Agenda packet — Aliso Viejo City Council, January 19, 2022 (part 1 of 4)

1 AGENDA

ALISO VIEJO CITY COUNCIL
WEDNESDAY, JANUARY 19, 2022
7:00 PM REGULAR MEETING
City Hall
Council Chambers
12 Journey
Aliso Viejo, CA
Mayor Ross Chun
Mayor Pro Tem Richard W. Hurt
Councilmember Tiffany Ackley
Councilmember David C. Harrington
Councilmember Mike Munzing
SPECIAL NOTICE REGARDING COVID-19
On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On September 16, 2021, Assembly Bill 361 (AB 361) was signed by Governor Newsom, to allow for the City Council to attend City Council meetings telephonically and for the public to participate in the City Council meeting by electronic means.

Given the health risks associated with COVID-19, state and local officials are recommending measures to promote social distancing; therefore, the City of Aliso Viejo will not have the Council Chambers open to the public for this meeting. Members of the public may access the meeting live using any of the following sources:
• Cox Communications Channel 851
• AT&T U-Verse Channel 99
• Online at www.avcity.org
• Online at https://attendee.gotowebinar.com/register/7447245562998740493 Public comments may be submitted by calling (949) 425-2509 to leave a recorded message by 4:00 pm on the day of the meeting or via email to [email protected]. Alternatively, public comments may be submitted by logging onto the meeting through this link and using the “Raise Hand” feature:
https://attendee.gotowebinar.com/register/7447245562998740493. Comments are limited to three minutes each.
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WELCOME to the City of Aliso Viejo City Council meeting.

It is the City’s intention to comply with the Americans with Disabilities Act (ADA). If you need special assistance to participate in the meeting, the City will make reasonable arrangements to ensure accessibility and/or accommodations. [28 CFR 35.102-35.104 ADA Title II] Please contact the City Clerk’s Office at (949) 425-2505 at least 48 hours prior to the meeting.

Regular meetings of the City Council are held on the first and third Wednesday of the month at the City Hall Council Chambers, 12 Journey, Aliso Viejo. Copies of the agenda are available in the lobby at City Hall preceding a regularly scheduled City Council meeting. Supplemental documents relating to specific agenda items, including communications received after agenda delivery, are presented to the City Council and are available for review in the City Clerk’s office, 12 Journey, Aliso Viejo. For more information, please contact City Hall at (949) 425-2505.

This meeting will be broadcast live on Cox Communications Channel 851, AT&T U-Verse Channel 99 and the City's website. By participating in the City Council Meeting, you are giving your permission to be televised. The Council Meetings are rebroadcast on Wednesday at 7:00 p.m. on Cox Communications Channel 851, AT&T UVerse Channel 99, and can be viewed on the internet at www.avcity.org.

DAVID A. DOYLE SCOTT C. SMITH MITZI ORTIZ

CITY MANAGER CITY ATTORNEY CITY CLERK

PLEASE SILENCE ALL CELL PHONES AND OTHER

ELECTRONIC EQUIPMENT WHILE CITY COUNCIL IS IN SESSION
CALL TO ORDER: CONVENE REGULAR MEETING

ROLL CALL
PLEDGE OF ALLEGIANCE:

1. SPECIAL PRESENTATIONS:

1.1. FEATURED BUSINESS OF THE MONTH - ALISO VIEJO CERTIFIED FARMERS' MARKET
Certificate of Recognition

1.2. MOULTON NIGUEL WATER DISTRICT PRESENTATION REGARDING DROUGHT &

DISTRICT UPDATES

1.3. RECOGNITION OF 2021 MAYOR TIFFANY ACKLEY

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:
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3. COMMUNITY INPUT:

Members of the public wishing to address the City Council can submit public comments by calling (949) 425-2509 to leave a recorded by 4:00 pm on the day of the meeting or via email to [email protected]. Written comments will be read into the record and recorded messages will be aired during the meeting. Alternatively, public comments may be submitted by logging onto the meeting through this link and using the “Raise Hand” feature: https://attendee.gotowebinar.com/register/7447245562998740493. Comments are limited to three (3) minutes each. In compliance with the Brown Act, no discussion or action may be taken on comments received at this time, except the City Council may briefly respond to statements made or questions posed.

4. CONSENT CALENDAR:

All matters listed on the Consent Calendar will be acted upon by one vote unless members of the City Council, or staff request a matter to be discussed and/or removed from the Consent Calendar for separate action. Items removed from the Consent Calendar will be discussed and voted upon immediately following City Council action on the remainder of the Consent Calendar.

4.1. WAIVE THE READING OF ALL ORDINANCES AND RESOLUTIONS Recommended Action: Approve the reading by title only of all ordinances and resolutions wherein the titles appear on the public agenda; said titles shall be determined to have been read by title, and further reading is waived.

4.2. RESOLUTION EXTENSION AUTHORIZING VIRTUAL CITY COUNCIL MEETINGS PURSUANT TO ASSEMBLY BILL 361
Recommended Action: Move to reconfirm findings under Assembly Bill 361 and extend Resolution No. 2021-27 to continue virtual City Council meetings.

Staff Report
Attachment 1 - Resolution No. 2021-27

4.3. APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the December 1, 2021 Regular Meeting.

Draft Minutes - December 1, 2021 Regular Meeting

4.4. ACCOUNTS PAYABLE
Recommended Action:

1. Ratify accounts payable checks and electronic funds transfers issued November 23, 2021, in the amount of $358,685.11;

2. Ratify accounts payable checks and electronic funds transfers issued December 09, 2021, in the amount of $1,162,500.30; and

3. Ratify accounts payable checks and electronic funds transfers issued December 22, 2021, in the amount of $394,056.84.

Staff Report
Attachment 1 - Accounts Payable Report
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4.5. TREASURER’S STATEMENT – OCTOBER 2021
Recommended Action: Approve October 2021 Treasurer’s Statement.

Staff Report
Attachment 1 - Oct'21 Treasurer's Report

4.6. ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
Recommended Action: Receive and file the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021.

Staff Report
Attachment 1 - ACFR Report

4.7. RESOLUTION APPROVING THE ISSUANCE BY THE CALIFORNIA MUNICIPAL

FINANCE AUTHORITY OF THE PORTION OF REVENUE BONDS THE PROCEEDS OF WHICH ARE TO BE LOANED TO QCF/I, INC., A 501(c)(3) NONPROFIT HEALTHCARE

ORGANIZATION, AND USED TO ACQUIRE THE EXISTING FACILITY LOCATED AT 200 FREEDOM LANE, ALISO, VIEJO, CALIFORNIA; AND APPROVING CERTAIN

OTHER MATTERS RELATING THERETO
Recommended Action: Adopt a Resolution approving the issuance by the California Municipal Finance Authority of the portion of revenue bonds the proceeds of which are to be loaned to QCF/I, Inc., a 501(c)(3) nonprofit healthcare organization, and used to acquire the existing facility located at 200 Freedom Lane, Aliso, Viejo, California; and approving certain other matters relating thereto.

Staff Report
Attachment 1 - Resolution

4.8. FIFTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH KOSMONT & ASSOCIATES, INC. FOR ECONOMIC DEVELOPMENT CONSULTANT SERVICES Recommended Action: Approve and authorize the City Manager to execute a Fifth Amendment to the Professional Services Agreement with Kosmont & Associates, Inc. for economic development consultant services to increase the total compensation by an amount not to exceed $12,000 and extend the term of the agreement to June 30, 2022.

Staff Report
Attachment 1 - Agreement Amendment
Attachment 2 - Proposal

4.9. FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH MIKE LINARES, INC. FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ADMINISTRATION FOR FY 2021-2022
Recommended Action: Approve and authorize the City Manager to execute the First Amendment to the Professional Services Agreement with Mike Linares, Inc. for Community Development Block Program (CDBG) Program administration for FY 2021-

22. Staff Report
Attachment 1 - Agreement Amendment

4.10. THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH BECKY

CAHA FOR AFFORDABLE HOUSING IMPLEMENTATION SERVICES
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Recommended Action: Approve and authorize City Manager to execute a Third Amendment to the Professional Services Agreement with Becky Caha, independent contractor, to increase the amount of the existing agreement.

Staff Report
Attachment 1 - Agreement Amendment
Attachment 2 - Scope of Services

5. PUBLIC HEARINGS:

5.1. PLANNING APPLICATION PA21-016 (SDP/AUP/EP) FOR A SITE DEVELOPMENT

PERMIT TO DEMOLISH AN EXISTING BUILDING AND CONSTRUCT A NEW RESTAURANT WITH A DRIVE-THRU; AN ADMINISTRATIVE USE PERMIT FOR OUTDOOR DINING; AND AN EXCEPTION PERMIT FOR A PARKING DEFICIENCY BELOW 15% AT 26641 ALISO CREEK ROAD
Recommended Action:

1. Open and conduct a public hearing;

2. Find that the request is exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines Section 15302 (Replacement or Reconstruction); and

3. Adopt a Resolution making findings under the California Environmental Quality Act and approving Planning Application PA21-016 (SDP/AUP/EP) for a site development permit to demolish an existing building and construct a new restaurant with a drivethru; an administrative use permit for outdoor dining; and an exception permit for a parking deficiency below 15% at 26641 Aliso Creek Road.

Staff Report
Attachment 1 - Resolution
Attachment 2 - Project Description
Attachment 3 - Project Plans
Attachment 4 - CEQA Analysis
Attachment 5 - Traffic Circulation Analysis
Attachment 6 - Presentation

5.2. REQUEST TO APPROVE PLANNING APPLICATION PA21-014 (SDP) FOR A SITE

DEVELOPMENT PERMIT TO ALLOW FOR EXTERIOR MODIFICATIONS TO THE

BUILDING AND PARKING LOT, INCLUDING REDESIGN OF THE PRIMARY BUILDING

ELEVATION, UPGRADES TO LANDSCAPING, AND ADJUSTMENTS TO THE PARKING LOT TO SATISFY ACCESSIBILITY REQUIREMENTS, AT 7 JOURNEY AND DETERMINATION THAT PROJECT IS CATEGORICALLY EXEMPT FROM CEQA.

Recommended Action:

1. Open and conduct a public hearing;

2. Find that the request is exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines Sections 15301 (Existing Facilities); and

3. Adopt a Resolution approving Planning Application PA21-0174 (SDP) for a site development permit to allow for exterior modifications to the building and parking lot, including redesign of the primary building elevation, upgrades to landscaping, and adjustments to the parking lot to satisfy accessibility requirements, at 7 Journey. 5 6
Staff Report
Attachment 1 - Resolution
Attachment 2 - Project Description
Attachment 3 - Project Plans
Attachment 4 - Presentation

5.3. GENERAL PLAN AMENDMENT PA21-019 (GPA) - HOUSING ELEMENT Recommended Action:

1. Open and conduct a public hearing;

2. Find that the request is exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption); and

3. Adopt a Resolution making findings under the California Environmental Quality Act and approving Planning Application PA21-019 (GPA) approving a general plan amendment to adopt the 2021-2029 Housing Element Update.

Staff Report
Attachment 1 - Resolution
Exhibit A - Housing Plan
Exhibit B - Community Profile
Exhibit C - HCD Comments and City Responses
Attachment 2 - Letter from HCD
Attachment 3 - Letters from the Public
Attachment 4 - City's Response to Public Comments
Attachment 5 - Presentation

6. DISCUSSION:

6.1. ACCEPTANCE OF DONATED SCULPTURE FROM ARTIST JON SEEMAN FOR

PLACEMENT AT ALISO VIEJO RANCH
Recommended Action:

1. Accept donation of sculpture from artist Jon Seeman for placement at Aliso Viejo Ranch; and

2. Appropriate funds from General Fund Reserves and authorize City Manager to approve expenditures not to exceed $2,000 for related installation costs.

Staff Report
Attachment 1 - Proposed Sculpture

6.2. RESOLUTION AMENDING CITY EMPLOYEE SALARY SCHEDULE TO MODIFY

EXISTING POSITION AND ADD NEW HUMAN RESOURCES ANALYST POSITION Recommended Action: Adopt a Resolution amending City employee salary schedule to modify existing position and add new Human Resources Analyst position.

Staff Report
Attachment 1 - Resolution
Attachment 2 - Salary Schedule
Attachment 3 - HR Analyst Job Description
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7. CITY MANAGER' S REPORT:

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

9. ADJOURNMENT:

Adjourn to February 16, 2022. The regularly scheduled City Council meeting of February 2, 2022 has been cancelled.
7 Certificate of Recognition
Presented to

ALISO VIEJO CERTIFIED
FARMERS’ MARKET
Aliso Viejo
Business of the Month
January 2022
Presented this 19th day of January, 2022

Ross Chun, Mayor
8 City of Aliso Viejo

AGENDA ITEM
DATE: January 19, 2022
TO: Mayor and City Council
FROM: Mitzi Ortiz, Director of Government Services
SUBJECT: RESOLUTION EXTENSION AUTHORIZING VIRTUAL CITY COUNCIL MEETINGS PURSUANT TO ASSEMBLY BILL 361
Recommended Action:

Move to reconfirm findings under Assembly Bill 361 and extend Resolution No. 2021-27 to continue virtual City Council meetings.

Fiscal Impact:

None.

Background:

Assembly Bill 361 (“AB 361”), effective October 1, 2021, waives certain provisions of the Ralph M. Brown Act and allows legislative bodies to meet virtually until January 1, 2024, provided there is a state of emergency and either:

1. state or local officials have imposed or recommended measures to promote social distancing; or

2. the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.

Under AB 361, the City is not required to allow public access at teleconference locations; however, the City must provide access to meetings via a call-in option or internet-based service option so that members of the public may address the City Council in real time.

Additionally, every 30 days the City Council must reconsider the state of emergency and make the determination to continue meeting virtually in accordance with AB 361.

Discussion:

On October 20, 2021, the City Council adopted Resolution No. 2021-27 authorizing virtual City Council meetings under AB 361, having found and determined that (1) a state of emergency related to COVID-19 is currently in effect; (2) state and local officials have 9

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recommended measures to promote social distancing in connection with COVID-19; and (3) due to the COVID-19 emergency, meeting in person would present imminent risks to the health and safety of attendees. At subsequent meetings, the City Council has reconfirmed the findings and extended the resolution pursuant to AB 361.

Staff will agendize this matter for consideration at each City Council meeting until such time as the state of emergency has been terminated or the City Council determines that conditions no longer exist to prevent meeting safely in person.

Staff recommends that the City Council reconfirm the findings in Resolution No. 2021-27 continue to exist and approve the extension of the resolution.

Attachment:

1. Resolution No. 2021-27
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RESOLUTION NO. 2021-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, AUTHORIZING VIRTUAL CITY COUNCIL
MEETINGS PURSUANT TO ASSEMBLY BILL 361
WHEREAS, the Aliso Viejo City Council (“Council”) is committed to preserving and nurturing public access and participation in meetings of the Council; and WHEREAS, with the exception of closed sessions, all meetings of the Council are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend and participate in the Council’s meetings; and
WHEREAS, starting in March 2020, in response to the spread of COVID-19 in the State of California, the Governor issued a number of executive orders aimed at containing the COVID-19 virus; and
WHEREAS, among other things, these orders waived certain requirements of the Brown Act to allow legislative bodies to meet virtually; and WHEREAS, pursuant to the Governor’s executive orders, the Council has been holding virtual meetings during the pandemic in the interest of protecting the health and safety of the public, staff, and Councilmembers; and
WHEREAS, the Governor’s executive order related to the suspension of certain provisions of the Brown Act expires on September 30, 2021; and WHEREAS, on September 16, 2021 the Governor signed Assembly Bill 361 (in effect as of October 1, 2021 – Government Code Section 54953(e)), which allows legislative bodies to meet virtually provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in Orange County, specifically, a state of emergency has been proclaimed related to COVID-19, state and local officials are recommending measures to promote social distancing, and because of the ongoing threat of COVID-19, meeting in person would present imminent risks to the health and safety of attendees;

NOW, THEREFORE, BE IT RESOLVED BY THE ALISO VIEJO CITY COUNCIL AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. 11

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Section 2. Remote Teleconference Meetings. Consistent with the provisions of Government Code Section 54953(e), the Council finds and determines that (1) a state ofemergency related to COVID-19 is currently in effect; (2) state and local officials have recommended measures to promote social distancing in connection with COVID-19; and (3) due to the COVID-19 emergency, meeting in person would present imminent risks to the health and safety of attendees. Based on such facts, findings and determinations, the Council authorizes staff to conduct remote teleconference meetings of the Council under the provisions of Government Code Section 54953(e).

Section 3. Effective Date of Resolution. This Resolution shall take effect upon adoption and shall be effective for 30 days unless earlier extended by a majority vote of the Council in accordance with Section 4 of this Resolution.

Section 4. Extension by Motion. The Council may extend the application of this Resolution by motion and majority vote by up to 30 days at a time, provided that it makes all necessary findings consistent with and pursuant to the requirements of Section 54953(e)(3).

PASSED, APPROVED AND ADOPTED this 20th day of October, 2021.

Tiffany Ackley
Mayor
APPROVED AS TO FORM: ATTEST:

Scott C. Smith Mitzi Ortiz, MMC
City Attorney City Clerk
Mitzi Ortiz, MMC
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )
I, MITZI ORTIZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that foregoing Resolution No. 2021-27 was duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 20th day of October 2021, by the following roll call vote, to wit:

AYES: Mayor Ackley, Mayor Pro Tem Chun, Councilmembers Harrington, Hurt and Munzing
NOES: None
ABSENT: None

MITZI ORTIZ, MMC

CITY CLERK
(SEAL)

MITZI ORTIZ, MMC

CITY CLERK
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Regular Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

REGULAR MEETING
December 1, 2021, 7:00 P.M.

Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
City Council conducted this meeting in accordance with California Government Code Section 54953(e)(2) and COVID-19 pandemic protocols.

CALL TO ORDER: Mayor Ackley called the Regular Meeting of the City Council of the City of Aliso Viejo to order at 7:00 p.m.

ROLL CALL:

PRESENT: MAYOR TIFFANY ACKLEY (via teleconference)
MAYOR PRO TEM ROSS CHUN (via teleconference)
COUNCILMEMBER DAVID C. HARRINGTON (via teleconference)
COUNCILMEMBER RICHARD W. HURT (via teleconference)
COUNCILMEMBER MIKE MUNZING (via teleconference) (ARRIVED AT 7:06 PM)
ABSENT: NONE
STAFF PRESENT: DAVID A. DOYLE, CITY MANAGER
SCOTT C. SMITH, CITY ATTORNEY

MITZI ORTIZ, CITY CLERK

PAUL ESPINOZA, INTERIM ADMINISTRATIVE SERVICES DIRECTOR

SHAUN PELLETIER, PUBLIC WORKS DIRECTOR

OMAR DADABHOY, COMMUNITY DEVELOPMENT DIRECTOR

LIZZY MENDOZA, ACTING RECREATION & COMMUNITY SERVICES

DIRECTOR

ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER
CAPT. CHAD KAJFASZ, CHIEF OF POLICE SERVICES
PLEDGE OF ALLEGIANCE: City Clerk Mitzi Ortiz led the pledge of allegiance.

1. SPECIAL PRESENTATIONS:

None.

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

None.
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Regular Meeting Minutes

3. COMMUNITY INPUT:

City Clerk Mitzi Ortiz entered the following communications into the record:

1. Carolyn Adamich expressed opposition to Consent Calendar Item 4.2.

2. Lou Ann Hughes expressed concern with the condition of the local dog park.

3. Tricia Portugal expressed concern with the condition of the local dog park.

4. Darren and Jessica Siegrist expressed concern with the condition of the local dog park.

4. CONSENT CALENDAR:

Unless otherwise indicated below, the following pertains to all items on the Consent Calendar.

Motion: Councilmember Harrington moved and Mayor Pro Tem Chun seconded to approve the recommended actions. Motion carried 5-0.

4.3. APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the November 17, 2021 Special Meeting and the November 17, 2021 Regular Meeting.

4.4. ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued November 10, 2021 in the amount of $1,333,240.50.

4.5. TREASURER’S STATEMENT – SEPTEMBER 2021
Recommended Action: Approve September 2021 Treasurer’s Statement.

4.6. ANNUAL MEASURE M2 EXPENDITURE REPORT
Recommended Action: Approve Resolution No. 22021-31 to adopt the FY 2020-21 M2 Expenditure Report.
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Regular Meeting Minutes

4.7. 800 MHZ COUNTYWIDE COORDINATED COMMUNICATION SYSTEM (CCCS) Recommended Action: Approve and authorize the City Manager to execute the Amendment of the Joint Use Agreement for operation, maintenance, and financial management of the Orange County 800 MHz CCCS.

4.8. AGREEMENT WITH AKINS IT, FOR THE DESIGN AND IMPLEMENTATION OF A

VIDEO SURVEILLANCE SYSTEM FOR THE ALISO VIEJO RANCH AND RECEIPT OF PROPOSITION 68 PER CAPITA GRANT FUNDS
City Manager David Doyle responded to questions regarding public safety access to surveillance videos.

Recommended Action:

1. Approve a Professional Services Agreement with Akins IT for the design and implementation of a video surveillance system at the Aliso Viejo Ranch for an amount not to exceed $98,000.00; and

2. Authorize the City Manager to execute said agreement with Akins IT and amend the FY 2021-22 adopted budget for the receipt of Proposition 68 Per Capita Grant funds.

Motion: Councilmember Harrington moved and Councilmember Munzing seconded to approve the recommended actions. Motion carried 5-0.

4.9. AGREEMENT WITH WESTERN AUDIO VISUAL FOR THE INSTALLATION OF AUDIO

AND VIDEO EQUIPMENT AT THE ALISO VIEJO RANCH
City Manager David Doyle and IT Manager Isaac Aziz responded to questions regarding scope of project.

Recommended Action: Approve and authorize the City Manager to execute a Professional Services Agreement with Western Audio Visual for the installation of audio and video equipment at the Aliso Viejo Ranch in an amount not to exceed $148,500.

Motion: Councilmember Harrington moved and Councilmember Hurt seconded to approve the recommended actions. Motion carried 5-0.

4.10. SETTLEMENT AGREEMENTS WITH DISTRIBUTORS OF OPIOIDS, AMERISOURCE

BERGEN, CARDINAL HEALTH, AND MCKESSON, AND OPIOID MANUFACTURER

JANSSEN (OWNED BY JOHNSON & JOHNSON)
Recommended Action:

1. Opt into settlement agreement with opioid distributors, Amerisource Bergen, Cardinal Health, and Mckesson, whereby the County of Orange will receive the City’s designated share of settlement funds, and direct the City Manager to execute any documents necessary to implement the action; and

2. Opt into settlement agreement with opioid manufacturer, Janssen (owned by Johnson & Johnson), whereby the County of Orange will receive the City’s designated share of the settlement funds, and direct the City Manager to execute any documents necessary to implement the action.
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Regular Meeting Minutes

5. PUBLIC HEARINGS:

None.

6. DISCUSSION:

6.1. CONSIDERATION OF BALLOT MEASURE FOR NOVEMBER 8, 2022 GENERAL

MUNICIPAL ELECTION FOR THE ADOPTION OF AN ORDINANCE ESTABLISHING

TERM LIMITS FOR MEMBERS OF THE CITY COUNCIL (ACKLEY)
Mayor Ackley provided an overview. Council discussion ensued. City Attorney Scott Smith provided additional information.

Recommended Action: Adopt Resolution No. 2021-32 of the City Council of the City of Aliso Viejo, California Submitting to the Qualified Voters of the City an Ordinance Amending the Aliso Viejo Municipal Code to Add Section 2.04.125 Regarding Councilmember Term Limits at the Regular Municipal Election to be Consolidated with the Statewide General Election to be Held on November 8, 2022.

Motion: Mayor Ackley moved and Councilmember Hurt seconded to approve the recommended actions. Motion carried 4-1, with Councilmember Munzing dissenting.

6.2. CITY COUNCIL REORGANIZATION
Recommended Action: Select a Mayor and Mayor Pro Tem in accordance with Ordinance No. 2001-022, for the 2022 calendar year.

City Clerk Mitzi Ortiz provided the staff report and opened the floor to accept nominations for Mayor. Mayor Ackley nominated Mayor Pro Tem Chun. There were no further nominations for Mayor and Ms. Ortiz closed the floor for nominations.

Motion: Nomination of Mayor Pro Tem Chun to serve as Mayor for 2022. Motion carried 5-0.

City Clerk Mitzi Ortiz opened the floor to accept nominations for Mayor Pro Tem.

Councilmember Munzing nominated Councilmember Hurt. There were no further nominations for Mayor Pro Tem and Ms. Ortiz closed the floor for nominations.

Motion: Nomination of Councilmember Hurt to serve as Mayor Pro Tem for 2022. Motion carried 5-0.

6.3. CITY COUNCIL APPOINTMENTS TO SERVE ON REGIONAL BOARDS,

COMMISSIONS AND COMMITTEES
City Clerk Mitzi Ortiz presented the staff report.
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Regular Meeting Minutes
Recommended Action:

1. Review and update Council appointment list to regional boards, commissions, and committees; and

2. If needed, adopt Resolution 2021-33 designating and appointing the City’s representative to the Orange County Fire Authority Board of Directors.

Motion: Mayor Ackley moved and Mayor Pro Tem Chun seconded to approve the appointment list as presented. Motion carried 5-0.

7. CITY MANAGER' S REPORT:

City Manager David Doyle announced All is Bright Holiday Celebration and Tree Lighting Ceremony to be held 5:00-8:00 p.m. on December 2, 2021 at Aliso Viejo Town Center Fountain and Amphitheater; Boys and Girls Club of Capistrano Valley Operation Holiday Homework donation and volunteer opportunities; OCFA Spark of Love Holiday Toy Drive donation opportunities; and closure of The Row at Town Center at the property owner’s request.

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

Councilmember Harrington:
 Received consensus to agendize discussion on filling of City Council vacancies  Expressed appreciation to staff
 Extended wishes for a happy holiday season
Councilmember Munzing:
 Attended Chabad of Aliso Viejo Chanukah Celebration
 Extended wishes for a happy holiday season
Councilmember Hurt:
 Expressed appreciation to staff
 Expressed appreciation for selection as Mayor Pro Tem  Extended wishes for a happy holiday season
 Requested announcement from Captain Kajfasz on available mental health resources Mayor Pro Tem Chun:
 Expressed appreciation to staff
 Attended Orange County Council of Governments General Assembly  Commented on Pacific Life efforts to support Asian Pacific Islander employees  Attended Southern California Edison Government Advisory Panel  Attended Boy Scout Troop 774 event
 Attended Chabad of Aliso Viejo Chanukah Celebration
 Expressed appreciation for selection as Mayor
 Extended wishes for a happy holiday season
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Regular Meeting Minutes
Mayor Ackley:
 Expressed appreciation to staff
 Commented on positive working relationship with AVCA
 Attended Chabad of Aliso Viejo Chanukah Celebration
 Congratulated Mayor Pro Tem Chun and Councilmember Hurt on selection as Mayor and Mayor Pro Tem

9. ADJOURNMENT: Mayor Ackley adjourned the meeting at 7:50 p.m. to the regularly scheduled meeting of January 19, 2021.

Respectfully submitted: Approved by:
________________________ ________________________

MITZI ORTIZ, MMC TIFFANY ACKLEY

CITY CLERK MAYOR
19 City of Aliso Viejo

AGENDA ITEM
DATE:

TO:

FROM:

January 19, 2022
Mayor and City Council
Sheryl Mariano, Accounting Supervisor
SUBJECT: ACCOUNTS PAYABLE
Recommended Actions:

1. Ratify accounts payable checks and electronic funds transfers issued November 23, 2021, in the amount of $358,685.11;

2. Ratify accounts payable checks and electronic funds transfers issued December 09, 2021, in the amount of $1,162,500.30; and

3. Ratify accounts payable checks and electronic funds transfers issued December 22, 2021, in the amount of $394,056.84.

Fiscal Impact:

Expenditures in the amount of $1,915,242.25.

Background:

The City issues accounts payable checks on bi-weekly basis and presents it to City Council for ratification at its next regularly scheduled City Council meeting.

Discussion:

The attached register containing checks and electronic funds transfers dated November 23, 2021, through December 22, 2021, for $1,915,242.25 is being presented for ratification. All payments have been made in compliance with the City’s purchasing policy and procedures.

Payments have been reviewed and approved by the appropriate departmental staff. The issued accounts payable checks and electronic funds transfers have been audited and deemed accurate by the Accounting Supervisor.

Attachment:

1. Accounts Payable Report
20 Accounts Payable
11/23/2021
Vendor Name Description (Item) Amount
101 - GENERAL FUND
UNITED OF OMAHA LIFE INSURANCE CO. DEC'21 LIFE INSURANCE 1,236.13 CALPERS HEALTH DEC'21 CALPERS HEALTH PREMIUM 25,941.73
CALPERS HEALTH DEC'21-COUNCIL-CALPERS HEALTH PREMIUM 3,080.94 CHOICE BUILDER DEC'21 DENTAL INSURANCE 2,488.18
CHOICE BUILDER DEC'21 VISION INSURANCE 373.48
DIVISION OF THE STATE ARCHITECT JUL-SEP'21 CASP FEES 101.20 SEAN BOND P#21-0934-C&D REFUND-SEAN BOND/15 SPRUCEWOOD 500.00 IE INC P#21-1085-CANCELED PERMIT REFUND-IE/14 HILLROSE 38.38 IE INC P#21-1085-CANCELED PERMIT REFUND-IE/14 HILLROSE 219.64 AVANTI CONSTRUCTION COMPANY P#21-1150-C&D REFUND-AVANTI CONST/12 BRANDY LANE 500.00 34,479.68

CITY COUNCIL
US BANK PURCHASING CARD PROGRAM PC-DD 11/5 ACC-OC CONF-REGIS 250.00 US BANK PURCHASING CARD PROGRAM PC-DD 10/12 CAL CITIES CONF-REGIS 725.00 US BANK PURCHASING CARD PROGRAM PC-RC ICSC "HERE WE GO" EVT-REGIS 50.00 US BANK PURCHASING CARD PROGRAM PC-TA ICSC "HERE WE GO" EVT-REGIS 50.00 US BANK PURCHASING CARD PROGRAM PC-TA & RC-ICSC MEMBERSHIP DUES 100.00 CITY COUNCIL TOTAL: 1,175.00

CITY MANAGER
CALPERS HEALTH DEC'21-PG-HEALTH PREMIUM 143.00
US BANK PURCHASING CARD PROGRAM PC-DD ICSC "HERE WE GO" EVT-REGIS 50.00 US BANK PURCHASING CARD PROGRAM PC-DD ICSC MEMBERSHIP DUES 100.00 CITY MANAGER TOTAL: 293.00

ECONOMIC DEVELOPMENT
PV MAINTENANCE INC OCT'21-THE ROW MAINTENANCE 1,833.50
SWA GROUP INC APR'21 AVTC & THE ROW-PROFESSIONAL SERVICES 6,578.00 SWA GROUP INC JUL'21 AVTC & THE ROW-PROFESSIONAL SERVICES 2,002.00 ECONOMIC DEVELOPMENT TOTAL: 10,413.50

HUMAN RESOURCES
US BANK PURCHASING CARD PROGRAM PC-10/6 CJPIA CONF-BREAKFAST 16.47 US BANK PURCHASING CARD PROGRAM PC-10/5-10/7 CJPIA CONF-HOTEL 727.50 US BANK PURCHASING CARD PROGRAM PC-IPMA-HR MEMBERSHIP DUES 156.00 SOUTH COAST MEDICAL GROUP 10/26 EMPLOYEE WELLNESS FLU VACCINES 525.00 HUMAN RESOURCES TOTAL: 1,424.97

FINANCE
CALPERS HEALTH DEC'21 CALPERS ADMIN FEE 69.03
CALPERS HEALTH DEC'21 CALPERS ADMIN FEE 7.70
GARDAWORLD NOV'21-CH-CASH COURIER SERVICE 371.55
LANCE SOLL LUNGHARD LLP OCT'21-FIN-INTERIM STAFF-LSL PROFESSIONAL SRV 700.00 ROGERS ANDERSON MALODY & SCOTT LLP FY20-21 CITY AUDIT & PROGESS BILLING 12,500.00 CHOICE BUILDER DEC'21 ADMIN FEE 35.00
FINANCE TOTAL: 13,683.28

INFORMATION TECHNOLOGY
AT&T 10/6-11/5/21 CH-ALARM/POTS LINE 2,603.64
US BANK PURCHASING CARD PROGRAM IA-EOC YOUTUBE SUBSCRIPTION 64.99 US BANK PURCHASING CARD PROGRAM IA-10/4 LAPTOP CASE 37.70 US BANK PURCHASING CARD PROGRAM IA-OCT'21-WAITWHILE SUB-FRONT COUNTER 159.00 US BANK PURCHASING CARD PROGRAM IA-10/20 CITY COUNCIL EQUIP- USB CABLE 75.40 INFORMATION TECHNOLOGY TOTAL: 2,940.73

