting versus the modified accrual method used in the fund financial statements. A reconciliation report is

provided as a key to understanding the changes between the two reporting methods. In addition, the new reporting model includes an emphasis on

the City’s major funds as shown in the Governmental Fund Statements. These new statements combined with other information are further

analyzed in a new narrative section called Management’s Discussion and Analysis ( MD& A). The MD& A provides “ financial highlights” and

interprets the financial reports by analyzing trends and by explaining changes, fluctuations and variances in the financial data. In addition, the

MD& A is intended to disclose any known significant events or decisions that affect the financial condition of the City.

The Comprehensive Annual Financial Report ( CAFR) is prepared in accordance with accounting principles generally accepted in the United States

of America as promulgated by the Governmental Accounting Standards Board ( GASB).

This report is presented in three sections as follows:

1. Introductory Section - Letter of Transmittal with comments on the operations of the City, the City’s organizational chart and a

list of principal public officials and administrative personnel;

2. Basic Financial Statements and Required Supplementary Information - The Basic Financial Statements include

Management’s Discussion and Analysis, Government- Wide Financial Statements, Fund Financial Statements, Notes to the

Financial Statements and Required Supplementary Information, as well as the Auditors’ Report on the financial statements and

schedules. The City of Brentwood also includes an additional Supplementary Section that includes the Combining Fund Financial

Statements and is not a required section of the report; and

3. Statistical Section – Selected financial and demographic information, generally presented on a multi- year basis.

Reporting Entity

In addition to reporting directly for the City operations, two component units, the Brentwood Redevelopment Agency and Brentwood Joint Powers

Financing Authority, have been included in the primary reporting entity.

The Brentwood Redevelopment Agency ( the “ Agency”) was established pursuant to the State of California Health and Safety Code, Section

33000, entitled “ Community Redevelopment Law” and on August 20, 1981 the City Council became the governing board of the Brentwood

Redevelopment Agency. The Agency was formed for the purpose of preparing and carrying out plans for improvement, rehabilitation and

redevelopment of blighted areas within the territorial limits of the City of Brentwood. The funds of the Agency have been included in the

governmental activities in the financial statements.

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xi

The Brentwood Joint Powers Financing Authority ( the “ Authority”) is a joint powers authority organized under Section 6500 et seq. of the

California Government Code on March 14, 1995 between the City and the Agency for the purpose of acting as a vehicle for various financing

activities of the City and the Agency. The Authority’s Board of Directors is the Brentwood City Council. The primary purpose of the Authority is

to render financial assistance to the City and the Agency by issuing debt and financing the construction of public facilities.

Blended component units, although legally separate entities are, in substance, part of the government’s operations and so data from these units are

combined with data of the primary government. Each of the blended components has a June 30 year- end date for accounting purposes.

Accounting for all of the City’s activities is centralized under the Department of Finance. The department has been delegated the responsibility for

maintaining the integrity of the City’s recorded financial data. In fulfilling this responsibility, the Finance Department has prepared the

accompanying financial statements. In our professional judgment, these statements fairly and accurately reflect the financial position of the City

and the results of its operations.

This financial report includes all of the City’s funds and account groups. The City provides a full range of services. These services include police

services, public works, economic development, planning, building, engineering and inspection services, parks and recreation, and general

administrative services. The City also operates a public water and wastewater utility, as well as refuse collection, which includes disposal and a

recycling program.

Background

The City of Brentwood is located halfway between the cities of San Francisco and Sacramento at the eastern portion of Contra Costa County. The

City is governed by a five ( 5) member City Council, under the Council – Manager form of government. As of June 30, 2002, the City has a

current population of approximately 31,500 and encompasses approximately 13.73 square miles. Brentwood was incorporated in 1948 as a

general law city under the laws of the State of California.

Financial Data

Providing reliable financial information requires the establishment of accounting records adequately supported by systems of internal control. The

City’s management is responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are

protected from loss, theft, or misuse. They must also ensure that adequate accounting data is compiled to allow for the preparation of financial

statements in conformity with accounting principles generally accepted in the United States of America. The internal control structure is designed

to provide reasonable assurance that these objectives are met, while recognizing that this assurance is not absolute. The concept of reasonable

assurance recognizes that: ( 1) the cost of a control should not exceed the benefits likely to be derived; and ( 2) the valuation of costs and benefits

requires estimates and judgments by management. City administration believes the existing internal control systems are adequate to provide this

reasonable assurance that City assets are safeguarded against loss and that financial records are reliable for preparing financial statements and

maintaining accountability for assets. Furthermore, the City received the second “ Unqualified” Audit this past year. This was primarily due to the

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xii

Asset Valuation Study that accurately identified all the City’s assets, thus allowing the auditors to identify those assets. This is the first step

toward the City’s requirement of maintaining an up to date inventory program. The Governmental Accounting Standards Board ( GASB) adopted

a number of significant changes now commonly called GASB 34 or, the “ new accounting model”. Assets, including infrastructure, must now be

valued, capitalized and depreciated under the new reporting model.

The accompanying financial statements have been examined by Vavrinek, Trine, Day and Co., LLP, Certified Public Accountants. The firm was

engaged by the City Council to render an opinion on the City’s financial statements in accordance with auditing standards generally accepted in

the United States of America.

The City Council is responsible for:

1. Assuring that City administration fulfills its responsibilities in the preparation of the financial statements; and

2. Engaging the certified public accountants with whom the City Council reviews the scope of the audits and the accounting principles to be

applied in financial reporting.

To ensure complete independence, Vavrinek, Trine, Day and Co., LLP has full and free access to meet with the City Council to discuss the results

of their assessment of the adequacy of internal accounting controls and the quality of financial reporting.

The City also maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in

the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, debt service funds,

enterprises, and capital projects funds are included in the annual appropriated budget, except the Bypass Authority, Mark Roos Drainage Credit,

Street Improvement Projects, Capital Improvement 2001, Capital Projects, and the Capital Improvement Financing Programs. The level of

budgetary control is established at the fund level. The City also maintains an encumbrance accounting system as one technique for accomplishing

budgetary control.

These budgets reflect an organization whose top priorities continue to be:

• Provide and build public facilities

• Provide and maintain an adequate public infrastructure

• Plan and manage growth to maintain and enhance our small town character

• Enhance and promote Brentwood’s economic vitality

• Provide friendly customer service

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xiii

The Operating Budget maintains a stable financial environment for the City of Brentwood. The decisions made in the budget process emphasize

the City Council’s Goals and Objectives. Staff will continue to pursue all means available to achieve the City’s Mission Statement:

The City of Brentwood is dedicated to creating, maintaining and enhancing a well- planned community

that is friendly, safe and healthy for everyone.

Mission Statement Adopted January 5, 2001.

The City’s accounting records are maintained on the Accrual Basis, or Modified Accrual Basis, as appropriate. Budgets are prepared and

expenditures recorded at the object of expenditure level. A thorough explanation of the City’s funds as of June 30, 2002, and the results of each

fund’s operation for the year, are presented in the financial section of this report.

Brentwood Today

Fiscal Year 2001/ 02 saw positive economic news for the City of Brentwood with growth in population, residential construction, sales and median

family home prices, and rapidly accelerating commercial/ industrial development as follows:

􀂾 Population increased by 17%

􀂾 Single family home construction decreased by 12% ( 1,485 permits issued in 2000/ 01; 1,160 issued in 2001/ 02)

􀂾 New Home sales - 897

􀂾 Existing home sales - 523

􀂾 Median price for existing homes is $ 295,000, up 6.5%

􀂾 Median price for new homes is $ 351,500, up 8%

􀂾 530,000 square feet of retail shopping center space under construction

Number of Units vs. Value of New Construction

0

250

500

750

1000

1250

1500

1750

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

Fiscal Year Ending

Units

0

50

100

150

200

250

300

350

400

Value ( in Millions)

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xiv

Sand Creek Crossing Shopping Center

Economic Condition and Outlook

Until recently, Brentwood was a small rural agricultural community. The need for housing in the Bay Area in the early 1990’ s prompted

Brentwood’s growth at a rate of 10% to 15% per year. The City’s population has increased steadily over the last fiscal year as predicted, and the

development of single- family homes, commercial sites and infrastructure reflects the increase in this expanding population.

The City issued 1,160 building permits for single- family homes during the fiscal year ending June 30, 2002. To keep up with the growth demands,

infrastructure also was at a high level with several projects at various stages of design, construction or completion for the year.

There was significant progress in Brentwood’s economic development during Fiscal Year 2001/ 02. Prior planning efforts materialized in the

construction of the several commercial projects that will provide our residents convenient goods and services and local jobs. This commercial

growth is fueled by the maturation of the socio- economic demographic of our far- east county sub- region defined as lands in Contra Costa County

to the south and east of Somersville Road in Antioch. Approximately 160,000 people reside in the area with a median annual household income of

$ 63,000. This represents a critical mass of population and disposable income that will attract an estimated 1,200,000 square feet of retail space in

the next two years. A survey of Brentwood’s residents indicates that the far- east county population is highly trained and educated providing an

available workforce for business activities. The median value of housing in the sub- region is $ 215,000 providing an affordable housing stock with

certain areas providing executive homes in the $ 500,000 price range.

Sand Creek Crossing, a 260,000 square foot community center, was completed and will

offer the far- east county population shopping opportunities that have not been present in

the region. This shopping center will generate an estimated $ 650,000 in annual sales tax

for Brentwood. There are approved entitlements for a 450,000 square foot community

center, 180,000 square foot community center and three neighborhood centers totaling

220,000 square feet. These projects, totaling 850,000 square feet, are presently starting

construction and will be complete in 2003. It is estimated that these projects will

generate approximately $ 2,600,000 in sales tax when completed.

Future Outlook

Far East County communities, located along the State Route 4 corridor, have all

experienced significant residential growth over the last ten years as many Bay Area

residents have sought out more affordable housing options than were provided in the

inner Bay Area. As the region has grown, the Far East County has transformed from

being a primarily industrial and agricultural sub- region to a series of bedroom

communities for employment centers in the Bay Area, including San Francisco, the

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xv

Silicon Valley, the Tri- Valley, and Contra Costa County. For the City of Brentwood, the shift has, for the most part, been from an agricultural

community to a bedroom community.

Employment growth has occurred in conjunction with resident growth, though primarily in resident- serving industry sectors, including retail and

certain service sectors. A few new firms have stepped in to replace the “ basic industry” role of agriculture in exporting goods and services beyond

the local area, catalyzing the generation of new wealth in the City.

The Economic Development Department also advanced two important capital improvement projects during the last year. A 17,000 square foot

campus for Los Mendanos College was completed and occupied in September 2001 providing a full AA degree curriculum for our residents. The

City also constructed an adjacent 17,000 square foot Business and Technology Incubator to provide an affordable workplace for our resident

entrepreneurs. The final entitlements for the Sunset Industrial Complex were received in June 2002 and construction is scheduled to start in

September 2002. This is a 28- acre medium industrial project that will be sold to multiple end- users.

DEVELOPMENT

Completed Projects:

• The City completed and opened five ( 5) new neighborhood parks ( Arbor View,

Garin, Lake, Loma Vista and Orchard)

• The Brentwood Union School District and the City completed and opened a second

community joint use gymnasium at Edna Hill School, with office and storage space

provided for after school City sponsored use.

• The Liberty Union High School District and the City completed construction of a

third joint use gymnasium at Liberty High School.

• An 18,500+ square foot Skate Park was completed and opened in the community.

With the lead from the Community Skate Park Task Force, this facility is used for

recreational skating and has been host to area- wide skate competitions.

• The City of Brentwood Family Aquatic complex completed its first full year of

operation, serving over 37,000+ swimmers. This facility offers swimming lessons,

recreational swimming, lap swim, exercise classes and is the home of three

competitive swim teams, and is used for practices and swim meets/ water polo

games for Liberty Union High School.

• The conceptual master plan for the expansion of Sunset Sports Park from 10 to 37

acres and for the development of the Family Aquatic Complex neighborhood park

were completed as a result of community meetings with citizens and local user

groups.

Skateboard Park

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xvi

• The Village Drive Resources Center was chosen as one of twenty- five sites in the United States by the Ford Foundation to receive a 15

passenger van for use in health awareness/ prevention programs.

• The UC Berkeley graduate students in environmental design completed a conceptual master plan for the City for the

renovation/ revegetation of Marsh Creek and its tributaries entitled: Envisioning Brentwood’s Creeks: A Green Resource for the Future.

• The Natural Heritage Institute completed a Corridor Width Report, Parcel Inventory, and Conceptual Stream Corridor Master Plan for

Marsh, Sand and Deer Creeks for the City to assist with future planning and development.

• The City of Brentwood Parks, Trails and Recreation Master Plan was completed after nearly two years of work. This master plan sets the

policies and direction for the development of parks, trails and recreation facilities as per the recently adopted City of Brentwood General

Plan.

• The City Parks division established the first tree nursery for the City as a result of a tree grant that provided 500 seedlings. The City has

planted the trees with the assistance of community volunteers and will raise the trees for future planting in public areas.

• The first phase of the Highway 4 Bypass was opened in Spring 2002. This phase connects Balfour Road and Lone Tree Way removing

congestion from the Fairview Avenue/ Lone Tree Way area of Brentwood This project was constructed by the a joint powers authority

with funding contributions from Contra Costa County, Brentwood and surrounding communities.

• Walnut Boulevard was widened to four lanes from Balfour Road south to the

city limits, including landscaped median. This project has improved the entry

statement to the City from the south entry into Brentwood.

• The completion of Balfour Road from the Concord Avenue/ Highway 4

Bypass to the western city limits completes the four- lane arterial from the

easterly to westerly city limits. This is one of the few east- west major

corridors to have four lanes and helps to move the vehicular and bicycle traffic

throughout the City.

• The section of Lone Tree Way from Heidorn Ranch Road to the Highway 4

Bypass has been widened to six- lanes. The next phase from Highway 4

Bypass to Fairview Avenue began construction in the Summer of 2002.

• The new public parking lot located behind Chevron gas station on Brentwood

Boulevard has been completed, increasing parking availability for the

downtown area.

• To improve public parking surrounding City Hall, the high school and the

downtown area, an additional 110- space parking lot was constructed on the

Liberty High School campus in July 2002.

Wastewater Treatment Plant

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xvii

• The existing, elevated water tank was repainted, which included a new finish and two Brentwood logos. The water tank is also a major

site for antenna location.

• Fire Station # 52, a joint project between the City and the development community is located at Balfour Road and John Muir Parkway.

This new fire station has doubled the fire suppression forces in the area and ensures that fire safety is provided to the residents of

Brentwood.

• One of the largest projects in the City’s history, the Wastewater Treatment Plant, has been completed expanding the City’s wastewater

treatment capabilities from 2 million gallons per day ( mgd) to 4.5 mgd. The tertiary treated water will be available for irrigation of golf

courses, medians and parkways or released into Marsh Creek.

• Since Brentwood’s primary source of water is groundwater from local wells, the addition of Well # 14 expands our water production

capabilities by approximately 1.3 million gallons per day. This is seven times over the 1990 available supply.

• The completion of Zone II Reservoir increases our available storage capacity to 10.8 million gallons, which is 40% above the required

capacity. Keeping continued growth and public health and safety in mind, the City has already planned to construct more reservoirs in the

coming years.

CURRENT PROJECTS/ PROJECTS UNDER CONSTRUCTION

􀂃 Eight ( 8) new neighborhood parks are starting construction for opening in the 2002/ 03 fiscal year ( Balfour- Guthrie Park, Oak Meadow,

Berkshire, Miwok Park and Trail, Rolling Hills, Walnut, Heron and Black Gold.)

􀂃 Expansion of the Sunset Sports Park, the City’s only sports complex is underway. The expansion will increase the 10- acre site to 37 acres,

and will include four championship soccer fields, four softball fields, and three multi- use baseball and soccer fields. Additionally, an

equestrian staging area, children’s play area and two concessions stands will provide for a wide range of multi- use opportunities.

􀂃 The City has started the mapping of all water lines and valves and an inventory of all 15,000+ City trees. This information will be

included in the final edition of the computerized maintenance management program that will operate the Park and Facility Maintenance

divisions.

􀂃 The City is starting the conversion to a Central Irrigation Control system for the operation of all landscape and median irrigation control

city- wide, which will decrease water and energy usage.

􀂃 The City is working with Liberty Union High School District on four joint use community projects: Renovation of Liberty High School

football field into a year round surface/ all weather track; construction of a 50- meter pool at Heritage High School; construction of a joint-use

gymnasium at Heritage High School and provision of underground conduit for future sports lighting of athletic fields at Heritage High

School.

􀂃 Sand Creek Road Central - Construction of the central section of Sand Creek Road from the Highway 4 Bypass to Minnesota Avenue is

planned for completion in the Fall of 2002. This project will provide a major east- west connector by extending Sand Creek Road easterly

to Minnesota Avenue.

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xviii

Sunset Industrial Complex

􀂃 Sand Creek Road East - Construction of the eastern section of Sand Creek Road from Minnesota Avenue to Brentwood Boulevard began

in Summer 2002. At its completion, it will provide another major east- west corridor for traffic circulation in the City. It will connect the

Highway 4 Bypass to the existing Highway 4 ( Brentwood Boulevard).

􀂃 Brentwood Boulevard Widening - This project will widen Brentwood

Boulevard to four lanes with a median from Village Drive to

Applewood Commons. This widening will improve accessibility to

commercial centers and will ease the traffic flow during peak hours.

􀂃 Sunset Road Realignment - Sunset Road will be realigned in a due

east- west direction along the north side of the EBMUD Aqueduct to

intersect with Brentwood Boulevard at the Grant Street signal. The

project includes the construction of a bridge over Marsh Creek, water

and non- potable water and fiber optic line improvements.

􀂃 Brentwood Boulevard Curve - This project will improve the public

safety at the curve located south of the Safeway Shopping Center.

􀂃 Chestnut Street Extension - The extension of Chestnut Street from Oak

Street to Sellers Avenue is currently under construction.

􀂃 Annual Pavement Management Program - As part of the City’s

preventative maintenance program, the streets are surveyed to

determine where reconstruction, overlaying, surface sealing and

crack sealing are required. Various streets are repaired each year.

􀂃 Sunset Industrial Complex - Construction began in the Summer of

2002 for the City’s first major redevelopment effort. It is intended to

relocate heavy industrial uses from Brentwood Boulevard to a more

appropriate location. This project will provide a new roadway and

includes a pedestrian trail system.

􀂃 New Police Station - Brentwood’s New Police Station has begun

construction at the southeast corner of Central Boulevard and Walnut

Boulevard. The 30,000 square foot facility will serve future demand

and will have space available for a dispatch center.

New Police Station – Artist’s Rendering

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xix

􀂃 Northwest Quadrant - The City’s newly annexed northwest quadrant is currently undergoing intensive planning related to both commercial,

as well as residential development. Infrastructure, which is virtually non- existent at this time will be financed and constructed through an

acquisition- type assessment district. The district will fund approximately $ 30 million worth of infrastructure consisting of roads,

wastewater lines, water lines, storm drains and parks. Phased construction is scheduled to break ground in the third quarter of 2002 with

completion scheduled concurrently with the opening of several major commercial projects on Lone Tree Way.

Financing Future Infrastructure

Capital Improvement Financing Programs: Capital Improvement Financing Programs ( CIFP) are a mechanism through which the City and the

Development Community cooperate to fund and construct major Master Planned and Sub- Master Planned infrastructure ( roads, water and

wastewater lines, regional drainage facilities, etc.). The City is able to obtain very low interest rates through its outstanding financial reputation

and bonds are sold using the participating Developer’s property as the collateral. There is no risk involved for the City as a 3 to 1 value to lien

ratio is used to determine the amount of bonds to be sold. As the properties develop, the bonds are repaid by the new property owner over a 30-

year period.

The most recent CIFP the City has funded was CIFP 2002- 1. Items to be constructed or funded through CIFP 2002- 1 are: Lone Tree Way

Segments One and Two, Fairview Avenue reconstruction and realignment, Master Planned storm drain facilities along the Lone Tree Way

Corridor, Sycamore Avenue extension, Minnesota Avenue improvement and the extension of Garin Parkway. The total amount of the bond sale

was $ 16,585,000.

DEPARTMENT REVIEW

In the City Manager’s office, the City’s Administrative functions are expanding to fill the ever- growing needs of the community. The

establishment of an Assistant City Manager is the result of the City recognizing the needs in these areas. The Assistant City Manager will

oversee the Human Resources Division, provide staff assistance to various City Council Subcommittees, oversight of the franchise agreements,

and work on special projects assigned by the City Manager and the City Council. The Assistant City Manager will also serve as a communications

liaison for the City and its citizens. The goal is to secure and strengthen the long- term economic vitality of the City. The City has also introduced

new conveniences for its residents through establishing passport application and processing services at City Hall. Future plans call for the

expansion of the City’s grant writing efforts that will increase to citywide from what has been an engineering effort for infrastructure. The

challenge for this grant writing effort is not to lose the very successful infrastructure effort while expanding the scope.