NON-DEPARTMENTAL
CERTIFIED RECORDS MANAGEMENT NOV'21 RECORDS OFF SITE STORAGE 400.15 PV MAINTENANCE INC OCT'21 VISTA PARK MAINTENANCE 1,158.00 JOANNA RAMIREZ JS-11/18 QTRLY LUNCH SUPPLIES-REIMB 21.46 NESTLE WATERS NORTH AMERICA OCT'21-CH-COFFEE/WATER FILTRATION 45.23 21 Vendor Name Description (Item) Amount
ASSOCIATION OF CALIFORNIA CITIES FY21-22 ACC-OC ANNUAL MEMBERSHIP DUES 10,857.60 RICOH USA 8/1-10/31/21-RICOH PRO 5200S COPIES 954.50
RICOH USA 10/1-10/31/21-RICOH 2504EX (FRONT COUNTER)-COPIES 162.10 CINTAS CORPORATION NO. 2 NOV'21-CH-FIRST AID MAINTENANCE 293.85 NIEVES LANDSCAPE INC NOV'21 VISTA PARK LANDSCAPE MAINTENANCE 1,028.96 FEDERAL EXPRESS CC-11/5/21-AWARDS-FEDEX CHARGES 77.28
US BANK PURCHASING CARD PROGRAM PC-10/19 COSTCO DELIVERY 245.95 US BANK PURCHASING CARD PROGRAM PC-10/2 ERC SUPPLIES-AMAZON 72.04 US BANK PURCHASING CARD PROGRAM PC-10/2 ERC SUPPLIES-TARGET 107.52 US BANK PURCHASING CARD PROGRAM PC-9/28 NOTHING BUNDT CAKES 66.00 US BANK PURCHASING CARD PROGRAM PC-10/1 ERC SUPPLIES-TARGET 42.23 US BANK PURCHASING CARD PROGRAM PC-10/1-ERC SUPPLIES-TARGET 0.01 US BANK PURCHASING CARD PROGRAM PC-9/30 ERC SUPPLIES- AMAZON 82.32 US BANK PURCHASING CARD PROGRAM PC-10/20 CC MTG DINNER - URBAN PLATES 84.32 US BANK PURCHASING CARD PROGRAM PC-9/30-ERC SUPPLIES-TARGET 10.54 US BANK PURCHASING CARD PROGRAM PC-10/1 ERC SUPPLIES-AMAZON 19.34 US BANK PURCHASING CARD PROGRAM PC-10/1 ERC SUPPLIES-AMAZON 14.00 US BANK PURCHASING CARD PROGRAM PC-10/2 ERC SUPPLIES-AMAZON 14.00 US BANK PURCHASING CARD PROGRAM PC-10/2 ERC SUPPLIES-MICHAELS 40.87 RK BRANDS, LLC OCT'21-7.97HRS-PIO/MAYOR OUTREACH/SPECIAL PROJ 717.30 ALISO VIEJO SELF STORAGE DEC'21 RENTAL STORAGE UNIT #535 430.00 ALISO VIEJO SELF STORAGE DEC'21 RENTAL STORAGE UNIT #519 330.00 NON-DEPARTMENTAL TOTAL: 17,275.57
C. S. ADMINISTRATION
ALEXANDRA TEEPLES HOLIDAY ELSA CHARACTER 400.00
M&J PAUL ENTERPRISES INC REM BAL-12/2/21 TREE LIGHTING EVENT RENTALS 5,861.25 CALPERS HEALTH DEC'21-DP-HEALTH PREMIUM 143.00
CALPERS HEALTH DEC'21-HW-HEALTH PREMIUM 143.00
ALLIANT INSURANCE SERVICES INC 12/2 TREE LIGHTING EVENT INSURANCE 513.00 SOLINK INC 100 VETERANS DAY EVENT CARDS 70.04
SPECIAL EVENT CONTRACTORS LLC REM BAL-2021 HOLIDAY TREE PLATFORM 2,462.00 JONES FOREST PRODUCTS LLC 2021 HOLIDAY TREE DECOR & INSTALL 12,641.00 SOUTH COAST SYMPHONY FY21-22-CAG-SOUTH COAST SYMPHONY 750.00 THE PINK DAFFODIL, LLC AVR-VETERAN'S DAY EVT-FLORAL ARRANGEMENTS 375.00 THE KNOT WORLDWIDE INC 11/2/21-11/1/22-WEDDING PRO VENUE MARKETING SRV 5,200.00 C. S. ADMINISTRATION TOTAL: 28,558.29

IGLESIA PARK
PV MAINTENANCE INC OCT'21 IGLESIA PARK MAINTENANCE 2,110.90 EL TORO WATER DISTRICT 10/11-11/9/21 MTR #3499 IGLESIA PARK WATER SRV 614.11 EL TORO WATER DISTRICT 10/11-11/9/21 MTR #4114 IGLESIA PARK WATER SRV 539.47 NIEVES LANDSCAPE INC NOV'21 IGLESIA LANDSCAPE MAINTENANCE 6,846.00 SO CAL EDISON OCT'21 ACCT#7997 IGLESIA PARK ELECTRICITY 200.10 IGLESIA PARK TOTAL: 10,310.58

IGLESIA BUILDING
EL TORO WATER DISTRICT 10/11-11/9/21 MTR#1850 IGLESIA BLDG WATER SRV 241.16 MASOUD DODELANDARVAR 9/20-IPCC-GLASS REPLACEMENT 377.13 TEAM ONE MANAGEMENT SERVICES OCT'21 IPCC-JANITORIAL SERVICE & SUPPLIES 895.48 TEAM ONE MANAGEMENT SERVICES NOV'21 IPCC-JANITORIAL SERVICE 861.00 CTJAMJT CORP. NOV'21 IPCC-PEST CONTROL SERVICE 95.00
SO CAL EDISON OCT'21 ACCT#7997 IGLESIA BLDG ELECTRICITY 615.48 IGLESIA BUILDING TOTAL: 3,085.25

PLANNING
CALPERS HEALTH DEC'21-MF-HEALTH PREMIUM 143.00
JENNIFER LOWE JL-11/1-11/10/21-AVTC MTG SUPPLIES-REIMB 34.84 STAPLES ADVANTAGE PLNG-OFFICE SUPPLIES 175.89
PLANNING TOTAL: 353.73

BUILDING
CALIFORNIA BUILDING OFFICIALS JS-9/10 CA BLDG OFFICIALS TRAINING REGIS 175.00 BUILDING TOTAL: 175.00

ENGINEERING (GENERAL)
PV MAINTENANCE INC NOV'21 PUBLIC WORKS WAREHOUSE LEASE 1,035.00 ENGINEERING (GENERAL) TOTAL: 1,035.00
22 Vendor Name Description (Item) Amount

STREET MAINTENANCE
PV MAINTENANCE INC OCT'21 STREET MAINTENANCE (45%) 36,292.83 STREET MAINTENANCE TOTAL: 36,292.83

LAW ENFORCEMENT-OTHER
ALL CITY MANAGEMENT SERVICES 10/17-10/30/21-458 HRS-SCHOOL CROSSING GUARD SRV 11,601.14 LAW ENFORCEMENT-OTHER TOTAL: 11,601.14

ANIMAL CONTROL
CITY OF MISSION VIEJO OCT-DEC'21 ANIMAL CARE SERVICES 94,058.87 ANIMAL CONTROL TOTAL: 94,058.87
GENERAL FUND TOTAL: 267,156.42
102 - GEN. FD-CITY HALL

NON-DEPARTMENTAL
PV MAINTENANCE INC OCT'21 CITY HALL MAINTENANCE 834.53
TEAM ONE MANAGEMENT SERVICES OCT'21 CH-JANITORIAL SERVICE 2,856.00 TEAM ONE MANAGEMENT SERVICES NOV'21 CH-JANITORIAL SERVICE 2,856.00 FOSTERS' GARDENS INC NOV'21 CH- PLANT MAINTENANCE 105.00 NIEVES LANDSCAPE INC NOV'21 CITY HALL LANDSCAPE MAINTENANCE 678.00 WAXIE'S ENTERPRISES, INC CH-JANITORIAL SUPPLIES-FLOOR LINER 60.08 WAXIE'S ENTERPRISES, INC CH-JANITORIAL SUPPLIES-MULTIFOLD TOWELS 134.86 WAXIE'S ENTERPRISES, INC CH-JANITORIAL SUPPLIES 86.54
PACIFIC PARK II ASSOCIATION DEC'21 CH HOA ASSESSMENT 347.27 NON-DEPARTMENTAL TOTAL: 7,958.28
GEN. FD-CITY HALL TOTAL: 7,958.28
103 - GF-AV RECREATION SERVICES

RECREATION SERVICES
CAROLYN LONG FALL2021-RFC241-POWER YOGA-4 PARTICIPANTS 134.40 PRESS-TIGE ENTERPRISES INC 11/7-AVR LINENS DRY CLEANING SERVICE 374.98 GARDAWORLD NOV'21-AVR-CASH COURIER SERVICE 371.54
CAROLYN WOJCIECHOWSKI FALL2021-RFC189/194-LINE DANCING-23 PARTICIPANTS 414.00 JOHN DAVID ALLEN JR FALL 2021-RFC155-TENNIS-2 PARTICIPANTS 161.20 JENNIFER ANDRUS-NELSON FALL2021-RFC052-DINING ETIQUETTE-8 PARTICIPANTS 144.00 BREAKTHROUGH SPORTS LLC FALL 2021-RFC123/124-BASKETBALL-10 PARTICIPANTS 416.00 PRESS-TIGE ENTERPRISES INC 11/12-AVR LINENS DRY CLEANING SERVICE 56.70 PRESS-TIGE ENTERPRISES INC 11/17-AVR LINEN DRY CLEANING SERVICE 377.25 AT&T 10/6-11/5/21 AVR-ALARM/POTS LINE 875.95
CTJAMJT CORP. NOV'21 AV RANCH PEST CONTROL SERVICE 395.00 DS SERVICES OF AMERICA, INC 8/18 AVR BOTTLED WATER SERVICE 155.32 CAPISTRANO UNIFIED SCHOOL DISTRICT 8/2-8/6/21-CAPO FACILITY PERMIT#11300-AV CLASSES 3.65 CAPISTRANO UNIFIED SCHOOL DISTRICT 8/27/21-CAPO FACILITY PERMIT#12642-AV CLASSES 125.26 FOSTERS' GARDENS INC NOV'21 AVR- PLANT MAINTENANCE 90.00 RICOH USA 11/1-11/30/21-AVR COPIER SUBSCRIPTION 21.00
CINTAS CORPORATION NO. 2 NOV'21-AVR-FIRST AID MAINTENACE 142.01 NIEVES LANDSCAPE INC NOV'21 AV RANCH LANDSCAPE MAINTENANCE 2,262.67 COUNTY OF ORANGE 12/1/21-11/30/22 AVR-HCA PERMIT#PR0120598 662.00 SO CAL EDISON OCT'21 ACCT#4551 FARM ELECTRICITY 704.85
SO CAL EDISON OCT'21 ACCT#6247 AVR TRACKED CHARGES ELECTRICITY 463.53 SO CAL EDISON OCT'21 ACCT#6247 AV RANCH ELECTRICITY 2,006.58 RECREATION SERVICES TOTAL: 10,357.89
GF-AV RECREATION SERVICES TOTAL: 10,357.89
203 - GAS TAX

STREET MAINTENANCE
PV MAINTENANCE INC OCT'21 STREET MAINTENANCE (GAS 55%) 44,357.91 EL TORO WATER DISTRICT 10/11-11/9/21MTR #5675 CALLE CORTEZ WATER SERVICE 84.02 R F DICKSON CO INC OCT'21 STREET SWEEPING SERVICES 8,668.66 NIEVES LANDSCAPE INC NOV'21 MEDIANS LANDSCAPE MAINTENANCE 1,586.00 SO CAL EDISON OCT'21 GS1 MEDIANS ELECTRICITY 66.49
23 Vendor Name Description (Item) Amount
SO CAL EDISON OCT'21 STREET LIGHTS TC1 ELECTRICITY 2,943.22 STREET MAINTENANCE TOTAL: 57,706.30
GAS TAX TOTAL: 57,706.30
215 - PUBLIC SAFETY GRANTS

LAW ENFORCEMENT-OTHER
COUNTY OF ORANGE NOV'21 AFIS 1,958.00
LAW ENFORCEMENT-OTHER TOTAL: 1,958.00
PUBLIC SAFETY GRANTS TOTAL: 1,958.00
225 - INTEGRATED WASTE MGMT FD

GEN-BEV CONTAINER RECYCLE
PV MAINTENANCE INC OCTOBER 2021 IGLESIA PARK TRASH CANS SETUP 520.64 GEN-BEV CONTAINER RECYCLE TOTAL: 520.64
INTEGRATED WASTE MGMT FD TOTAL: 520.64
241 - TECHNOLOGY FUND

GEN-TECHNOLOGY GRANTS
ERIC WINTER OCT'21 CC MTGS & AV SITE VISITS 1,207.00
GEN-TECHNOLOGY GRANTS TOTAL: 1,207.00
TECHNOLOGY FUND TOTAL: 1,207.00
261 - CITY FAC.-AQUATIC CENTER
PREMIER AQUATIC SERVICES AQ CTR-JUL-SEP'21 SALES TAX & USE-REIMB 771.43 771.43

GEN-AQUATIC CENTER
PREMIER AQUATIC SERVICES AQ CTR-10/22 RIVETS FOR SWIM PLATFORM-HOMEDEPO 29.73 PREMIER AQUATIC SERVICES AQ CTR-NOV'21 JACKRABBIT-SWIM LESSONS PROG 220.50 PREMIER AQUATIC SERVICES AQ CTR-10/29WEIRS/BUOYS/TEST SOLUTIONS-ALPHA WATER 228.07 PREMIER AQUATIC SERVICES AQ CTR-10/20 PROPANE FOR HEATERS-CHEVRON 47.39 PREMIER AQUATIC SERVICES AQ CTR-10/19SWIM INSTRUCTOR SPECIAL NEEDS TRAINING 135.00 PREMIER AQUATIC SERVICES AQ CTR-MONTHLY MANAGER MEETING-F&B 37.56 PREMIER AQUATIC SERVICES AQ CTR-10/16 SWIM INSTRUCTOR MTG-F&B-BJ'S 113.79 PREMIER AQUATIC SERVICES AQ CTR-10/19ADD'L SWIM INST SPECIAL NEEDS TRAINING 15.00 PREMIER AQUATIC SERVICES AQ CTR-10/27 HALLOWEEN CANDY-STATER BROS 24.97 PREMIER AQUATIC SERVICES AQ CTR-10/25 PUMKINS FOR POOL-TRADER JOE'S 24.84 PREMIER AQUATIC SERVICES AQ CTR-FALL DECORATIONS-PARTY CITY 35.56 THE GAS COMPANY 10/4-11/3/21 MTR#2349 AQ CTR GAS SERVICE 4,471.13 GARDAWORLD NOV'21-AQ CTR-CASH COURIER SERVICE 371.54
GREAT SCOTT TREE SERVICE, INC NOV'21 AQ CTR TREE REMOVAL SRV 345.00 SMART LEVELS MAILING & PRINTING INC AQ CTR-DISPLAY SIGNAGE 223.59 TEAM ONE MANAGEMENT SERVICES OCT'21 AQ CTR-JANITORIAL SERVICE 1,239.00 TEAM ONE MANAGEMENT SERVICES NOV'21 AQ CTR-JANITORIAL SERVICE 1,239.00 NIEVES LANDSCAPE INC NOV'21 AQ CTR LANDSCAPE MAINTENANCE 912.48 GEN-AQUATIC CENTER TOTAL: 9,714.15
CITY FAC.-AQUATIC CENTER TOTAL: 10,485.58
331 - CAPITAL IMPROVEMENTS

CAPITAL IMPROVEMENTS
PV MAINTENANCE INC OCT'21 AVR-STROM DRAIN CONCRETE BASE 965.00 CAPITAL IMPROVEMENTS TOTAL: 965.00
CAPITAL IMPROVEMENTS TOTAL: 965.00
24 Vendor Name Description (Item) Amount
332 - STORM WATER

DRAINAGE IMPROVEMENTS
SIERRA ANALYTICAL LABS INC NOV'21 #030 WOOD CANYON WETLANDS WQ MONITORING 370.00 DRAINAGE IMPROVEMENTS TOTAL: 370.00
STORM WATER TOTAL: 370.00
GRAND TOTAL: 358,685.11
25 Accounts Payable
12/09/2021
Vendor Name Description (Item) Amount
101 - GENERAL FUND
CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5004 MNWD 862.65 CHARLES ABBOTT ASSOC INC OCT'21 ENG 2241/GLAUKOS AV PRKWY-AP ENG & TESTING 420.00 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5049 COX UTILITY 268.38 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5060 EL TORO WATER DISTRICT 191.70 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5002 AT&T 172.53 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5063 VISTA POINTE RIDGE 115.02 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENG 5005 SCE - SADDLEBACK 57.51 CHARLES ABBOTT ASSOC INC OCT'21 CAA-7 COMPUTER STATIONS LEASE CREDIT (350.00) KATRIN HORZAD P#21-1223-C&D REFUND-ALL OC KITCHEN/11 WATER MILL 500.00 2,237.79

CITY COUNCIL
US BANK PURCHASING CARD PROGRAM MO-RC 12/5-12/7/21 ICSC CONFERENCE-HOTEL 236.97 US BANK PURCHASING CARD PROGRAM LL-RC-12/5-12/7/21 ICSC CONF-AIRFARE 408.96 US BANK PURCHASING CARD PROGRAM MO-TA 12/5-12/7/21 ICSC CONFERENCE-HOTEL 208.62 US BANK PURCHASING CARD PROGRAM MO-RC 11/5 ACC-OC LEADERHSIP CONF-REGIS 195.00 US BANK PURCHASING CARD PROGRAM LL-RC-12/5-12/7/21 ICSC CONF-REGIS 50.00 US BANK PURCHASING CARD PROGRAM MO-TA3/17-3/20/22 YOSEMITE POLICYMAKERS CONF-REGIS 500.00 US BANK PURCHASING CARD PROGRAM MO-TA 3/17/22 YOSEMITE POLICYMAKERS CONF-HOTEL 315.82 US BANK PURCHASING CARD PROGRAM LL-RC-12/5-12/7/21 ICSC CONF-HOTEL 272.12 US BANK PURCHASING CARD PROGRAM LL-RC FY21-22 ICSC MEMBERSHIP DUES 50.00 CITY COUNCIL TOTAL: 2,237.49

CITY MANAGER
US BANK PURCHASING CARD PROGRAM DD-CM TOLL ROADS CHARGES 335.00 US BANK PURCHASING CARD PROGRAM DD-10/25 STAFF LUNCH/MEETING-OPAH 129.91 US BANK PURCHASING CARD PROGRAM MO-10/26 OCCMA 2021 HOLIDAY LUNCHEON-REGIS 390.00 US BANK PURCHASING CARD PROGRAM DD-12/5-12/7 ICSC CONF-HOTEL 180.27 US BANK PURCHASING CARD PROGRAM DD-12/5-12/7 ICSC CONF-AIRFARE 137.97 US BANK PURCHASING CARD PROGRAM MO-2/22/22 EVT DEPOSIT-TARPYS ROADHOUSE 1,500.00 STAPLES ADVANTAGE CM-OFFICE SUPPLIES 113.69
CITY MANAGER TOTAL: 2,786.84

ECONOMIC DEVELOPMENT
PV MAINTENANCE INC NOV'21-THE ROW MAINTENANCE-PVM 675.50 MALCO MAINTENANCE NOV'21-THE ROW-PORTER SERVICE 650.00
ECONOMIC DEVELOPMENT TOTAL: 1,325.50

HUMAN RESOURCES
US BANK PURCHASING CARD PROGRAM PC-10/26 EMPLOYEE FLU VACCINE-SUPPLIES 15.97 CHARLES C STILL KY/SS-SECURE LIVE SCAN 114.00
HUMAN RESOURCES TOTAL: 129.97

CITY CLERK
STAPLES ADVANTAGE CC-OFFICE SUPPLIES 59.85
CITY CLERK TOTAL: 59.85

CITY ATTORNEY
BEST BEST & KRIEGER OCT'21 BBK CODE ENFORCEMENT 1,522.59 BEST BEST & KRIEGER OCT'21 BBK LEGAL SERVICES 20,656.41 BEST BEST & KRIEGER OCT'21 BBK - LABOR & EMPLOYMENT 536.40 BEST BEST & KRIEGER OCT'21 BBK - LABOR/BENEFITS 3,039.60 BEST BEST & KRIEGER OCT'21 BBK - #801 TOWN CTR SPECIFIC PLAN 3,085.60 BEST BEST & KRIEGER OCT'21 BBK - GENERAL LITIGATION 187.20 CITY ATTORNEY TOTAL: 29,027.80

FINANCE
US BANK PURCHASING CARD PROGRAM SM-2/16-2/18/22 CSMFO CONF-REGIS 470.00 US BANK PURCHASING CARD PROGRAM SM-PE-2/16-2/18/22 CSMFO CONF-REGIS 470.00 US BANK PURCHASING CARD PROGRAM SM-FY21-22 CSMFO MEMBERSHIP DUES 110.00 US BANK PURCHASING CARD PROGRAM SM-PE-FY21-22 CSMFO MEMBERSHIP DUES 75.00 26 Vendor Name Description (Item) Amount
LANCE SOLL LUNGHARD LLP NOV'21-FIN-INTERIM STAFF-LSL PROFESSIONAL SRV 525.00 STAPLES ADVANTAGE FIN-OFFICE SUPPLIES 57.08
FINANCE TOTAL: 1,707.08

INFORMATION TECHNOLOGY
COX COMMUNICATIONS, INC 11/10-12/9/21 ACCT#0202-CH-TV/CABLE 150.49 COX COMMUNICATIONS, INC 11/6-12/5/21 ACCT #8802-CH-INTERNET 1,500.00 COX COMMUNICATIONS, INC 11/19-12/18/21 ACCT #9302-CH-IT SERVER ROOM 85.39 US BANK PURCHASING CARD PROGRAM IA-EOC YOUTUBE SUBSCRIPTION 64.99 US BANK PURCHASING CARD PROGRAM IA-IT SUPPLIES-LABEL TAPE-AMAZON 18.12 US BANK PURCHASING CARD PROGRAM IA-GODADDY-ALISOVIEJOCONFERENCECENTER.COM 19.17 US BANK PURCHASING CARD PROGRAM IA-IT SUPPLIES-POWER STRIP-AMAZON 68.75 US BANK PURCHASING CARD PROGRAM IA-IT SUPPLIES-LABEL TAPE-AMAZON 14.21 US BANK PURCHASING CARD PROGRAM IA-GODADDY-SSL RENEWAL 94.99 US BANK PURCHASING CARD PROGRAM IA-GODADDY-ALISOVIEJOFAM..RCENTER.COM 19.17 US BANK PURCHASING CARD PROGRAM IA-WEBCAM/NETWORK CABLE/MICE/BATTERIES/USB 394.21 US BANK PURCHASING CARD PROGRAM IA-NOV'21-WAITWHILE SUB-FRONT COUNTER 159.00 US BANK PURCHASING CARD PROGRAM IA-GODADDY-DOMAIN RENEWAL 99.31 US BANK PURCHASING CARD PROGRAM DG-11/3 MSA TRAINING & DEVELOPMENT 77.63 NATHAN M KEETER NOV'21-NETWORK SUPPORT & SECURITY 416.67 AT&T 11/19-12/18/21-CH-AT&T-FIBER-INTERNET 1,115.89
JIVE COMMUNICATIONS INC DEC'21 CH JIVE VOIP SERVICE & SUPPORT 1,847.86 TANGENT COMPUTERS INC 11/23-12/22/21 CH MICROSOFT 365 E3 LICENSES 2,084.00 INFORMATION TECHNOLOGY TOTAL: 8,229.85

NON-DEPARTMENTAL
US BANK PURCHASING CARD PROGRAM SM-11/18 QTRLY LUNCHEON-F&B 847.53 US BANK PURCHASING CARD PROGRAM PC-11/18 QTRLY LUNCHEON ICE-RALPHS 6.57 US BANK PURCHASING CARD PROGRAM LL- 11/19 MTG CC DINNER-BEYOND THAI 94.12 US BANK PURCHASING CARD PROGRAM SM-11/18 QTRLY LUNCHEON GRATUITY 127.00 US BANK PURCHASING CARD PROGRAM PC-11/3 CC MTG DINNER-URBANE CAFE 112.17 US BANK PURCHASING CARD PROGRAM PC-11/18 QTRLY LUNCHEON DESSERTS- COSTCO 82.94 US BANK PURCHASING CARD PROGRAM PC-11/18 QTRLY LUNCHEON BEVERAGES-TARGET 25.16 RICOH USA 12/12-1/11/22 RICOH C5200S LEASE 729.92
NESTLE WATERS NORTH AMERICA NOV'21-CH-COFFEE/WATER FILTRATION 65.23 JOANNA RAMIREZ JS-12/4 CH-FALL DECOR SUPPLIES-REIMB 30.71 JOANNA RAMIREZ JS-12/4 CH-CHRISTMAS TREE SUPPLIES-REIMB 65.51 RICOH USA 10/12-11/11/21 RICOH 2504 BACK OFFICE-COPIES 98.07 CUSTOM ECO FRIENDLY REM BAL-2500 ALISO VIEJO TOTE BAGS 2,495.00 STAPLES ADVANTAGE CEN-COPY& BREAK ROOM SUPPLIES 930.86
VOYAGER FLEET SYSTEMS INC NOV'21 CITY CAR FUEL 201.78
MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#2206 VISTA PARK WATER SERVICE 417.82 VIGICABI INC VETERAN'SDAY & HOLIDAY BANNERS-INSTAL &REMOVAL SRV 2,693.00 NON-DEPARTMENTAL TOTAL: 9,023.39
C. S. ADMINISTRATION
JESSICA ALCANTAR 12/2 TREE LIGHTING EVT- PHOTOGRAPHER 550.00 US BANK PURCHASING CARD PROGRAM JB-12/2 TREE LIGHTING EVT CRAFTS-MICHAELS 71.25 US BANK PURCHASING CARD PROGRAM JB-12/2 TREE LIGHTING EVT-HATS-HOBBY LOBBY 51.48 US BANK PURCHASING CARD PROGRAM JB-12/2 TREE LIGHTING EVT CRAFTS-MICHAELS 81.07 US BANK PURCHASING CARD PROGRAM LM-11/6 HEALTH FAIR VOLUNTEER-COFFEE 35.90 US BANK PURCHASING CARD PROGRAM JB-12/2 TREE LIGHTING EVT-SANTA SWITCH 5.78 US BANK PURCHASING CARD PROGRAM LM-12/2 TREE LIGHTING EVT-SUPPLIES-MICHAELS 118.95 US BANK PURCHASING CARD PROGRAM LM-12/2 TREE LIGHTING EVT- CANDY CANES 335.95 US BANK PURCHASING CARD PROGRAM LM-SEASONAL DECORATIONS-HOBBY LOBBY 219.09 US BANK PURCHASING CARD PROGRAM JB-SUPPLIES-TABLE COVERS-AMAZON 21.43 US BANK PURCHASING CARD PROGRAM JB-SUPPLIES-GLUE DOTS & TAPE-MICHAELS 16.35 M&J PAUL ENTERPRISES INC ADD'L-12/2 TREE LIGHTING RENTALS 1,615.00 ALLIANT INSURANCE SERVICES INC 12/17 BREAKFAST WITH SANTA EVENT INSURANCE 321.00 C. S. ADMINISTRATION TOTAL: 3,443.25

IGLESIA PARK
US BANK PURCHASING CARD PROGRAM DG-IP-PLAYGROUND MAINT/SOCCER NET-FOLD-A-GOAL 517.96 IGLESIA PARK TOTAL: 517.96

IGLESIA BUILDING
HARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, INC 11/10/21 IPCC- HVAC MAINTENANCE 182.85 IGLESIA BUILDING TOTAL: 182.85
27 Vendor Name Description (Item) Amount

PLANNING
REBECCA J CAHA NOV'21-12.75HRS-AFFORDABLE HOUSING CONSULTANT SRV 1,275.00 STAPLES ADVANTAGE PLNG-OFFICE SUPPLIES 13.46
PLANNING TOTAL: 1,288.46

BUILDING
CHARLES ABBOTT ASSOC INC OCT'21 CAA BUILDING SERVICES 38,796.24 STAPLES ADVANTAGE BLDG-OFFICE SUPPLIES 37.25
BUILDING TOTAL: 38,833.49

CODE ENFORCEMENT
CHARLES ABBOTT ASSOC INC OCT'21 CAA CODE ENFORCEMENT 7,332.19 CODE ENFORCEMENT TOTAL: 7,332.19

ENGINEERING (GENERAL)
PV MAINTENANCE INC DEC'21 PUBLIC WORKS WAREHOUSE LEASE 1,035.00 US BANK PURCHASING CARD PROGRAM SP-12/6 CEAOC MEETING-REGIS 90.00 US BANK PURCHASING CARD PROGRAM SP & QL-12/8 APWA BEST AWARDS LUNCHEON-REGIS 170.00 RICHARD FISHER ASSOCIATES OCT'21 ON CALL LANDSCAPE & ARCHITECTURAL SERVICES 6,773.87 CHARLES ABBOTT ASSOC INC OCT'21 CAA NPDES COSTS 21,396.80 CHARLES ABBOTT ASSOC INC OCT'21 CAA SOLID WASTE 2,777.90 CHARLES ABBOTT ASSOC INC OCT'21 CAA PW ENGINEERING-ADMIN 3,003.46 STAPLES ADVANTAGE ENG-OFFICE SUPPLIES 64.18
COUNTY OF ORANGE FY21-22 NPDES WATER QUALITY IMPLEMENTATION 829.81 ENGINEERING (GENERAL) TOTAL: 36,141.02

STREET MAINTENANCE
PV MAINTENANCE INC NOV'21 STREET MAINTENANCE (45%) 21,172.49 CHARLES ABBOTT ASSOC INC OCT'21 CAA STREET MAINTENANCE 20,837.34 CHARLES ABBOTT ASSOC INC OCT'21 CAA ENCROACHMENT PERMITS 191.70 STREET MAINTENANCE TOTAL: 42,201.53

LAW ENFORCEMENT-CONTRACT
COUNTY OF ORANGE DEC'21 LAW ENFORCEMENT 782,783.60
COUNTY OF ORANGE DEC'21 CONTRACT PAYMENT CREDIT (1,980.08) LAW ENFORCEMENT-CONTRACT TOTAL: 780,803.52

LAW ENFORCEMENT-OTHER
US BANK PURCHASING CARD PROGRAM BG-CSO-RAV4#4576-TIRE MAINTENANCE 819.65 US BANK PURCHASING CARD PROGRAM BG-CSO-RAV4#9977-TIRES/BULBS/WIPERS MAINT 611.93 US BANK PURCHASING CARD PROGRAM CK-11/4 SHERIFF HQ MTG-PARKING 10.00 US BANK PURCHASING CARD PROGRAM BG-11/2 CITY PATROL TRAINING-F&B 160.82 US BANK PURCHASING CARD PROGRAM BG-SHERIFF-10 BLACK HATS 161.63 US BANK PURCHASING CARD PROGRAM BG-LE SPECIAL EVT EQUIP-FLASHLIGHTS 1,756.50 ALISO VIEJO BANQUET CENTER LLC LE-1/23/22 DEPUTY APPRECIATION BREAKFAST EVENT 788.73 VOYAGER FLEET SYSTEMS INC NOV'21 MOTORCYCLE FUEL & CAR WASHES 558.60 LAW ENFORCEMENT-OTHER TOTAL: 4,867.86

CRIME PREVENTION
US BANK PURCHASING CARD PROGRAM BG-PALS EQUIP/ FLASHLIGHT FOR VEHICLE 160.55 STAPLES ADVANTAGE CP-OFFICE SUPPLIES 43.93
CREATIVE SERVICES OF NEW ENGLAND LE-5000 JUNIOR DEPUTY BADGE STICKERS 443.95 CRIME PREVENTION TOTAL: 648.43
EOC
LIFE STORAGE #961 12/14-1/14/22-RENTAL OFFSITE STORAGE #A1554 250.00 EOC TOTAL: 250.00
GENERAL FUND TOTAL: 973,276.12
102 - GEN. FD-CITY HALL

NON-DEPARTMENTAL
US BANK PURCHASING CARD PROGRAM DG-CITY HALL- REPAIRS & MAINT 251.80 JMG SECURITY SYSTEMS INC JAN-MAR'22-CH-FIRE ALARM MONITORING 339.12 JMG SECURITY SYSTEMS INC JAN-MAR'22-CH-ELEVATOR MONITORING 176.91 HARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, INC CREDIT MEMO-DUPLICATE PAYMENT (758.59) THURSTON ELEVATOR CONCEPTS INC DEC'21 CH-ELEVATOR MAINTENANCE 131.00 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#8510 CITY HALL WATER SRV 181.46 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#6010 CITY HALL WATER SRV 133.35 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#7051 CITY HALL WATER SRV 281.54 HARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, INC SEP'21-CH- HVAC-TSTAT RELOCATION SRV 289.16 28 Vendor Name Description (Item) Amount
HARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, INC 11/1/21 CH- HVAC MAINTENANCE 1,786.65 NON-DEPARTMENTAL TOTAL: 2,812.40
GEN. FD-CITY HALL TOTAL: 2,812.40
103 - GF-AV RECREATION SERVICES