The City Clerk’s office successfully implemented the ePacket ( paperless) agenda process. Production of the bi- monthly City Council agenda

packets utilizing the new program has resulted in the reduction of staff time and materials as follows:

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xx

• 88% reduction in staff time

• 83% reduction in materials used

• 95% reduction in staff reports requested by public

• 100% reduction in staff reports requested by staff

Furthermore, the paperless process enables staff to post the ePackets on the City’s Website for convenient viewing, downloading and retrieval of

records by the public. The process has also enhanced the City’s Records Management Program.

In 2002/ 03, the City Clerk’s office will introduce a software upgrade that will expand the City’s optical imaging system by allowing the import of

documents into the system, thus reducing the need for scanning. This will dramatically save in staff time and in the cost of outsourcing scanning

projects by eliminating paper and paper storage.

City Clerk staff will develop strategies for updating and converting the filing system for the City’s permanent and vital records located in the vault.

This will allow for the safekeeping and easy retrieval of documents.

The City Clerk’s office will perform the bi- annual update of the City’s Conflict of Interest Code pertaining to designated employee filers. The

update ensures that employees with job duties meeting criteria outlined in the Fair Political Practices Commission’s regulations file annual

Statements of Economic Interest forms.

The City Attorney has been consulted on numerous issues that could have results in claims, disputed, mediation, or litigation. In an attempt to

resolve issues before they reach the need for dispute resolution, the City has employed an in- house attorney to better respond to these possible

issues. As of June 30, 2002, the City had only one issue subject to litigation, that being the dispute with the State Water Quality Control Board

concerning the imposition of a $ 225,000 fine for the City sewer treatment plant discharge of water into Marsh Creek that had lower dissolved

oxygen than permitted. There were also only three outstanding claims, as of June 30, 2002, filed with the City Clerk, with minimum potential

financial exposure to the City.

During the past year, the City Attorney has acted with other department heads to provide opinions concerning new development fees, respond to

claims, resolve challenges to various city projects, and daily operating issues. The City expects to continue to employ an in- house counsel to

better provide daily legal advice and opinion concerning on- going city projects, operations and compliance with statutory procedures.

The Finance Department compiled and developed the City’s first Comprehensive Annual Financial Report ( CAFR) award. This was a

monumental task as it served two purposes – a savings in the preparation and publishing of the report and an amplification of the understanding of

the City’s financial status by the staff. The CAFR has become a very useful document made available to residents and interested parties.

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxi

Annual Budgets and Capital Improvement Program Budgets are maintained to enable the City to plan, comply with the legal limit that the City can

expend on funds, monitor the flow of resources, and to allow end of period evaluations for reporting to the legislative bodies. Through a concerted

effort of gathering and verifying facts, the Finance Department continues to compile reliable data for the Legislative body, city- wide, and for its

residents.

A Cost Allocation Plan is prepared annually to present an analysis of the computation of overhead charges for City- wide and department

programs. It also provides the framework for computing specific user fees and charges such as Building, Electrical, Plumbing and Mechanical

Permit fees; Engineering, Police, Parks & Recreation, Utility Billing, Facilities, Business Tax, and Administration Fees; Water, Solid Waste,

Wastewater and Solid Waste Enterprise Rates to name a few.

In an effort to minimize the cost and the time required to produce Budget reports and the Comprehensive Annual Financial Report, the Finance

Department has created its own publishing center – streamlining the gathering of data for the reports and utilizing current manpower and

equipment to produce these extensively detailed reports.

With the desire to maximize the use of labor hours in the Finance Department, an Optical Imaging system has been put to greater use. Accounts

Payable documents are now scanned into a database system that allows each employee requiring a copy or documentation of Capital Improvement

project payments, for instance, to be accessed in a timely and efficient manner – all within the confines of one’s own workspace. Documents are

available for review and copies are easily downloaded for printing without the need to dig through files of documents, thus maximizing time and

minimizing effort.

The Department administered the issuance of four new Bond issues within a one year period, which amount to $ 73,930,000. These bonds will

fund the construction, acquisition, and improvements for infrastructure within the City of Brentwood. Finance continues to be a facilitator in the

formation and administration of all Lighting and Landscape Districts, Assessment Districts, and the new Community Facilities District.

The Finance Department has proposed amending its fifty- four year old Business License Tax and Regulations, as set forth in Ordinance No. 707.

The City proposes that its business license fee and regulations be comparable to adjacent cities, provide for an equitable basis and rate, require all

businesses to pay a business license fee, provide a consistent general fund revenue for such vital services as police services, and establish updated

regulations and fees so it will not be difficult or costly to administer and for the business community to understand. The proposed change to the

business license tax is stated on a ballot, Measure D, for vote on November 5, 2002.

The Information Systems Division of the Finance Department is proud to have a center that makes state of the art equipment available. The City

has created a Business Technology Center that houses a Usability Lab to be used by businesses to test their products. The lab features a state- of-the-

art technology system designed to attract Bay Area companies and is available for collegiate courses.

The Information Systems Division provides up- to- date technology to better access City records. For example, the City has made available via the

internet, our City Budgets downloadable in Adobe Acrobat reader format. They are also working on an E- Commerce site where people will be

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxii

able to register and pay for Parks & Recreation classes on line. In addition, anyone can now subscribe to the current agendas, watch live Council

meetings on the Web and access past and current Council agendas and meetings. The City of Brentwood website features City Council items,

Boards and Commissions, City Department and General Information. Very helpful items have been incorporated into the website, including Road

Conditions, Capital Improvement projects, Web page information translated into Spanish, Public Notices, Children’s Place, Municipal codes, a

Map room guided by our GIS system, the City temperature and helpful links to local, community, state and federal sites. The City has automated

its way of processing service requests by making them accessible on line. Internally, computer service requests are instantaneous and, more

importantly, work service requests for residents for Parks and Maintenance, Public Works and Utility Billing are now available over the Internet

and transmitted to the intended department rather quickly. Work service requests are tended to in the most efficient time possible.

The Utility Billing Division of the Finance Department accomplished two major goals in the 2001/ 02 Fiscal Year. Billing software was converted

from the DOS- based TAABS system to the Windows- based Inhance system. This upgrade has enabled the City to provide our customers with

more comprehensive and detailed billing history, as well as providing more thorough reporting for internal use.

The meter change out program was completed and radio- read equipment has been installed on every meter in the City of Brentwood. This

program has allowed City staff to accurately read all the meters in the City on a monthly basis, and has eliminated the need for estimates. The

completion of this major project allows our meter readers to spend more time on customer service issues, as well as on repairs and trouble shooting

for the approximately 10,000 meters that exist in Brentwood.

In this fiscal year grants awarded to the Grants Division of the Finance Department amounted to $ 2,954,554, which were used for Parks &

Recreation projects, Waste Management and Traffic Congestion Relief. The grants awarded significantly increased from the last fiscal year by

96%.

The Brentwood Police Department continues its commitment to deliver high quality law enforcement services to a growing community.

Community programs include Neighborhood Watch, Red Ribbon Week, Vacation Watch, Tell- A- Cop, D. A. R. E. and Operation Identification.

New in 2002 is the Community Introduction Program. This program involves officers “ stopping by” a home or business simply to introduce

themselves and provide a pamphlet of services offered by the Department. Every other year the police department presents the “ Every Fifteen

Minutes” program to junior and senior high school students. The two- day presentation involves the

“ staging” of a drunken driving fatal collision, which takes students through the dramatized

consequences of drinking and driving. Program participants include students, parents, teachers,

public safety personnel and medical service providers.

Responding to emergency calls for service remains a high priority. In addition to the typical police

car, officers may also be assigned to foot, bicycle and off- road motorcycle patrol. Two motorcycle

officers are assigned to traffic enforcement and collision prevention. A SWAT team was established

to respond to critical incidents.

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxiii

Implementing and keeping current on new technologies has allowed the Department to become more efficient in its operations and service to the

public. Detectives are using new technologies, such as “ computer forensics,” to investigate Internet and other computer- related crimes.

The Police Department actively collaborates and participates with outreach groups on issues such as domestic violence, gang involvement, hate

crimes, substance abuse, victim assistance, mental illness, and the homeless.

Youth activities focus on giving kids positive direction and mentoring. The Police Activities League ( PAL) continues to grow and expand on

program variety. The Brentwood Police Explorer Scouting program offers teenagers an opportunity to be involved in their community, work with

officers and explore a career in law enforcement.

The Police Department continues to grow and evolve to meet the needs of our community. Personnel have been added and trained to provide

faster service for Livescan, child safety seat installations and processing counter requests. Police staffing has expanded to include the additions of

a new Lieutenant, Detective, Administrative Sergeant and “ Argo” the police dog. The recruitment of top quality police applicants to our City has

been extremely effective through the use of innovative hiring incentives that encourage officers to work and live in Brentwood.

The Police Department is open to the public on weekdays from 8: 30 AM to 8: 00 PM. Public information pamphlets and resource brochures are

available in the police station lobby.

During the fiscal year 2001/ 02, the Engineering Department underwent significant

personnel changes. With the appointment of a new City Engineer, Assistant City

Engineer and Project/ Contracts Manager, this new management team has continued to

drive the department to the level of success necessary to maintain complete control

over the many public projects.

The Engineering Department continues its commitment to plan, engineer and assure

the highest quality infrastructure to the residents of Brentwood. To meet the challenge

of the growing demand of infrastructure, the Engineering Department pursued an

aggressive approach to expedite the construction of major roadways, water storage and

distribution and sanitary sewer collection treatment facilities. With available limited

revenue sources of the City and grants through State and Federal programs, over $ 28

million were invested in the City’s roadway, sewer and water systems.

The Engineering Department also works cooperatively with the development

community to secure innovative financing for infrastructure ahead of the Sand Creek Business Center

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxiv

developments. Final maps, grading plans, roadway, sewer and water improvement plans were approved for 1,332 residential lots over the past

year.