RECREATION SERVICES
PV MAINTENANCE INC NOV'21 AV RANCH MAINTENANCE 386.00
US BANK PURCHASING CARD PROGRAM LM-"WHEN TO WORK" ANNUAL SUBSCRIPTION 200.00 US BANK PURCHASING CARD PROGRAM DG- AVR-REPAIRS & MAINT-SUPPLIES 286.65 US BANK PURCHASING CARD PROGRAM LM-AVR SUPPLIES-12 OZ CUPS 42.22 SKYHAWKS SPORTS ACADEMY, INC FALL21-RFC216-BASKETBALL-5PARTICIPANTS 338.00 EASTWOOD POWER WASH NOV'21 AVR POWER WASHING SERVICE 389.00 TIMOTHY DANA BOWEN FALL21-RFC040-PLAY-WELL TEKNOLOGIES-8 PARTICIPANTS 336.00 DS SERVICES OF AMERICA, INC 10/24 AVR BOTTLED WATER SERVICE 42.52 LYONS SECURITY SERVICE IN OCT'21-112.25HRS-SECURITY SRV-FACILITY RESERVATION 2,929.73 PEAK LIGHTING & ELECTRIC INC NOV'21-AVR-LIGHTING MAINTENANCE 199.00 WAXIE'S ENTERPRISES, INC AV RANCH JANITORIAL SUPPLIES-GUM REMOVER 187.95 TEAM ONE MANAGEMENT SERVICES NOV'21 AV RANCH JANITORIAL SERVICE 5,520.00 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR #0819 AV RANCH WATER SRV 1,900.24 MOULTON NIGUEL WATER DIST 10/25-11/22/21 MTR#1100 AV RANCH WATER SERVICE 134.39 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#5356 AV RANCH WATER SRV 281.54 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#7892/6534 AV RANCH WATER SRV 546.58 MOULTON NIGUEL WATER DIST 10/25-11/22/21 MTR #0958 AV RANCH WATER SERVICE 116.46 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR #0973 AV RANCH WATER SERVICE 86.28 JIVE COMMUNICATIONS INC DEC'21 AVR JIVE VOIP SERVICE & SUPPORT 613.86 TANGENT COMPUTERS INC 11/23-12/22/21 AVR MICROSOFT 365 E3 LICENSES 387.00 RECREATION SERVICES TOTAL: 14,923.42
GF-AV RECREATION SERVICES TOTAL: 14,923.42
203 - GAS TAX

TRAFFIC ENGINEERING
HARTZOG & CRABILL INC SEP'21 TRAFFIC SIGNAL MONITORING 2,538.08 HARTZOG & CRABILL INC OCT'21 TRAFFIC SIGNAL MONITORING 1,775.53 TRAFFIC ENGINEERING TOTAL: 4,313.61

STREET MAINTENANCE
PV MAINTENANCE INC NOV'21 STREET MAINTENANCE (GAS 55%) 25,877.49 UNDERGROUND SERVICE ALERT OF SOUTHERN CA DEC'21 DATABASE MAINT & 26 TICKETS 52.90 BEAR ELECTRICAL SOLUTIONS INC OCT'21 TRAFFIC SIGNAL MONITORING-ROUTINE 3,162.60 BEAR ELECTRICAL SOLUTIONS INC OCT'21 TRAFFIC SIGNAL MONITORING-RESPONSE 4,548.02 MOULTON NIGUEL WATER DIST 10/25-11/22/21 MTR #4551 MEDIANS WATER SRV 105.05 MOULTON NIGUEL WATER DIST 10/25-11/22/21 MTR#6544 MEDIANS WATER SRV 112.70 MOULTON NIGUEL WATER DIST 10/25-11/22/21 MTR #2066 MEDIANS WATER SRV 81.75 SO CAL EDISON NOV'21 STREET LIGHTS LS2 ELECTRICITY 1,086.15 SO CAL EDISON NOV'21 STREET LIGHTS LS1 ELECTRICITY 15,245.15 SAN DIEGO GAS & ELECTRIC OCT'21 ACCT#6953 ST LIGHTS & TRAFFIC CONTROLLERS 1,875.66 STREET MAINTENANCE TOTAL: 52,147.47
GAS TAX TOTAL: 56,461.08
215 - PUBLIC SAFETY GRANTS

LAW ENFORCEMENT-OTHER
US BANK PURCHASING CARD PROGRAM BG-LE SPECIAL EVT EQUIP-FLASHLIGHTS 3,200.00 DDL TRAFFIC INC LE-MOTORCYCLE OPTICOM EMITTER 1,212.19
COUNTY OF ORANGE DEC'21 MOTORCYCLE REPLACEMENT COSTS 64.60 COUNTY OF ORANGE DEC'21 E CITATION RECURRING COSTS 384.97 COUNTY OF ORANGE DEC'21 MDC RECURRING 4,011.56
COUNTY OF ORANGE DEC'21 PVS REPLACEMENT 1,136.46
COUNTY OF ORANGE DEC'21 MDC REPLACEMENT 1,627.11
COUNTY OF ORANGE FY 21-22 PVS RECURRING 1,838.97
COUNTY OF ORANGE DEC'21 E CITATION REPLACEMENT COSTS 183.56 LAW ENFORCEMENT-OTHER TOTAL: 13,659.42
PUBLIC SAFETY GRANTS TOTAL: 13,659.42
29 Vendor Name Description (Item) Amount
261 - CITY FAC.-AQUATIC CENTER
PREMIER AQUATIC SERVICES DEC'21-AQ CTR-RETENTION FEES (1,625.00) -1,625.00

GEN-AQUATIC CENTER
COX COMMUNICATIONS, INC 11/19-12/18/21 ACCT #6701-AQ CTR-INTERNET 495.76 PREMIER AQUATIC SERVICES AQ CTR-11/10 POSTAGE FOR BROKEN WALKIES W/WARRANTY 16.88 PREMIER AQUATIC SERVICES AQ CTR-11/11 MIRRORS & FLOATS-PARENT&ME CLASS-AMAZ 50.80 PREMIER AQUATIC SERVICES AQ CTR-11/12 SWIM INSTRUCTOR P&M SKILLS TRAINING 15.84 PREMIER AQUATIC SERVICES AQ CTR-OCT'21 LIFEGUARD HIRING- FACEBOOK AD 336.23 PREMIER AQUATIC SERVICES AQ CTR-OCT'21 LIFEGUARD HIRING-GOOGLE AD 571.00 PREMIER AQUATIC SERVICES AQ CTR-11/1 FOOD DRIVE BINS-SUPPLIES-WALMART 41.88 US BANK PURCHASING CARD PROGRAM DG- AQ CTR-REPAIRS & MAINT-SUPPLIES 16.53 US BANK PURCHASING CARD PROGRAM DG- AQ CTR-REPAIRS & MAINT-SUPPLIES 25.58 CTJAMJT CORP. NOV'21 AQ CTR PEST CONTROL SERVICE 185.00 PREMIER AQUATIC SERVICES DEC'21-AQ CTR-MANAGEMENT FEES 10,833.33 PEAK LIGHTING & ELECTRIC INC NOV'21-AQ CTR-LIGHTING MAINTENANCE 147.70 SMART LEVELS MAILING & PRINTING INC AQ CTR-LIFEGUARD EAP-HIP PACK WATERPROOF CARDS 157.32 SAREEN INC AQ CTR-MELODEE ICE CREAM-FOOD & BEV 661.60
STAPLES ADVANTAGE AQ CTR-OFFICE SUPPLIES 115.83
MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR #6054 AQ CTR WATER SERVICE 291.69 MOULTON NIGUEL WATER DIST 10/18-11/15/21 MTR#2996 AQ CTR WATER SRV 195.51 HARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, INC 11/10/21 AQ CTR- HVAC MAINTENANCE 248.89 ALISO VIEJO BANQUET CENTER LLC JUL-SEP'21-AQ CTR-MTR#4987 ELECTRICITY 7,428.55 KNORR SYSTEMS INC NOV'21-AQ CTR-CHLORINE PUMP REPAIR 247.96 KNORR SYSTEMS INC OCT'21 AQ CTR-MONTHLY POOL MAINTENANCE 1,792.64 STGSD, INC AQ CTR-SWIM GOOGLES 287.64
GEN-AQUATIC CENTER TOTAL: 24,164.16
CITY FAC.-AQUATIC CENTER TOTAL: 22,539.16
311 - STREET IMPROVEMENTS

STREETS & HIGHWAYS
CIVIL SOURCE, AN NV5 COMPANY OCT'21 #133 SLURRY SEAL INSPECTIONS 4,950.00 STREETS & HIGHWAYS TOTAL: 4,950.00
STREET IMPROVEMENTS TOTAL: 4,950.00
332 - STORM WATER

DRAINAGE IMPROVEMENTS
PV MAINTENANCE INC NOV'21 #091 DAIRY FORK WETLAND MAINT-RIPRAP PROJ 11,047.00 DRAINAGE IMPROVEMENTS TOTAL: 11,047.00
STORM WATER TOTAL: 11,047.00
741 - RENEWABLE FARMS
AARON FLORA NOV'21 RENEWABLE FARMS-RETENTION PAYMENT (3,670.50) AARON FLORA NOV'21 RENEWABLE FARMS-PAYMENT 36,705.00
AARON FLORA OCT'21 RENEWABLE FARMS-RETENTION PAYMENT (3,310.80) AARON FLORA OCT'21 RENEWABLE FARMS-PAYMENT 33,178.00
AARON FLORA OCT'21-ADJ-CHARGEBACK-JACAB CHESS (70.00)
62,831.70
RENEWABLE FARMS TOTAL: 62,831.70
GRAND TOTAL: 1,162,500.30
30 Accounts Payable
12/22/2021
Vendor Name Description (Item) Amount
101 - GENERAL FUND
UNITED OF OMAHA LIFE INSURANCE CO. JAN'22 LIFE INSURANCE 1,236.13 US BANK PURCHASING CARD PROGRAM SL-11/11 AMAZON-CITY CREDIT CARD CHRG 449.04 CALPERS HEALTH JAN'22 CALPERS HEALTH PREMIUM 27,755.70
CALPERS HEALTH JAN'22-COUNCIL-CALPERS HEALTH PREMIUM 3,247.69 RJM DESIGN GROUP INC NOV'21 ENG 2240/20 ENTERPRISE FINAL WALK 481.80 CHOICE BUILDER JAN'22 DENTAL INSURANCE 2,488.18
CHOICE BUILDER JAN'22 VISION INSURANCE 373.48
KINNEY'S KEYS STOP PMT CK#31567 ZETTEL MARTIN (25.00)
36,007.02

CITY MANAGER
CALPERS HEALTH JAN'22-PG-HEALTH PREMIUM 149.00
CITY MANAGER TOTAL: 149.00

ECONOMIC DEVELOPMENT
HAULAWAY STORAGE CONTAINERS INC DEC'21-AVTC- STORAGE BIN RENTAL C-19-R2 92.40 ECONOMIC DEVELOPMENT TOTAL: 92.40

CITY ATTORNEY
BEST BEST & KRIEGER NOV'21 BBK LEGAL SERVICES 17,167.08 BEST BEST & KRIEGER NOV'21 BBK CODE ENFORCEMENT 5,011.92 BEST BEST & KRIEGER NOV'21 BBK-CELLULAR/SMALL CELL WIRELESS FACILITY 604.20 BEST BEST & KRIEGER NOV'21 BBK LABOR & EMPLOYMENT 1,728.40 BEST BEST & KRIEGER NOV'21 BBK - LABOR/BENEFITS 4,589.20 BEST BEST & KRIEGER NOV'21 BBK - ZONING CODE (CEQA & ENVIRON) 119.20 BEST BEST & KRIEGER NOV'21 BBK - #801 TOWN CTR SPECIFIC PLAN 6,476.40 CITY ATTORNEY TOTAL: 35,696.40

FINANCE
CALPERS HEALTH JAN'22 CALPERS ADMIN FEE 73.62
CALPERS HEALTH JAN'22 CALPERS ADMIN FEE 8.12
GARDAWORLD DEC'21-CH-CASH COURIER SERVICE 371.55
PARS SEP'21 PARS REP FEES 300.00
PARS OCT'21 PARS REP FEES 300.00
ROGERS ANDERSON MALODY & SCOTT LLP FY20-21 GANN LIMIT REVIEW REPORT 600.00 ROGERS ANDERSON MALODY & SCOTT LLP FY20-21 CITY AUDIT FINAL BILLING 5,500.00 CHOICE BUILDER JAN'22 ADMIN FEE 35.00
US BANK N.A. - CUSTODY NOV'21 CUSTODIAN CHARGES 140.75
HINDERLITER DE LLAMAS & ASSOCIATES OCT-DEC'21 SALES TAX CONTRACT SERVICE 1,527.98 HINDERLITER DE LLAMAS & ASSOCIATES OCT-DEC'21 SALES TAX AUDIT SERVICE 244.80 FINANCE TOTAL: 9,101.82

INFORMATION TECHNOLOGY
GO LIVE TECHNOLOGY INC SEP'21 ELM & ASSET MGMT IMPLEMENTATION 6,480.00 GO LIVE TECHNOLOGY INC OCT'21 ELM & ASSET MGMT IMPLEMENTATION 6,480.00 JOSE RUEL FABELLA DIRA 10/8-10/30/21 ENERGOV & GIS SUPPORT 1,500.00 JOSE RUEL FABELLA DIRA 10/19-11/15/21 ENERGOV & GIS SUPPORT 1,600.00 SHI INTERNATIONAL CORP FY21-22 CH-PATCH MANAGEMENT 1,600.00 SHI INTERNATIONAL CORP FY21-22-CH-SOLARWINDS ENGINEER'S TOOLSET 458.00 TANGENT COMPUTERS INC 11/25/20 CITY HALL SHAREPOINT TRAINING 2,800.00 LUNAVI, INC DEC'21 OFFSITE BACKUP STORAGE SERVICE-ZERTO 1,638.78 INFORMATION TECHNOLOGY TOTAL: 22,556.78

NON-DEPARTMENTAL
CERTIFIED RECORDS MANAGEMENT DEC'21 RECORDS OFF SITE STORAGE 453.25 STEPHANIE LARSON SL-12/9 HOLIDAY LUNCH-SUPPLIES REIMB 5.39 J&M TROPHIES INC REC-H.NGUYEN & M.MEDINA-NAMETAGS 20.15 J&M TROPHIES INC REC-J.STUART & M.CASTILLO-NAMETAGS 20.15 RICOH USA 5/1-5/31/21 RICOH 2504EX FRONT COUNTER-COPIES 171.33 RICOH USA 11/1-11/30/21 RICOH 2504EX FRONT COUNTER-COPIES 135.14 31 Vendor Name Description (Item) Amount
CINTAS CORPORATION NO. 2 DEC'21 CH FIRST AID MAINTENANCE 179.42 NIEVES LANDSCAPE INC DEC'21 VISTA PARK LANDSCAPE MAINTENANCE 1,028.96 ALISO VIEJO SELF STORAGE JAN'22 RENTAL STORAGE UNIT #519 330.00 NON-DEPARTMENTAL TOTAL: 2,343.79
C. S. ADMINISTRATION
PV MAINTENANCE INC TREE LIGHTING EVENT-PVM SUPPORT 2,490.23 US BANK PURCHASING CARD PROGRAM NL-11/5 HEALTH FAIR EVT SNACKS-SMART & FINAL 44.83 US BANK PURCHASING CARD PROGRAM NL-11/9 TREE LIGHTING EVENT SUPPLIES-HOBBY LOBBY 171.03 US BANK PURCHASING CARD PROGRAM NL-11/18 TREE LIGHTING EVENT SUPPLIES-AMAZON 70.84 US BANK PURCHASING CARD PROGRAM NL-10/30 TREE LIGHTING EVENT SUPPLIES-MICHALES 12.96 US BANK PURCHASING CARD PROGRAM NL-11/20 TREE LIGHTING SUPPLIES-MICHAELS 8.60 US BANK PURCHASING CARD PROGRAM NL-11/19 BREAKFAST W/SANTA EVT TABLE COVERS-AMAZON 53.86 US BANK PURCHASING CARD PROGRAM NL-11/20 BREAKFAST W/SANTA EVT TABLE COVERS-AMAZON 26.93 US BANK PURCHASING CARD PROGRAM NL-10/21 STAFF LED WORKSHOP- FOOD FOR PARTICIPANTS 83.98 US BANK PURCHASING CARD PROGRAM NL-11/17 HEALTH FAIR EVENT SUPPLIES-SMART & FINAL 49.90 US BANK PURCHASING CARD PROGRAM NL-175 VETERANS PINS- THE PIN CENTER 383.75 CALPERS HEALTH JAN'22-DP-HEALTH PREMIUM 149.00
CALPERS HEALTH JAN'22-HW-HEALTH PREMIUM 149.00
M&J PAUL ENTERPRISES INC 12/17 BREAKFAST WITH SANTA EVT RENTAL SERVICES 3,495.00 WESTAMERICA COMMUNICATIONS INC 25,000 WINTER 2021 BROCHURE PRINTING 19,182.38 PREMIER PRINT SOURCE AV LOGO TABLE CLOTHS 443.53
RED SWAG INC 150 -15OZ GLASSES -PROMO GIVEAWAY FOR EXPO EVT 830.42 CANYON CATERING & EVENTS INC 12/7 BREAKFAST WITH SANTA EVT-FOOD SERVICE 1,352.14 PARENTS FOR ALISO NIGUEL FY21-22-CAG-PARENTS FOR ALISO NIGUEL 1,000.00 LAURA'S HOUSE FY21-22-COMMUNITY ASSISTANCE GRANT-LAURA'S HOUSE 2,250.00 C. S. ADMINISTRATION TOTAL: 32,248.38

IGLESIA PARK
PV MAINTENANCE INC NOV'21 IGLESIA PARK MAINTENANCE 2,622.81 EL TORO WATER DISTRICT 11/9-12/9/21 MTR #3499 IGLESIA PARK WATER SRV 564.35 EL TORO WATER DISTRICT 11/9-12/9/21 MTR #4114 IGLESIA PARK WATER SRV 502.15 NIEVES LANDSCAPE INC DEC'21 IGLESIA PARK LANDSCAPE MAINTENANCE 6,846.00 SO CAL EDISON NOV'21 ACCT#7997 IGLESIA PARK ELECTRICITY 239.32 IGLESIA PARK TOTAL: 10,774.63

IGLESIA BUILDING
EL TORO WATER DISTRICT 11/9-12/9/21 MTR#1850 IGLESIA BLDG WATER SRV 241.16 PROTECTION ONE ALARM MONITORING INC 12/17-1/16/22 IPCC- ALARM MONITORING SERVICE 50.00 TEAM ONE MANAGEMENT SERVICES DEC'21 IPCC-JANITORIAL SERVICE 861.00 TMR SECURITY & PATROL SERVICES INC NOV'21-IPCC-18 VISITS-PATROL SERVICE 190.00 CTJAMJT CORP. DEC'21 IPCC-PEST CONTROL SERVICE 95.00
PEAK LIGHTING & ELECTRIC INC DEC'21-IPCC-LIGHTING MAINTENANCE 701.98 SO CAL EDISON NOV'21 ACCT#7997 IGLESIA BLDG ELECTRICITY 691.55 IGLESIA BUILDING TOTAL: 2,830.69

IGLESIA PARK COMMUNITY CENTER
BOYS & GIRLS CLUB OF CAPISTRANO VALLEY OCT'21 B&G CAPO- ELEMENTARY & TEEN KEYSTONE PROG 16,013.52 IGLESIA PARK COMMUNITY CENTER TOTAL: 16,013.52

PLANNING
US BANK PURCHASING CARD PROGRAM OD-12/5-12/7 ICSC CONF REGISTRATION 50.00 US BANK PURCHASING CARD PROGRAM OD-12/5-12/7 ICSC CONF AIRFARE 117.96 US BANK PURCHASING CARD PROGRAM OD-AVTC-NOV'21 CONSTANT CONTACT-EMAIL MARKETING 45.00 CALPERS HEALTH JAN'22-MF-HEALTH PREMIUM 149.00
OMAR DADABHOY OD-12/7 ICSC CONF-UBER REIMB 16.14
OMAR DADABHOY OD-12/7 ICSC CONF-UBER REIMB 14.14
FEDERAL EXPRESS PLNG-10/29-K.MOSSE-FEDEX CHARGES 52.48
FEDERAL EXPRESS PLNG-11/23-FEDEX CHARGES 34.61
PLANNING TOTAL: 479.33

ENGINEERING (GENERAL)
CALIFORNIA NEWPAPER PARTNERSHIP 11/25-PUBLIC NOTICE ADP OF ORD-SOLID WASTE 1,692.00 RICHARD FISHER ASSOCIATES NOV'21 ON CALL LANDSCAPE & ARCHITECTURAL SERVICES 5,012.03 COUNTY OF ORANGE FY21-22 NPDES COST SHARE AGMT# D02-048 104,512.99 ENGINEERING (GENERAL) TOTAL: 111,217.02

LAW ENFORCEMENT-OTHER
DAVID YANNIZZI DY-12/10/21 - 107 FAA UAG AIRCRAFT TEST-REIMB 175.00 ERIC GIUMMO LE-11/20TACTICAL ADHESIVE/TINT-DEPUTY CAR-REIMB 280.00 32 Vendor Name Description (Item) Amount
SEAVCO INC LE BMW VIN#3962- LEVEL 2 SERVICING 1,849.18
J&M TROPHIES INC BRASS PLATE FOR DEP OF THE YEAR PLAQUE 17.24 J&M TROPHIES INC RECOGNITION AWARD FOR APPRECIATION BREAKFAST 118.53 ALL CITY MANAGEMENT SERVICES 10/31-11/13/21-352HRS-SCHOOL CROSSING GUARD SRV 8,916.16 ALL CITY MANAGEMENT SERVICES 11/14-11/27/21-230 HRS-SCHOOL CROSSING GUARD SRV 5,825.90 LAW ENFORCEMENT-OTHER TOTAL: 17,182.01

CRIME PREVENTION
US BANK PURCHASING CARD PROGRAM SL-11/15 PEN CLIPBOARD HOLDER-AMAZON 62.24 US BANK PURCHASING CARD PROGRAM SL-CRIME PREVHOLIDAY CUP SLEEVES-TREE LIGHTING EVT 222.23 US BANK PURCHASING CARD PROGRAM SL-ICS BAG VESTS-ALL SAFE INDUSTRIES 235.34 US BANK PURCHASING CARD PROGRAM SL-10/23 ICS BAG- AMAZON 14.00 CRIME PREVENTION TOTAL: 533.81
EOC
US BANK PURCHASING CARD PROGRAM SL-OC EMER MANAGERS HOLIDAY MTG/LUNCH REGIS 40.00 US BANK PURCHASING CARD PROGRAM SL-EVACUATION MANAGER KITS-PEN HOLDERS 23.68 US BANK PURCHASING CARD PROGRAM SL-EVACUATION MANAGER KITS - VESTS 44.75 US BANK PURCHASING CARD PROGRAM SL-10/28 EVACUATION MANAGER KITS-AMAZON 103.74 EOC TOTAL: 212.17
GENERAL FUND TOTAL: 297,438.77
102 - GEN. FD-CITY HALL

NON-DEPARTMENTAL
THE GAS COMPANY 11/2-12/3/21 MTR#6544 CITY HALL GAS SERVICE 410.32 TEAM ONE MANAGEMENT SERVICES DEC'21 CH-JANITORIAL & CARPET CLEANING SERVICE 3,596.00 CTJAMJT CORP. DEC'21 CH- PEST CONTROL SERVICE 100.00
AYANTRA INC JAN-DEC'22-CH-ANNUAL GENERATOR MONITORING 240.00 NIEVES LANDSCAPE INC DEC'21 CITY HALL LANDSCAPE MAINTENANCE 678.00 WAXIE'S ENTERPRISES, INC DEC'21 CH-JANITORIAL SUPPLIES 350.81 ALISO VIEJO COMMUNITY ASSOCIATION FY21-22-AVCA-3RD QTR 35 PLAYA HOA FEES 94.64 ALISO VIEJO COMMUNITY ASSOCIATION FY21-22-AVCA-3RD QTR-CITY HALL HOA DUES 1,503.39 SO CAL EDISON NOV'21 ACCT#7189 CITY HALL ELECTRICITY 5,282.27 KINNEY'S KEYS REISSUE CK-OCT'21 CH REKEYING SRV 2,805.44 NON-DEPARTMENTAL TOTAL: 15,060.87
GEN. FD-CITY HALL TOTAL: 15,060.87
103 - GF-AV RECREATION SERVICES

RECREATION SERVICES
ELIZABETH DRAY PLUMB FALL2021-RFC263/264-KINDERGARTEN READINESS-25 PART 6,000.00 TUMBLE-N-KIDS, INC FALL2021-RFC064/033-GYMNASTICS-10PARTICIPANTS 966.00 KIANA BERKMAN FALL2021-RFC231/222-HOMEWORK CLUB-2PARTICIPANTS 224.00 TLP EDUCATION LLC FALL2021-RFC103-1 PARTICIPANT/CLASS CANCEL AFTER 12.60 EVER AFTER EVENT PRODUCTIONS LLC FALL21-RFC015/057/058/010/013/060-OC DANCE-28 PART 1,781.40 US BANK PURCHASING CARD PROGRAM NL-11/19 BRKRM SUPPLIES VINEGAR-RALPHS 1.17 US BANK PURCHASING CARD PROGRAM NL-11/12 ENVELOPES-STAPLES 15.48 US BANK PURCHASING CARD PROGRAM NL-11/17 LOBBY DECORATIONS-MICHAELS 150.84 US BANK PURCHASING CARD PROGRAM NL-10/22 CAMERA SUPPLIES-AMAZON 62.25 US BANK PURCHASING CARD PROGRAM NL-11/20 CABLE CORDS FOR LOBBY-AMAZON 15.07 BETTER LIFE HEALTH INC FALL2021-RFC098-SENIOR CARDIO-2 PARTICIPANTS 108.00 SKYHAWKS SPORTS ACADEMY, INC FALL2021-RFC199/200/202/210-SOCCER-26 PART 1,620.30 GARDAWORLD DEC'21-AVR-CASH COURIER SERVICE 371.54
ROXANNE BELL FALL21-RFC092/083/079/080-BALLET-6PARTICIPANTS 364.00 CAROLYN LONG FALL2021-RFC243-POWER YOGA-3PARTICIPANTS 100.80 MUSIC MOVES ACADEMY INC FALL2021 - RFC006/007/005-31PARTICIPANTS 483.00 PRESS-TIGE ENTERPRISES INC 12/3-AVR LINEN DRY CLEANING SERVICE 536.00 BEST INTERIORS, INC OCT'21 AVRANCH "BLDG H" PANELS 2,000.00 JENNIFER ANDRUS-NELSON FALL21-RFC053-DINNING ETIQUETTE-6 PARTICIPANTS 108.00 CTJAMJT CORP. DEC'21 AVR PEST CONTROL SERVICE PO#5498 395.00 LYONS SECURITY SERVICE IN NOV'21-71 HRS-SECURITY SRV-FACILITY RESERVATION 1,853.10 RICOH USA 12/1-12/31/21-AVR COPIER SUBSCRIPTION 21.00
CINTAS CORPORATION NO. 2 DEC'21-AVR-FIRST AID MAINTENANCE 153.31 NIEVES LANDSCAPE INC DEC'21 AV RANCH LANDSCAPE MAINTENANCE 2,262.67 CAROLYN WOJCIECHOWSKI FALL2021-RFC195/196/190/191-LINE DANCE-31 PART 414.00 STAPLES ADVANTAGE AVR- OFFICE SUPPLIES 210.77
33 Vendor Name Description (Item) Amount
SHI INTERNATIONAL CORP NOV'21-NOV'25 AVR SERVER SUPPORT 190.00 SO CAL EDISON NOV'21 ACCT#4551 FARM ELECTRICITY 681.84
SO CAL EDISON NOV'21 ACCT#6247 AV RANCH TRACKED CHARGES 775.81 SO CAL EDISON NOV'21 ACCT#6247 AV RANCH ELECTRICITY 2,214.98 RECREATION SERVICES TOTAL: 24,092.93
GF-AV RECREATION SERVICES TOTAL: 24,092.93
203 - GAS TAX

TRAFFIC ENGINEERING
NICHOLS CONSULTING ENGINEERS, CHTD NOV'21 PAVEMENT MANAGEMENT PLAN UPDATE 1,505.00 TRAFFIC ENGINEERING TOTAL: 1,505.00

STREET MAINTENANCE
EL TORO WATER DISTRICT 11/9-12/9/21 MTR #5675 CALLE CORTEZ WATER SERVICE 87.13 BEAR ELECTRICAL SOLUTIONS INC NOV'21 TRAFFIC SIGNAL MONITORING-RESPONSE 2,684.74 BEAR ELECTRICAL SOLUTIONS INC NOV'21 TRAFFIC SIGNAL MONITORING-ROUTINE 3,162.60 R F DICKSON CO INC NOV'21 STREET SWEEPING SERVICES 8,668.66 NIEVES LANDSCAPE INC DEC'21 MEDIANS LANDSCAPE MAINTENANCE 1,586.00 SO CAL EDISON NOV'21 GS1 MEDIANS ELECTRICITY 72.13
SO CAL EDISON NOV'21 STREET LIGHTS TC1 ELECTRICITY 3,365.77 STREET MAINTENANCE TOTAL: 19,627.03
GAS TAX TOTAL: 21,132.03
215 - PUBLIC SAFETY GRANTS

LAW ENFORCEMENT-OTHER
COUNTY OF ORANGE DEC'21 AFIS 1,958.00
LAW ENFORCEMENT-OTHER TOTAL: 1,958.00
PUBLIC SAFETY GRANTS TOTAL: 1,958.00
241 - TECHNOLOGY FUND

GEN-TECHNOLOGY GRANTS
ERIC WINTER NOV'21 CC MTG & SITE VISITS 1,011.00
GEN-TECHNOLOGY GRANTS TOTAL: 1,011.00
TECHNOLOGY FUND TOTAL: 1,011.00
261 - CITY FAC.-AQUATIC CENTER

GEN-AQUATIC CENTER
GARDAWORLD DEC'21-AQ CTR-CASH COURIER SERVICE 371.54
PREMIER AQUATIC SERVICES AQ CTR-NOV'21 WATER POLO CONTRACT INSTRUCTOR PMT 763.98 PREMIER AQUATIC SERVICES AQ CTR-DEC'21 JACKRABBIT-SWIM LESSON PROGRAM 220.50 PREMIER AQUATIC SERVICES AQ CTR-11/19 SWIM INSTRUCTOR SPECIAL NEEDS TRAININ 15.00 PREMIER AQUATIC SERVICES AQ CTR-11/27-SWIM INSTRUCTOR SP NEEDS TRAINING 30.00 PREMIER AQUATIC SERVICES AQ CTR-11/19-ADMIN IN SERVICE- MTG F&B 71.65 PREMIER AQUATIC SERVICES AQ CTR-NOV'21 SWIM INSTRUCTOR HIRING-FACEBOOK 422.50 PREMIER AQUATIC SERVICES AQ CTR-NOV'21 AVAC LIFE GUARD HIRING-FACEBOOKS AD 422.17 PREMIER AQUATIC SERVICES AQ CTR-NOV'21 YR ROUNG LIFE GUARD HIRING-FACEBOOK 143.92 PREMIER AQUATIC SERVICES AQ CTR-NOV'21 LIFE GUARD HIRING-GOOGLE 456.00 PREMIER AQUATIC SERVICES AQ CTR-11/19 HOLIDAY DECOR-PARTY CITY 39.54 THE GAS COMPANY 11/3-12/6/21 MTR#2349 AQ CTR GAS SERVICE 3,868.11 GREAT SCOTT TREE SERVICE, INC NOV'21 AQ CTR- TREE TRIMMING SERVICE 3,822.00 CTJAMJT CORP. DEC'21 AQ CTR PEST CONTROL SERVICE 185.00 TEAM ONE MANAGEMENT SERVICES DEC'21 AQ CTR-JANITORIAL SERVICE 1,239.00 KYOCERA DOCUMENT SOLUTIONS WEST, LLC 2 AQ CTR- HP LAPTOPS 2,000.01 NIEVES LANDSCAPE INC DEC'21 AQ CTR LANDSCAPE MAINTENANCE 912.48 THE ILLINI COMPANIES, INC NOV'21 AQ CTR-POOL CHEMICALS 442.08 KNORR SYSTEMS INC NOV'21 AQ CTR-MONTHLY POOL MAINTENANCE 1,792.64 GEN-AQUATIC CENTER TOTAL: 17,218.12
CITY FAC.-AQUATIC CENTER TOTAL: 17,218.12
311 - STREET IMPROVEMENTS

STREETS & HIGHWAYS
CIVIL SOURCE, AN NV5 COMPANY NOV'21 #133 SLURRY SEAL INSPECTIONS 1,515.00 34 Vendor Name Description (Item) Amount
ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA NOV'21ALISO CREEK REHAB DESIGN 2,882.00 STREETS & HIGHWAYS TOTAL: 4,397.00
STREET IMPROVEMENTS TOTAL: 4,397.00
331 - CAPITAL IMPROVEMENTS

CAPITAL IMPROVEMENTS
TYLER TECHNOLOGIES-INCODE DIVISION 10/25-11/1/21 ENERGOV ELM IMPLEMENTATION 1,378.12 THIRTIETH STREET ARCHITECTS INC AUG-NOV'21 #049 AVR ADD'L ARCHT SRV & EXHIBITS 10,000.00 CAPITAL IMPROVEMENTS TOTAL: 11,378.12
CAPITAL IMPROVEMENTS TOTAL: 11,378.12
332 - STORM WATER

DRAINAGE IMPROVEMENTS
SIERRA ANALYTICAL LABS INC DEC'21 #091 DAIRY FORK WQ MONITORING 370.00 DRAINAGE IMPROVEMENTS TOTAL: 370.00
STORM WATER TOTAL: 370.00
GRAND TOTAL: 394,056.84
35 City of Aliso Viejo

AGENDA ITEM
DATE: January 19, 2021
TO: Mayor and City Council
FROM: Sheryl Mariano, Accounting Supervisor

SUBJECT: TREASURER’S STATEMENT – OCTOBER 2021
Recommended Action:

Approve October 2021 Treasurer’s Statement.