This has been an incredible year of commercial development for the Community Development Department. They have successfully taken

several major shopping centers through the complex environmental and development review processes. These include almost 1 million square feet

of commercial building area, such as the 75 acre Arcadia Regional Shopping Center, the Winco Shopping Center, the Sunset Industrial Park, Sand

Creek Business Park, Denny's, Microtel, two Arco stations, a full serve car wash, and the Walgreen’s Center. Due to the size and scope of some of

these projects, Environmental Impact Reports ( EIR's) have been required, which significantly contributed to the complexity and time required for

processing. The level of public comments on these EIR's has been unprecedented in Brentwood's history. Stacks of comments, many inches thick,

prepared by attorneys and environmental " experts" significantly challenged the expertise and endurance of our Planning staff. Yet they

successfully reviewed and responded in writing to these extremely lengthy, highly technical complex documents in a timely fashion, which

enabled these major economic development projects to move through the process expeditiously. The Planning Division of the Community

Development Department also reviewed and approved plans for 1,550 new homes. Three annexations were also processed through the City and

State review processes, adding 18 acres to the City.

The Building Division of the Community Development Department continued to bring a number of other major commercial projects online

through plan check construction this year, including the Sand Creek Crossing Shopping Center with TJ Maxx and Homegoods having their second

best opening sales ever. Raley's, Ross, Home Concepts furniture, Starbucks, and many other stores are soon to open in that center. Construction

continued on the Walnut Business Park and the Town Center Office Park, bringing several new office buildings online. Two new Arco gasoline

stations were also built this year and have opened to serve the community. All of the commercial Building Division activity is in addition to plan

check and inspection of over 1,200 new homes this year.

In fiscal year 2002, the Parks and Recreation Department ended with 70+ acres

of usable park acreage, up from 16+ acres in 1992. An additional 30+ acres are

under construction and will be open for use in 2003. With the addition of a second

joint use gymnasium at Edna Hill School, the recreation division was able to offer

a first- ever youth basketball program that had 275+ youth enrolled in the eight-week

program. As a result of the City of Brentwood/ Brentwood Union School

District joint use agreement, the City operates and schedules the two community

gymnasiums after school and on weekends for the community. The addition of the

Liberty High School joint use gymnasium in 2003 will continue to provide indoor

sports facility use for the entire community. The addition of the skate park has

provided the City the opportunity to add skate events and competitions, something

that the youth of the community have been requesting for a number of years. The

fenced facility is supervised by City staff, providing a safe and controlled

environment for users of all ages. The City of Brentwood Arts Commission

City of Brentwood Community Center

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxv

completed their first year in existence, offering their first art exhibit and gallery at the new Brentwood Technology Center. The Arts Commission

expanded program offering included a downtown art exhibit for local artists and school age artists from local middle schools. With the support of

City Council, the Brentwood Youth Commission conducted its first ever City- wide youth interest survey, to see what the issues and needs are for

the youth of Brentwood. With the expansion of senior citizens in the community, the recreation division also started the first steps in development

of a Senior Citizens advisory board, to provide input and direction to the department as to the issues and needs of the growing senior population.

The Parks division completed the first phase of a Computerized Maintenance Management System program that computerizes all work requests,

staff scheduling and preventative maintenance tasks. The work request will allow for City employees to input their needs directly into the system,

which also allows for tracking of the progress and task completion. Parks also took the lead in development and completion of the Urban Forest

Guidelines, the document that will guide the City in selection, planting, and maintenance of the over 15,000 City trees. With the adoption of the

City of Brentwood Parks, Trails and Recreation Master Plan, the department now has updated standards and policies for the development of park,

trail and recreation facilities for the build- out population of Brentwood. Included in this master plan are specific guidelines and requirements to

ensure the City has the necessary funding mechanisms in place for construction and maintenance of existing and future park and recreational

facilities. The Parks division also started the conceptual design process for the renovation of City Park - the City's oldest park facility. Using

State Park Bond money, the City is looking to restore the park and will consider future possibilities as a result of the downtown specific plan, the

downtown parking study, and City Park redesign.

The Parks and Recreation Department added a third division in fiscal year 2002 with the merging of the City's Facility Maintenance division. This

division also started implementation of the Computerized Maintenance Management System to automate the work and progress of maintenance of

City facilities.

After receiving four awards from the California Park and Recreation Society for

excellence in programming and facility design in 2001, the Department received two

additional awards in 2002 for excellence in the agency showcase awards division. These

awards recognize excellence of park and recreation agencies and individuals that create

community through people, parks and programs.

In fiscal year 2001/ 02, the Department of Public Works came under new management.

This created a refocusing of providing exceptional service to the citizens of Brentwood

and the fellow staff members in other City Departments. Additionally, a more business-like

approach to running public services has been implemented. This includes budget

preparation and monitoring by the Division Managers and Supervisors. The Department

is made up of four Divisions: Solid Waste, Water/ Wastewater Services, Street

Maintenance and Fleet Maintenance. An Administration Division provides support to

each of these Divisions.

Public Works Corporation Yard

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxvi

Originally established by the City of Brentwood eight years ago, the Solid Waste Enterprise Fund provides refuse collection for all residents in the

City limits. While the division continues to operate within a healthy enterprise funding, needs assessment and rate studies have not been

conducted in the past. A study is currently underway to identify long- term needs in the Division. Also, a rate study will be implemented to ensure

that the Enterprise is appropriately funded. The projected rates will support the current and future costs of the Division including expanding the

capacity of the transfer station to accommodate residential drop off.

The Water/ Wastewater Division is a single division comprised of two separate enterprise funds. The Wastewater Enterprise is seeing the

completion of a new $ 40,000,000 tertiary treatment facility. Utilizing state of the art process control, this facility will have the capacity to process

up to 4.5 mgd for beneficial reuse in irrigation throughout the City. Funded through user and development fees, this facility will ensure adequate

treatment of the City of Brentwood’s wastewater through the next 15 years. Staff is currently conducting a rate study to increase the necessary

revenues needed to improve the health of this enterprise fund while refocusing the rates from developer based to user based. In fiscal year

2003/ 04, a more comprehensive rate study will be conducted including an extensive analysis of renewal and replacement of all equipment

associated with the wastewater treatment plant. Also, associated with the Wastewater Enterprise fund is the collection system maintenance. It is

currently planned to have the entire collection system cleaned once per year. Additionally, staff will be recommending the purchase of a

specialized video based inspection equipment to assist in determining the condition of the sanitary sewer system.

The City of Brentwood’s Municipal Water System supplies approximately 80 million gallons of potable water to the community per month.

While expenditures are slightly out pacing revenues, a rate study is being conducted to chart a course to correct this. Staff is also re- evaluating the

need to build a new water treatment facility. Current and immediate future potable water needs are met through municipal wells and purchased

water. There is a significant potential for water demand reduction utilizing the reclaimed water from the wastewater treatment plant.

The Fleet Maintenance Division has been handling Preventative Maintenance and

Repairs for one full year now. In fiscal year 2001/ 02, regularly scheduled maintenance

was performed on the 107 vehicles owned by the City of Brentwood ( excluding Police

vehicles). Cost for the maintenance and repairs are currently running approximately

$ 85/ hour. Staff is examining methods to reduce this hourly rate by identifying the actual

annual cost for each vehicles and billing based on that rate. A computerized maintenance

management program will enhance this.

The Street Maintenance Division is responsible for asphalt repair and replacement,

including emergency repairs, sidewalk, curb and gutter replacements, street sweeping,

sign production and replacement, pavement marking and storm drain maintenance. In

the past year, the costs associated with this division have risen significantly. These

increases will continue as our infrastructure ages and maintenance demands increase.

Staff is examining ways to reduce the costs associated with the division, including

producing signage for other agencies and charging market rate for these products.

Public Works

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxvii

During the fiscal year 2001/ 02, the Brentwood Redevelopment Agency accomplished several programs and projects in its efforts to attain the

goals and objectives outlined in the Redevelopment Plans and implementation plan.

In September 2001, the Agency authorized the execution and issuance of Tax Allocation Bonds in the amount of $ 23,000,000 to finance certain

public improvements and to refinance an existing outstanding bond.

The Agency funded sewer line improvements for health and safety purposes in the Lone Tree Way and Brentwood Boulevard area. In addition,

the Agency funded the construction of 32 additional parking spaces in downtown area to facilitate expansion of existing businesses and attraction

of new businesses. The Agency also funded the restoration and rehabilitation of the historical theater marquee within the downtown area.

An agreement with a local developer for the development of nine high- density, single family residential units on the Agency- owned, one- acre lot

at 159 Sycamore Avenue is currently being negotiated. The developer of the Casitas Del Sol development shall design a marketing and resale

program that gives preference to residents and workers of Brentwood. This high density project will provide another housing product at a market

price not currently available in the City of Brentwood’s predominately single family housing stock selling at area median prices.

The Agency agreed to contribute $ 530,000 to the development of Sycamore Place II, a 40- unit, very low income, senior housing development that

will mirror an existing and successful complex in Brentwood. The non- profit owner/ operator also secured commitments from HUD and Contra

Costa County HOME programs, for a total project cost of over $ 5M. The site is adjacent to the existing complex, and currently houses the City

Corp Yard. The Corp Yard intends to relocate to the Sunset Industrial Complex, recently annexed into the North Brentwood Project Area.

The development of a 40- acre commercial, residential, hotel and restaurant mixed- use was facilitated by the Agency’s agreement to reimburse

$ 1.5M to the developer for assistance towards the roadway improvement costs. The Sand Creek Business Park and Gregory Ranch development

will provide 856 jobs, annual sales tax of $ 43,000 and transient occupancy tax of $ 130,300, as well as return the Agency’s investment of $ 1.5M in

less than eight years from the increased tax increment generated by the project.

The Agency purchased a small parcel adjacent to an existing Agency- owned parcel on the corner of Oak Street and Walnut Boulevard. The

Agency is considering the potential develop ability of assembling its two parcels with one privately owned parcel to the south, for a total

assemblage of approximately 4.4 acres. The development could consist of retail and/ or restaurants, and become a gateway to the downtown area.

Staff has embarked on a Downtown Parking Study to assess the design alternatives, construction costs and financial feasibility of a parking

structure in the downtown area. The parking structure will house 21,000 to 30,000 square feet of retail space on the first floor, with three levels of

parking above.

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxviii

Summertime in the Downtown concert series was funded by the Redevelopment Agency.

The concert series consists of 12 consecutive Wednesday evenings, and brings pedestrians

to the downtown. The Agency’s contribution will be a benefit to the Downtown area in that

it supports, improves and preserves the economic stimulation and revitalization, and

encourages and assists in the retention of existing businesses and attraction of new

businesses in the Downtown area.

A plan amendment process to add territory to the North Brentwood Redevelopment Area,

commonly referred to as the Sunset Industrial Complex, and to extend and re- establish

eminent domain authority was approved by the Agency and City Council. The Sunset

Industrial Complex will facilitate the reuse of existing light and heavy industrial uses along

Brentwood Boulevard in an effort to eliminate conditions of blight.

A Project Area Committee was elected during the plan amendment process. The

Committee meets monthly to discuss residential displacement and relocation plans,

redevelopment housing activities, and general redevelopment projects.

Staff anticipates developing an economic strategic plan for the Downtown Area and the

Brentwood Boulevard Corridor Area in North Brentwood. In addition, the Agency may consider matching funds for a Chamber of Commerce

marketing program.

The mid- term review of the Five- Year Implementation Plan will be prepared for approval by the Agency during the 2002/ 03 fiscal year. An

analysis and study will be undertaken to determine the feasibility of adding territory along the Lone Tree Way corridor to the North Brentwood

Project Area.

To further its mission in the upcoming 2002/ 03 year, the Redevelopment Agency will continue the identification of commercial, retail, and

industrial development programs, business assistance programs, public improvements and facilities programs, and the assistance and participation

in the expansion and improvement of the supply of very low, low and moderate income housing. This would include continuous efforts on the

Casitas Del Sol and Sycamore Place II housing projects, Downtown Parking Study, Oak and Walnut assemblage, and summer concert series.

As part of developing a business assistance program, the Agency will also consider the level of participation to assist the voluntary relocation of

industrial uses from the Brentwood Boulevard area to the new Sunset Industrial Park to act as a catalyst in the removal of existing blighted

conditions and to facilitate reuse and revitalization of the area. To facilitate the success of the Sunset Industrial Complex, the Agency has

committed to partially fund the infrastructure improvements in Sunset Industrial Complex.

Concert in the Park

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxix

Risk Management

The City has initiated a limited risk management program for workers’ compensation and general liability. As part of this comprehensive plan,

resources are being accumulated in a fund balance reserve to meet potential losses. In addition, various risk control techniques, including

employee accident prevention training, have been implemented during the year to minimize accident- related losses. Effective with the renewal of

excess insurance policies on July 1, 2002, third- party coverage is currently maintained for workers’ compensation and risk liability claims up to

$ 350,000. Risk liability coverage is currently maintained and provides coverage in three tiers:

$ 1 million with 18 cities in primary insurance pool, with a $ 5,000 deductible;

$ 2 million excess $ 1 million in an excess self- insurance pool with 135 members;

Through the excess pool, CARMA , we have reinsurance to $ 15 million. This is with Am Re and would be $ 12 million plus $ 3 million.

Total liability coverage is $ 15 million, subject to a $ 10,000 deductible.

Independent Audit

The Government Code of the State of California requires general law cities, such as the City of Brentwood, to have its financial statements audited

by an independent certified public accountant. Accordingly, this year’s audit was completed by the accounting firm of Vavrinek, Trine, Day and

Co., LLP. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of the Federal

Single Audit Act of 1984 and related OMB Circular A- 133. The auditor’s report on the general purpose financial statements is included in the

financial section hereof. The examination relating to the single audit was found to be under the limit and not needed for fiscal year 2001/ 02.

Certificate of Achievement

The Government Finance Officers Association ( GFOA) offers a recognition program for public entities to determine whether the City conforms to

the highest level of governmental accounting and financial reporting standards. Its attainment represents a significant accomplishment by a

government and its management. If a city qualifies, a Certificate of Achievement is awarded for a period of one year.

GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brentwood for its Comprehensive Annual

Financial Report for the fiscal year ended June 30, 2001, the City’s first CAFR. The Certificate of Achievement is a prestigious national award

recognizing conformance with the highest standards for preparation of state and local government financial reports.

We believe that our current CAFR conforms to the Certificate of Achievement program requirements and, therefore, this year we are submitting it

to GFOA again this year. The California Society of Municipal Finance Officers ( CSMFO) offers a similar recognition program and we will be

submitting our CAFR to them as well to determine its eligibility. It is our goal to be awarded both Certificates because it demonstrates that the

City of Brentwood

Letter of Transmittal

City of Brentwood – 2001/ 02 CAFR xxx

City conforms to a high level of financial reporting standards, which may improve the City’s future bond rating with the debt investment

community.

Acknowledgements

I wish to thank the City Council for providing clear policy direction and goals that have been used to prepare this comprehensive annual financial

report. I would also like to express my appreciation to all City of Brentwood staff members who have taken the time to participate in the

development of the report. A great deal of effort and attention to detail has gone into the preparation of this document, representing many hours of

work by staff members throughout the organization. These dedicated members assisted and contributed to its preparation. Special recognition is

given to the Finance Department staff, and specifically Gail Leech, Denise Davies, Patti Bowden, Brian Kelleher and Brenda Cappello. Their

efforts made it possible to improve the quality of the information being reported to the citizens, the City Council, and other users on a much

timelier basis. Appreciation is also expressed to the Mayor, the City Council, and the City Manager for their interest and support in planning and

conducting the financial activities of the City in a responsible and responsive manner.

The City of Brentwood has a bright future ahead because of its committed elected leadership combined with the talents and ingenuity of the

individuals within this organization. One of the key components in securing this future is through a well- planned, long- term fiscal strategy, based

upon economic development that will generate high paying, long- term employment opportunities, new and stable sales tax revenue sources and

improved intergovernmental relations. City Council and staff have taken steps to plan and implement this long- term strategy.

Though the challenges are great, the City is firmly committed to meeting each and every challenge that comes our way. This comprehensive

annual financial report is the next step towards meeting those challenges. By continuing to follow the financial policy set forth by the City

Council, Brentwood will deliver the highest level of service permitted by the available resources.

Respectfully submitted,

] É{ Ç fàxäxÇáÉÇ ctÅxÄt X{ ÄxÜ

John Stevenson Pamela Ehler

City Manager City Treasurer

Director of Finance and Information Systems

FINANCIAL SECTION

City of Brentwood – 2001/ 02 CAFR Page 1

INDEPENDENT AUDITORS' REPORT

To the Honorable Mayor and

Members of the City Council

City of Brentwood, California

We have audited the accompanying basic financial statements of the City of Brentwood, California, as of and for the year ended June 30, 2002, as

listed in the table of contents. These basic financial statements are the responsibility of the City's management. Our responsibility is to express an

opinion on these basic financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to

financial audits contained in Government Auditing Standards, issued by the Comptroller of the United States. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit

includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing

the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the City of

Brentwood, California, as of June 30, 2002, and the results of its operations and the cash flows of its proprietary funds for the year then ended in

conformity with accounting principles generally accepted in the United States of America.

As discussed in the notes to the basic financial statements, the accompanying financial statements reflect certain changes as required by GASB

Statement No. 34 for the year ended June 30, 2002. This resulted in a change in the format and content of the basic financial statements.

City of Brentwood – 2001/ 02 CAFR Page 2

The Required Supplementary Information, including Management’s Discussion and Analysis, as listed in the table of contents, is not a required

part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. This Required

Supplementary Information is the responsibility of the management of the City. We have applied certain limited procedures, which consisted

principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we

did not audit the information and accordingly, we do not express an opinion.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The combining and individual

fund financial statements and schedules listed in the table of contents are presented for purpose of additional analysis and are not a required part of

the basic financial statements of the City. These financial statements and schedules are also the responsibility of the management of the City.

Such additional information has been subjected to the auditing procedures applied in our audit of the basic financial statements, and in our opinion,

is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. The scope of our audit did not

include the statistical schedules listed in the table of contents and we do not express an opinion on them.

In accordance with Government Auditing Standards, we have also issued our report dated September 4, 2002 on our consideration of the City’s

internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That

report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this

report in considering the results of our audit.

Vavrinek, Trine, Day & Co., L. L. P.

Pleasanton, California

September 4, 2002

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood – 2001/ 02 CAFR Page 3

This discussion and analysis of the City of Brentwood’s financial performance provides an overview of the City’s financial activities

for the fiscal year ended June 30, 2002. Please read it in conjunction with the accompanying transmittal letter, the basic financial

statements and the accompanying notes to those financial statements.

FINANCIAL HIGHLIGHTS

􀂃 The total net assets of the City exceeded its liabilities at the close of the most recent fiscal year by $ 280 million. Of this

amount, $ 29.4 million may be used to meet the City’s ongoing obligations to citizens and creditors.

􀂃 The City’s total net assets increased $ 54.6 million, primarily due to the completion of projects and acquisition of assets from

developers.

􀂃 As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $ 71.8

million, an increase of $ 18.7 million net in comparison to the prior year.

􀂃 The City’s total debt increased by $ 46.7 million. The increase is the result of the funding of the Police Station with a General

Obligation Bond and the issuance of Tax Allocation bonds for Redevelopment projects.

􀂃 The City established the Emergency Preparedness Fund with a balance of $ 2 million at year end.

Overview of the Financial Statements

The financial statements presented herein include all of the activities of the City of Brentwood (“ the City”) and its component units

using the integrated approach as prescribed by GASB Statement No. 34.

The Government- Wide Financial Statements present the financial picture of the City from the economic resources measurement

focus using the accrual basis of accounting. They present governmental activities and business type activities separately. These

statements include all assets of the City ( including infrastructure) as well as all liabilities ( including long- term debt). Additionally,

certain eliminations have occurred as prescribed by the statement in regards to interfund activity, payables and receivables.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 4

The Fund Financial Statements include statements for each of the three categories of activities – governmental, business- type and

fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified accrual

basis of accounting. The business- type activities are prepared using the economic resources measurement focus and the accrual basis

of accounting. The fiduciary activities are agency funds, which only report a balance sheet and do not have a measurement focus.

Reconciliation of the Fund Financial Statements to the Government- Wide Financial Statements is provided to explain the differences

created by the integrated approach.

Government- Wide Financial Statements

The Statement of Net Assets and the Statement of Activities and Changes in Net Assets

The Statement of Net Assets and the Statement of Activities and Changes in Net Assets report information about the City as a whole

and about its activities. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is

similar to the accounting used by most private- sector companies. All of the current year’s revenues and expenses are taken into

account regardless of when cash is received or paid.

These two statements report the City’s net assets and changes in them. Net assets are the difference between assets and liabilities,

which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net

assets are one indicator of whether its financial health is improving or deteriorating. Other factors to consider are changes in the

City’s property tax base and the condition of the City’s roads.