Fiscal Impact:

No Fiscal Impact
Background:

Per City policy, the Finance Department presents the monthly Treasurer’s Statement for the City Council’s review and approval. This statement shows the cash balances for the various funds, with a breakdown of bank account balances, investment account balances and the effective yield earned from investments.

Discussion:

The City’s portfolio consists of investments in Certificates of Deposits (CD), Medium Term Notes, US Treasury bonds, Federal Agency (Government Sponsored Enterprises (GSE)) bonds, Corporate Notes (CN), and Local Agency Investment Fund (LAIF). All funds invested with LAIF are available for withdrawal within 24 hours.

With Proposition 1A, the State does not have the ability to borrow from funds invested in LAIF. CD’s are insured by Federal Deposit Insurance Corporation (FDIC). FDIC is an independent agency created by Congress in 1933 to supervise banks, insure deposits, and help maintain a stable and sound banking system. Investments in agencies are backed by the implied guarantee of the U.S. government. All CN’s purchased are rated “AA” or better by a nationally recognized rating agency.

Interest is credited to the City’s bank account on a monthly basis. All deposits in excess of FDIC insurance limits are collateralized by the financial institution in accordance with government codes.
36

Page 2 of 2 ends

Fund transfers for capital projects and reimbursement of fiscal charges for the CFD 2005- 01 are completed on a quarterly basis. Street improvements include payments for the Pacific Park Rehabilitation & Slurry Seal projects and are funded with Measure M and SB 1 funds. COP Capital provides funding for the AV Ranch project and is funded by Bond proceeds, General fund and Development Impact funds.

Attachment:

1. Oct’21 Treasurer’s Statement
37 TREASURER'S MONTHLY CASH STATEMENT

BEGINNING TRANSFERS ENDING

BALANCE RECEIPTS DISBURSEMENTS IN (OUT) BALANCE
GENERAL FUND 9,361,353.13 $ 1,661,660.09 $ 1,844,265.15 $ - $ 9,178,748.07 $ TCRF 89,428.86 $ - 89,428.86
GAS TAX FUND 878,678.60 $ - 81,618.90 - 797,059.70
MEASURE M 662,906.64 $ - - - 662,906.64
SB1-RMRA $ 93,579.45 (45,269.03) - 48,310.42
PUBLIC SAFETY GRANTS 132,837.09 $ 26,424.96 15,261.23 144,000.82 (1) AIR QUALITY IMPRVMNT FD 1,016,714.86 $ - 1,016,714.86
INTEGRATED WASTE MGMT FD 17,462.38 $ - 17,462.38
OTHER GRANTS $ (38,332.68) (38,332.68)
TECHNOLOGY GRANT 144,746.62 $ 3,863.38 5,754.94 142,855.06 DEVELOPMENT IMPACT 1, $ 410,622.33 1,410,622.33
FEDERAL GRANTS 2,846,994.11 $ - - 2,846,994.11
CITY FACILITY - AV CTR 179,758.92 $ 179,758.92
CITY FACILITY - AQUATIC CTR 220,163.87 $ 50,057.00 171,783.82 98,437.05 STREET IMPROVEMENTS 112,974.80 $ - 57,987.15 - 54,987.65 (2) CAPITAL IMPROVEMENTS - $ - 1,466.69 - (1,466.69) (2)
STORM WATER - $ 13,367.50 - (13,367.50) (2)
COP CAPITAL - $ - (2)
COP $ 0.30 (4,959.70) - (4,959.40)
AV RANCH FOUNDATION - $ -
CFD 2005-01 $ 109.13 (583.83) 2,129.98 (2,604.68)
RENEWABLE FARMS 45,520.00 $ 36,973.00 38,020.00 44,473.00 COMMUNITY TRUST 10,609.68 $ 10,609.68
TOTALS 17,041,626.65 $ 1,872,667.31 $ 2,231,655.36 $ - $ 16,682,638.60 $ SUMMARY OF CASH:

DEMAND DEPOSITS: GENERAL ACCOUNT 7,121,575.39 $

SAVINGS ACCOUNT: MONEY MARKET 25,690.65 $
INVESTMENTS: LOCAL AGENCY INVESTMENT FD 9,535,372.56 $
TOTAL CASH 16,682,638.60 $
Years to Maturity for October 2021 1.28
Weighted Average Yield for October 2021 0.955%
All investments are placed in accordance with the City of Aliso Viejo's Investment Policy.

The above summary provides sufficient cash flow liquidity to meet the next six month's estimated expenditures.

Other monies held include Cash with Fiscal Agent, Investments, Payroll and AV Center. $ 17,888,112.07 Cash With Fiscal Agent COPS/CFD 2005-01 3,141,643.98
Cash With Investment Advisor City Investments 13,352,007.70 AV Center 1,186,448.13
PR Account 204,822.26
Petty Cash 3,190.00
GRAND TOTAL OF CITY FUNDS 34,570,750.67 $
(1) Public Safety Grant includes the MDC and PVS Program Costs budgeted with SLESF funds. (2) Transfers in and out are done on a quarterly basis.

Street Improvements include the Slurry Seal, Traffic Management and Street Improvement Projects.

Capital Improvements include park and AV Ranch improvement projects.

Storm Water includes the Dairy Fork and Wood Canyon Emergent Wetland Project. (3) % of portfolio is based of investments & includes LAIF Sheryl Mariano, Accounting Supervisor

CITY OF ALISO VIEJO
October 31, 2021
38 Investment Type Original
Cost
Par
Value
Market
Value *
% of
Portfolio
Federal Agency Coupon Securities $ 3,743,366 $ 3,735,000 $ 3,758,985 16.36% LAIF $ 9,535,373 $ 9,535,373 $ 9,535,373 41.66%
Medium Term Notes $ 2,000,620 $ 2,000,000 $ 2,052,677 8.74% FDIC CDs $ 6,609,897 $ 6,615,000 $ 6,761,810 28.88%
Treasury Coupon Securities $ 998,125 $ 1,000,000 $ 1,017,090 4.36% Portfolio: $ 22,887,380 $ 22,885,373 $ 23,125,934 100.00% Years To Maturity 1.28
Weighted Average Yield 0.955%
*Market Values obtained from US Bank Treasury Division
City of Aliso Viejo
Portfolio Summay
As of 10/31/2021
39 YTM
Par Value Book Value 365
Maturity
Date
Stated
Market Value Rate
October 31, 2021
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Aliso Viejo
Days to
CUSIP Moody's Maturity Investment #
Purchase
Date
LAIF
98-30-007 10000 LAIF 9,535,372.56 9,535,372.56 0.203 9,535,372.56 0.203 1 Subtotal and Average 9,532,971.81 9,535,372.56 9,535,372.56 9,535,372.56 0.203 1 Medium Term Notes
037833DM9 10068 Apple 12/06/2019 512,453.50 Aa1 500,000.00 497,165.00 09/11/2024 1.800 1.925 1,045594918BQ6 10069 Microsoft 12/06/2019 512,134.00 Aaa 500,000.00 503,635.00 08/08/2023 2.000 1.794 64564952WDL4 10078 New York Life 01/22/2020 512,802.50 Aaa 500,000.00 498,205.00 01/22/2025 2.000 2.076 1,17830231GBC5 10076 Exxon 12/12/2019 515,286.50 Aa2 500,000.00 501,615.00 08/16/2024 2.019 1.946 1,019 Subtotal and Average 2,000,620.00 2,000,000.00 2,052,676.50 2,000,620.00 1.935 971 Federal Agency Coupon Securities
3133ELCP7 10070 Federal Farm Credit Bank 12/09/2019 240,844.22 Aaa 235,000.00 233,926.05 12/03/2024 1.625 1.721 1,1283133ELDU5 10079 Federal Farm Credit Bank 02/18/2020 500,933.00 Aaa 500,000.00 500,745.00 12/13/2021 1.580 1.496 423133ELNE0 10080 Federal Farm Credit Bank 02/14/2020 508,971.50 Aaa 500,000.00 499,245.00 02/14/2024 1.430 1.469 8353133ELZF4 10096 Federal Farm Credit Bank 05/14/2020 500,392.00 Aaa 500,000.00 499,745.00 11/14/2022 0.270 0.290 3783133ELG99 10099 Federal Farm Credit Bank 06/10/2020 495,464.00 Aaa 500,000.00 498,220.00 06/10/2024 0.375 0.465 9523130A3VC5 10081 Federal Home Loan Bank 02/20/2020 518,015.00 Aaa 500,000.00 514,900.00 12/08/2023 2.250 1.441 7673130AJ7E3 10085 Federal Home Loan Bank 02/21/2020 507,093.50 Aaa 500,000.00 499,080.00 02/17/2023 1.375 1.438 4733137EAEX3 10103 Federal Home Loan Mtg Corp 10/20/2020 487,271.50 Aaa 500,000.00 497,505.00 09/23/2025 0.375 0.478 1,422 Subtotal and Average 3,839,999.92 3,735,000.00 3,758,984.72 3,743,366.05 1.058 722 Treasury Coupon Securities
912828T91 10067 U.S. Treasury 12/09/2019 511,035.00 Aaa 500,000.00 500,175.78 10/31/2023 1.625 1.615 729912828YF1 10077 U.S. Treasury 12/12/2019 506,054.50 Aaa 500,000.00 497,949.22 09/15/2022 1.500 1.652 318 Subtotal and Average 998,125.00 1,000,000.00 1,017,089.50 998,125.00 1.634 524 FDIC CDs
02007GJX2 10063 Ally Bank 05/23/2019 245,000.00 245,000.00 245,000.00 05/23/2022 2.450 2.450 20305580ASU9 10066 BMW Bank 10/11/2019 249,285.37 245,000.00 245,000.00 10/11/2022 1.850 1.850 34405465DAK4 10088 Axos Bank 03/26/2020 254,969.79 245,000.00 245,000.00 03/26/2024 1.650 1.651 87614042TAN7 10062 Capital One USA Bank 05/22/2019 245,000.00 245,000.00 245,000.00 05/23/2022 2.450 2.450 20314042RPG0 10089 Capital One USA Bank 04/09/2020 256,602.22 245,000.00 244,412.00 04/08/2025 1.600 1.651 1,25415118RUV7 10091 Celtic Bank 04/17/2020 253,366.26 245,000.00 245,000.00 04/17/2024 1.400 1.401 89815201QDF1 10095 Centerstate Bank 04/30/2020 252,027.58 245,000.00 244,522.25 04/30/2024 1.200 1.251 911 40 YTM
Par Value Book Value 365
Maturity
Date
Stated
Market Value Rate
October 31, 2021
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Aliso Viejo
Days to
CUSIP Moody's Maturity Investment #
Purchase
Date
FDIC CDs
254673XL5 10059 Discover Bank 11/29/2018 245,000.00 245,000.00 245,000.00 11/29/2021 3.250 3.250 2827002YEX0 10087 Eagle Bank 03/20/2020 254,242.14 245,000.00 244,510.00 03/20/2024 1.550 1.603 87029278TKG4 10065 Enerbank USA 08/07/2019 248,861.21 245,000.00 245,000.00 08/08/2022 2.050 2.050 28033847E3J4 10097 Flagstar Bank 05/15/2020 250,023.97 245,000.00 245,000.00 05/15/2025 0.900 0.900 1,29132110YPS8 10094 First National Bank of America 04/23/2020 252,336.77 245,000.00 244,522.25 04/22/2024 1.250 1.301 90338149MYB3 10105 Goldman Sachs Bank 08/11/2021 245,000.00 245,000.00 245,000.00 08/11/2026 1.000 1.001 1,744538036JN5 10084 Live Oak Banking 02/28/2020 255,956.40 245,000.00 244,529.60 08/28/2024 1.650 1.697 1,03158404DGU9 10092 Medallion Bank 04/30/2020 252,027.58 245,000.00 244,522.25 04/30/2024 1.200 1.251 91159013KLQ7 10104 Merrick Bank 12/30/2020 243,990.11 245,000.00 245,000.00 12/30/2025 0.550 0.550 1,52061690UUJ7 10086 Morgan Stanley Bank, NA 02/28/2020 258,239.07 245,000.00 244,416.90 02/27/2025 1.800 1.852 1,21461760A4F3 10073 Morgan Stanley Pvt Bank 12/13/2019 259,084.32 245,000.00 244,416.90 12/12/2024 1.950 2.002 1,137856285RU7 10072 Bank of India 12/06/2019 259,435.40 245,000.00 245,000.00 11/27/2024 2.000 2.002 1,1227954505W1 10074 Sallie Mae Bank 12/13/2019 245,000.00 244,642.30 12/12/2022 251,612.06 1.850 1.638 406 87164DRQ5 10090 Synovus Bank 04/17/2020 245,000.00 245,000.00 245,000.00 1.200 0.964 168 04/18/2022866264DP6 10098 Summit State Bank 05/18/2020 245,000.00 249,543.28 244,402.20 0.850 0.901 1,291 05/15/202587164WYW2 10064 Synchrony Bank 05/24/2019 245,000.00 245,000.00 245,000.00 2.450 2.450 204 05/24/202289214PCQ0 10093 Townebank 04/29/2020 245,000.00 245,000.00 245,000.00 1.150 1.150 179 04/29/202289235MJS1 10100 Toyota Financial 06/30/2020 245,000.00 248,769.08 245,000.00 0.800 0.729 1,337 06/30/202590348JR93 10106 UBS Bank 08/11/2021 245,000.00 245,000.00 245,000.00 0.950 0.951 1,744 08/11/2026949495AA3 10071 Wells Fargo Bank West 12/13/2019 245,000.00 251,437.87 245,000.00 1.800 1.802 407 12/13/2022 Subtotal and Average 6,744,251.49 6,615,000.00 6,761,810.48 6,609,896.65 1.583 832 Total and Average 23,115,968.22 22,885,372.56 23,125,933.76 22,887,380.26 0.955 467 41 City of Aliso Viejo
Transaction Activity Report
October 1, 2021 - October 31, 2021
Sorted by Fund - Transaction Date
All Funds
Total
Interest Cash
Principal
Paydowns
New
Fund Principal Investment # CUSIP Inv Descrip TransactionType TransactionDate Issuer 10084 999 538036JN5 LIVOAK 1.65% MAT Interest 10/01/2021 Live Oak Banking 332.26 332.26 10083 999 3135G0Q89 FEDERAL NATL MTGRedemption 10/07/2021 Federal National Mtg 500,000.00 500,000.00 10083 999 3135G0Q89 FEDERAL NATL MTGInterest 10/07/2021 Federal National Mtg 3,437.50 3,437.50 10089 999 14042RPG0 CAPONE 1.6% MAT Interest 10/08/2021 Capital One USA 1,965.37 1,965.3710066 999 05580ASU9 BMW 1.85% MAT Interest 10/12/2021 BMW Bank 2,272.46 2,272.4610106 999 90348JR93 UBS 0.95% MAT Interest 10/12/2021 UBS Bank 191.30 191.30 10071 999 949495AA3 WFC 1.8% MAT Interest 10/13/2021 Wells Fargo Bank 362.47 362.4710061 999 87270LBZ5 TIAA 2.5% MAT Redemption 10/18/2021 TIAA FSB 245,000.00 245,000.00 10061 999 87270LBZ5 TIAA 2.5% MAT Interest 10/18/2021 TIAA FSB 3,087.67 3,087.67 10061 999 87270LBZ5 TIAA 2.5% MAT Interest 10/18/2021 TIAA FSB 16.83 16.83 10091 999 15118RUV7 CELTIC 1.4% MAT Interest 10/18/2021 Celtic Bank 281.92 281.92 10087 999 27002YEX0 EGBN 1.55% MAT Interest 10/20/2021 Eagle Bank 312.12 312.1210094 999 32110YPS8 FNAMER 1.25% MAT Interest 10/22/2021 First National Bank 251.71 251.7110088 999 05465DAK4 BOFI 1.65% MAT Interest 10/26/2021 Axos Bank 332.26 332.2610090 999 87164DRQ5 SNV 1.2% MAT Interest 10/26/2021 Synovus Bank 1,474.03 1,474.03 10093 999 89214PCQ0 TOWN 1.15% MAT Interest 10/29/2021 Townebank 1,412.61 1,412.6110095 999 15201QDF1 CTRSTE 1.2% MAT Interest 10/30/2021 Centerstate Bank 1,474.03 1,474.0310104 999 59013KLQ7 MERRIC 0.55% MAT Interest 10/30/2021 Merrick Bank 110.75 110.75 10067 999 912828T91 USTR 1.625% MAT Interest 10/31/2021 U.S. Treasury 4,062.50 4,062.50 10092 999 58404DGU9 MEDBNK 1.2% MAT Interest 10/31/2021 Medallion Bank 1,482.08 1,482.08 Totals for Pooled Cash 745,000.00 22,859.87 767,859.87
10000 LAIF 98-30-007 LAIF 0.% Interest 10/15/2021 LAIF 4,961.54 4,961.54 10000 LAIF 98-30-007 LAIF 0.% Purchase 10/16/2021 LAIF 4,961.54 -4,961.54 Totals for Local Agency Investments Fund 4,961.54 4,961.54 0.00 Grand Total 4,961.54 745,000.00 27,821.41 767,859.87
42 LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
Account Number: 98-30-007
October 2021 Statement
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
10/15/2021 10/14/2021 QRD 1688465 N/A SYSTEM 4,961.54
Account Summary
Total Deposit: 4,961.54 Beginning Balance: 9,530,411.02 Total Withdrawal: 0.00 Ending Balance: 9,535,372.56

CITY OF ALISO VIEJO

FINANCE DIRECTOR
12 JOURNEY, #100
ALISO VIEJO, CA 92656
43 Oct 0.203
Sep 0.206
Aug 0.221
PMIA Quarter to Date(1): 0.22%
PMIA Average Life 321 (1):

LAIF Apportionment Rate 0.24 (2):

0.00000661958813242

0.999873661
LAIF Earnings Ratio(2):

LAIF Fair Value Factor(1):

PMIA Daily(1): 0.20%
Treasuries

68.70%
Agencies

15.60%
Certificates of
Deposit/Bank Notes

6.95%
Time
Deposits

2.25%
Commercial
Paper

5.92%
Corporate
Bonds

0.14%
Loans

0.44%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a).

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 11/17/21
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/21
Chart does not include $7,685,000.00 in mortgages, which equates to 0.004396%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
10/31/21
$174.8 billion
44 City of Aliso Viejo

AGENDA ITEM
DATE: January 19, 2022
TO: Mayor and City Council
FROM: Paul Espinoza, Interim Administrative Services Director SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
Recommended Action:

Receive and file the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021.

Fiscal Impact:

None.

Background:

The Annual Comprehensive Financial Report was prepared in conformity with Generally Accepted Accounting Principles (GAAP) and audited by certified public accountants Rogers, Anderson, Malody & Scott, LLP, in accordance with Generally Accepted Auditing Standards (GAAS) issued by the Comptroller General of the United States. This report complies with Reporting Postemployment Benefits other than Pensions as required by Statement 75, developed by the Governmental Accounting Standards Board (GASB). The Government-Wide financials include two reports, a statement of net assets and a statement of activities, as required by GASB Statement 34 to provide information for assessing operational accountability for the entity. These reports are required to report on all operations of the entity including capital assets, infrastructure, and depreciation.

The City is also in the process of implementing GASB Statement 87. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. Under this Statement, a lessee is required to recognize a lease liability and a lessor is required to recognize a lease receivable thereby enhancing the relevance and consistency of reporting information about a governments’ leasing activities. The City received an unmodified report or ‘clean’ opinion for the results of operations for the year ending June 30, 2021.
45

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Discussion:

The ACFR is divided into three major sections: Introductory, Financial, and Statistical.

The Introductory Section presents the Transmittal Letter of the report, which discusses the Government Profile, Economic Condition, and Outlook for the City, Major Initiatives, and Future Projects/Financial Planning. The Financial Section, specifically the Management’s Discussion and Analysis, details how to read and understand the financial statements of the report, presents an overview of the City’s financial activities and uses graphs and charts to quickly summarize the information. The information is presented in both government-wide statements and by major funds. The Statistical Section provides information and historical trends to give additional context to the financial reports and assist the reader in understanding the City’s financial position and future. The City’s net position reports on all assets (cash, receivables, and capital assets), liabilities (payables, other post-employment benefit obligations, and pension obligations) and deferred outflows and inflows of resources (changes in pension-related obligations).

Government-wide Financials
Some of the financial highlights at the government-wide level are:
• The total revenue from all sources equaled $24,462,798. • The total cost of all city expenditures equaled $26,964,241. • The net cost of providing Governmental Activities was $18,110,259. • The City spent $3,425,242 for its street maintenance, traffic mitigation, improvement and rehabilitation projects.
• The City spent $350,508 on Capital Improvement projects such as Dairy Fork and Wood Canyon wetland rehabilitation projects, and facility improvements at the Aquatic Center, Aliso Viejo Center, Iglesia Park, and City Hall. Funds in the amount of $10,240,431 was spent on construction of the Aliso Viejo Ranch project. • Overall net position, which includes all assets decreased by $2,501,443 as a result of operations, for a total net position of $131,833,818. Total net position includes $101,009,829 of capital assets, $25,601,465 of unrestricted fund balance, and $5,222,524 of restricted special revenue fund balance.

Overall, the City fared well despite the downturn in the economy and the financial markets.

Recovery from the massive reduction in economic activity seen over the last quarter of the FY 2020-21 is continuing. While a moderate increase in GDP is expected in Q3, the pace of the recovery has slowed. Most indicators of activity are slightly below above their June quarter average including retail sales and home sales. Other categories such as leisure and entertainment experienced massive declines are now realizing recovery over the past few months.

Incoming revenues and expenditures were maintained at levels required to implement Council directives and retain current levels for programs and services. Compared to fiscal year 2019-2020 total revenues were down 2.8%, primarily due to decreases in sales tax, use of money and property and transient occupancy tax (TOT), charges for services. 46

Page 3 of 4 ends

Sales tax revenue decreased primarily due to the impacts of the pandemic. TOT decreased due to impacts of the pandemic which brought occupancy rates and business travel to a halt. Use of money and property decreased due to declining market conditions resulting from the economic shut down from the pandemic and the cancellation of events and programs at the City facilities.

Total expenses increased by 5.41%. General Government saw the largest increase followed by Public Works and then Community Services. Increases in General Government were a result of the increase in the City Attorney Department, Economic Development Department and Information Technology. Public Works increases in were the result of increases in salary and benefits, contractual services and master plans.

Community Services were the result of increased operating costs of the AV Ranch, Iglesia building and park.

Total assets increased by .18% primarily due to construction of the AV Ranch project and a decrease in deferred outflows largely due to an additional pension contribution by the City. Total Liabilities increased 15.1% due to the issuance of COP 2019 for the AV Ranch project and changes in deferred inflows of resources for pension and OPEB obligations.

On August 13, 2019, the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. The principal is due annually in amounts ranging from $235,000 to $640,000 on November 1 of each year commencing in 2020 through the year 2049 with a coupon rate ranging from 2% to 4%.

The City expended $2,310,394 in special revenue funds, including TCRF, Gas Tax, SB1, Measure M, and State grants on the City’s annual slurry seal and street rehabilitation projects. In addition, $3,425,242 was spent to maintain and enhance the City’s streets, including traffic mitigation, street lighting and sweeping services.

Capital Improvement projects totaled $350,508 for projects including City Facility improvements, Dairy Fork and Wood Canyon wetland Rehabilitation and Restoration, as well as a continuation of stormwater cleanup measures. Funds in the amount of $9,659,998 was spent on construction of the Aliso Viejo Ranch project.

Overall, City operations were consistent with prior year operating levels. The current fund balance reserves reflect both compliance with the Management and Budget policy adopted by City Council and Council’s exceptional fiscal management enabling the City to provide excellent services to its residents.
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General Fund
Some of the financial highlights at the fund level are:

Revenues: Actual revenues received were marginally above final year-end budget by $682,407 or 3.8%. Sales Taxes received exceeded year end budget expectations by $396,907 or 12.7% but significantly below original budget estimates. This increase is primarily attributable to the slow recovery from the pandemic shut down. Property tax received were in line with expectations with a slight increase of .7% over budget.

Transient occupancy taxes (TOT) received was 14.9% less than budget due to impacts of the pandemic which brought occupancy rates and business travel to a halt. In addition, one of the hotels within the City closed for construction within the same timeframe.

Franchise fees received were 3.3% under budget due to lower receipts from cable and waste collections. Adjusted for the loss in sales tax and TOT, General Fund revenues in FY 2021-2022 are expected to be consistent with the trend lines for the prior year.

Expenditures: Actual expenditures incurred were $1,829,826 or 7.0% lower than the final year-end budget as a result of the proactive approach by City Council and staff, the City was able to reduce costs in programs and departments. Cost recoveries on charges for services are offset by proportional costs for providing these services. City facilities experienced loss in revenues due to the cancellation of events and programs, thus, expenses were reduced as much as possible by curtailing operations. Overall, General Fund expenditures in FY 2021-22 are expected increase over FY 2020-21 actual expenditures due increased economic development outreach, additional software and hardware enhancements to secure the City’s vital infrastructure and intellectual data, staffing and program costs associated with providing enhanced recreation programs to the community by recreation services, an increase in the Law Enforcement contract costs, continued work efforts on the Aliso Viejo Ranch site, and an increase in personnel costs across all departments within the City.

Ending Fund Balance: Ending Fund Balance for the year decreased by 17.7% from FY 2019-2020, for a total ending balance of $27,131,163. Included in the fund balance are non-spendable funds of $76,150 and assigned funds of $27,117,572 and unassigned funds in the amount of $(62,559). The estimated fund balance at the fiscal year end of June 30, 2021, is equal to 123% of the fiscal year 2021-2022 Adopted Budget General Fund appropriations.

The City has successfully completed and reported on its fiscal year 2020-21 operations.

Exceptional direction and support from the City Council has enabled the City to stay abreast of its financial projections, retain its AA+ rating, maintain a sound financial base with adequate reserves, and prepare for the future ahead.

Attachment:

1. Annual Comprehensive Financial Report
48 ANNUAL COMPREHENSIVE

FINANCIAL REPORT

CITY OF

ALISO VIEJO,

CALIFORNIA
FY 2020-21
49 CITY OF ALISO VIEJO
Aliso Viejo, California

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Prepared by

FINANCIAL SERVICES

50 CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement vii
Organizational Chart viii
List of Principal Officials ix

FINANCIAL SECTION
Independent Auditor's Report 1
Management's Discussion and Analysis 5

BASIC FINANCIAL STATEMENTS
Government–Wide Financial Statements:

Statement of Net Position 18
Statement of Activities 19
Fund Financial Statements:

Balance Sheet – Governmental Funds 21
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 23
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities 26
Statement of Fiduciary Net Position 27
Statement of Changes in Fiduciary Net Position 28
Notes to Financial Statements 29

51 CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS (Continued)
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Information: 63
Budgetary Comparison Schedule - General Fund 64
Budgetary Comparison Schedule - Gas Tax Fund 65
Budgetary Comparison Schedule - Aliso Viejo Center 66
Budgetary Comparison Schedule - Federal Grants 67
Capital Assets – Modified Approach for Infrastructure 68 Miscellaneous Plan:

Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date 70
Schedule of Plan Contributions 71
Schedule of Changes in the Total OPEB Liability and Related Ratios 72

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Other Governmental Funds 75
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Governmental Funds 78
Budgetary Comparison Schedules – Special Revenue Funds:

Traffic Congestion Relief 81
Measure M 82
SB1 - RMRA 83
Public Safety Grants 84
Air Quality Improvement 85
Integrated Waste Management 86
Other Grants 87
Technology Grants 88
Development Impact 89
Aquatic Center 90
Budgetary Comparison Schedules – Capital Projects Funds:

Street Improvements - Major Fund 91
Capital Improvements 92
Storm Water 93
COP 2019 - Major Fund 94
Custodial Funds:

Combining Statement of Fiduciary Net Position - All Custodial Funds 96 Combining Statement of Changes in Fiduciary Net Position All Custodial Funds 97
52 CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS (Continued)
Page
Number

STATISTICAL SECTION
Net Position by Component – Table 1 99
Changes in Net Position – Table 2 100
Fund Balances of Governmental Funds – Table 3 101
Changes in Fund Balances of Governmental Funds – Table 4 102 General Government – Expenditures by Function – Table 5 103 General Government – Revenues by Source – Table 6 104
General Government – Tax Revenues by Source – Table 7 105 Principal Sales Tax Producers by Category – Table 8 106 Property Tax Levies and Collections – Table 9 107
Assessed and Estimated Actual Value of Taxable Property – Table 10 108 Direct and Overlapping Property Tax Rates – Table 11 109 Principal Property Taxpayers – Table 12 110
Ratios of Net General Obligation Debt to Assessed Value and Net General Obligation Debt Per Capita - Table 13 111
Computation of Direct and Overlapping Bonded Debt – Table 14 112 Legal Debt Margin – Table 15 113
Demographic and Economic Statistics – Table 16 114
Principal Employers – Table 17 115
Operating Indicators by Function – Table 18 116
Full-Time and Part-Time City Employees by Function – Table 19 117 Capital Assets Statistics by Function – Table 20 118
Schedule of Insurance – Table 21 119
Miscellaneous Statistical Information – Table 22 120
53 THIS PAGE INTENTIONALLY LEFT BLANK
54 January 6, 2022
To the Residents of the City of Aliso Viejo:

It is with great pleasure that we present the City of Aliso Viejo’s Annual Comprehensive Financial Report (ACFR) for fiscal year 2020-2021. This report has been prepared by the Department of Financial Services in conformity with Generally Accepted Accounting Principles (GAAP) and has been audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants.

The report consists of management representations concerning the finances of the City.

Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the financial statements. Since the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner designed to fairly present the financial position of the City. All disclosures necessary to enable an understanding of the City’s financial activities have been included.

Rogers, Anderson, Malody & Scott, LLP, a firm of licensed Certified Public Accountants, has audited the City of Aliso Viejo’s financial statements. The goal of the independent audit is to provide reasonable assurance that the City’s financial statements for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Aliso Viejo’s financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

This ACFR includes the financial activity for all funds of the City. In addition to the fund-by-fund financial information presented in the City’s financial statements, government-wide financial statements are also included. The government-wide financial statements include a Statement of Net Position that provides the total net equity of the City, including infrastructure, and the 55 Statement of Activities that shows the cost of providing government services. These statements have been prepared using the accrual basis of accounting whereas the fund financial statements were prepared using the modified accrual method. A reconciliation report is provided as a key to understanding the changes between the two reporting methods. In addition, the Statement 34 standard includes an emphasis on the City’s major funds as shown in the Governmental Fund Statements. These statements, combined with other information, are further analyzed in a 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 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.

This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

PROFILE OF THE CITY
The City of Aliso Viejo was incorporated on July 1, 2001, as a general law city under the laws of the State of California. The City of Aliso Viejo encompasses approximately seven square miles in south Orange County and has a population of 49,813 per data provided by the California Department of Finance (DOF). Approximately 46 miles south of Los Angeles and 70 miles north of San Diego, the City is adjacent to the cities of Laguna Beach, Laguna Woods, Laguna Hills and Laguna Niguel.

The City operates under the Council-Manager form of government. The City Council is comprised of five members elected at large for staggered four-year terms of office. The Mayor and Mayor Pro-Tem are selected by the Council from among its members to serve one-year terms. The Council acts as the legislative and policy-making body of the City, enacting all laws and directing such actions as required, to provide for the general welfare of the community.

The City Manager is appointed by the City Council and is responsible for overseeing the operations of the City and implementing the policy decisions made by the City Council. The City Attorney and City Treasurer are also appointed by the City Council. All other department heads and employees are appointed by the City Manager.

The City provides municipal services through a combination of in-house staffing and contract services. Police and fire services, street maintenance, building, engineering, and legal services are all provided through contracts. The Aliso Viejo Community Association, a master community association, owns and manages 21 parks within the City limits. This Association also maintains most of the landscaped slopes and parkways. The City owns and manages Iglesia Park, Vista Park, and the Aliso Viejo Ranch. The Orange County Library System provides public library services.

Prior to the beginning of each fiscal year, the City Council adopts the annual budget, which serves as the foundation for the City’s financial planning and control. The budget is arranged by fund, function and department and presented to the Council by the City Manager. The level of budgetary control is established at the fund level. Transfers of appropriations between fund budgets can be made with the approval of the City Manager and Director of Financial Services. The City Council’s approval is required for all budget amendments that result in a change to the adopted budget.

The budget is reviewed midyear in January by the City Manager and the Director of Financial Services to ensure compliance with City Council direction. The Mid-Year Budget is then reviewed by the City Council and consideration is given to necessary adjustments for new programs, 56 projects and other adjustments to ensure that expenditures and revenues are in line with the budgeted projections.

The City maintains an encumbrance accounting system as an additional method of budgetary control. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

ECONOMIC CONDITION AND OUTLOOK
Information presented in the City’s financial statements is best understood within the context of our broader economic conditions. The City’s local economy is showing life once again as the Southern California region continues to emerge from COVID-19. The industries that were hit the hardest during the pandemic were fuel and service stations and restaurants and hotels. Since consumers were required to stay home a significant portion of the time in the FY 2020-21, travel was stagnant and dining out was not popular. Hotels and restaurants, general consumer stores and schools were shut down during most of the FY 2020-21 and the shelter-in-place required more people to work from their homes and kids received their education online, which reduced the need to use vehicles and purchase fuel. Despite this, the last quarter of the FY 2020-21 showed increased demand for fuel as stay at home orders and other COVID restrictions eased resulting in a higher demand for fuel and increasing associated sales tax.