In the Statement of Net Assets and the Statement of Activities and Changes in Net Assets, we separate the City activities as follows:

Governmental Activities – Most of the City’s basic services are reported in this category, including the General Government, Public

Safety, Community Development, Engineering, Public Works, Parks and Community Services. Property and sales taxes, user fees,

interest income, franchise fees, and state and federal grants finance these activities.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 5

Business- type Activities – The City charges a fee to customers to cover all or most of the cost of certain services it provides. The

City’s Wastewater, Solid Waste, Water, Parks and Recreation and City Rental activities are reported in this category.

Fund Financial Statements

The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are

required to be established by State law and by bond covenants. However, management establishes many other funds to help it control

and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other

money.

Governmental Funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into

and out of those funds and the balances left at year- end that are available for spending. These funds are reported using an accounting

method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash.

The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic

services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be

spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to

those in the Government- Wide financial statements are explained in a reconciliation following each Governmental Fund financial

statement.

Proprietary Funds - When the City charges customers for the services it provides – whether to outside customers or to other units of

the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities

are reported in the Statement of Net Assets and the Statement of Revenues, Expenses and Changes in Fund Net Assets. In fact, the

City’s enterprise funds are the same as the business- type activities we report in the government- wide statements but provide more

detail and additional information, such as cash flows, for proprietary funds. We use internal service funds ( the other component of

proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities – such as the

City’s Information Systems and Fleet Maintenance and Equipment Replacement Funds. The Internal Service funds are reported with

governmental activities in the Government- Wide financial statements.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 6

Reporting the City’s Fiduciary Responsibilities

The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. The City’s

fiduciary activities are reported in separate Statements of Fiduciary Net Assets. We exclude these activities from the Government-

Wide financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that

the assets reported in these funds are used for their intended purposes.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the Government- Wide and

Fund financial statements.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary

information concerning the City’s progress in funding its obligation to provide pension benefits to its employees, budgetary

comparison schedules for the general fund and each major special revenue fund.

GOVERNMENT- WIDE FINANCIAL ANALYSIS

As noted earlier, the net assets for the City as a whole increased 24.20% from $ 226 million at June 30, 2001 to $ 280 million at June

30, 2002. This increase of $ 54.6 million comes from the change in net assets as recorded in the Statement of Activities and flows

through the Statement of Net Assets. Program expenses by function, general revenues by major source, excess and/ or deficiency of

revenues over expenses before contributions to fund principal, special, and extraordinary items, and total assets are presented in the

Statement of Activities and Changes in Net Assets.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 7

2002 2001 2002 2001 2002 2001

Revenues:

Program Revenues:

Charges for services $ 12,131,112 $ 12,422,500 $ 12,746,951 $ 10,692,865 $ 24,878,063 $ 23,115,365

Operating grants and revenues 698,207 534,740 - - 698,207 534,740

Capital grants and contributions 163,450 158,399 - - 163,450 158,399

General Revenues:

Taxes:

Property taxes 5,423,132 4,246,442 532,571 381,293 5,955,703 4,627,735

Sales Tax and Gas Taxes 2,661,107 2,618,538 - - 2,661,107 2,618,538

Business license, Franchise Fees, Rentals 498,202 411,277 3 ,788 9 7,822 501,990 509,099

Public Service Taxes 391,088 316,490 - - 391,088 316,490

Measure C - TOT 449,654 372,005 - - 449,654 372,005

Motor Vehicle Taxes 1,423,128 1,226,478 - - 1,423,128 1,226,478

Other Taxes - 249,072 - - - 249,072

Investment earnings 3,122,319 3,061,885 1,247,935 1,278,451 4,370,254 4,340,336

Impact Fees 10,729,361 14,997,744 11,453,897 17,260,336 22,183,258 32,258,080

Capital Contributions 20,450,758 1,956,747 8,876,407 - 29,327,165 1,956,747

Miscellaneous 1,971,847 280,227 - - 1,971,847 280,227

Total Revenues 60,113,365 42,852,545 34,861,549 29,710,767 94,974,914 72,563,312

Expenses:

General Government 5,331,756 4,592,931 - - 5,331,756 4,592,931

Public Safety 5,681,464 5,579,676 - - 5,681,464 5,579,676

Community Development 2,944,722 7,884,275 - - 2,944,722 7,884,275

Engineering 1,577,558 - - - 1,577,558 -

Public Works 2,783,123 3,752,576 - - 2,783,123 3,752,576

Parks 744,725 169,711 - - 744,725 169,711

Community Services 581,152 - - - 581,152 -

Other 2,805,061 463,613 - - 2,805,061 463,613

Interest on Long- Term Debt 2,789,903 983,201 - - 2,789,903 983,201

Wastewater - - 2,813,091 2,728,627 2,813,091 2,728,627

Solid Waste - - 2,703,827 2,582,651 2,703,827 2,582,651

Water - - 6,394,410 7,658,566 6,394,410 7,658,566

Parks and Recreation - - 2,749,011 2,387,882 2,749,011 2,387,882

City Rentals - - 396,025 77,208 396,025 77,208

Total Expenses 25,239,464 23,425,983 15,056,364 15,434,934 40,295,828 38,860,917

Increase in net assets before transfers 34,873,901 19,426,562 19,805,185 14,275,833 54,679,086 33,702,395

Transfers ( 870,776) 1,890,753 870,776 ( 801,977) - 1,088,776

Increase ( decrease) in net assets 34,003,125 21,317,315 20,675,961 13,473,856 54,679,086 34,791,171

Net assets 7/ 1/ 01, as restated 149,591,581 128,274,266 76,285,733 62,811,877 225,877,314 191,086,143

Net assets 6/ 30/ 02 $ 183,594,706 $ 149,591,581 $ 96,961,694 $ 76,285,733 $ 280,556,400 $ 225,877,314

Governmental Activities Business- Type Activities Total Primary Governments

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 8

The City’s combined Net Assets for fiscal year ended June 30, 2002 were:

2002 2001 2002 2001 2002 2001

Current and other assets $ 89,666,864 $ 6 4,275,430 $ 30,225,305 $ 26,821,456 $ 119,892,169 $ 91,096,886

Capital assets 147,070,420 1 07,668,177 117,482,994 82,958,987 264,553,414 190,627,164

Total assets $ 236,737,284 $ 1 71,943,607 $ 147,708,299 $ 109,780,443 $ 384,445,583 $ 281,724,050

Long- term liabilities outstanding $ 39,214,503 $ 1 2,630,838 $ 47,180,897 $ 29,620,998 $ 86,395,400 $ 42,251,836

Other liabilities 13,928,075 9 ,721,188 3,565,708 3,873,712 17,493,783 13,594,900

Total liabilities $ 53,142,578 $ 2 2,352,026 $ 50,746,605 $ 33,494,710 $ 103,889,183 $ 55,846,736

Net assets:

Invested in capital assets, net of related debt $ 107,356,555 $ 1 ,783,730 $ 68,499,556 $ 44,714,572 $ 175,856,111 $ 46,498,302

Restricted 47,295,121 1 39,285,180 27,949,628 - 75,244,749 139,285,180

Unrestricted 28,943,030 8 ,522,671 512,510 31,571,161 29,455,540 40,093,832

Total Net Assets, Restated $ 183,594,706 $ 1 49,591,581 $ 96,961,694 $ 76,285,733 $ 280,556,400 $ 225,877,314

Governmental Activities Business- Type Activities Total

The City’s net assets from governmental activities increased 22.73% from $ 149.6 million to $ 183.6 million. Invested in Capital assets net of

related debt increased $ 105.6 million due to the completion of projects. Restricted net assets decreased $ 91.9 million overall as a result of the

reclassification of assets as reserved for specific projects and programs.

The City’s net assets from business- type activities increased 27.10% from $ 76.2 million to $ 96.9 million. Invested in Capital assets, net of related

debt increased $ 23.7 million due primarily to the completion of projects. The unrestricted net assets decreased by $ 31 million as a result of the

reclassification of assets as reserved for specific projects and programs.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 9

The cost of all Governmental activities this year was $ 25.2 million. However, as shown in the Statement of Activities, the amount that

the taxpayers ultimately financed for these activities was only $ 12.2 million because some of the cost was paid by those who directly

benefited from the programs ($ 12.1 million), or by other governments and organizations that subsidized certain programs with

operating grants and contributions ($. 7 million) and capital grants and contributions ($. 2 million). Community Development and

Engineering show a net revenue of $ 1.9 and $ 2.4 million, respectively, which is the result of this aggressive growth. Overall, the

City’s governmental program revenues were $ 13 million. The City paid for the remaining “ public benefit” portion of governmental

activities with $ 10.8 million in taxes ( some of which could only be used for certain programs) and with other revenues, such as

interest and general entitlements.

Total resources available during the year to finance governmental operations were $ 242.8 million consisting of Net Assets at July 1,

2001 of $ 149.6 million, program revenues of $ 13 million and General Revenues of $ 46.2 million. Total Governmental Activities

during the year were $ 25.2 million; thus Net Assets were increased by $ 34 million to $ 183.6 million.

GOVERNMENTAL ACTIVITIES

Revenues by Source

Impact Fees

23%

Investment

Earnings

7%

Taxes

23%

Miscellaneous

4%

Capital

Contributions

43%

0

1,0 0 0,0 0 0

2 ,0 0 0,0 0 0

3 ,0 0 0,0 0 0

4 ,0 0 0,0 0 0

5 ,0 0 0,0 0 0

6 ,0 0 0,0 0 0

General Government

Public Safety

Community Development

Engineering

Public Works

Parks

Community Services

Other

Interest

Program Revenues and Expenses

Expenses

Pro g ram Revenues

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 10

BUSINESS TYPE ACTIVITIES

The cost of all Proprietary ( Business Type) activities this year was $ 15.0 million. As shown in the Statement of Activities and

Changes in Net Assets, the amounts paid by users of the systems was $ 12.7 million. Investment earnings were $ 1.2 million and

Impact Fees totaled $ 11.4 million.

Total resources available during the year to finance Proprietary Fund ( Business Type) Activities were $ 132.7 million consisting of Net

Assets at July 1, 2001 of $ 76.3 million, program revenues of $ 12.7 million and General Revenues of $ 23.0 million. Total Proprietary

Fund ( Business Type) Activities during the year were $ 15 million; thus Net Assets were increased by $ 20.7 million to $ 97 million.