Children have resumed to in person learning, many people have returned to working at the office, and consumers are dining out again. This resulted in an increase of casual, quick service, leisure/entertainment, and fast casual dining activity.

Based on the most recent estimates from the Bureau of Economic Analysis, real GDP increased at an annual rate of 2.0% in the third quarter of 2021 after increasing 6.7% in the second quarter 2021. The updated UCLA Anderson Forecast for 2021 calls for annual GDP growth of 5.6% which is slightly down 1.5% for the earlier estimate of 7.1% rate predicted in June. For 2022, growth is expected to be 4.1%, down from the 5.0% rate forecast in June 2020. The Congressional Budget Office (CBO) is projecting that employment surpasses its pre-pandemic level in mid-2022. The unemployment rate declines through 2022 and then remains near or below 4.0% for several years. In September, the Federal Open Market Committee (FOMC) kept the target range for the federal funds rate at 0 to ¼ percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.

LOCAL ECONOMY
Although California’s unemployment rate was estimated at 7.5% in August 2021, Orange County’s rate has been consistently lower and was estimated at 6.0%, according to the latest available data by the California Employment Development Department. Orange County’s regional economy recovers from pandemic lows primarily due to professional & business services and scientific & technical services having now regained most jobs lost since the beginning of the pandemic. Aliso Viejo is comprised of single-family homes, condominiums, and apartments as well as a mixture of retail, office, light industrial, and service entities providing a solid tax base for the City. Most retail and commercial businesses are oriented toward serving residents and visitors. The City is also home to numerous regional and corporate headquarters in a variety of industries, particularly in the biomedical and healthcare industries. This dynamic local business environment and availability of amenities in the community will assist Aliso Viejo in weathering the current recession 57 and position its local economy for future recovery and growth. The City is nearly built out, with limited future opportunities for new residential or commercial construction. However, revitalization of existing sites and mixed-use in-fill opportunities in the Aliso Viejo Town Center provide new opportunities and funding sources for the City.

The City’s major revenue sources are property taxes, sales taxes, franchise fees and transient occupancy taxes. The City also receives significant revenue streams through property taxes inlieu of motor vehicle license fees, which are apportioned similarly to property taxes. Revenues budgeted for FY 2021-2022 were estimated conservatively, adjusted for one-time revenues, and project a modest recovery in the economy. Estimated taxes for FY 2021-21 are expected to increase when compared to actual receipts for FY 2020-21. Other revenue estimates are also expected to increase from FY 2020-21 receipts due to the completion of the AV Ranch project.

Appropriations have been increased to accommodate deferred projects from the prior year while maintaining service levels at prior year levels except for Council recommended new projects and programs.

LONG TERM FINANCIAL PLANNING
As of June 30, 2021, the City has an assigned General Fund balance of $27 million, including $8.3 million for future replacement of City infrastructure assets, $2.6 million for contingencies, $15 million for emergencies and unanticipated CIP projects, and $1.1 million for future benefit obligations. The City has an negative unassigned General Fund balance of $-62,559. On August 13, 2019, the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. The principal is due annually in amounts ranging from $230,000 to $635,000 on November 1 of each year commencing in 2020 through the year 2049. Interest is payable semi-annually in amounts ranging from $9,525 to $212,325 and is due on May 1 and November 1 of each year commencing on November 1, 2019. The interest payments have rates ranging from 0.96% to 3.09%. The City publishes a Five-Year Strategic Plan to identify key factors affecting the City’s fiscal outlook, examine fiscal trends, and analyze the General Fund’s ability to continue current services, maintain existing assets, and fund City Council initiatives over the next five years. The Five-Year Strategic Plan is updated and published periodically.

RELEVANT FINANCIAL POLICIES
The City has made a practice of living within its means since incorporation. In fiscal year 2005- 06, the City Council formally adopted a Management and Budget policy to promote sound financial management which, in turn, led to improved bond ratings and lower cost of capital. The City continues to be conservative with expenditures while maintaining adequate reserves in accordance with City policies. General Fund surpluses, as well as outside funding sources when available, have been used to fund projects as directed by the City Council. To uphold the City’s reputation of providing excellent amenities for residents and businesses, City staff continues to actively pursue outside grants and funding opportunities whenever possible. The City’s Fund Balance Policy was approved in 2012 to establish procedures for reporting unrestricted fund balances in the City’s financial statements. The policy authorizes the City Manager and Director of Financial Services to prepare financial reports which accurately categorize fund balance per GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions. The City’s longterm financial plans are also in accordance with these policies.

58 MAJOR INITIATIVES
The City’s Economic Development program continued ongoing initiatives aimed at facilitating the retention and expansion of existing businesses, attracting new businesses to the community, and promoting the City’s “business friendly” environment. In FY 2020-2021, the City created an Economic Recovery Task Force comprised of multiple City Departments to address the economic impacts of Covid to our businesses, residents and City government finances. Through the Task Force, the City created and implemented several programs including the Go Outdoor (GO) grant to assist businesses in moving their operations outdoors and a separate business grant to financially assist struggling businesses. The Task Force also created large outdoor dining areas:

The Row and The Patio to allow for safe outdoor dining experiences. CDBG funds were also provided to non-profit organizations to assist residents who were unable to pay for food, rent, utilities, etc.

In July 2016, the City entered into an economic development subsidy agreement with EFUEL.

EFUEL is an on-site mobile fueling business for diesel fueled vehicles and generators within the City. Under this agreement, EFUEL shall receive graduated percent (starting at fifty percent 50%) of sales tax revenue by the City attributable to EFUEL. For the year ended June 30, 2021, the City abated sales taxes totaling $253,432.

The City continues to remain proactive in reviewing and negotiating agreements to be competitive and up to date with current market conditions. The City, after extensive community outreach and prior efforts to develop the 7.7-acre, City owned Aliso Viejo Ranch Project site, developed a plan to preserve and adaptively reuse the historic structures on the site and add new community, agricultural, educational, and park uses to the property. By rehabilitating the historic structures on site, the project aims to pay homage to the historic character of the site and surrounding area while balancing the community’s need for new and expanded community facilities. Construction began on the facility in May 2019 and was officially opened in May of 2021.

Over the last year, several large developments have also been underway. Glaukos Corporation constructed their new headquarters on a three-acre site and will be occupying the space in the coming months. A new behavioral health facility was also under construction during this time and is ready for occupancy once the required State permits and license are obtained. The remainder of the Freedom Lane area is also either entitled for new development or has applications in process. A new Kaiser medical office building was approved to be construction at 800 Freedom Lane. Three new warehouse building are also in the planning entitlement process for 400 through 800 Freedom Lane.

AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association (GFOA) offers a Certificate of Achievement for Excellence in Financial Reporting to cities for their Annual Comprehensive Financial Report (ACFR). This Certificate is a prestigious award, recognizing conformance with the highest standards of state and local government financial report preparation. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized ACFR, whose contents conform to program standards. Such a ACFR must satisfy both generally accepted accounting principles and applicable legal requirements. The City submitted its FY 2019-2020 ACFR for review and received the award for excellence in financial reporting from GFOA. The Certificate is valid for a period of one year. The City will also be submitting its FY 2020-2021 ACFR to GFOA for review. We would like to recognize the assistance of the Financial Services staff in the preparation of the CAFR and to our independent auditor, Rogers, 59 Anderson, Malody & Scott, LLP. For their expertise and advice in preparing an improved financial report. Through the team effort of the City Council and staff, the City has been able to maintain a sound financial base from which to operate and continue to provide a high level of service to the community.

Respectfully submitted,
David Doyle
City Manager
60 vii
61 viii
City of Aliso Viejo
Organizational Chart
June 30, 2021
62 ix

CITY OF ALISO VIEJO

LIST OF PRINCIPAL OFFICIALS
Council-Manager Form of Government

CITY COUNCIL

TIFFANCY ACKLEY
Mayor

ROSS CHUN
Mayor Pro Tem

RICHARD HURT DAVID HARRINGTON MIKE MUNZING
Council Member Council Member Council Member

CITY ADMINISTRATION

DAVID DOYLE
City Manager
Scott Smith, City Attorney
Paul Espinoza, Inteirm Director of Financial Services/City Treasurer Mitzi Ortiz, City Clerk
Omar Dadabhoy, Director of Planning Services
Shaun Pelletier, City Engineer/Public Works Director
Stephanie Brown, Community Services Manager
Isaac Aziz, Information Technology Manager
Lieutenant Chad Kajfasz, Chief of Police Services
Division Chief Mike Contreras, Fire Services (Orange County Fire Authority) 63 THIS PAGE INTENTIONALLY LEFT BLANK
64 1
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Aliso Viejo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Aliso Viejo, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
65 2
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and schedules listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required 66 3
supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information Included in the Annual Report
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Emphasis of Matter
As discussed in Note 1 to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.

67 4
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
January 6, 2022
68 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
5 Our discussion and analysis of the City of Aliso Viejo’s financial performance provides an overview of the City’s financial activities for the year ended June 30, 2021. Please read it in conjunction with the transmittal letter at the front of this report and the accompanying basic financial statements which follow this section.

FINANCIAL HIGHLIGHTS
• The General Fund balance decreased by 17.7% from fiscal year 2019-2020, for a total balance of $27,131,163. This balance is comprised of non-spendable funds of $76,150, assigned funds of $27,117,572, and $(62,559) of unassigned funds. The estimated fund balance at the fiscal year end of June 30, 2021 is equal to 123% of the fiscal year 2021-2022 Adopted Budget General Fund appropriations.
• The General Fund’s actual resources available for appropriation (revenue inflows) exceeded the final budget by $(682,408 and actual appropriations (outflows) were $1,829,826 under budget, including reserve funding.
• General Fund expenditures and transfers out of $24,250,459 exceeded revenues and transfers in of $18,410,863 by $5,839,596.
• The City decreased its overall net position by $(2,501,443) or (1.86)% for a total net position balance of $131,833,818.
• The overall fund balance decreased by $(12,110,397) for an all funds fund balance of $32,315,354.
• Total assets on the Statement of Net Position increased .18% to $153,431,390 from the prior fiscal year.
• Total liabilities on the Statement of Net Position increased 15.11% to $21,688,559 due increase in unearned revenue.
• The total revenue from all sources amounted to $24,462,798. • Deferred outflows decreased 2.63% or $17,036 largely due to an additional pension contribution by the City.
• The total cost of all City programs amounted to 26,964,241 and were offset with $8,853,982 of program revenues for a net cost of $18,110,259.
• Deferred inflows decreased 14.9% or $94,541 primarily due to new hires stabilizing and its impacts on projected benefits.
• The City spent $3,425,242 for its street maintenance, traffic mitigation, improvements and rehabilitation projects.
• The City spent $350,508 on Capital Improvement projects such as Dairy Fork and Wood Canyon wetland rehabilitation projects, and facility improvements at the Aquatic Center, Aliso Viejo Center, Iglesia Park and City Hall. Funds in the amount of $10,240,431 was spent on construction of the Aliso Viejo Ranch project.
• Special Revenue Funds, including TCRF, Gas Tax, Measure M2, and SB1 contributed $2,310,394 towards the City’s median and street rehabilitation projects. 69 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
6 USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and allow a longer-term view of the City’s finances. Fund Financial Statements tell how City services were financed in the short-term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds.

Reporting the City as a Whole: The Statement of Net Position and the Statement of Activities
The Statement of Net Position and the Statement of Activities report information about the City as a whole and in a way that helps clarify the City’s overall financial position. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All current year revenues and expenses are taken into account, regardless of when cash is received or paid. These two statements report the City’s net position and changes in them. Net position, which is the difference between assets and liabilities, is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. Consideration should also be given to other nonfinancial factors, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.

All of the City’s basic services are considered to be governmental activities. The Statement of Net Position and the Statement of Activities present information about these governmental activities, including general government, community development, community services, public safety, and public works. Property tax, sales tax, transient occupancy tax, and franchise fees finance 56.1% of these activities.

Reporting the City’s Most Significant Funds: Fund Financial Statements The Fund Financial Statements provide detailed information about the most significant funds - not the City as a whole. In addition to the General Fund, other funds included are Gas Tax, Aliso Viejo Center, Debt Service Fund, Street Improvements and Certificate of Participation 2019. Lesser funds are collectively reported as Other Governmental Funds. Some funds are required to be established by State law. However, the City Council 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.

The City currently has just one type of fund - governmental - which uses the modified accrual accounting approach. Governmental funds focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Most of the City’s basic services are reported in governmental funds. Under the modified accrual method of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current fiscal period while expenditures are recognized in the accounting period in which the liability is incurred.
70 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
7 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 the reader determine whether there are more or less financial resources that can be spent in the near future to finance the City’s programs. The relationship and differences between governmental activities reported in the Statement of Net Position and the Statement of Activities and the governmental funds statements are detailed in the reconciliations immediately following each of the fund financial statements.

The City as Trustee: 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 the Statement of Fiduciary Assets and Liabilities. We exclude these activities from the City’s other 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 only for their intended purposes.

THE CITY AS A WHOLE
Our analysis focuses on the net position (Table 1) and change in net position (Table 2) of the City’s governmental activities. The City has no business-type activities.

Table 1
Condensed Statement of Net Position
2021 2020
Current and other assets 39,453,424 $ 48,572,230 $
Capital assets, net 113,977,966 104,590,483
Total assets 153,431,390 153,162,713
Deferred Pension related items 597,294 622,323
Deferred OPEB related items 33,577 25,584
Total deferred outflows of resources 630,871 647,907
Non current liabilities 14,419,572 14,367,930
Other liabilities 7,268,987 4,473,004
Total liabilities 21,688,559 18,840,934
Deferred Pension related items 61,443 103,884
Deferred OPEB related items 478,441 530,541
Total deferred inflows of resources 539,884 634,425
Net Position:

Invested in capital assets 101,009,829 93,873,835
Restricted 5,222,524 11,454,992
Unrestricted 25,601,465 29,006,434
Total net position 131,833,818 $ 134,335,261 $
Governmental Activities
71 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
8 Total net position decreased $2,501,443 or 1.86% to $131,833,818 in FY 2020-21 as a result of current year operations, as discussed below:
• Total assets increased by .18% primarily due to the issuance of the Certificate of Participation 2019 (COP 2019) and funding from CARES, Community Development Block Grant (CDBG) and other grant monies received during the year. • Liabilities increased by 15.1% due to increases in deposits payable at year end and due to changes in deferred inflows of resources..
• Net position includes funds invested in Capital Assets in the amount of $101,009,829.

Cha rgesfor Services

16.4%
Opera ting
Contributions &
Grants

19.8%
Capi tal
Contributions &
Grants

0.0% Taxes

61.1%
Investement
Income

1.5%
Other

1.2%
Sources of Revenue
Community
Development

20.8%
Gene ral
Government

6.5%
Inte rest and fiscal
Cha rges

13.7%
Community
Servi ces

22.3%
Public Works

35.2%
Public Safety

1.5%
Functional Expenses
72 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
9 Table 2
Change in Net Position
2021 2020
Revenues
Program revenues:

Charges for services 4,001,459 $ 3,070,201 $
Operating contributions and grants 4,852,523 4,342,486
Capital contributions and grants - 9,600
General revenues:

Taxes:

Sales taxes 3,524,908 4,765,921
Property taxes 8,981,521 8,647,685
Franchise taxes 1,672,280 1,729,418
Transient occupancy taxes 723,599 1,220,997
Motor vehicle license fees 36,704 40,659
Use of money and property 377,709 1,053,024
Other 292,095 292,184
Total revenues 24,462,798 25,172,175
Expenses
General government 5,621,731 4,878,395
Community development 1,754,782 1,830,144
Community services 3,695,994 3,433,829
Public works 6,016,332 5,631,039
Public safety 9,480,235 9,312,287
Interest and fiscal charges 395,167 494,561
Total expenses 26,964,241 25,580,255
(Decrease) Increase in net position (2,501,443) (408,080) Net position - beginning of year 134,335,261 134,743,341 Net position - end of year 131,833,818 $ 134,335,261 $
Governmental Activities
Overall, the City fared well despite the downturn in the economy and the financial markets.

Comparisons made in this report use actuals for FY 2019-20 and FY 2020-21. The City’s total revenues from all sources were $24,462,798, while the total cost of all programs and services was $26,964,241. Compared to fiscal year 2019-2020 total revenues were down 2.82%, primarily due to decreases in sales tax, transient occupancy tax, and use of money and property. Sales taxes and transient occupancy taxes decreased primarily due to the shutdown caused by COVID and the use money and property and decreased due to cancellation of events and programs at the City facilities.
73 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
10 Total expenses increased by 5.41%. General Government saw the largest decrease followed by Public Works and Community Services. Decreases in all programs were a result of the salary savings from vacated positions during the fiscal year. Additionally, in fiscal year 2019-20 community development and general government included the CalPERS payout, adjustments for OPEB and pension costs. This large payout was not experienced in FY 2020-21.

Excluding interfund transfers, General Fund revenues decreased 2.82% for the year with the majority of the decrease attributed to a decrease in sales tax and transient occupancy tax. The City’s main revenue sources are Property Tax, Sales Tax, Transient Occupancy Taxes and Franchise Fees. Property Taxes have been the most reliable local government revenue for decades and continues to be the City’s largest revenue source at $8.9 million this year. Property Taxes were up 3.86% from the prior year and are expected to remain stable at the current level.

This increase can be attributed to increases in home values resulting in higher assessed values and the effect of Proposition 8 assessed value adjustments.

Sales tax, the City’s second largest revenue source, decreased 26.4% from FY 2019-2020 to $3.5 million. Multiple factors impacted the City’s sales tax with a new normal estimated at $4.5 million.

Over the past two years the City saw the closing of a major business and a misallocation by a local business, together the loss equates to $1.2 million and also impacts the calculation of monies received from countywide tax allocations. Taxpayer relief programs also accounted for some of the decline in receipts after factoring for payment deferrals and other accounting anomalies. Fuel receipts declined as many employees transitioned to working from home due to the shutdown.

The City’s business and industry sector and medical/biotech have assisted with offsetting some of these loses.

The decrease of 41% in Transient Occupancy Tax (TOT) is due to negligible occupancy rates and is attributed entirely to the shutdown. The City’s hotels have averaged $970,000 in TOT revenue over the last two years and below 60% in occupancy rate. Charges for services saw an increase of 30% as the City continues to ramped up the hybrid process of providing online permitting and payment options to mitigate any impacts to the residents. Additionally, staff incorporated procedures to secure data and internal controls for safeguarding of City assets.

Investment earnings decreased significantly by 64% due to declining market conditions resulting from the economic shut down from the pandemic.

Franchise fees decreased 3.3% to $1.6 million, due to lower receipts for electric, cable franchise and waste collection fees. These decreases were partially offset by an increase in Gas and waste disposal collections. Rapid developments in technology have provided the consumer with easy access to media and programming on mobile devices resulting in a modification in consumer behavior and subscription services.

The current performance of City revenues is reflective of the present state of the economy, impacts of the pandemic, recovery solutions implemented by the State and Federal governments as well as its excellent fiscal management and direction by Council. These significant revenues fund a large part of the City’s basic services.

74 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
11 Government Activities
Tables 3 and 3A present the cost of each of the City’s programs: General Government (Administrative Services), Community Development, Community Services, Public Safety, and Public Works, as well as each program’s net cost (total cost less revenues generated by the activities).

Table 3
Net Cost of Governmental Activities
June 30, 2021
Total Cost of
Services
Program
Revenues
Net
(Revenue)/Cost
of Service
General government 5,621,731 $ - $ 5,621,731 $
Community development 1,754,782 (1,985,136) (230,354)
Community services 3,695,994 (2,469,572) 1,226,422
Public works 6,016,332 (3,929,195) 2,087,137
Public safety 9,480,235 (470,079) 9,010,156
Interest and fiscal charges 395,167 - 395,167
Total 26,964,241 $ (8,853,982) $ 18,110,259 $
Table 3A
Net Cost of Governmental Activities
June 30, 2020
Total Cost of
Services
Program
Revenues
Net
(Revenue)/Cost
of Service
General government 4,878,395 $ - $ 4,878,395 $
Community development 1,830,144 (1,147,213) 682,931
Community services 3,433,829 (1,915,080) 1,518,749
Public works 5,631,039 (3,923,881) 1,707,158
Public safety 9,312,287 (436,113) 8,876,174
Interest and fiscal charges 494,561 - 494,561
Total 25,580,255 $ (7,422,287) $ 18,157,968 $
The City’s total expenses were $26,964,241, which includes paying for the cost of law enforcement, animal control services, NPDES (storm water runoff), street repairs, recreation programs, administrative costs, and capital outlay.

75 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
12 General Government expenses are 21% of the total governmental expenses and include City Council, City Manager, City Attorney, City Clerk, Economic Development, Human Resources, Financial Services, Information Technology and Non-Departmental. The increase of $743,336 or

15.2% over the prior year was primarily due to expenses incurred in the City Attorney department, Economic Development and Information Technology. Recovery programs were implemented to assist businesses within the City to expand outdoors and assist with cash flow deficiencies.

Hardware and software were purchased to enhance security and protect City intellectual data in response to telecommuting, remote access and providing City services online.

Community Development expenses are 6.5% of the governmental services expense and include Planning, Building and Safety, and Code Enforcement activities. Expenses incurred for these activities decreased by 4.1% this year and is entirely due to a $225,000 housing incentive provided to a developer for an affordable housing project in the previous year that was not provided for in the FY 2020-21. Various building and planning fee revenues as well as development fees assist in reducing the cost of providing these services. Marginal increases were incurred in the planning department for providing affordable housing review and support services offset by reductions in the contract cost for proving building check and permit services.

Community Services expenses are 13.7% of the governmental services expenses and increased

7.6% over last year due primarily to the Aliso Viejo Ranch coming online in the second half of the fiscal year. These costs include Community Services, Recreation Program, Iglesia Community Center and Park operating costs, as well as the Aliso Viejo Center and Aliso Viejo Aquatic Center.

As we slowly come out of the pandemic, events are beginning to be scheduled at the Aliso Viejo and Aliso Viejo Ranch resulting in increased expenses and revenues for the facility. The City continues to explore marketing of the facilities and new programs at both facilities to generate additional revenues to assist with offsetting operational costs. Personnel costs increased in preparation of new programs that will be offered by the recreation department. One-time spending on capital projects completed at both the facilities included LED lighting upgrade, paint, furniture, and lawn design.

Public Works expenses are 22.3% of the governmental services. Public Works spending increased by 6.8%, mainly due to completion of capital projects carried over from the prior year.

The Public Works department manages all street and traffic maintenance, capital improvement projects, and any other major construction projects. Operating contributions and grants provide a large portion of the funding for this function. Special Revenue funds, which are comprised of TCRF, Gas Tax, SB1 and Measure M monies, are also used to subsidize the costs of this program.

Public Safety expenses comprise the largest expense of the City at 35.2% of the governmental services expenses and include contract costs with the Orange County Sheriff Department for police services and emergency services, the City of Mission Viejo for animal services, crossing guards, as well as crime prevention outreach services for the City. Public Safety costs were up marginally $167,948 or 1.8%, from the prior year largely due to the increase in contract costs and purchase of law enforcement equipment. Revenues from Fines, Fees & Forfeitures and Operating Contributions & Grants assist with offsetting the costs of this program. 76 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
13 A portion of the increases in appropriations across all departments are due to cost of living adjustments as required by existing Contract Services agreements and the City’s employee pay for performance plan.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At year-end, the City’s Governmental Funds reported a combined Fund Balance of $32,315,354, an decrease of 27.26% or $12,110,397 from the prior year. This was primarily due transfers out of the General Fund for various City Hall improvements, improvements to Iglesia Park, improvements to the Aquatic Center and AV Ranch.

Overall, City operations were consistent with prior year operating levels. The current fund balance reflects both compliance with the Management and Budget policy adopted by the City Council and the City’s fiscal responsibility towards services. Funds in the amount of $2,310,394 were expended from TCRF, Gas Tax, Measure M2 and SB1 funds for its street improvement and maintenance projects, including median and pavement rehabilitation projects. The City spent $3,425,241 to maintain and enhance the City’s streets, including traffic signals, street lighting, street sweeping services and rehabilitation projects.

Capital Improvement projects totaling $350,508 included Dairy Fork and Wood Canyon wetland rehabilitation projects, and facility improvements at the Aquatic Center, Aliso Viejo Center, Iglesia Park and City Hall.

General Fund Budgetary Highlights
Revenues: Actual revenues (including transfers in) received were above the final year-end budget by $682,408 or 3.8%. Property Taxes received were in line with budget estimates with a slight increase of .7% over budget. Sales tax revenue received were above the final year-end budget by 12.7% but significantly below original budget estimates primarily due to the closing of a major business, a misallocation by a local business and impacts of the pandemic.

Transient occupancy taxes received was 14.9% less than budget due impacts of the pandemic which brought occupancy rates and business travel to a halt. In addition, one of the hotels within the City also closed for construction within the same timeframe. Franchise fees received were

3.3% under budget by due to lower receipts from cable and waste collections. Adjusted for the loss in sales tax, General Fund revenues in FY 2021-2022 are expected to be consistent with the trend lines for pre-pandemic years.

Expenditures: Actual expenditures (including transfers out) incurred were $1,829,826 or 7.0% lower than the final year-end budget as a result of the proactive approach by City Council and staff, the City was able reduce costs in all programs and departments. City facilities experienced loss in revenues due to the cancellation of events and programs, expenses were curtailed to the maximum possible by curtailing operations. Overall, General Fund expenditures in FY 2021-2022 are expected to increase over FY 2020-2021 actual expenditures due to increased economic development outreach, additional software and hardware enhancements to secure the City's vital infrastructure and intellectual data, staffing and program costs associated with providing enhanced recreation programs to the community by recreation services, an increase in the Law 77 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
14 Enforcement contract costs, continued work efforts on the Aliso Viejo Ranch site, and an increase in personnel costs across all departments within the City.

Ending Fund Balance: Ending Fund Balance for the year decreased by 17.7% from FY 2019- 2020, for a total ending balance of $27,131,163. Included in the fund balance are non-spendable funds of $76,150 and assigned funds of $27,117,572 and unassigned funds in the amount of $(62,559). The estimated fund balance at the fiscal year end of June 30, 2021 is equal to 123% of the fiscal year 2021-2022 Adopted Budget General Fund appropriations. The unassigned fund balance for the fiscal year ended June 30, 2020 is equal to -.28% of FY 2020-2021 Adopted Budget General Fund appropriations.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2021, the City had $113,977,966 invested in a broad range of capital assets, including police equipment, buildings, land, park facilities, furniture and fixtures, and roads. (See Table 4 below). Additions to capital assets being depreciated were made in the amount of $23,306,815 for the completion of the AV Ranch project and the purchase of various equipment, and furniture throughout the City. Depreciation expense in the amount of $1,023,807 was incurred in FY 2020-2021. For additional information on capital assets, refer to Note 4 of Notes to the Financial Statements.

The City of Aliso Viejo elected to use the modified approach in reporting their streets and roads network. Under the modified approach, infrastructure assets that are part of a network or subsystem of a network are not required to be depreciated if certain requirements are met, which are disclosed in the accompanying Basic Financial Statements and Required Supplementary Information. In March 2002, the City Council approved a condition level of 80 as the minimum acceptable Pavement Condition Index (PCI). The following schedule discloses a comparison between the City’s assessed condition level of the streets and roads network as of June 30, 2020 and the City’s adopted target level of condition.

Actual Assessed Minimum Condition
Condition Level Level
Overall Pavement Network 82 80
Under the modified approach, GASB Statement No. 34 requires that condition assessments be performed every three years. Last completed in June 2020, the City traditionally performs an assessment every two years. It is the City’s intention to have another complete assessment performed on or before fiscal year ending June 30, 2022.

During the year ended June 30, 2021, actual streets and roads maintenance project costs were $3,425,242 compared to the estimate of $3,779,360. The amount of underspending was due to project cost savings and the rollover of a median, slurry seal and rehabilitation project to FY 2021- 2022.

78 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
15 Table 4
Capital Assets at Year End
(Net of Depreciation)
Asset Type 2021 2020
Land 14,315,978 $ 14,315,978 $
Buildings and improvements 37,371,801 15,587,221
Equipment, furniture and fixtures 562,440 584,677
Other infrastructure 7,639,112 8,118,447
Streets and highways 53,871,430 53,871,430
Construction in progress 217,205 12,112,730
Total 113,977,966 $ 104,590,483 $
Debt
On August 13, 2019, the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. The principal is due annually in amounts ranging from $230,000 to $635,000 on November 1 of each year commencing in 2020 through the year 2049 with a coupon rate ranging from 2% to 4%.

In March of 2014, staff coordinated the refinancing of the Community Facilities District (CFD) bonds issued in conjunction with the Glenwood development. Based on the final pricing of the CFD bonds, Glenwood property owners are saving an average of $899 per year.

Non-Current Liabilities
Changes in non-current liabilities for the fiscal year ended June 30, 2021 were as follows:

Table 5
Non-Current Liabilities
Balance at
July 1, 2020 Additions Deletions
Balance at
June 30, 2021
Amount due
within one
year
Amount due
beyond one
year
Bonds payable 12,250,000 $ - $ 230,000 $ 12,020,000 $ 235,000 $ 11,785,000 $ Unamortized premium 968,064 - 32,269 935,795 - 935,795
Compensated absences 262,828 269,100 229,811 302,117 75,888 226,229 Total 13,480,892 $ 269,100 $ 492,080 $ 13,257,912 $ 310,888 $ 12,947,024 $ For additional information on non-current liabilities, refer to Note 5 of the Notes to the Financial Statements.

79 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
16 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The recovery from the massive falls in economic activity seen from April through June is continuing. While a moderate increase in GDP is expected in Q3, the pace of the recovery has slowed. Most indicators of activity are slightly below above their June quarter average including retail sales and home sales. Other categories such as leisure and entertainment experienced massive declines are now realizing recovery over the past few months.

Other factors include the slow pace at which state restrictions on activity are being eased, ongoing consumer and business caution, a tightening in lending conditions, cutbacks in state/local government spending, and a large number of permanent business closures. The rise in the number unemployed, even as the overall unemployment rate moves down, is illustrative of the longer-term damage that has occurred. The current forecast for 2021 is for average GDP growth of 5.6%, down from the 7.1% rate predicted in June. For 2022, growth is expected to be 4.1%, down from the 5.0% rate forecast made in June. For 2023, the projection is now 3.1%, up from the 2.2% rate predicted in June. Fiscal developments and the path of the virus will remain major factors influencing how strongly the economy recovers.

The Federal Open Market Committee has indicated that there will not be an increase in the Fed funds rate until inflation has reached 2% and the labor market is very strong at least through the end of 2023 as premature withdrawal of fiscal support could create a risk to the recovery.

Unemployment in Orange County has consistently been among the lowest in the State and is expected to continue this trend. In October 2021, Orange County’s unemployment rate was 4.7%.

The City’s unemployment rate of 4.1% continues to be among the lowest among Orange County cities according to preliminary monthly labor force data provided by the State. Given the City’s strong economic base, total personal income is expected to remain stable. Although the City is mostly built out, businesses continue to seek vacant spaces within the City, which bodes well for the future economic condition of the City. The City’s economic development team continues to work with property owners and commercial real estate professionals to assist in marketing currently available units and development sites. In addition, with a combination of federal, state and general fund dollars, the City has proactively created programs to assist businesses and individuals within the community to combat fiscal impacts of the pandemic.

After extensive community outreach and prior efforts to develop the 7.7-acre, City owned Aliso Viejo Ranch site, the City has developed a plan to preserve and adaptively reuse the historic structures on site and add new community, agricultural, educational, and park uses to the property. By rehabilitating the historic structures on site, the project aims to pay homage to the historic character of the site and surrounding area while balancing the community’s need for new and expanded community facilities. Construction began on the facility in May 2019 and was completed in May 2021.

Other projects include the construction of a STEM building and residence halls at Soka University, corporate offices, a medical office, a managed care facility, a parking garage, and professional office buildings. The budget also includes funds for economic development and community outreach, enhancements and increased recreation programs, City facility improvements and implementation of a land and asset management software. 80 CITY OF ALISO VIEJO
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
17 Net General Fund operations for the adjusted FY 2020-21 budget are estimated to result in a negative cash flow of $5,839,596 to the fund balance. Adjusted for the loss in sales tax and delayed receipts for transient occupancy tax revenues, General Fund revenues in FY 2021-2022 are expected to be consistent with the trend lines for the prior year based on conservative estimates to account for recovery from the pandemic, modest growth in the economy, recent trends in construction activity and adjusted for one-time revenue receipts. The operating budget for FY 2021-22 is a modest surplus budget while maintaining current service levels. Deficit financing for City operations is primarily due to the reasons discussed above, debt service payment for the bonds and for operating costs for the AV Ranch site including personnel and building and ground maintenance. This important investment in the community has been a high priority of the City Council for many years. City reserves are customarily utilized as seed monies to assist with establishing new initiatives for the community. The City through its long-term fiscal analysis had envisioned utilizing a small portion of its reserves to assist with the operations of the AV Ranch site for five years. The projected fund balance for the General Fund at the end of FY 2020-21 is estimated to be $24.4 million and is 122.9% of the FY 2021-22 operating budget.

Among local municipalities, this high level of reserve funds is extremely rare and is attributed to City Council’s prudent fiscal management.

Changes adopted by the CalPERS board over the past few years included shorting the period over which actuarial gains and losses are amortized, demographic and mortality assumptions and impacts on unfunded liability. Reducing the amortization period is expected to increase average funding ratios and provide faster recovery of funded status in a market downturn. Though they continued to maintain their 2.75% inflation and economic assumptions, they did however, adjusted their discount rate to 7.375% for FY 2018-19, 7.25% for FY 2019-20, 7.0% for FY 2020- 21 and 7.15% for FY 2021-22. CalPERS reported an average return on investments of 6.3% for the 5-year period ending June 30, 2020, 8.5% for the 10-year period, and 5.5% for the 20-year period. The City’s annual contribution employer rate for FY 2020-21 is 10.484% of base wages and is expected to be 10.34% for fiscal year 2021-22. The City pays its projected annual employer contributions (before cost sharing) for its unfunded liability as provided by CalPERS on an annual basis which will help to reduce the volatility of the City’s employer rate. This amount is projected to increase gradually over the next six years. As of the July 2020 valuation reports, as provided by CalPERS, the City’s funded ratio is 84.9%.

The Capital Improvement Budget represents a balanced approach for meeting the community's current and future needs, while continuing to address priority issues expressed by the community and City Council. The Capital Improvement Program for FY 2021-22 totals approximately $2.8 million and includes improvements to streets, storm water projects, and improvements to City facilities. Staff continues to maximize the use of special revenues by actively pursuing grants and other funding opportunities from County, State, and Federal sources to help fund these programs.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
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 or need additional financial information, contact the City’s Department of Financial Services, City of Aliso Viejo, 12 Journey, Suite 100, Aliso Viejo, California 92656, or call (949) 425-2520. 81 THIS PAGE INTENTIONALLY LEFT BLANK
82 CITY OF ALISO VIEJO

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying notes to the financial statements.
18 Governmental
Activities
Assets:

Current assets:

Cash and investments $ 36,574,405
Receivables:

Accounts 632,726
Accrued interest 5,327
Inventory 7,394
Prepaid costs 78,006
Due from other governments 2,155,566
Total current assets 39,453,424
Noncurrent assets:

Capital assets not being depreciated 68,404,613
Capital assets, net of depreciation 45,573,353
Total noncurrent assets 113,977,966
Total Assets 153,431,390
Deferred Outflows of Resources:

Pension related items 597,294
OPEB related items 33,577
Total Deferred Outflows of Resources 630,871
Liabilities:

Current liabilities:

Accounts payable 2,080,693
Accrued liabilities 211,156
Deposits payable 1,667,797
Retentions payable 147,949
Unearned revenue 2,850,504
Compensated absences - current portion 75,888
Long-term debt - current portion 235,000
Total current liabilities 7,268,987
Non-current liabilities:

Compensated absences - non-current portion 226,229
Long-term debt - non-current portion 12,720,795
Net pension liability 1,035,831
Total OPEB liability 436,717
Total noncurrent liabilities 14,419,572
Total Liabilities 21,688,559
Deferred Inflows of Resources:

Pension related items 61,443
OPEB related items 478,441
Total Deferred Inflows of Resources 539,884
Net Position:

Net investment in capital assets 101,009,829
Restricted for:

Community development projects 1,579,149
Community services 19,500
Public works 3,498,519
Public safety 125,356
Unrestricted 25,601,465
Total Net Position $ 131,833,818
83 CITY OF ALISO VIEJO

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
See accompanying notes to the financial statements.
19 Net
(Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Functions/ Programs Expenses Services and Grants and Grants Activities Primary Government:

Governmental activities:

General government 5,621,731 $ - $ - $ - $ (5,621,731) $ Public safety 9,480,235 310,419 159,660 - (9,010,156)
Community development 1,754,782 1,400,136 585,000 - 230,354 Community services 3,695,994 2,290,904 178,668 - (1,226,422) Public works 6,016,332 - 3,929,195 - (2,087,137)
Interest and fiscal charges 395,167 - - - (395,167)
Total governmental activities 26,964,241 4,001,459 4,852,523 - (18,110,259) Total primary government 26,964,241 $ 4,001,459 $ 4,852,523 $ - $ (18,110,259) General revenues:

Taxes:

Property taxes, levied for general purpose 8,981,521
Transient occupancy taxes 723,599
Sales taxes 3,524,908
Franchise taxes 1,672,280
Motor vehicle in lieu - unrestricted 36,704
Use of money and property 377,709
Other 292,095
Total general revenues 15,608,816
Change in net position (2,501,443)
Net position, beginning of year 134,335,261
Net position, end of year 131,833,818 $
Program Revenues
84 See accompanying notes to the financial statements.
20 GENERAL FUND
The General Fund has been classified as a major fund and is used to account for revenues and expenditures that are not required to be accounted for in another fund.

SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The following funds have been classified as major funds.

Gas Tax
This fund is used to account for the City’s share of the motor vehicle gas tax imposed under the provisions of the Street and Highway Code of the State of California under Sections 2105, 2106, 2107, and 2107.5 which are legally restricted for the acquisition, construction, improvements, and maintenance of public streets. This fund previously included SB1 – RMRA funds, which is now reported as a new and separate nonmajor fund in fiscal year 2019-2020.

Aliso Viejo Center
This fund is used to account for the operations of the Aliso Viejo Center. The Aliso Viejo Center is a City owned facility that serves as an ideal venue to accommodate an array of functions, such as banquets, wedding celebrations, conferences, and corporate events.

Federal Grants
The Federal Grants Fund is used to account for Federal Grants received by the City for various projects. Grants included are FTA Grants, T.A.R.P Funds, Federal Community Development Block Grants, and Energy Efficiency and Conservation Block Grants.

CAPITAL PROJECT FUNDS
Street Improvements
This fund is used to account for the City’s street improvement projects.

COP 2019
This fund is used to account for the City’s purchase or construction of major capital projects funded by Certificates of Participation.

NON-MAJOR FUNDS
Other Governmental Funds
These funds constitute all other governmental funds that do not meet the major 10% and 5% test of assets, liabilities, revenues, or expenditures for the governmental funds. These funds consist of other Special Revenue Funds and Capital Projects Funds for the City. 85 CITY OF ALISO VIEJO

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying notes to the financial statements.
21 General Aliso Viejo Federal
Fund Gas Tax Center Grants
Assets:

Cash and investments 26,834,001 $ 923,102 $ 1,143,878 $ 2,884,694 $ Receivables:

Accounts 477,080 148 17,772 -
Accrued interest 5,327 - - -
Inventory - - 7,394 -
Prepaid costs 76,150 - 1,856 -
Due from other governments 1,219,224 2,783 - 40,606
Due from other funds 351,532 - - -
Total Assets 28,963,314 $ 926,033 $ 1,170,900 $ 2,925,300 $ Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable 900,363 $ 183,460 $ 160,039 $ 30,232 $ Accrued liabilities 195,878 - - -
Deposits payable 669,436 - 998,361 -
Due to other funds - - - -
Retentions payable - - 12,500 -
Unearned revenue 11,451 - - 2,839,053
Total Liabilities 1, 183,460 777,128 1,170,900 2,869,285 Deferred Inflows of Resources:

Unavailable revenue - grants 55,023 1,924 - 40,606
Total Deferred Inflows of Resources 55,023 1,924 - 40,606 Fund Balances (Deficits):

Non-Spendable:

Prepaid costs and inventory 76,150 - 9,250 -
Restricted for:

Community services - - - -
Community development projects - - - -
Capital projects - 740,649 - -
Public safety - - - 15,409
Assigned to:

Contingencies 2,649,388 - - -
Self Insurance/benefit obligations 1,150,474 - - -
Asset replacement 8,317,710 - - -
Emergencies and unanticipated traffic projects 15,000,000 - - - Unassigned - (62,559) (9,250) -
Total Fund Balances 27,131,163 740,649 - 15,409
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 28, $ 926,033 963,314 $ 1,170,900 $ 2,925,300 $ Special Revenue Funds
86 CITY OF ALISO VIEJO

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021 (Continued)
See accompanying notes to the financial statements.
22 Other Total
Street Governmental Governmental
Improvements COP 2019 Funds Funds
Assets:

Cash and investments - $ 394,223 $ 4,394,507 $ 36,574,405 $ Receivables:

Accounts - - 137,726 632,726
Accrued interest - - - 5,327
Inventory - - - 7,394
Prepaid costs - - - 78,006
Due from other governments 415,960 - 476,993 2,155,566
Due from other funds - - - 351,532
Total Assets 415,960 $ 394,223 $ 5,009,226 $ 39,804,956 $ Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable 82,345 $ 394,223 $ 330,031 $ 2,080,693 $ Accrued liabilities - - 15,278 211,156
Deposits payable - - - 1,667,797
Due to other funds 198,166 - 153,366 351,532
Retentions payable 135,449 - - 147,949
Unearned revenue - - - 2,850,504
Total Liabilities 415,960 394,223 498,675 7,309,631
Deferred Inflows of Resources:

Unavailable revenue - grants - - 82,418 179,971
Total Deferred Inflows of Resources - - 82,418 179,971
Fund Balances (Deficits):

Non-Spendable:

Prepaid costs and inventory - - - 85,400
Restricted for:

Community services - - 19,500 19,500
Community development projects - - 1,579,149 1,579,149
Capital projects - - 2,757,870 3,498,519
Public safety - - 109,947 125,356
Assigned to:

Contingencies - - - 2,649,388
Self Insurance/benefit obligations - - - 1,150,474
Asset replacement - - - 8,317,710
Emergencies and unanticipated traffic projects - - - 15,000,000 Unassigned - - (38,333) (110,142)
Total Fund Balances - - 4,428,133 32,315,354
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 415,960 $ 394,223 $ 5,009,226 $ 39,804,956 $ Capital Projects Funds
87 THIS PAGE INTENTIONALLY LEFT BLANK
88 CITY OF ALISO VIEJO

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying notes to the financial statements.
23 Fund Balances of Governmental Funds 32, $ 315,354
Position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 113,977,966
Deferred inflows and outflows of resources related to pension and OPEB have not been reported in the governmental funds:

Deferred outflows - Pension related items 597,294
Deferred outflows - OPEB related items 33,577
Deferred inflows - Pension related (61,443)
Deferred inflows - OPEB related (478,441)
Compensated absences that have not been included in the governmental fund activity. (302,117)
Governmental funds report all pension contributions as expenditures, however, in the Statement of Net Position, the excess of the plan's proportionate share of the total pension liability over the proportionate share of the plan's fiduciary net position is reported as a net pension liability. (1,035,831) Governmental funds report all OPEB contributions as expenditures, however, in the Statement of Net Position, any excesses of the OPEB plan's total pension liability over the OPEB plan's fiduciary net position is reported as a total OPEB liability. (436,717)
Revenues reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities. These are classified as intergovernmental revenues in the Government-Wide Financial Statements. 179,971 Long-term debt has not been included in the governmental fund activity.

Bonds payable (12,020,000)
Unamortized premium (935,795)
Net Position of Governmental Activities 131,833,818 $
Amounts reported for governmental activities in the Statement of Net 89 CITY OF ALISO VIEJO

STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying notes to the financial statements.
24 General Aliso Viejo Federal
Fund Gas Tax Center Grants
Revenues:

Taxes 14,823,926 $ - $ - $ - $
Licenses and permits 976,781 - - -
Intergovernmental 42,844 1,101,268 - 755,695
Charges for services 488,154 - 720,554 -
Use of money and property 940,875 19,067 - 54,585
Fines and forfeitures 310,419 - - -
Contributions - - - -
Developer fees - - - -
Other 79,582 - 174,254 -
Total revenues 17,662,581 1,120,335 894,808 810,280
Expenditures:

Current:

General government:

City council 170,930 - - -
City manager 629,525 - - -
Human resources 212,296 - - -
Economic development 1,087,509 - - -
City clerk 445,305 - - -
City attorney 367,891 - - -
Finance 779,554 - - -
Information technology 731,197 - - -
General government 581,423 - - 71,160
Community development:

Community services 1,525,026 - 1,074,567 -
Planning 873,575 - - -
Building 686,606
Public works 1,797,903 1,167,273 - -
Public safety 9,103,128 - - -
Debt service:

Principal payment - - - -
Interest and fiscal charges - - - -
Capital outlay - - - -
Total expenditures 18,991,868 1,167,273 1,074,567 71,160 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,329,287) (46,938) (179,759) 739,120 Other Financing Sources (Uses):

Transfers in 748,282 - 179,759 -
Transfers out (5,258,591) - - (736,838)
Total other financing sources (uses) (4,510,309) - 179,759 (736,838) Net change in fund balances (5,839,596) (46,938) - 2,282 Fund balances, beginning of year 32,970,759 787,587 - 13,127 Fund balances, end of year 27, $ 740,649 131,163 $ - $ 15,409 $ Special Revenue Funds
90 CITY OF ALISO VIEJO

STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021 (Continued)
See accompanying notes to the financial statements.
25 Other Total
Street Governmental Governmental
Improvements COP 2019 Funds Funds
Revenues:

Taxes - $ - $ - $ 14,823,926 $
Licenses and permits - - - 976,781
Intergovernmental - - 2,087,656 3,987,463
Charges for services - - 990,156 2,198,864
Use of money and property - - 53,685 1,068,212
Fines and forfeitures - - - 310,419
Contributions - - 100,000 100,000
Developer fees - - 585,000 585,000
Other - - - 253,836
Total revenues - - 3,816,497 24,304,501
Expenditures:

Current:

General government:

City council - - - 170,930
City manager - - - 629,525
Human resources - - - 212,296
Economic development - - - 1,087,509
City clerk - - - 445,305
City attorney - - - 367,891
Finance - - - 779,554
Information technology - - - 731,197
General government - - 34,093 686,676
Community development:

Community services - - 1,067,135 3,666,728
Planning - - 154,649 1,028,224
Building 686,606
Public works 2,327,098 - 239,376 5,531,650
Public safety - - 255,161 9,358,289
Debt service:

Principal payment - - 230,000 230,000
Interest and fiscal charges - - 427,436 427,436
Capital outlay - 10,240,431 134,651 10,375,082
Total expenditures 2,327,098 10,240,431 2,542,501 36,414,898 Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,327,098) (10,240,431) 1,273,996 (12,110,397) Other Financing Sources (Uses):

Transfers in 2,327,098 10,240,431 1,077,775 14,573,345
Transfers out - - (8,577,916) (14,573,345)
Total other financing sources (uses) 2,327,098 10,240,431 (7,500,141) - Net change in fund balances - - (6,226,145) (12,110,397) Fund balances, beginning of year - - 10,654,278 44,425,751 Fund balances, end of year - $ - $ 4,428,133 $ 32,315,354 $ Capital Projects Funds
91 CITY OF ALISO VIEJO

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying notes to the financial statements.
26 Net Change in Fund Balances - Total Governmental Funds (12,110,397) $ are different because:

Governmental funds report capital outlays as expenditures. However, in the Government-Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

Capital outlay and deletions 10,375,082
Depreciation (1,023,807)
Capital projects expensed 36,208
Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds. (39,289) Pension obligation expenses, net of pension deferred related amounts, reported in the Statement of Activities do not require current financial resources and therefore, are not reported as expenditures in governmental funds. (146,851)
OPEB obligation expenses, net of OPEB deferred related amounts, reported in the Statement of Activities do not require current financial resources and therefore, are not reported as expenditures in governmental funds. (12,955)
Revenues reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities. These are classified as program revenues in the Government-Wide Financial Statements. 158,297 The issuance of long-term debt provides current financial resources in the governmental funds, but issue debt increases the long-term liabilities in the Statement of Net Position.

Bonds payable 230,000
Unamortized premium 32,269
Change in Net Position of Governmental Activities $ (2,501,443) Amounts reported for governmental activities in the Statement of Activities 92 CITY OF ALISO VIEJO

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying notes to the financial statements.
27 Custodial
Funds
Assets:

Cash and investments 53,323 $
Restricted cash and investments 4,503,808
Due from other governments 26,866
Total assets 4,583,997
Liabilities:

Accounts payable 46,302
Deposits payable 5,544
Total liabilities 51,846
Net position:

Restricted for organizations and other governments 4,532,151 Total net position $ 4,532,151
93 CITY OF ALISO VIEJO

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying notes to the financial statements.
28 Custodial
Funds
Additions:

Assessments 2,033,263 $
Events and rentals 169,475
Interest income 5,066
Total additions 2,207,804
Deductions:

Administrative expenses 169,475
Payments to bondholders:

Principal 700,000
Interest 1,475,064
Total deductions 2,344,539
Net increase (decrease) in fiduciary net position (136,735) Net position, beginning of year, as restated (Note 15) 4,668,886 Net position, end of year 4,532,151 $
94 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
29 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
The accounting policies of the City of Aliso Viejo conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
a. Reporting Entity
The City of Aliso Viejo (the City) was incorporated July 1, 2001, under the general laws of the State of California. The City operates under the Council-Manager form of government.

The City provides the following services as authorized by its general laws: public safety, public works, community development and general administrative services.

Generally accepted accounting principles require that these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. As of the end of the reporting period the City had one blended component unit as defined by the GASB.

Aliso Viejo Public Facilities Corporation
The Aliso Viejo Public Facilities Corporation (“the Corporation”) was created on July 19, 2006, for the purpose of providing for the financing of the acquisition and improvement of a building to be used as City Hall through the issuance of Certificates of Participation by the Corporation and the lease-back of the building from the Corporation to the City. Members of the City Council and management of the City act as the Corporation’s governing board and exerts significant influence over its operations. Separate financial statements are not prepared for this Corporation, however, the Corporation is active as of August 2019 due to the issuance of the 2019 COPs.
b. Measurement Focus, Basis of Accounting, and Basis of Presentation The basic financial statements of the City are composed of the following:
 Government-wide financial statements
 Fund financial statements
 Notes to the basic financial statements

95 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
30 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) Government-Wide Financial Statements: Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities.

These statements include a single column for the governmental activities of the primary government. The City of Aliso Viejo has no business-type activities. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Program revenues include charges for services, special assessments, and program payments. Program revenues are netted with program expenses in the Statement of Activities, to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements: The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and other funds in the aggregate for governmental funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

96 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
31 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) Governmental Funds: In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle license fee, transient occupancy taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available where cash is received by the government.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed.

If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first.

Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 which requires that local governments defer grant revenue that is not received within 60 days after the fiscal year ends to meet the “available” criteria of revenue recognition.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources,” since they do not represent net current assets. 97 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
32 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) Recognition of governmental fund type revenue represented by non-current receivables are deferred until they become current receivables. Non-current portions of other long-term receivables are classified as non spendable fund balance.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

When both, restricted and unrestricted resources, are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. c. Fund Classifications
The City reports the following major governmental funds:

General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Gas Tax Special Revenue Fund: This fund is used to account for the City’s share of the motor vehicle gas tax imposed under the provisions of the Street and Highway Code of the State of California under Sections 2105, 2106, 2107, and 2107.5 which are legally restricted for the acquisition, construction, improvements, and maintenance of public streets.

Aliso Viejo Center Special Revenue Fund: This fund is used to account for the operations of the Aliso Viejo Center. The Aliso Viejo Center is a City owned facility that serves as an ideal venue to accommodate an array of functions, such as banquets, wedding celebrations, conferences and corporate events. Revenues are generated from events held at the facility.

Federal Grants Fund: This fund is used to account for Federal Grants received by the City for various projects. Grants included are FTA Grants, T.A.R.P Funds, Federal Community Development Block Grants, and Energy Efficiency and Conservation Block Grants.

Street Improvements Capital Projects Fund: This fund is used to account for the City’s street improvement projects.

Certificates of Participation 2019 Fund: This fund is used to account for capital expenditures associated with the development and construction of the Aliso Viejo Ranch. The capital costs associated with the Aliso Viejo Ranch project include the construction of buildings, landscaping, parking lot, and hydroponic farm.

98 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
33 Note 1: Summary of Significant Accounting Policies (Continued) c. Fund Classifications (Continued)
Additionally, the government reports the following fund types:

Capital Projects Funds: These funds are used to account for the financial resources used for the acquisition of capital assets and are funded by the General Fund, Gas Tax Fund, Measure M Fund, and the Federal Grants Fund.

Custodial Funds: These funds are used to account for special assessments received for which the City acts as an agent for all Community Facilities District debt activity. d. Cash and Investments
Investments are reported in the accompanying statement of net position at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings and changes in fair value. The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance, except for investment income associated with funds not legally required to receive pooled investment income which has been assigned to and recorded as revenue of the General Fund, as provided by California Government Code Section 53647. e. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both, the government-wide and fund financial statements.

Prepaid items are reported in the governmental funds under the consumption method and are offset by a reservation of fund balance to indicate that they are not spendable for appropriation and are not expendable financial resources.
f. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more.

Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. The City has elected to include infrastructure capital assets in their entirety (e.g., prior to 1980) in compliance with requirements of GASB Statement No. 34.

99 CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
34 Note 1: Summary of Significant Accounting Policies (Continued) f. Capital Assets (Continued)
Capital assets used in operations are depreciated over their estimated useful lives, except for streets, of which the City reports based on using the modified approach. The City uses the straight-line method in the government-wide financial statements for depreciating storm drains, park equipment, buildings, equipment and furniture, and leasehold improvements.

Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net position. The range of lives used for depreciation purposes for each capital asset class are as follows:

Items Useful Life
Buildings 100 years
Improvements 3-50 years
Equipment and furniture 5 years
Infrastructure:

Sidewalks 20-50 years
Curb and gutters 20-50 years
Medians 20-50 years
Traffic signals 15 years
Street signs 15 years
Storm drains 20-50 years
Park equipment 10-50 years
The City of Aliso Viejo met all the criteria required by GASB Statement No. 34 to report their streets and roads network using the modified approach, which allows those infrastructure assets to be non-depreciable. Hence, all expenditures made for the streets and roads asset network (except for additions and improvements) are expensed in the period incurred.

Additions or improvements to the streets and roads network assets that increase the capacity or efficiency of those assets (rather than preserve the useful life) are capitalized. The City elected to set their minimum acceptable level of condition at 80 for all streets and roads network systems based on their pavement management system scale of 1 to 100. The City plans to test/assess the condition level at least every three years. See the accompanying Required Supplementary Information section for additional information. g. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has deferred outflows of resources related to pension and OPEB items.

100

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
35 Note 1: Summary of Significant Accounting Policies (Continued) g. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City of Aliso Viejo has two types of items. The item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from various sources such as, grant revenue, taxes, and other special revenue. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The other item is deferred pension and OPEB related items. h. Net Pension Liabilities
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position of the Plan, and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
i. Compensated Absences
In accordance with generally accepted accounting principles, an employee benefits payable liability is recorded for unused vacation and similar compensatory leave balances. The employee’s entitlements to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

101

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
36 Note 1: Summary of Significant Accounting Policies (Continued) j. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City recognizes as revenue only those taxes which are received within 60 days after year end.

The property tax calendar is as follows:

Lien Date: January 1
Levy Date: July 1
Due Date: First Installment - November 1
Second Installment - February 1
Delinquent Date: First Installment - December 10
Second Installment - April 10
k. Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from those estimates.
l. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both, restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. m. Fund Balance Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both, restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

102

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
37 Note 1: Summary of Significant Accounting Policies (Continued) n. Fund Balance
In the fund financial statements, government funds report the following fund balance classification:

Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager and/or Financial Services Director is authorized to assign amounts to a specific purpose, which was established by the governing through a resolution.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted or unrestricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

103

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
38 Note 1: Summary of Significant Accounting Policies (Continued) o. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
p. Implementation of New GASB Pronouncement
The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities. The primary objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.

As a result, activities previously reported as agency funds (refundable deposits and community trust) are now grouped with the General Fund. The City’s remaining fiduciary activities include the CFD 2005-01 fund, which meets the criteria to be reported as a custodial fund.

104

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
39 II. DETAILED NOTES ON ALL FUNDS
Note 2: Cash and Investments
Cash and investments as of June 30, 2021, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 36,574,405 $
Statement of Fiduciary Net Position:

Cash and investments 53,323
Cash and investments held by fiscal agent 4,503,808
Total cash and investments 41,131,536 $
Cash and investments as of June 30, 2021 consists of the following:

Deposits with financial institutions 15,676,982 $
Cash on hand 2,655
Investments 25,451,899
Total cash and investments 41,131,536 $
Investments Authorized by the California Government Code and the City’s Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.

105

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
40 Note 2: Cash and Investments (Continued)
Authorized by Maximum Maximum
Investment Types Authorized Investment Maximum Percentage of Investment in by State Law Policy Maturity Portfolio One Issuer*
Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years 75% None
U.S. Agency Securities Yes 5 years 60% 7,000,000 $
Banker's Acceptances Yes 180 days 20% 3,000,000
Commercial Paper Yes 270 days 20% 10%
Certificates of Deposit Yes 5 years 75% 15,000,000
Negotiable Certificates of Deposit Yes 3 years 20% 3,000,000 Repurchase Agreements Yes 30 days 10% 2,000,000
Reverse Repurchase Agreements No 30 days 10% of base value 2,000,000 Medium-Term Notes Yes 5 years 10% 1,000,000
Mutual Funds No None 20% 10%
Money Market Mutual Funds Yes None 10% 1,000,000
Mortgage Pass-Through Securities No 5 years 20% None
County Pooled Investment Fund No None None None
Local Agency Investment Fund Yes None 100% 75,000,000
JPA Pools (other investment pools) No None None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Investment Types Authority Maximum Percentage of Investment in by State Law Maturity Portfolio One Issuer*
U.S. Treasury Obligations 5 years 75% None
U.S. Agency Securities 5 years 60% 35%
Banker's Acceptances 180 days 20% 3,000,000 $
Commercial Paper 270 days 20% None
Money Market Funds N/A 10% None
Investment Agreements None None None
Defeasance Obligations None None None
Municipal Obligations None None None
Local Agency Investment Fund None None 75,000,000
106

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
41 Note 2: Cash and Investments (Continued)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Investment Type Fair Value
12 Months or
Less
13 to 24
Months
25 to 60
Months
State Investment Pool 6,525,625 $ 6,525,625 $ - $ - $
Negotiable Certificates of Deposit 6,548,736 1,843,404 1,004,717 3,700,615 Federal National Mortgage Assn. 501,790 501,790 - -
Federal Home Loan Mtg Corp 492,037 - - 492,037
Federal Home Loan Bank 1,032,422 - 509,539 522,883
Federal Farm Credit Bank 2,259,849 503,393 500,896 1,255,560 U.S. Treasury 1,524,294 500,895 508,223 515,176
Medium Term Notes 2,072,428 - - 2,072,428
Held By Fiscal Agent:

U.S. Treasury 2,276,241 2,276,241 - -
Federal Home Loan Bank 2,218,477 949,147 - 1,269,330
Total 25,451,899 $ 13,100,495 $ 2,523,375 $ 9,828,029 $ Remaining Maturity
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the next page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements and the actual rating as of year-end for each investment type:

107

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
42 Note 2: Cash and Investments (Continued)
Investment Type Total
Minimum Legal
Rating Aaa Aa1 Not Rated
State Investment Pool 6,525,625 $ N/A - $ - $ 6,525,625 $ Negotiable Certificates of Deposit 6,548,736 N/A - - 6,548,736 Federal National Mortgage Assn. 501,790 Aaa 501,790 - - Federal Home Loan Mtg Corp 492,037 Aaa 492,037 - -
Federal Home Loan Bank 1,032,422 Aaa 1,032,422 - -
Federal Farm Credit Bank 2,259,849 Aaa 2,259,849 - -
U.S. Treasury 1,524,294 Aaa 1,524,294 - -
Medium Term Notes 2,072,428 Aaa 2,072,428 - -
Held By Fiscal Agent:

U.S. Treasury 2,276,241 Aaa 2,276,241 - -
Federal Home Loan Bank 2,218,477 Aaa 2,218,477 - -
Total 25,451,899 $ 12,377,538 $ - $ 13,074,361 $
Ratings as of Year End
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of the total City’s investments are as follows:

Issuer Investment Type
Reported
amount
Percentage
of portfolio
Federal Farm Credit Bank Federal Agency Securities 2,259,849 $ 8.9% Federal Home Loan Bank Federal Agency Securities 3,250,899 12.8% Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

108

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
43 Note 2: Cash and Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at an amount based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Currently, LAIF does not have an investment rating.

Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2021:

Total Level 1 Level 2 Level 3
Negotiable Certificates of Deposit 6,548,736 $ - $ 6,548,736 $ - $ Federal National Mortgage Assn. 501,790 501,790 - -
Federal Home Loan Mtg Corp 492,037 492,037 - -
Federal Home Loan Bank 1,032,422 1,032,422 - -
Federal Farm Credit Bank 2,259,849 2,259,849 - -
U.S. Treasury 1,524,294 1,524,294 - -
Medium Term Notes 2,072,428 2,072,428 - -
Held By Fiscal Agent:

U.S. Treasury 2,276,241 2,276,241 - -
Federal Home Loan Bank 2,218,477 2,218,477 - -
Total investments by fair value level 18,926,274 12,377,538 $ 6,548,736 $ - $ Investments not subject to fair value:

State Investment Pool 6,525,625
Total 25,451,899 $
Fair Value Measurement Using
The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used:

Level 1: Inputs are quoted prices in active markets for identical assets.

Level 2: Quoted prices for similar assets or liabilities in active markets 109

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
44 Note 3: Interfund Receivables, Payables and Transfers Due To/From Other Funds
Interfund receivables and payables as of June 30, 2021, consisted of the following:

Due From Other Funds
Street
Improvements
Other
Governmental
Funds Total
General Fund 198,166 $ 153,366 $ 351,532 $
$ 153,366 198,166 $ 351,532 $
Due To Other Funds
The amount due from the General Fund to other governmental funds was to cover negative cash and are expected to be repaid within one year.

Remainder of page left blank.

110

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
45 Note 3: Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers
Interfund transfers for the year ended June 30, 2021, consisted of the following:

Transfers In General Fund
Federal
Grants
Other
Governmental
Funds Total
General Fund 630,336 $ - $ 117,946 $ 748,282 $
AV Center 179,759 - - 179,759
Street Improvements - - 2,327,098 2,327,098
COP 2019 4,101,388 103,624 6,035,419 10,240,431
Other Governmental Funds 347,108 633,214 97,453 1,077,775 Total 5,258,591 $ 736,838 $ 8,577,916 $ 14,573,345 $
Transfers Out
Transfers into the General Fund include funds from the CAREs act, CDBG admin hours reimbursement. Transfers out of the General Fund included funding the City Hall Roof Replacement costs and Wetland and Dairy Fork storm water projects. Transfers out of the General Fund also include various City Hall improvements, improvements to the Aquatic Center, AV Ranch improvements and Iglesia Park improvements and interest payments for the City’s 2019 COP’s. Transfers in to the Recreation Services included funds to cover the operational gap for the rec. services. Transfer out of the Traffic Congestion Relief Fund included reimbursements for completed street and capital projects. Transfer out of the Measure M, SB1-RMRA and Other Grants included median improvement, slurry seal, signal improvement and a rehabilitation projects. Transfers out of the Development Impact fund included construction costs for the Aliso Viejo Ranch project. Transfers out of the Technology Fund included improvements to City Hall audio/visual and broadcasting projects. Transfers out of the Debt Service Foundation included interest and principal payments for the City’s 2019 COP’s. Transfers out of the AV Ranch Foundation included construction and improvements to the AV Ranch Center. Transfers in to the Conference and Aquatics Centers included funds to cover the operational gap for the facility Conference and Aquatics Centers. Transfer in to the Street Improvements fund included funds to cover costs for median improvement, slurry seal, signal improvement and a rehabilitation projects.

Transfers in to Capital Improvements included funds for various City Hall improvements, park improvements and upgrades. Transfer in to Debt Service and COPs included interest payments on the 2019 COP.

111

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
46 Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:

Balance Balance
July 1, 2020 Additions Deletions* June 30, 2021
Capital assets, not being depreciated:

Land $ 14,315,978 $ - $ - $ 14,315,978
Infrastructure - streets 53,871,430 - - 53,871,430
Construction in progress* 12,112,730 10,375,082 (22,270,607) 217,205 Total capital assets, not
being depreciated 80,300,138 10,375,082 (22,270,607) 68,404,613 Capital assets, being depreciated:

Buildings 19,283,513 21,881,296 - 41,164,809
Improvements 475,903 246,772 - 722,675
Equipment 866,312 173,737 - 1,040,049
Furniture 269,024 5,010 - 274,034
Infrastructure - other* 26,136,674 - - 26,136,674
Total capital assets, being
depreciated 47,031,426 22,306,815 - 69,338,241
Accumulated Depreciation:

Buildings (3,933,243) (329,689) - (4,262,932)
Improvements (238,952) (13,799) - (252,751)
Equipment (513,632) (153,602) - (667,234)
Furniture (37,027) (47,382) - (84,409)
Infrastructure - other (18,018,227) (479,335) - (18,497,562) Total accumulated depreciation (22,741,081) (1,023,807) - (23,764,888) Total capital assets, being
depreciated, net 24,290,345 21,283,008 - 45,573,353
Capital assets, net $ 104,590,483 $ 31,658,090 $ (22,270,607) $ 113,977,966 *Other infrastructure consisted of sidewalks, curbs and gutters, medians, traffic signals, street signs, storm drains, and park equipment. Construction in progress consists primarily of additions to infrastructure and buildings. Certain deletions in the capital assets activity schedule shown above are the result of reclassifications of assets into different classes of assets. If assets that are disposed of are not fully depreciated at the time of the disposal, these deletions in the asset classes may not be accompanied by a like decrease in the accumulated depreciation for the same asset class.