Revenues by Source

Capital

Contributions

40%

Taxes

2% Investment

Earnings

6%

Impact Fees

52%

0

1,0 0 0 ,0 0 0

2 ,0 0 0 ,0 0 0

3 ,0 0 0 ,0 0 0

4 ,0 0 0 ,0 0 0

5,0 0 0 ,0 0 0

6 ,0 0 0 ,0 0 0

7,0 0 0 ,0 0 0

Wastewater

Solid Waste

Water

Parks and Recreation

City Rentals

Program Revenues and Expenses

Expenses

Program

Revenues

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 11

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

The fund balance at year- end for the City’s General Fund of $ 8,960,546 is an overall increase of $ 5,087,540 over last year, primarily

due to the issuance of a General Obligation Bond for the new Police facilities. A balance of $ 4,000,000 is invested until needed.

Internal Service Funds show an increase of $ 3,192,298. The City has been able to continue to fully fund all the replacement funds and

add $ 2,000,000 to the new Emergency Preparedness Fund.

The Special Revenue Funds decreased by $ 5,060,759 from the prior year, this is attributable to the aggressive building of Roadway

infrastructure the City Council has committed to.

The Debt Service Funds increased by $ 1,978,235 due to the issuance of new debt for the City’s Capital Improvement Financing

Program ( CIFP’s) for new infrastructure, there is no liability to the City for these bonds.

The Capital Projects Funds increased by $ 16,781,317 from the prior year, this is attributable to the aggressive building program the

City has adopted.

DEBT ADMINISTRATION

Debt, considered a liability of governmental activities, increased in FY 2001/ 02 by $ 29,132,343. Per capita debt outstanding

increased from $ 342 to $ 1,245 per capita compared to the prior fiscal year due primarily to the issuance of the Certificates of

Participation Bonds and General Obligation Bonds for the new Police Facility. Detailed information regarding long- term debt

activity can be found in Notes to the Basic Financials.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 12

Balance Incurred or Satisfied or Balance

June 30, 2001 Issued Matured June 30, 2002

Governmental Activities

Certificates of Participation $ 8 65,000 $ - $ 2 70,000 $ 5 95,000

Tax Allocation Bonds 3 ,240,000 - 3 ,240,000 -

CIP 2001 Revenue Bonds - 3 2,080,000 - 3 2,080,000

Capital Improvement Programs 5 ,320,000 - 5 ,320,000 -

2002 General Obligation Payable - 5 ,999,976 - 5 ,999,976

Capital Leases 2 02,951 - 2 4,847 1 78,104

Accumulated Compensated Absences 4 54,209 6 9,269 1 62,055 3 61,423

Total Governmental Activities $ 10,082,160 $ 38,149,245 $ 9,016,902 $ 39,214,503

Business- Type Activities

Lease Payable 2 93,878 - 9 7,523 1 96,355

Notes Payable 4 ,273,165 - 3 ,197,336 1 ,075,829

Note Payable - State Water Resources 1 2,428,954 2 1,010,789 - 3 3,439,743

Water and Wastewater Revenue Bonds 1 2,625,001 - 2 95,001 1 2,330,000

Accumulated Compensated Absences - 1 38,970 - 1 38,970

Total Business- Type Activities $ 29,620,998 $ 21,149,759 $ 3,589,860 $ 47,180,897

Debt of the business- type activities increased by $ 17,559,899 in FY 2001/ 02 as a result of the issuance of the State Water Resources

loan for the new Wastewater Treatment Facility.

CASH MANAGEMENT

The City invests temporarily idle cash in accordance with the Government Code and a formal investment policy approved by the City

Council. This policy limits investments to certain types of instruments and requires that investments must meet established criteria for

safety, liquidity and yield. As of June 30, 2002, investments ( not including investments with fiscal agent) totaled $ 105.8 million of

which $ 50.8 was invested in the California State Local Agency Investment Fund ( LAIF) and $ 55 in other investments managed by

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 13

Public Financial Management ( PFM). The portfolio managed by Public Financial Management is in full compliance with California

Government Code Section 53601 and the City’s investment policy.

The City’s investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio.

Accordingly, deposits were either insured by federal depository insurance or collateralized, with all collateral held either by the City,

its agent, or a financial institution’s trust department in the City’s name. All investments held by the government during the year and

at June 30, 2002, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board.

To obtain flexibility in cash management, the City employs a pooled cash system ( Reference Note 3 in the Notes to the Basic

Financial Statements). Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with

cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City’s Investment

Policy. The goals of the City’s Investment Policy are safety, liquidity and yield.

CAPITAL ASSETS

The capital assets of the City are those assets, which are used in the performance of the City’s functions including infrastructure

assets. At June 30, 2002, net capital assets of the governmental activities totaled $ 147,070,420 and the net capital assets of the

business- type activities totaled $ 117,482,994. Depreciation on capital assets is recognized in the Government- Wide financial

statements. Detailed information regarding Capital Assets can be found in Notes to the Basic Financials.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 14

The City has elected to use the depreciation method as defined by GASB Statement No. 34 for infrastructure reporting.

Original Accumulated Book

Cost Depreciation Value

Capital Assets - Governmental Assets:

Land $ 28,102,645 $ - $ 28,102,645

Land Improvements 282,074 1 09,096 172,978

Buildings 5 ,755,996 1 ,107,474 4 ,648,522

Infrastructure 119,054,973 25,275,262 9 3,779,711

Equipment 1,536,499 6 47,509 888,990

Vehicles 1,716,247 8 65,993 8 50,254

Work in Progress – CIP 1 8,627,320 - 18,627,320

Total Governmental Assets $ 175,075,754 $ 28,005,334 $ 147,070,420

Capital Assets - Business- Type Assets:

Land $ 414,352 $ - $ 414,352

Land Improvements 1,763,693 5 93,977 1 ,169,716

Buildings 3 4,117,746 2,851,802 3 1,265,944

Infrastructure 60,722,034 7,112,272 5 3,609,762

Equipment 3,781,166 1 ,742,080 2 ,039,086

Vehicles 1,558,902 9 64,601 5 94,301

Work in Progress – CIP & Infrastructure 2 7,811,453 - 27,811,453

Intangible Assets 597,532 19,152 5 78,380

Total Business- Type Assets $ 130,766,878 $ 13,283,884 $ 117,482,994

GENERAL FUND BUDGETARY HIGHLIGHTS

Comparing the FY 2001/ 02 original budget ( or adopted) General Fund amount of $ 13,159,477 to the final budget amount of

$ 15,326,827 shows a net increase of $ 2,167,350.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 15

Beginning Balance + Supplemental Changes = Final Budget

$ 13,159,477 + 2,167,350 = $ 15,326,827

Supplemental General Fund budget changes were made at the mid- year budget review. They include the following:

• $ 6,000,000 General Obligation Bonds issued, $ 2,000,000 was budgeted for project expenditures in the current year

• $ 117,350 reorganization resulting from reclassifications

• $ 50,000 donation to the PAL Program

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

The key assumptions in the General Fund revenue forecast for fiscal year 2002/ 03 were:

1. Property tax revenues will increase by 29.97% due to an estimated rise in assessed valuation and general growth.

2. Sales tax revenues will increase by 27.56% as a result of anticipated growth in the retail base.

3. The 14.89% increase in Franchise Fees as a result of increased rates.

4. Investment earnings will increase from the merging of Engineering and Community Development into the General Fund.

5. Approximately 850 new housing units will be constructed.

6. Decrease in Development Services Administration is due to the merger of Engineering and Community Development into the

General Fund. This is directly offset by the decrease in Administration costs to those Departments.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 16

New items specifically addressed in the 2002/ 03 budget were:

Public Safety With the rapid growth in Brentwood, the need to maintain the required 1.5 Sworn Officers per 1,000 residents mean an

additional eight officers will be needed for 2002/ 03. As the City grows in residential and commercial locations, the need for nearby

public safety facilities and staffing expands accordingly. Additional non- sworn Police staffing includes two records clerks. Also

included in the budget were the Police Incentive Program and Police Silent Second Program. Additionally, $ 400,000 was budgeted to

add a third firefighter at each Fire Station.

Recreational and Cultural Continued support for the PAL Program, Dimes A Ride, Woman’s Club, Library, and REACH were

included in the budget. The City will have seven parks coming on- line in 2003 that will add 30+ acres. Additional program

expansion will result with the opening of Liberty High School community gymnasium and the Senior Advisory board. The

department will also be expanding the computerized recreation registration/ facility rental program to include an on- line registration

option to provide service to citizens who wish to register at home from their personal computers.

Administration The addition of an Assistant City Manager will meet the needs of a rapidly growing city to stay in touch with its

residents.

Business License City Council authorized the placement of a measure on the November 2002 ballot to increase the 54- year old

business license tax rate. If passed, revenue would substantially increase.

Transportation Street Paving Equipment has been included in the 2002/ 03 Budget. Transportation issues remain at the forefront for

the community. Sandcreek Road will interconnect the North end of the City to the new Bypass. This will improve traffic flow.

Retail Expansion Sand Creek Crossing, a 260,000 square foot community center, was completed and will offer the far- east county

population shopping opportunities that have not been present in the region. This center will include TJ Maxx, Home Goods, and

Raley’s stores.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 17

Economic Development/ Redevelopment The budget focus’s on the following items:

• Update of our trade area demographic information

• Creation and distribution of marketing materials

• Debt service on the 2001 Series Tax Allocation Bonds

• Downtown Parking Study

• Sunset Industrial Complex Construction and Marketing

• Assembly of properties located at Oak and Walnut

• Installation of Sewer and Water facilities in Downtown

• Property acquisition for Christian Church Homes

The Economic Development Department also advanced two important capital improvement projects during the last year. A 17,000

square foot campus for Los Mendanos College was completed and occupied in September 2001 providing a full AA degree

curriculum for our residents. The City also constructed an adjacent 17,000 square foot Business and Technology Incubator to provide

an affordable workplace for our resident entrepreneurs. The final entitlements for the Sunset Industrial Complex were received in

June 2002 and construction is scheduled to start in September 2002. This is a 28- acre medium industrial project that will be sold to

multiple end- users.

Facility Development The Public Works Department will be relocating to temporary facilities on City of Brentwood- owned property

next to the newly constructed wastewater treatment plant. Five acres of the 13- acre site will be improved for the temporary facility.

The remaining acreage will be improved and prepared for the final corpyard facility planned to be constructed in the next three to five

years.

Water, Wastewater, and Solid Waste All three enterprises are in the process of conducting user rate studies. Solid Waste is

preparing a Master Plan to address current and future faculty needs and operational efficiencies. The Wastewater Enterprise is

updating its renewal and replacement schedule to address the new facilities and equipment associated with the new treatment plant.

City of Brentwood

Management’s Discussion and Analysis

Fiscal Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR Page 18

Emergency Preparedness Fund A new fund was established to insure financial integrity in case of an emergency, disaster or

catastrophic event.

CONTACTING THE CITY’S FINANCIAL MANAGMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the

City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report, separate

reports of the City’s component units or need any additional financial information, contact the Office of Finance at 708 Third Street,

Brentwood, California 94513, phone ( 925) 516- 5415 or e- mail dept- finance@ ci. brentwood. ca. us.

Government- Wide Financial Statements

• Statement of Net Assets

• Statement of Activities and Changes in Net Assets

Governmental Business- Type

Activities Activities

ASSETS

Current Assets:

Cash and Investments $ 55,781,957 $ 2 5,873,454 $ 8 1,655,411

Restricted Cash and Investments 30,790,812 8 67,668 3 1,658,480

Receivables 2,253,264 2 ,159,570 4 ,412,834

Prepaids 365,020 1 1,125 3 76,145

Land Held for Resale 475,811 - 4 75,811

Non- Current Assets:

Deferred Charges - 6 30,746 6 30,746

Long- term Loans Receivable - 6 82,742 6 82,742

Capital Assets, Net 128,443,100 8 9,671,541 2 18,114,641

Work in Progress 18,627,320 2 7,811,453 4 6,438,773

Total Assets 236,737,284 1 47,708,299 384,445,583

LIABILITIES AND NET ASSETS

Current Liabilities:

Accounts Payable 6,627,741 2 ,669,691 9 ,297,432

Other Liabilities 46,019 3 5,293 8 1,312

Long- term Debt due within One Year 822,100 5 72,162 1 ,394,262

Deferred Revenue 1,045,628 7 52,515 1 ,798,143

Deposits Held 5,984,200 1 03,912 6 ,088,112

Compensated Absences Payable 224,487 4 ,297 2 28,784

Non- current Liabilities due in more than One Year:

Bonds Payable 37,939,976 1 2,020,000 4 9,959,976

Notes Payable - 3 4,309,275 3 4,309,275

Capital Leases Payable 91,004 1 40,490 2 31,494

Compensated Absences Payable 361,423 1 38,970 5 00,393

Total Liabilities 53,142,578 5 0,746,605 103,889,183

Net Assets:

Investment in Capital Assets, Net of Related Debt 107,356,555 6 8,499,556 1 75,856,111

Restricted for:

Debt Service 3,216,986 - 3 ,216,986

Specific Projects and Programs 44,078,135 2 7,949,628 7 2,027,763

Unrestricted 28,943,030 5 12,510 2 9,455,540

Total Net Assets $ 183,594,706 $ 9 6,961,694 $ 280,556,400

Total

PRIMARY GOVERNMENT

City of Brentwood

Statement of Net Assets

June 30, 2002

City of Brentwood - 2001/ 02 CAFR See Accompanying Notes to the Basic Financial Statements Page 19

Functions/ Programs Expenses Charges for Service

Operating Grants

and Contributions

Capital Grants and

Contributions Total

Governmental

Activities

Business- Type

Activities Total

Primary Government:

Government Activities

General Government $ 5 ,331,756 $ 2 ,931,381 $ 3 58,729 $ 1 ,707 $ 3 ,291,817 $ ( 2,039,939) $ - $ ( 2,039,939)

Public Safety 5 ,681,464 3 71,995 2 81,663 1 61,743 8 15,401 ( 4,866,063) - ( 4,866,063)

Community Development 2 ,944,722 4 ,851,821 - - 4 ,851,821 1,907,099 - 1 ,907,099

Engineering 1 ,577,558 3 ,969,265 - - 3 ,969,265 2,391,707 - 2 ,391,707

Public Works 2 ,783,123 6 ,650 - - 6 ,650 ( 2,776,473) - ( 2,776,473)

Parks 7 44,725 - 5 7,815 - 5 7,815 ( 686,910) - ( 686,910)

Community Services 5 81,152 - - - - ( 581,152) - ( 581,152)

Other 2 ,805,061 - - - - ( 2,805,061) - ( 2,805,061)

Interest on Long- Term Debt 2 ,789,903 - - - - ( 2,789,903) - ( 2,789,903)

Total Governmental Activities 2 5,239,464 1 2,131,112 6 98,207 1 63,450 1 2,992,769 ( 12,246,695) - ( 12,246,695)

Business- Type Activities

Wastewater 2 ,813,091 2 ,764,158 - - 2 ,764,158 - ( 48,933) ( 48,933)

Solid Waste 2 ,703,827 3 ,725,346 - - 3 ,725,346 - 1 ,021,519 1 ,021,519

Water 6 ,394,410 5 ,414,427 - - 5 ,414,427 - ( 979,983) ( 979,983)

Parks and Recreation 2 ,749,011 6 26,179 - - 6 26,179 - ( 2,122,832) ( 2,122,832)

City Rentals 3 96,025 2 16,841 - - 2 16,841 - ( 179,184) ( 179,184)

Total Business- Type Activities 1 5,056,364 1 2,746,951 - - 1 2,746,951 - ( 2,309,413) ( 2,309,413)

Total Primary Government $ 4 0,295,828 $ 2 4,878,063 $ 6 98,207 $ 1 63,450 $ 2 5,739,720 ( 12,246,695) ( 2,309,413) ( 14,556,108)

General Revenues:

Taxes:

Property Taxes 5,423,132 5 32,571 5 ,955,703

Sales Tax and Gas Taxes 2,661,107 - 2 ,661,107

Business Licenses, Franchise Fees, Rental 498,202 3 ,788 5 01,990

Public Services Taxes 391,088 - 3 91,088

Measure C, TOT 449,654 - 4 49,654

Motor Vehicle Taxes 1,423,128 - 1 ,423,128

Investment Earnings 3,122,319 1 ,247,935 4 ,370,254

Impact Fees 10,729,361 1 1,453,897 2 2,183,258

Capital Contributions 20,450,758 8 ,876,407 2 9,327,165

Miscellaneous 1,971,847 - 1 ,971,847

Transfers ( 870,776) 8 70,776 -

Total General Revenues and Transfers 46,249,820 2 2,985,374 6 9,235,195

Change in Net Assets 34,003,125 2 0,675,961 5 4,679,086

Net Assets - Beginning of Year 149,591,581 7 6,285,733 2 25,877,314

Net Assets - End of Year $ 183,594,706 $ 9 6,961,694 $ 280,556,400

Primary Government

Program Revenues Net ( Expenses) Revenues and Changes in Net Assets

City of Brentwood

Statement of Activities and Changes in Net Assets

For Year Ended June 30, 2002

City of Brentwood - 2001/ 02 CAFR See Accompanying Notes to the Basic Financial Statements Page 20

Governmental Fund Financial Statements

􀂉 Balance Sheet – Governmental Funds

􀂉 Reconciliation of the Governmental Funds Balance Sheet to

the Government- Wide Statement of Net Assets

􀂉 Statement of Revenues, Expenditures and Changes in Fund

Balances – Governmental Funds

􀂉 Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances to

the Government- Wide Statement of Activities and Changes

in Net Assets

Dimes- A- Ride

Capital Capital

Improvement Improvement Other Total

General Community Financing Program Capital Financing Program Governmental Governmental

Fund Thoroughfares Development Engineering CIFP 2000- 1 Projects CIFP 94- 1 Funds Funds

ASSETS

Current Assets:

Cash and Investments $ 1 3,740,801 $ 3 0,375 $ 5,952,965 $ 7,286,012 $ - $ 11,723,616 $ - $ 12,597,347 $ 51,331,116

Restricted Cash and Investments 4 ,002,431 - - - 2 ,912,194 - 6 ,008,502 17,867,685 30,790,812

Receivables 6 78,031 1 ,190,925 6 0,387 79,248 - 13,409 - 7 50,583 2,772,583

Prepaids 3 41,374 - 4 ,923 3 ,018 - 4 ,228 - 9 ,552 363,095

Land Held for Resale - - - - - - - 4 75,811 475,811

Total Assets $ 1 8,762,637 $ 1 ,221,300 $ 6,018,275 $ 7,368,278 $ 2 ,912,194 $ 11,741,253 $ 6,008,502 $ 31,700,978 $ 85,733,417

LIABILITIES AND FUND BALANCES

Current Liabilities

Accounts Payable and Accrued Liabilities $ 3 ,790,205 $ 5 ,275 $ 31,370 $ 38,285 $ - $ 2,245,921 $ - $ 4 90,933 $ 6,601,989

Other Liabilities - - - - - - - 4 6,019 46,019

Deferred Revenue 18,328 9 21,449 4 0,209 - - - - 6 5,301 1,045,287

Deposits Held 5 ,983,200 - - - - - - 1 ,000 5,984,200

Compensated Absences Payable 10,358 - 102,301 45,689 - 64,110 - 1 ,209 223,667

Total Liabilities 9 ,802,091 9 26,724 173,880 83,974 - 2,310,031 - 6 04,462 13,901,162

Fund Balances:

Reserved for:

Prepaids 3 41,374 - 4 ,923 3 ,018 - 4 ,228 - 9 ,552 363,095

Land Held for Resale - - - - - - - 4 75,811 475,811

Debt Service - - - - - - - 3 ,216,986 3,216,986

Specific Projects and Programs 4 ,002,431 - - - 2 ,912,194 9,426,994 6 ,008,502 20,889,108 43,239,229

Unreserved, Reported in:

General Fund 4 ,616,741 - - - - - - - 4,616,741

Special Projects - - 5,839,472 7,281,286 - - - 2 0,099 13,140,857

Capital Projects - 2 94,576 - - - - - 6 ,484,960 6,779,536

Total Fund Balances 8 ,960,546 2 94,576 5,844,395 7,284,304 2 ,912,194 9,431,222 6 ,008,502 31,096,516 71,832,255

Total Liabilities and Fund Balances $ 1 8,762,637 $ 1 ,221,300 $ 6,018,275 $ 7,368,278 $ 2 ,912,194 $ 11,741,253 $ 6,008,502 $ 31,700,978 $ 85,733,417

Special Revenue Capital Projects

City of Brentwood

Balance Sheet

June 30, 2002

Governmental Funds

City of Brentwood - 2001/ 02 CAFR See Accompanying Notes to the Basic Financial Statements Page 21

Total Fund Balances - Total Governmental Funds $ 71,832,255

Amounts reported for Governmental Activities in the Statement of Net Assets are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported

in the Governmental Funds Balance Sheets. 146,584,746

Internal Service Funds are used by management to charge to costs of certain activities, such as data processing

and fleet management, to individual funds. The assets and l