General government 413,482 $
Public safety 121,946
Public works 484,682
Community services 3,697
Total 1,023,807 $

112

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
47 Note 5: Non-current Liabilities
Compensated Absences
The City’s policies relating to employee leave benefits are described in Note 1.i. This liability will be paid in future years from future resources primarily from the General Fund. As of June 30, 2021, the outstanding balance was $302,117.

Changes in non-current liabilities for the fiscal year ended June 30, 2021, were as follows:

Beginning
Balance at
Ending
Balance at
Amount Due
Within
July 1, 2020 Additions Deletions June 30, 2021 One Year Compensated absences 262,828 $ 269,100 $ 229,811 $ 302,117 $ 75,888 $ Bonds Payable – Direct Placement
On July 31, 2019, the City issued the 2019 Certificates of Participation (COP) in the amount of $12,250,000 in order to finance a portion of the construction of improvements to the Aliso Viejo Ranch and pay delivery costs incurred in connection with the execution, delivery and sale of the Certificates. The 2019 COP mature annually on November 1 through 2039 and bear interest ranging from 2.0% to 4.0%. In the event of default, the City waives all rights to any rentals received by the trustee through re-letting of the lease agreement. The City agrees to pay any and all costs, loss, or damage, howsoever occurring, as a result of any re-entry or re-letting.

Beginning
Balance at
Ending
Balance at
Amount Due
Within
July 1, 2020 Additions Deletions June 30, 2021 One Year Bonds payable 12,250,000 $ - $ 230,000 $ 12,020,000 $ 235,000 $ Unamortized premium 968,064 - 32,269 935,795 -
Total 13,218,064 $ - $ 262,269 $ 12,955,795 $ 235,000 $ The annual debt service requirements for the 2019 COPs outstanding at June 30, 2021 are as follows:

Year Ending June 30, Principal Interest Total
2022 235,000 $ 420,050 $ 655,050 $
2023 240,000 415,350 655,350
2024 250,000 405,750 655,750
2025 260,000 395,750 655,750
2026 270,000 385,350 655,350
2027 - 2031 1,530,000 1,755,350 3,285,350
2032 - 2036 1,855,000 1,423,950 3,278,950
2037 - 2041 2,265,000 1,021,550 3,286,550
2042 - 2046 2,675,000 611,250 3,286,250
2047 - 2050 2,440,000 185,550 2,625,550
Total 12,020,000 $ 7,019,900 $ 19,039,900 $

113

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
48 Note 6: Debt Without Government Commitment Community Facilities District No. 2005-01 In November 2007, the City issued $34,070,000 in Special Tax Bonds for Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo). The bonds were issued to finance the acquisition and improvement of various public facilities within Community Facilities District 2005-01 (Glenwood at Aliso Viejo). The City later refinanced the 2007 Special Tax Bonds with the issuance of the 2014 Special Tax Bonds.

On September 1, 2014, the City issued $32,270,000 in Special Tax Bonds for Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo). Interest payments commenced on September 1, 2014, and are paid semiannually thereafter on September 1 and March 1 of each year. Principal payments commence on September 1, 2014, and are paid annually in amounts ranging from $295,000 to $2,850,000 until September 1, 2038. The bonds were issued to refinance the outstanding 2007 Special Tax Bonds and cause the early redemption thereof on March 1, 2014. The principal balance outstanding at June 30, 2021 is $28,950,000.

Note 7: Pension Plan
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’s website at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

114

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
49 Note 7: Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect at June 30, 2021 are summarized as follows:

PEPRA
Miscellaneous Miscellaneous
And prior to On or after
Hire Date January 1, 2013* January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % eligible compensation 1.426% - 2.418% 1.000% - 2.500% Required employer contribution rates 10.484% 7.732%
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2021 were $319,112. The actual employer payments of $274,755 made to CalPERS by the City during the measurement period ended June 30, 2020 differed from the City’s proportionate share of the employer’s contributions of $287,721 by $12,966, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
115

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
50 Note 7: Pension Plan (Continued)
B. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by entry age and service
Mortality Rate Table (1) Derived using CalPERS’ membership data for all Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.5% until purchasing power protection allowance floor on
purchasing power applies, 2.5% thereafter
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’s website at www.calpers.ca.gov.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

116

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
51 Note 7: Pension Plan (Continued)
B. Net Pension Liability (Continued)
The expected real rates of return by asset class are as follows:

Asset Class1
Current
Target
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+ 3
Global equity 50% 4.80% 5.98%
Fixed income 28% 1.00% 2.62%
Inflation assets - 0.77% 1.81%
Private equity 8% 6.30% 7.23%
Real assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
Total 100%
2 An expected inflation of 2.0% used for this period
3 An expected inflation of 2.92% used for this period
1 In the System's ACFR, fixed income is included in global debt securities; liquidity is inclued in short-term investments; inflation assets are inclued in both global equity securities and global debt securities.

Change of Assumptions
The Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a fiveyear ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.

Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

117

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
52 Note 7: Pension Plan (Continued)
B. Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’s audited financial statements, which are publicly available reports that can be obtained at CalPERS’s website at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Investments are reported at fair value.

C. Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Plan Total
Pension Liability
Plan Fiduciary
Net Position
Plan Net
Pension Liability
Balance at 6/30/2019 (VD) 6,682,924 $ 5,811,356 $ 871,568 $ Balance at 6/30/2020 (MD) 7,475,465 6,439,634 1,035,831 Net changes during 2019 - 2020 792,541 $ 628,278 $ 164,263 $ Valuation Date (VD), Measurement Date (MD)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2019 and 2020 measurement dates was as follows:

Proportionate Share - June 30, 2019 0.021765%
Proportionate Share - June 30, 2020 0.024557%
Change - Increase (Decrease) 0.002792%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

118

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
53 Note 7: Pension Plan (Continued)
C. Proportionate Share of Net Pension Liability (Continued) Discount Rate - 1%
(6.15%)
Current Discount Rate
(7.15%)
Discount Rate + 1%
(8.15%)
Plan's Net Pension Liability 2,030,633 $ 1,035,831 $ 213,857 $ Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between projected
and actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives of all members that are
provided with benefits (active, inactive and retired) as of the beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2020 is 3.8 years, which was obtained by dividing the total service years of 548,581 (the sum of remaining service lifetimes of the active employees) by 145,663 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

119

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
54 Note 7: Pension Plan (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the City’s net pension liability was $871,568. For the measurement period ending June 30, 2020 (the measurement date), the City incurred a pension expense of $465,962.

As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Changes of assumptions - $ 7,388 $
Differences between expected and
actual experience
Differences between projected and
actual investments earnings
Differences between employer's contributions
and proprotionate share
Change in employer's proportion 83,347 44,501
Pension contributions made subsequent to
measurement date 319,112 -
Total 597,294 $ 61,443 $
- 53,379
- 30,771
9,554 110,685
The amounts above are net of outflows and inflows recognized in the 2019-20 measurement period expense. Contributions subsequent to the measurement date of $319,112 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year Ending
June 30:

Deferred
Outflows/(Inflows) of
Resources
2022 87,508 $
2023 73,448
2024 41,026
2025 14,757
2026 -
Remaining -
E. Payable to the Pension Plan
At June 30, 2021, the City reported a payable of $11,851 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021. 120

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
55 Note 8: Other Post-Employment Benefits (OPEB)
Plan Description
The City has established a Retiree Healthcare Plan (HC Plan), and participates in a singleemployer defined benefit retiree healthcare plan. Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA).

This coverage requires the employee to satisfy the requirements for retirement under CalPERS:
either (a) attainment of age 50 (age 52, if a miscellaneous employee new to PERS on or after January 1, 2013) with 5 years of State or public agency service or (b) an approved disability retirement.

The employee must begin his or her retirement benefit within 120 days of terminating employment with the City to be eligible to continue medical coverage through the agency and be entitled to the benefits described below. If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement, during any future open enrollment period or with a qualifying life event. In other words, it is the timing of initiating retirement benefits and not timing of enrollment in the medical program which determines whether or not a City retiree qualifies for lifetime medical coverage and any benefits defined in the PEMHCA resolution. Once eligible, coverage may be continued at the retiree’s option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage.

PEMHCA Benefits provided: As a PEMHCA employer, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. The City maintains a resolution with CalPERS defining the level of the City’s contribution toward the cost of medical plan premiums for employees and retirees to be the PEMHCA minimum employer contribution (MEC). The MEC is $139 per month in 2020 and $143 per month in 2021. A separate financial report is not prepared for the HC Plan.

Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the HC Plan:

Active employees 24
Inactive employees or beneficiaries currently receiving benefits 2 Total 26
Contributions
City contributions to the Plan occur as benefits are paid to or on behalf of retirees. Benefit payments may occur in the form of direct payments for premiums and taxes (“explicit subsidies”) and/or indirect payments to retirees in the form of higher premiums for active employees (“implicit subsidies”). The City makes contributions to eligible retirees for their medical plan premiums when the retiree enrolls in a City sponsored health plan. The current monthly amount paid by the City is $143 per month per retiree. For the fiscal year ended June 30, 2021, the City’s cash contributions were $6,768 in payments for premiums and $829 in implicit contributions.

121

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
56 Note 8: Other Post-Employment Benefits (OPEB) (continued) Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 2.66%
Inflation 2.50%
Salary Increases 3.00%
Mortality Rate CalPERS 2017 Experience Study
Healthcare Trend Rate Getzen Model 2019_b published by the Society of Actuaries Discount Rate
The discount rate used to measure the total OPEB liability was 2.66% percent. The City is currently financing its OPEB liability on a pay-as-you-go basis. With the City’s approval, the discount rate used in the valuation is based on the S&P Municipal Bond 20 Year High Grade Index. As of the beginning and end of the Measurement Period, use of this index results in discount rates of 2.79% on June 30, 2019 and 2.66% on June 30, 2020.

Changes of Assumptions
The discount rate was decreased from 2.79% to 2.66%.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the HC Plan are as follows:

Total OPEB
Liability (a)
Balance at June 30, 2020
(Measurement Date June 30, 2019) 363,669 $
Changes recognized for the measurement period:

Service Cost 57,648
Interest on the Total OPEB liability 11,677
Changes of assumptions 9,295
Plan experience differences -
Benefit payments (5,572)
Net Changes 73,048
Balance at June 30, 2021
(Measurement Date June 30, 2020) 436,717 $

122

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
57 Note 8: Other Post-Employment Benefits (OPEB) (continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:

Current
1% Decrease Discount Rate 1% Increase

1.66% 2.66% 3.66%
Total OPEB Liability 518,321 $ 436,717 $ 371,747 $
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the Authority if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:

Current
1% Decrease Healthcare Cost Trend Rates 1% Increase
Total OPEB Liability 355,615 $ 436,717 $ 543,553 $
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

Assumption changes and experience
gains/losses
Expected average remaining service lifetime
(EARSL) (11.94 Years at June 30, 2019)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $20,884. As of fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:

123

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
58 Note 8: Other Post-Employment Benefits (OPEB) (continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued) Deferred Outflows
of Resources
Deferred Inflows of
Resources
OPEB contributions subsequent to measurement date 7,597 $ - $ Changes of assumptions 25,980 221,827
Differences between expected
and actual experience - 256,614
Total 33,577 $ 478,441 $
The $7,597 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year Ended
June 30:

Deferred Outflows/(Inflows)
of Resources
2022 (48,441) $
2023 (48,441)
2024 (48,441)
2025 (48,441)
2026 (48,441)
Thereafter: (210,256)
Note 9: Risk Management
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Aliso Viejo is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 118 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

124

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
59 Note 9: Risk Management (continued)
B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $40 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/protection/coverage-programs.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
60 Note 9: Risk Management (continued)
C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Aliso Viejo participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Aliso Viejo. Coverage is on a claimsmade basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2018 through July 1, 2021. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.

Property Insurance
The City of Aliso Viejo participates in the all-risk property protection program of the Authority.

This insurance protection is underwritten by several insurance companies. City of Aliso Viejo property is currently insured according to a schedule of covered property submitted by the City of Aliso Viejo to the Authority. City of Aliso Viejo property currently has all-risk property insurance protection in the amount of $28,497,001. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City of Aliso Viejo purchases earthquake and flood insurance on a portion of its property.

The earthquake insurance is part of the property protection insurance program of the Authority. City of Aliso Viejo property currently has earthquake protection in the amount of “Non Participant”. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance
The City of Aliso Viejo purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance
The City of Aliso Viejo further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Aliso Viejo according to a schedule. The City of Aliso Viejo then pays for the insurance. The insurance is facilitated by the Authority.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21.

126

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
61 Note 10: Joint Venture
Orange County Fire Authority
In July 2001, the City entered into a joint powers agreement with the cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Hills, Laguna Niguel, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Placentia, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda and the County of Orange to create the Orange County Fire Authority (“the Authority”). Since the creation of the Authority, the Cities of Laguna Woods, Rancho Santa Margarita, and Santa Ana joined the Authority as members eligible for fire protection services. The purpose of the Authority is to provide for mutual fire protection, prevention and suppression services, and related and incidental services including, but not limited to, emergency medical and transport services as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia, Seal Beach, and Santa Ana. The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia, Seal Beach, and Santa Ana are considered “cash contract cities” and accordingly, make cash contributions based on the Authority’s annual budget. The City of Aliso Viejo does not have an equity interest in the assets of the Orange County Fire Authority. Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Rd., Irvine, California, 92602.

Note 11: Contingent Liabilities
Various claims and suits have been filed against the City in the normal course of business.

Although the outcome of these matters is not presently determinable in the opinion of legal counsel, the resolutions of these matters will not have a material adverse effect on the financial condition of the City.

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States caused business disruption through mandated and voluntary closings of businesses and shelter in place orders. The City’s major revenue sources could still be directly impacted by these events; it is possible that this matter could negatively impact the City. However, the ultimate financial impact and duration cannot be estimated at this time, and no adjustments have been made to these financial statements as a result of this contingency.

Note 12: Tax Abatements
The City entered into sales tax abatement agreements with local businesses under the Economic Development Subsidy under Government Code Section 53083. For the fiscal year ended June 30, 2021, the City abated sales taxes totaling $253,432.

127

CITY OF ALISO VIEJO

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
62 Note 13: Reconciliation of Net Position
The net investment in capital assets as presented in the Statement of Net Position is calculated as follows:

Capital assets, net 113,977,966 $
Less bonds payable (12,020,000)
Less premium on bonds payable (935,795)
Less retentions payable (147,949)
Plus unspent bond proceeds 135,607
Net investment in capital assets 101,009,829 $
Note 14: Subsequent Event
On March 11, 2021, HR 1319, the American Rescue Plan Act of 2021 (ARPA), was signed into law. ARPA was designed to provide assistance to individuals, businesses and, state and local governments to assist in the economic recovery from the ongoing COVID-19 pandemic. The City of Aliso Viejo was granted an allocation of $5,678,106, delivered in two tranches of $2,839,053 in June 2021 and June 2022. The qualified use of these funds includes public safety, infrastructure, and restoration of services to pre-pandemic levels.

Note 15: Prior Period Adjustment
As a result of GASB 84 implementation, as discussed in Note 1, beginning fiduciary net position has been restated as follows:

Community Renewable
Trust CFD 2005-1 Farms Total
Beginning fiduciary net position, originally reported - $ - $ - $ - $ Prior period adjustment - 4,668,886 - 4,668,886
Beginning fiduciary net position, as restated - $ 4,668,886 $ - $ 4,668,886 $ 128

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
63 Budgetary Comparison Information
Budget Policies
The City Manager shall prepare and submit the proposed annual budget to the City Council for its approval for all governmental funds. The agenda for the budget workshops and budget meetings are noticed in accordance with the Brown Act. After reviewing the same and making such revisions as it may deem advisable and public input the budget is then adopted annually by the Council at a regularly held meeting. The budget is adopted prior to the beginning of the fiscal year and serves as the foundation for the City’s financial plan.

The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Transfers of appropriations between funds can be made with the City Manager/Financial Services Director approval. City Council’s approval is required for all budget amendments that result in a change to the adopted budget.

Budgets are prepared in accordance with generally accepted accounting principles using the modified accrual basis of accounting.

Appropriations lapse at the end of the fiscal year unless they are re-appropriated through the formal budget process. Encumbrances do not constitute expenditures or liabilities of the City.

Budgeted amounts are as originally adopted, or as amended in accordance with prescribed procedures throughout the fiscal year.

Excess of expenditures over appropriations are as follows:

Expenditures that exceeded appropriations for the year ended June 30, 2021 are as follows:

Fund Expenditures Appropriations Excess
General Fund:

City manager 629,525 $ 626,945 $ (2,580) $
Transfers out 5,258,591 5,219,535 (39,056)
Aliso Viejo Center:

Community services 1,074,567 919,395 (155,172)
COP 2006:

Capital outlay 10,240,431 - (10,240,431)
Non-Major Funds:

Public Safety Grants 172,532 171,245 (1,287)
Development Impact 154,649 - (154,649)
Aquatic Center 1,067,135 930,280 (136,855)
129

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
64 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning $ 32,970,759 32,970,759 $ 32,970,759 $ - $ Resources (Inflows):

Taxes 16,150,275 14,548,775 14,823,926 275,151
Licenses and permits 523,205 769,455 976,781 207,326
Intergovernmental 38,000 38,000 42,844 4,844
Charges for services 327,725 395,675 488,154 92,479
Use of money and property 990,420 813,550 940,875 127,325 Fines and forfeitures 320,000 295,000 310,419 15,419
Other 52,600 80,700 79,582 (1,118)
Transfers in 177,770 787,300 748,282 (39,018)
Amounts available
for appropriations 50,699,214 51,550,754 51,381,622 682,408 Charges to Appropriations (Outflows):

General government:

City council 188,325 184,835 170,930 13,905
City manager 643,880 626,945 629,525 (2,580)
Human resources 218,835 215,595 212,296 3,299
Economic development 476,460 1,203,350 1,087,509 115,841 City clerk 451,880 455,530 445,305 10,225
City attorney 487,100 487,100 367,891 119,209
Finance 874,265 862,385 779,554 82,831
Information technology 811,575 812,445 731,197 81,248
General government 657,200 683,920 581,423 102,497
Community development:

Community services 2,044,730 1,867,530 1,525,026 342,504 Planning 1,114,255 1,187,525 873,575 313,950
Building 571,765 742,715 686,606 56,109
Public works 1,924,100 1,903,560 1,797,903 105,657
Public safety 9,737,490 9,627,315 9,103,128 524,187
Capital outlay - - - -
Transfers out 158,310 5,219,535 5,258,591 (39,056)
Total charges to Appropriations 20,360,170 26,080,285 24,250,459 1,829,826 Fund Balances - Ending 31,190,584 $ 24,618,929 $ 27,131,163 $ 2,512,234 $ Budget Amounts
130

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

GAS TAX
FOR THE YEAR ENDED JUNE 30, 2021
65 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 787,587 $ 787,587 $ 787,587 $ - $ Resources (Inflows):

Intergovernmental 1,296,360 1,296,360 1,101,268 (195,092) Use of money and property 15,000 15,000 19,067 4,067
Amounts Available
for Appropriations 2,098,947 2,098,947 1,907,922 (191,025) Charges to Appropriations (Outflows):

Public works 1,163,200 1,183,200 1,167,273 15,927
Total Charges to Appropriations 1,163,200 1,183,200 1,167,273 15,927 Fund Balances - Ending 935,747 $ 915,747 $ 740,649 $ (175,098) $ Budget Amounts
131

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

ALISO VIEJO CENTER
FOR THE YEAR ENDED JUNE 30, 2021
66 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Charges for services 1,565,415 827,405 720,554 (106,851) Other 277,585 91,990 174,254 82,264
Transfers in - - 179,759 179,759
Amounts Available
for Appropriations 1,843,000 919,395 1,074,567 155,172
Charges to Appropriations (Outflows):

Community services 1,684,130 919,395 1,074,567 (155,172) Transfers out 158,870 - - -
Total Charges to Appropriations 1,843,000 919,395 1,074,567 (155,172) Fund Balances - Ending - $ - $ - $ - $
Budget Amounts
132

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

FEDERAL GRANTS
FOR THE YEAR ENDED JUNE 30, 2021
67 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 13,127 $ 13,127 $ 13,127 $ - $ Resources (Inflows):

Intergovernmental 484,805 1,388,460 755,695 (632,765)
Use of money and property 500 500 54,585 54,085
Amounts Available
for Appropriations 498,432 1,402,087 823,407 (578,680)
Charges to Appropriations (Outflows):

General government 28,500 443,255 71,160 372,095
Transfer out 327,305 740,925 736,838 4,087
Total Charges to Appropriations 355,805 1,184,180 807,998 376,182 Fund Balances - Ending 142,627 $ 217,907 $ 15,409 $ (202,498) $ Budget Amounts
133

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2021
68 CAPITAL ASSETS – MODIFIED APPROACH FOR INFRASTRUCTURE The City elected to use the modified approach in reporting their street pavement infrastructure network.

Under the modified approach, infrastructure assets that are part of a network or subsystem of a network are not required to be depreciated as long as two requirements are met. First, the government manages the eligible infrastructure assets using an asset management system that has the following characteristics:
 Has an up-to-date inventory of eligible infrastructure assets.  Performs condition assessments of the eligible infrastructure assets and summarize the results using a measurement scale.
 Estimates each year the annual amount to maintain and preserve the eligible infrastructure assets at the condition level established and disclosed by the government.

Second, the government documents that the eligible infrastructure assets are being preserved approximately at (or above) a condition level established and disclosed by the government. If eligible infrastructure assets meet all requirements and are not depreciated, all expenditures made for those assets (except for additions and improvements) are expensed in the period incurred. Additions and improvements to eligible infrastructure assets are capitalized. Additions or improvements increase the capacity or efficiency of infrastructure assets rather than preserve the useful life of the assets.

The condition of road pavement is measured using the Abbott Pavement Management System.

All city streets have asphalt surfaces. Six distress factors are assessed for all street segments.

Pavement condition is rated on a scale of 0 to 100 points. This rating scale is called a deficiency rating. The scale is subdivided into ranges or categories. Pavement condition is commonly defined by the following five categories:

1. Very good (86 to 100 Rating) — A street rated as excellent has the characteristics of a new street. A street in this category has no surface defects that would affect ride quality or cause excess tire noise.

2. Good (75 to 85 Rating) — A street rated as good has some surface defects that can be seen when walking along the street. Some cracking and raveling will probably exist. In fact, there could be large cracks in the street or many hairline cracks. There may be some minor bumps that can be felt when driving the street at posted speeds.

3. Fair (60 to 74 Rating) — A street rated as fair has areas of surface defects that are apparent to drivers and passengers as they use the street. There will probably be significant cracking and raveling of the asphalt surface. If cracking does not exist, the street will probably have many patches and utility cuts or perhaps some rutting and deformation. There will be some ride roughness and some additional tire noise. These streets will not cause increases in vehicle driving costs due to extra wear and tear on vehicles. 134

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
YEAR ENDED JUNE 30, 2021
69 CAPITAL ASSETS – MODIFIED APPROACH FOR INFRASTRUCTURE (CONTINUED)

4. Poor (41 to 59 Rating) — A street rated as poor has surface defects generally throughout its length that are readily apparent to anyone using the street. There will be areas showing structural failure with closely spaced cracking and there may be pieces of loose pavement. A street in this category will cause additional vehicle user costs and excessive tire noise.

5. Very poor (40 and below Rating) — A street rated critical will have major areas of structural failure which may alter the speeds at which typical drivers drive on the street. There will be missing pieces of pavement. Repair of a street in this category will require reconstruction.

Annual street maintenance costs for the previous five fiscal years were as follows:

Year Ended
June 30, Actual Estimated
2017 2,214,452 $ 2,675,535 $
2018 1,730,400 2,100,080
2019 3,131,301 3,621,540
2020 3,135,658 4,308,590
2021 3,425,241 3,779,360
Total 13,637,052 $ 16,485,105 $
The City of Aliso Viejo City Council (the Council) accepted the findings of the Pavement Management System performed in fiscal year 2002 (see results below) and adopted a condition rating of 80 as the minimum acceptable Pavement Condition Index (PCI). The PMS was updated using statistical methods in 2004. The approach incorporated a new field survey of approximately 10% of all streets. The survey was then statistically extended to the entire street system. A complete field survey was performed and accepted by the City Council starting fiscal year 2008 and every two years thereafter. See below for the three most recent condition assessments:
2016 Mileage 2018 Mileage 2020 Mileage
86-100 Very good 41.8% 30.4 58.1% 41.9 40.8% 30.5
75-85 Good 36.4% 26.5 25.4% 18.3 36.3% 25.5
60-74 Fair 20.6% 15.0 14.6% 10.5 20.1% 14.1
41-59 Poor 1.2% 0.9 1.9% 1.4 2.1% 1.5
0-40 Very poor 0.0% - 0.0% - 0.7% 0.5
100.0% 72.8 100.0% 72.1 100.0% 72.1
Conditions
The results of the most recent complete condition assessment (performed in fiscal year 2020) reported an average condition rating of 82 which is 2.7 points lower than the 2018 average of

84.7. Funding in the amount of $3,193,022 was utilized for the maintenance/rehabilitation to achieve the minimum PCI standard as of June 30, 2020. The estimated funding required to maintain the PCI standard was calculated at $4,312,065. The condition survey will be updated during the fiscal year ended June 30, 2022, for a two-year cycle. 135

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION

MISCELLANEOUS PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND

RELATED RATIOS AS OF THE MEASUREMENT DATE
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS*
70 Measurement
Date
Employer's
Proportion of the
Collective Net
Pension
Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the
Employer's
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability
6/30/2014 0.009530% 593,141 $ 1,385,329 $ 42.82% 83.03% 6/30/2015 0.008707% 597,632 1,512,663 39.51% 84.98%
6/30/2016 0.008898% 845,320 1,553,759 54.40% 81.19%
6/30/2017 0.010501% 1,041,374 1,863,005 55.90% 80.23%
6/30/2018 0.009633% 928,264 2,081,191 44.60% 84.47%
6/30/2019 0.008506% 871,568 2,339,338 37.26% 86.96%
6/30/2020 0.009520% 1,035,831 2,602,634 39.80% 86.14%
*Historical information is required only for measurement period for which GASB 68 and 71 were applicable. Future years' information will be displayed up to 10 years as information becomes available. 1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. 136

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)

MISCELLANEOUS PLAN

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS *
71 Fiscal Year
Contractually
Determined
Contributions
Contributions in
Relation to the
Contractually
Determined
Contributions
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
Contributions as
a Percentage of
Covered Payroll
2014-15 164,464 $ (164,464) $ - $ 1,512,663 $ 10.87%
2015-16 146,386 (146,386) - 1,553,759 9.42%
2016-17 179,320 (179,320) - 1,863,005 9.63%
2017-18 270,996 (270,996) - 2,081,191 13.02%
2018-19 239,511 (439,511) (200,000) 2,339,338 10.24%
2019-20 274,755 (274,755) - 2,602,634 10.56%
2020-21 319,112 (319,112) - 2,732,043 11.68%
Notes to Schedule:

Change in Benefit Terms: None
*Historical information is required only for measurement period for which GASB 68 and 71 were applicable. Future years' information will be displayed up to 10 years as information becomes available.

Changes in Assumptions: For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a fiveyear ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.

There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
137

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138

CITY OF ALISO VIEJO

REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN YEARS*
72 Measurement Period 2017 2018 2019 2020
Total OPEB Liability
Service Cost 100,385 $ 90,249 $ 97,449 $ 57,648 $
Interest on the Total OPEB Liability 17,635 23,007 25,402 11,677 Actual and expected experience difference - - (308,246) - Changes in assumptions (73,112) 26,106 (217,431) 9,295
Changes in benefit terms - - - -
Benefit payments (4,554) (11,378) (11,963) (5,572)
Net change in Total OPEB Liability 127,984 40,354 (414,789) 73,048 Total OPEB Liability - Beginning 650,474 610,120 778,458 363,669 Total OPEB Liability - Ending (a) 778,458 650,474 363,669 436,717 Plan Fiduciary Net Position
Contribution - employer 4,554 11,378 11,963 5,572
Net investment income - - - -
Benefit payments (4,554) (11,378) (11,963) (5,572)
Administrative expense - - - -
Net change in Plan Fiduciary Net Position - - - -
Plan Fiduciary Net Position - Beginning - - - -
Plan Fiduciary Net Position - Ending (b) - - - -
Net OPEB Liability - Ending (a) - (b) $ 778,458 650,474 $ 363,669 $ 436,717 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll 2,227,782 $ 2,451,516 $ 3,166,359 $ 3,357,784 $ Net OPEB liability as a percentage of covered-employee payroll 29.20% 31.75% 11.49% 13.01% Notes to schedule:

The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.

Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in the schedule.

Valuation Date 6/30/2019
Actuarial cost method Entry Age Normal Level % of Pay
Discount rate 2.66% as of June 30, 2020
Inflation 2.50%
Healthcare cost trend rates 6.50% in 2021 fluctuating untilr eaching ultimate rate of 4.0% in 2076 Salary increases 3.00%
Retirement age 50 to 75
Mortality CalPERS 2017 Experience Study
Mortality improvement MW Scale 2020
139
73 OTHER GOVERNMENTAL FUNDS

OTHER SPECIAL REVENUE FUNDS
Traffic Congestion Relief
The Traffic Congestion Relief Fund is used to account for revenue received from the SB1 Loan Repayment Program from the State of California.

Measure M
The Measure M Fund is used to account for the City’s share of the sales tax increase authorized by Orange County’s Measure “M”. These monies are legally restricted for the acquisition, construction, and improvement of public streets.

SB1 – RMRA
Senate Bill (SB) 1 created the Road Rehabilitation Maintenance Account to address deferred maintenance on the State Highway System and the local street and road system. These funds are legally restricted for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads. This is a new fund in fiscal year 2019-2020 and was previously reported as part of the Gas Tax major fund.

Public Safety Grants
This fund is used to account for law enforcement grants received such as the California Law Enforcement Equipment Program (CLEEP) and the Supplemental Law Enforcement State Fund (SLESF).

Air Quality Improvement
This fund is used to account for the City’s share of vehicle registration fees that the State of California has allocated to address air quality concerns in Southern California. These monies are to be used in air quality maintenance programs locally and/or regionally.

Integrated Waste Management
This fund is used to account for the receipt of the California Beverage and Recycling Grant.

Other Grants Fund
This fund is used to account for state, local, and other grants received such as Prop 10, CalRecycle, and the urban Runoff Grant.

Technology Grants
This fund is a result of negotiations between the City and a franchisee for a new franchise agreement. These funds will be used for new technology purchases, provide City information on the Cable T.V. Government Access Channel and provide programs and access to computers through technology upgrades to the Family Resource Center.

140
74 OTHER GOVERNMENTAL FUNDS (continued)
Development Impact Fund
This fund is used to account for revenue received as a result of negotiated developer agreements for affordable housing, traffic mitigation, community enhancement, and open spaces.

Aquatic Center
This fund is used to account for the operations of the Aliso Viejo Aquatic Center. The Aliso Viejo Aquatic Center is a City owned facility that provides residents with a resort-style swimming complex that includes a lap pool, whirlpool, tots wading pool, snack bar, and patio.

AV Ranch Foundation
This fund is used to account for donations received for the AV Ranch and payments approved by its Board of Trustees.
*Note: this fund had no legally adopted budget for FY 2020-2021.

OTHER CAPITAL PROJECTS FUNDS
Capital Improvements
This fund is used to account for the City’s street improvement projects.

Storm Water
This fund is used to account for the City’s storm water related improvement projects.

DEBT SERVICE FUNDS
Debt Service Fund
This fund is used to account for the City’s debt payments as well as any additional debt amounts deemed to be advisable and necessary for any public or municipal purposes. 141

CITY OF ALISO VIEJO

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
75 Public Safety Air Quality
Measure M SB1 - RMRA Grants Improvement
Assets:

Cash and investments 90,909 $ 730,668 $ 614,279 $ 120,889 $ 950,068 $ Receivables:

Accounts - - - - -
Due from other governments - 120,880 169,061 - 82,005
Total Assets 90,909 $ 851,548 $ 783,340 $ 120,889 $ 1,032,073 $ Liabilities, Deferred Inflows of
Resources, and Fund Balances:

Liabilities:

Accounts payable - $ - $ - $ 10,942 $ - $
Accrued liabilities - - - - -
Due to other funds - - - - -
Total Liabilities - - - 10,942 -
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Fund Balances (Deficits):

Restricted for: -
Community services - - - - -
Community development projects - - - - -
Capital projects 90,909 851,548 783,340 - 1,032,073
Public safety - - - 109,947 -
Unassigned - - - - -
Total Fund Balances 90,909 851,548 783,340 109,947 1,032,073 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 90,909 $ 851,548 $ 783,340 $ 120,889 $ 1,032,073 $ Traffic
Congestion
Relief
Special Revenue Funds
142

CITY OF ALISO VIEJO

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021 (Continued)
76 Integrated
Waste Other Technology Development Aquatic
Management Grants Grants Impact Center
Assets:

Cash and investments 17,752 $ - $ 128,006 $ 1,410,622 $ 188,920 $ Receivables:

Accounts - - 29,072 - 8,654
Due from other governments - 97,451 - - -
Total Assets 17,752 $ 97,451 $ 157,078 $ 1,410,622 $ 197,574 $ Liabilities, Deferred Inflows of
Resources, and Fund Balances:

Liabilities:

Accounts payable - $ - $ 6,303 $ - $ 162,796 $
Accrued liabilities - - - - 15,278
Due to other funds - 53,366 - - -
Total Liabilities - 53,366 6,303 - 178,074
Deferred Inflows of Resources:

Unavailable revenues 82,418 - - - -
Fund Balances (Deficits):

Restricted for:

Community services - - - - 19,500
Community development projects 17,752 - 150,775 1,410,622 - Capital projects - - - - -
Public safety - - - - -
Unassigned (38,333) - - - -
Total Fund Balances 17,752 (38,333) 150,775 1,410,622 19,500 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 17,752 $ 97,451 $ 157,078 $ 1,410,622 $ 197,574 $ Special Revenue Funds
143

CITY OF ALISO VIEJO

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
77 Special
Revenue
Funds
Debt Service
Funds
Total
AV Ranch Capital Debt Service Governmental
Foundation Improvements Storm Water Fund Funds
Assets:

Cash and investments - $ 138,904 $ 3,490 $ - $ 4,394,507 $ Receivables:

Accounts 100,000 - - - 137,726
Due from other governments - - 7,596 - 476,993
Total Assets 100,000 $ 138,904 $ 11,086 $ - $ 5,009,226 $ Liabilities, Deferred Inflows of
Resources, and Fund Balances:

Liabilities:

Accounts payable - $ 138,904 $ 11,086 $ - $ 330,031 $
Accrued liabilities - - - - 15,278
Due to other funds 100,000 - - - 153,366
Total Liabilities 100,000 138,904 11,086 - 498,675
Deferred Inflows of Resources:

Unavailable revenues - - - - 82,418
Fund Balances (Deficits):

Restricted for:

Community services - - - - 19,500
Community development projects - - - - 1,579,149
Capital projects - - - - 2,757,870
Public safety - - - - 109,947
Unassigned - - - - (38,333)
Total Fund Balances - - - - 4,428,133
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 100,000 $ 138,904 $ 11,086 $ - $ 5,009,226 $ Capital Projects Funds
144

CITY OF ALISO VIEJO

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
78 Public Safety Air Quality
Measure M SB1 - RMRA Grants Improvement
Revenues:

Intergovernmental - $ 724,861 $ 927,741 $ 156,731 $ 130,736 $ Charges for services - - - - -
Use of money and property 1,800 12,478 13,398 2,929 19,250 Contributions - - - - -
Developer fees - - - - -
Total Revenues 1,800 737,339 941,139 159,660 149,986
Expenditures:

Current:

General government - - - - -
Community development:

Community services - - - - -
Planning - - - - -
Public works - - - - -
Public safety - - - 172,532 82,629
Debt service:

Principal payment - - - - -
Interest expense - - - - -
Capital outlay - - - - -
Total Eexpenditures - - - 172,532 82,629
Excess (deficiency) of revenues
over (under) expenditures 737,339 1,800 941,139 (12,872) 67,357 Other Financing Sources (Uses):

Transfers in - - - - -
Transfers out (33,493) (1,322,465) (954,436) - -
Total Other Financing Sources (Uses) (1,322,465) (33,493) (954,436) - - Net change in fund balances (31,693) (585,126) (13,297) (12,872) 67,357 Fund balances, beginning of year 122,602 1,436,674 796,637 122,819 964,716 Fund balances (deficit), end of year $ 851,548 90,909 $ 783,340 $ 109,947 $ 1,032,073 $ Traffic
Congestion
Relief
Special Revenue Funds
145

CITY OF ALISO VIEJO

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021 (Continued)
79 Integrated
Waste Other Technology Development Aquatic
Management Grants Grants Impact Center
Revenues:

Intergovernmental 12,595 $ 15,033 $ 119,959 $ - $ - $
Charges for services - - - - 990,156
Use of money and property 200 - 3,357 - -
Contributions - - - - -
Developer fees - - - 585,000 -
Total Revenues 12,795 15,033 123,316 585,000 990,156
Expenditures:

Current:

General government - - 34,093 - -
Community development:

Community services - - - - 1,067,135
Planning - - - 154,649 -
Public works 23,519 - - - -
Public safety - - - - -
Debt service:

Principal payment - - - - -
Interest expense - - - - -
Capital outlay - - - - -
Total Eexpenditures 23,519 - 34,093 154,649 1,067,135
Excess (deficiency) of revenues
over (under) expenditures 15,033 (10,724) 89,223 430,351 (76,979) Other Financing Sources (Uses):

Transfers in - - - - 96,479
Transfers out - (97,451) (134,651) (1,642,100) -
Total Other Financing Sources (Uses) (97,451) - (134,651) (1,642,100) 96,479 Net change in fund balances (10,724) (82,418) (45,428) (1,211,749) 19,500 Fund balances, beginning of year 28,476 44,085 196,203 2,622,371 - Fund balances (deficit), end of year $ (38,333) 17,752 $ 150,775 $ 1,410,622 $ 19,500 $ Special Revenue Funds
146

CITY OF ALISO VIEJO

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
80 Special
Revenue Funds
Debt Service
Funds
Total
Nonmajor
AV Ranch Capital Debt Service Governmental
Foundation Improvements Storm Water Fund Funds
Revenues:

Intergovernmental - $ - $ - $ - $ 2,087,656 $
Charges for services - - - - 990,156
Use of money and property - - - 273 53,685
Contributions 100,000 - - - 100,000
Developer fees - - - - 585,000
Total Revenues 100,000 - - 273 3,816,497
Expenditures:

Current:

General government - - - - 34,093
Community development:

Community services - - - - 1,067,135
Planning - - - - 154,649
Public works - 215,857 - - 239,376
Public safety - - - - 255,161
Debt service:

Principal payment - - - 230,000 230,000
Interest expense - - - 427,436 427,436
Capital outlay - 134,651 - - 134,651
Total Expenditures - 350,508 - 657,436 2,542,501
Excess (deficiency) of revenues
over (under) expenditures (350,508) 100,000 - (657,163) 1,273,996 Other Financing Sources (Uses):

Transfers in - 350,508 - 630,788 1,077,775
Transfers out (100,000) - - (4,293,320) (8,577,916)
Total Other Financing Sources
(Uses) (100,000) 350,508 - (3,662,532) (7,500,141)
Net change in fund balances - - - (4,319,695) (6,226,145) Fund balances, beginning of year - - - 4,319,695 10,654,278 Fund balances (deficit), end of year $ - - $ - $ - $ 4,428,133 $ Capital Projects Funds
147

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

TRAFFIC CONGESTION RELIEF
FOR THE YEAR ENDED JUNE 30, 2021
81 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 122,602 $ 122,602 $ 122,602 $ - $ Resources (Inflows):

Intergovernmental 57,000 57,000 - (57,000)
Use of money and property 2,000 2,000 1,800 (200)
Amount Available
for Appropriations 181,602 181,602 124,402 (57,200)
Charges to Appropriations (Outflows):

Transfers out 51,295 51,295 33,493 17,802
Total Charges to Appropriations 51,295 51,295 33,493 17,802 Fund Balances - Ending 130,307 $ 130,307 $ 90,909 $ (39,398) $ Budget Amounts
148

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

MEASURE M
FOR THE YEAR ENDED JUNE 30, 2021
82 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 1,436,674 $ 1,436,674 $ 1,436,674 $ - $ Resources (Inflows):

Intergovernmental 655,595 655,595 724,861 69,266
Use of money and property 15,000 15,000 12,478 (2,522)
Amount Available
for Appropriations 2,107,269 2,107,269 2,174,013 66,744 Charges to Appropriations (Outflows):

Public works 27,495 27,495 - 27,495
Transfers out 1,076,365 1,322,465 1,322,465 -
Total Charges to Appropriations 1,103,860 1,349,960 1,322,465 27,495 Fund Balances - Ending 1,003,409 $ 757,309 $ 851,548 $ 94,239 $ Budget Amounts
149

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE
SB1 – RMRA
FOR THE YEAR ENDED JUNE 30, 2021
83 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 796,637 $ 796,637 $ 796,637 $ - $ Resources (Inflows):

Intergovernmental 970,255 970,255 927,741 (42,514)
Use of money and property 8,000 8,000 13,398 5,398
Amount Available
for Appropriations 1,774,892 1,774,892 1,737,776 (37,116) Charges to Appropriations (Outflows):

Transfers out 1,020,000 1,266,100 954,436 311,664
Total Charges to Appropriations 1,020,000 1,266,100 954,436 311,664 Fund Balances - Ending 754,892 $ 508,792 $ 783,340 $ 274,548 $ Budget Amounts
150

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

PUBLIC SAFETY GRANTS
FOR THE YEAR ENDED JUNE 30, 2021
84 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - beginning 122,819 $ 122,819 $ 122,819 $ - $ Resources (Inflows):

Intergovernmental 175,000 175,000 156,731 (18,269)
Use of money and property 2,000 2,000 2,929 929
Amount Available
for Appropriations 299,819 299,819 282,479 (17,340)
Charges to Appropriations (Outflows):

Public safety 171,245 171,245 172,532 (1,287)
Total Charges to Appropriations 171,245 171,245 172,532 (1,287) Fund Balances - Ending 128,574 $ 128,574 $ 109,947 $ (18,627) $ Budget Amounts
151

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

AIR QUALITY IMPROVEMENT
FOR THE YEAR ENDED JUNE 30, 2021
85 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 964,716 $ 964,716 $ 964,716 $ - $ Resources (Inflows):

Intergovernmental 65,000 122,365 130,736 8,371
Use of money and property 15,000 15,000 19,250 4,250
Amount Available
for Appropriations 1,044,716 1,102,081 1,114,702 12,621 Charges to Appropriations (Outflows):

Public safety 130,000 166,040 82,629 83,411
Total Charges to Appropriations 130,000 166,040 82,629 83,411 Fund Balances - Ending 914,716 $ 936,041 $ 1,032,073 $ 96,032 $ Budget Amounts
152

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

INTEGRATED WASTE MANAGEMENT
FOR THE YEAR ENDED JUNE 30, 2021
86 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 28,476 $ 28,476 $ 28,476 $ - $ Resources (Inflows):

Intergovernmental 12,880 12,880 12,595 (285)
Use of money and property 250 250 200 (50)
Amount Available
for Appropriations 41,606 41,606 41,271 (335)
Charges to Appropriations (Outflows):

Public works 12,500 23,700 23,519 181
Total Charges to Appropriations 12,500 23,700 23,519 181 Fund Balances - Ending 29,106 $ 17,906 $ 17,752 $ (154) $ Budget Amounts
153

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

OTHER GRANTS
FOR THE YEAR ENDED JUNE 30, 2021
87 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 44,085 $ 44,085 $ 44,085 $ - $ Resources (Inflows):

Intergovernmental 160,000 310,000 15,033 (294,967)
Use of money and property 750 750 - (750)
Amount Available
for Appropriations 204,835 354,835 59,118 (295,717)
Charges to Appropriations (Outflows):

Transfers out - 310,000 97,451 212,549
Total Charges to Appropriations - 310,000 97,451 212,549 Fund Balances (Deficit) - Ending 204,835 $ 44,835 $ (38,333) $ (83,168) $ Budget Amounts
154

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

TECHNOLOGY GRANTS
FOR THE YEAR ENDED JUNE 30, 2021
88 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 196,203 $ 196,203 $ 196,203 $ - $ Resources (Inflows):

Intergovernmental 145,000 145,000 119,959 (25,041)
Use of money and property 1,500 1,500 3,357 1,857
Amount Available
for Appropriations 342,703 342,703 319,519 (23,184)
Charges to Appropriations (Outflows):

General government 69,750 69,750 34,093 35,657
Transfers out 100,000 137,500 134,651 2,849
Total Charges to Appropriations 169,750 207,250 168,744 38,506 Fund Balances - Ending 172,953 $ 135,453 $ 150,775 $ 15,322 $ Budget Amounts
155

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

DEVELOPMENT IMPACT
FOR THE YEAR ENDED JUNE 30, 2021
89 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning 2,622,371 $ 2,622,371 $ 2,622,371 $ - $ Resources (Inflows):

Developer fees - - 585,000 585,000
Amounts Available
for Appropriations 2,622,371 2,622,371 3,207,371 585,000 Charges to Appropriations (Outflows):

Planning - - 154,649 (154,649)
Transfers out 1,860,000 1,642,100 1,642,100 -
Total Charges to Appropriations 1,860,000 1,642,100 1,796,749 (154,649) Fund Balances - Ending 762,371 $ 980,271 $ 1,410,622 $ 430,351 $ Budget Amounts
156

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

AQUATIC CENTER
FOR THE YEAR ENDED JUNE 30, 2021
90 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Charges for services 845,000 781,000 990,156 209,156
Transfers in 122,310 149,280 96,479 (52,801)
Amounts Available
for Appropriations 967,310 930,280 1,086,635 156,355
Charges to Appropriations (Outflows):

Community services 967,310 930,280 1,067,135 (136,855)
Total Charges to Appropriations 967,310 930,280 1,067,135 (136,855) Fund Balances - Ending - $ - $ 19,500 $ 19,500 $
Budget Amounts
157

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE
STREET IMPROVEMENTS – MAJOR FUND
FOR THE YEAR ENDED JUNE 30, 2021
91 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Transfer in 2,147,660 2,639,860 2,327,098 (312,762)
Amounts Available
for Appropriations 2,147,660 2,639,860 2,327,098 (312,762) Charges to Appropriations (Outflows):

Public works 2,147,660 2,639,860 2,327,098 312,762
Total Charges to Appropriations 2,147,660 2,639,860 2,327,098 312,762 Fund Balances - Ending - $ - $ - $ - $
Budget Amounts
158

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

CAPITAL IMPROVEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
92 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Transfers in 275,000 511,130 350,508 (160,622)
Amounts Available
for Appropriations 275,000 511,130 350,508 (160,622)
Charges to Appropriations (Outflows):

Public works 140,349 376,479 215,857 160,622
Capital outlay 134,651 134,651 134,651 -
Total Charges to Appropriations 275,000 511,130 350,508 160,622 Fund Balances - Ending - $ - $ - $ - $
Budget Amounts
159

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

STORM WATER
FOR THE YEAR ENDED JUNE 30, 2021
93 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Transfers in 30,000 30,000 - (30,000)
Amounts Available
for Appropriations 30,000 30,000 - (30,000)
Charges to Appropriations (Outflows):

Public works 30,000 30,000 - 30,000
Total Charges to Appropriations 30,000 30,000 - 30,000
Fund Balances - Ending - $ - $ - $ - $
Budget Amounts
160

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE
COP 2019 – MAJOR FUND
FOR THE YEAR ENDED JUNE 30, 2021
94 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balances - Beginning - $ - $ - $ - $
Resources (Inflows):

Use of money and property - 100,000 - (100,000)
Transfers in 7,545,590 10,307,150 10,240,431 (66,719)
Amounts Available
for Appropriations 7,545,590 10,407,150 10,240,431 (166,719) Charges to Appropriations (Outflows):

Public works 6,895,590 66,719 - 66,719
Capital outlay 650,000 - 10,240,431 (10,240,431)
Transfers out - 100,000 - 100,000
Total Charges to Appropriations 7,545,590 166,719 10,240,431 (10,073,712) Fund Balances - Ending - $ 10,240,431 $ - $ (10,240,431) $ Budget Amounts
161
95 CUSTODIAL FUNDS
Custodial Funds are used to account for the assets held by the City as an agent for individuals, private organizations and other government units. The City of Aliso Viejo has the following Custodial Funds:

Community Trust
This fund is used to account for funding received from the Aliso Viejo Community Foundation, a non-profit organization. The foundation holds fundraisers and provides opportunities for donors to contribute to the Aliso Viejo Community programs.

CFD 2005-01
This fund is used to account for CFD 2005-01 Mello Roos funds held with the City’s fiscal agent.

Funds held by the fiscal agent include special taxes and the reserve funds for the payment of the bonds.

Renewable Farms
This fund is used to account for the operations of the Renewable Farms facility. Renewable Farms is a City owned outdoor facility that serves as a venue to accommodate an array of functions such as wedding celebrations and private events. 162

CITY OF ALISO VIEJO

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2021
96 Community Renewable
Trust CFD 2005-1 Farms Total
Assets:

Cash and investments 10,610 $ (1,640) $ 44,353 $ 53,323 $ Restricted cash and investments - 4,503,808 - 4,503,808 Due from other governments - 26,866 - 26,866
Total assets 4,529,034 10,610 44,353 4,583,997
Liabilities:

Accounts payable - 1,949 44,353 46,302
Deposits payable 5,544 - - 5,544
Total liabilities 1,949 5,544 44,353 51,846
Net position:

Restricted for organizations and other governments 4,527,085 5,066 - 4,532,151 Total net position $ 4,527,085 5,066 $ - $ 4,532,151 $
163

CITY OF ALISO VIEJO

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
97 Community Renewable
Trust CFD 2005-1 Farms Total
Additions:

Assessments - $ 2,033,263 $ - $ 2,033,263 $
Events and rentals - - 169,475 169,475
Interest income 5,066 - - 5,066
Total additions 2,033,263 5,066 169,475 2,207,804
Deductions:

Administrative expenses - - 169,475 169,475
Payments to bondholders:

Principal - 700,000 - 700,000
Interest - 1,475,064 - 1,475,064
Total deductions 2,175,064 - 169,475 2,344,539
Net increase (decrease) in fiduciary net position (141,801) 5,066 - (136,735) Net position, beginning of year, as restated (Note 15) 4,668,886 - - 4,668,886 Net position, end of year $ 4,527,085 5,066 $ - $ 4,532,151 $ 164

THIS PAGE INTENTIONALLY LEFT BLANK
165
Contents
Financial Trends Table Page
Net Position by Component 1 99
Change in Net Position 2 100
Fund Balances of Governmental Funds 3 101
Changes in Fund Balances of Governmental Funds 4 102
General Government - Expenditures by Function 5 103
Revenue Capacity
General Government - Revenues by Source 6 104
General Government - Tax Revenues by Source 7 105
Principal Sales Tax Producers by Category 8 106
Property Tax Levies and Collections 9 107
Assessed and Estimated Actual Value of Taxable Property 10 108 Direct and Overlapping Property Tax Schedules 11 109
Principal Property Taxpayers 12 110
Debt Capacity
Ratios of Net General Obligation Debt to Assessed Value and Net General Obligation Debt Per Capita 13 111
Computation of Direct and Overlapping Bonded Debt 14 112 Legal Debt Margin 15 113
Demographic and Economic Information
Demographic and Economic Statistics 16 114
Principal Employers 17 115
Operating Information
Operating Indicators by Function 18 116
Full-Time and Part-Time City Employees by Function 19 117 Capital Assets Statistics by Function 20 118
Schedule of Insurance 21 119
Miscellaneous Statistical Information 22 120
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Aliso Viejo's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

These schedules contain trend information to help the reader understand how the government's financial performances and well-being have changed over time.

These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.

These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 98 166
Table 1

CITY OF ALISO VIEJO

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16
Governmental Activities
$ 89,326,107 89,945,456 $ 95,679,944 $ 95,155,183 $ 94,579,142 $ Restricted
Community Development 1,220,163 770,031 731,008 482,242 279,027 Public Works 12,261,269 11,351,165 11,451,213 12,018,986 11,840,453 Public Safety 48,733 57,693 84,886 - 12,953
Debt Service 515,936 515,759 - - -
Unrestricted 24,562,723 25,767,983 20,080,095 21,354,275 23,233,017 Total governmental activities net position 128,554,280 $ 127,788,738 $ 128,027,146 $ 129,010,686 $ 129,944,592 $ 2016-17 2017-18 2018-19 2019-20 2020-21
Governmental Activities
$ 95,000,131 $ 94,791,785 $ 95,555,817 $ 91,372,419 $ 101,009,829 Restricted
Community Development (34,396) 203,708 334,190 2,891,135 1,579,149 Community Services - - - - 19,500
Public Works 8,299,848 7,637,647 8,536,428 122,819 3,498,519 Public Safety 39,957 83,097 105,213 4,121,343 125,356
Debt Service - - - 4,319,695 -
Unrestricted 26,937,175 29,312,285 30,211,693 31,507,850 25,601,465 Total governmental activities net position 130,242,715 $ $ 132,028,522 $ 134,743,341 $ 134,335,261 $ 131,833,818 Source: City Finance Department
Net Investment in Capital Assets
Net Investment in Capital Assets
Fiscal Years
Fiscal Years
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
Thousands
Fiscal Year
Total Net Position by Component
99 167
Table 2

CITY OF ALISO VIEJO

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Revenues
Program Revenues
Charges for Services 2,071,956 $ 1,861,661 $ 1,853,679 $ 2,287,957 $ 2,654,055 $ 3,474,104 $ 4,202,366 $ 3,836,994 $ 3,070,201 $ 4,001,459 $ Operating Contributions & Grants 5,362,500 2,604,100 3,902,695 2,682,605 2,770,178 3,672,804 2,805,856 5,171,638 4,342,486 4,852,523 Capital Contributions & Grants - - 99,283 99,283 18,875 17,831 - - 9,600 - Taxes
Sales Tax 4,180,373 4,685,598 4,814,560 4,795,433 4,601,042 6,236,832 6,545,732 6,128,143 4,765,921 3,524,908 Property Tax 5,963,627 6,379,228 6,441,021 6,741,164 7,317,139 7,503,432 7,936,613 8,211,394 8,647,685 8,981,521 Franchise Fees 1,479,666 1,487,395 1,511,450 1,584,358 1,573,339 1,507,041 1,577,213 1,829,070 1,729,418 1,672,280 Transient Occupancy Tax 711,136 780,075 862,294 916,286 1,108,102 1,606,165 1,696,598 1,640,628 1,220,997 723,599 Motor Vehicle License Fees - 25,112 20,991 20,470 20,256 22,627 26,483 24,936 40,659 36,704 Use of Money and Property 99,060 66,734 72,969 273,901 328,416 324,781 402,978 790,051 1,053,024 377,709 Other 147,925 79,919 61,559 132,872 195,831 186,455 191,376 174,274 292,184 292,095 Total Revenues 20,016,243 17,969,822 19,640,501 19,534,329 20,587,233 24,552,072 25,385,215 27,807,128 25,172,175 24,462,798 Expenses
General Government 2,704,442 2,993,646 3,030,088 3,189,090 3,459,012 4,139,974 4,418,462 4,725,232 4,878,395 5,621,731 Community Services 1,867,175 1,935,808 2,139,277 2,221,206 2,982,463 3,433,106 3,771,964 3,878,633 3,433,829 3,695,994 Community Development 1,646,325 1,676,713 1,615,338 1,635,629 1,450,043 3,824,732 1,735,901 1,601,865 1,830,144 1,754,782 Public Works 7,347,932 4,927,121 5,246,908 3,360,251 4,038,360 4,484,898 4,444,500 5,924,079 5,631,039 6,016,332 Public Safety 6,658,558 6,637,899 7,022,580 7,427,581 7,723,449 8,371,239 8,831,639 8,962,500 9,312,287 9,480,235 Interest and Fiscal Charges 378,205 360,975 347,902 - - - - 494,561 - 395,167 Total Expense 20,602,637 18,532,162 19,402,093 17,833,757 19,653,327 24,253,949 23,202,466 25,092,309 25,580,255 26,964,241 Change in net Position $ (586,394) $ (562,340) $ 238,408 $ 1,700,572 $ 933,906 $ 298,123 $ 2,182,749 $ 2,714,819 $ (408,080) $ (2,501,443) Source: City Finance Department
Fiscal Years
(3,000)
(2,000)
(1,000)
0 1,000
2,000
3,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Thousands
Fiscal Year
Changes in Net Position
100
168
Table 3

CITY OF ALISO VIEJO

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16
General Fund Balances
Nonspendable:

Prepaid 86,492 $ 130,620 $ 111,045 $ 146,132 $ 187,681 $ Assigned to:

Contingencies 4,693,673 4,000,331 4,127,631 4,229,500 4,351,653 Self Insurance/benefit obligations 471,450 570,000 570,000 738,900 724,000 Asset Replacement 8,288,000 8,657,715 9,065,735 9,440,700 9,850,000 Emergencies & Unanticipated Traffic Projects 2,500,000 500,000 1,500,000 1,500,000 1,500,000 800 MHZ Upgrade & Replacement - - 262,000 262,000 -
Long Term Debt 5,000,000 7,335,000 - - -
Unassigned: 3,385,179 4,709,175 4,521,835 5,616,888 7,374,518 Total General Fund $ 24,424,794 $ 25,902,841 $ 20,158,246 $ 23,987,852 21,934,120 $ All other govenmental funds
Nonspendable:

Prepaid Costs and Inventory $ 4,132 $ 30,942 $ 30,562 $ 4,272 $ 14,127 Assigned to:

Emergencies and Unanticipated Traffic Projects - - - - - Restricted For:

Community Development Projects 1,220,163 770,031 731,008 482,242 278,992 Public Safety 48,733 57,693 84,886 - -
Capital Projects 12,261,269 11,351,165 11,451,213 12,018,986 11,853,406 Debt Service 515,936 515,759 - - -
Unassigned: 4,611 (23,971) (30,562) (19,027) (198,271)
Total All Other Governmental Funds $ 14,054,844 $ 12,701,619 $ 12,267,107 $ 11,948,254 12,486,473 $ 2016-17 2017-18 2018-19 2019-20 2020-21
General Fund Balances
Nonspendable:

Prepaid Costs and Inventory $ 231,198 $ 206,488 $ 222,029 $ 236,326 $ 76,150 Assigned to:

Contingencies 4,681,192 4,700,000 2,963,795 2,860,265 2,649,388 Self Insurance/benefit obligations 1,200,000 1,200,000 900,000 1,445,475 1,150,474 Asset Replacement 10,044,448 10,000,000 9,700,000 9,096,430 8,317,710 Emergencies and Unanticipated Traffic Projects 1,500,000 1,500,000 15,000,000 15,000,000 15,000,000 800 MHZ Upgrade & Replacement - - - -
Unassigned: 9,509,904 12,935,238 3,811,349 4,332,263 (62,559) Total General Fund $ 27,166,742 $ 30,541,726 $ 32,597,173 $ 27,131,163 32,970,759 $ All other govenmental funds
Nonspendable:

Prepaid $ 25,041 $ - -$ $ - $ 9,250
Assigned to:

Emergencies & Unanticipated Traffic Projects - - - - -
Restricted For:

Community Services - - - - 19,500
Community Development Projects 19,736 203,708 334,190 2,891,135 1,579,149 Public Safety 39,957 83,097 105,213 122,819 125,356
Capital Projects 8,299,848 7,637,647 8,536,428 4,121,343 3,498,519 Debt Service - - 4,319,695 -
Unassigned: (79,173) - - (47,583)
Total All Other Governmental Funds $ 8,305,409 $ 7,924,452 $ 8,975,831 $ 5,184,191 11,454,992 $ Source: City Finance Department
Fiscal Years
Fiscal Years
‐
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Thousands
Fiscal Year
Fund Balances Of Governmental Funds General Fund
Other Govt Funds
101
169
Table 4

CITY OF ALISO VIEJO

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14* 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Revenues
Taxes 12,350,386 $ 13,348,264 $ 13,648,081 $ 14,064,937 $ 14,629,530 $ 16,884,140 $ 17,777,707 $ 17,704,139 $ 16,270,976 $ 14,823,926 $ Licenses and Permits 493,121 482,730 377,459 676,218 694,054 664,202 957,209 706,764 719,720 976,781 Intergovernmental 3,255,558 2,090,978 2,858,226 2,189,004 2,617,535 2,585,675 2,963,077 4,218,802 4,208,995 3,987,463 Charges for Services 945,900 817,633 1,029,007 1,190,138 1,639,479 2,519,225 2,864,619 2,639,775 2,047,978 2,198,864 Fines and Forfeitures 392,231 327,174 271,644 415,671 312,400 282,322 300,988 307,513 275,229 310,419 Developer Fees 1,931,591 355,137 992,783 521,859 30,500 536,182 - 715,000 9,600 585,000 - - - 42,894 - - - - 100,000 -
Investment Income 119,852 79,856 87,332 83,811 150,692 176,274 341,899 903,790 1,091,863 1,068,212 Rental Income 275,834 262,247 244,838 204,514 208,225 182,749 182,830 248,340 166,246 - Other 107,704 205,803 131,131 145,283 325,612 387,838 421,734 333,252 423,194 253,836 Total Revenues 19,872,177 17,969,822 19,640,501 19,534,329 20,608,027 24,218,607 25,810,063 27,777,375 25,213,801 24,304,501 Expeditures
General Government 2,299,137 2,632,999 2,744,983 3,101,820 3,079,528 3,797,104 3,907,504 4,368,307 4,370,213 5,110,883 Community Development 3,483,691 3,549,268 3,663,530 3,821,432 4,485,482 7,267,554 5,479,501 5,504,012 5,177,202 5,381,558 Public Works 6,804,027 4,421,239 4,705,326 2,940,272 3,557,336 3,605,820 3,962,004 5,441,582 5,148,542 5,531,650 Public Safety 6,640,088 6,624,180 7,014,723 7,407,531 7,677,426 8,030,234 8,730,712 8,844,067 9,170,586 9,358,289 Capital Outlay 163,486 103,249 4,457 268,034 292,742 1,981,850 736,315 1,723,775 10,006,820 10,375,082 Debt Service
Principal 150,000 155,000 7,335,000 - - - - - 230,000 - Interest 367,765 359,065 351,590 - - - - - 494,561 427,436 Other Charges - -
Total Expenditures 19,908,194 17,845,001 25,819,608 17,539,088 19,092,514 24,682,562 22,816,036 25,881,743 34,367,924 36,414,898 (36,017) 124,821 (6,179,107) 1,995,241 1,515,513 (463,955) 2,994,027 1,895,632 (9,154,123) (12,110,397) Transfers In 3,871,339 2,284,326 9,422,668 1,209,782 2,040,859 3,517,923 2,548,103 3,708,774 13,309,198 14,573,345 Transfers Out (3,871,339) (2,284,326) (9,422,668) (1,209,782) (2,040,859) (3,517,923) (2,548,103) (3,708,774) (13,309,198) (14,573,345) Bonds Issued** - - - - - 1,211,194 12,006,870 -
Total Other Financing - - - - - - 1,211,194 - 12,006,870 - Sources (Uses)
Net Change in Fund Bal. (36,017) $ $ 124,821 $ (6,179,107) $ 1,995,241 $ 1,515,513 $ (463,955) $ 2,994,027 $ 3,106,826 $ 2,852,747 $ (12,110,397)

2.62% 2.90% 29.78% 0.00% 0.00% 0.00% 0.00% 0.00% 2.03% 2.52% * Fiscal Year 2013-14 debt service includes payoff of the City Hall COP bond.

Source: City Finance Department
Excess of Revenues over
Expeditures
Fiscal Years
Contributions From
Property Owners
Other Financing Sources
(Uses)
Debt Service as a % of
Noncapital Expenditures
**In anticipation of the issuance of tax-exempt obligations for the Aliso Viejo Ranch project, the City Council passed a reimbursement resolution on February 20, 2019. The resolution would allow the City to reimburse itself for expenditures relating to the Aliso Viejo Ranch Project. On August 13, 2019, the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2011-12 2012-13 2013-14* 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Thousands
Fiscal Year
Changes in Fund Balance Revenues Expeditures Other Sources/Uses 102
170
Table 5

CITY OF ALISO VIEJO

GENERAL GOVERNMENT - EXPENDITURES BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal General Community Public Public Capital Debt
Year Government Development Works Safety Outlay Service Total 2011-12 2,299,137 3,483,691 6,804,027 6,640,088 163,486 517,765 19,908,194 2012-13 2,632,999 3,549,268 4,421,239 6,624,180 103,249 514,065 17,845,000 2013-14 2,744,983 3,663,530 4,705,326 7,014,723 4,457 7,686,590 25,819,608 2014-15 3,101,820 3,821,432 2,940,272 7,407,531 268,034 17,539,089 - 2015-16 3,079,528 4,485,482 3,557,336 7,677,426 292,742 19,092,514 - 2016-17 3,797,104 7,267,554 3,605,820 8,030,234 1,981,850 24,682,562 - 2017-18 3,907,504 5,479,501 3,962,004 8,730,712 736,315 22,816,036 - 2018-19 4,368,307 5,504,012 5,441,582 8,844,067 1,723,775 25,881,743 - 2019-20 4,370,213 5,177,202 5,148,542 9,170,586 10,006,820 494,561 34,367,924 2020-21 5,110,883 5,381,558 5,531,650 9,358,289 10,375,082 657,436 36,414,898 * Fiscal Year 2013-14 debt service includes payoff of the City Hall COP bond. **Includes General and Special Revenue Funds.

Source: City Finance Department
*
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Thousands
Fiscal Year
Total General Government Expenditures
General Government Community Development Public Works Public Safety Capital Outlay Debt Service *
103
171
Table 6

CITY OF ALISO VIEJO

GENERAL GOVERNMENT - REVENUES BY SOURCE

LAST TEN FISCAL YEARS
Fiscal Licenses Inter- Charges for Fines & Investment Use of Money Other Year Taxes & Permits Governmental Services Forfeitures Income & Property Revenue Total 2011-12 $ 12,350,386 $ 493,121 $ 3,255,560 $ 945,896 $ 392,231 $ 119,849 $ 275,834 $ 2,039,295 $ 19,872,172 2012-13 13,348,264 482,730 2,090,978 817,633 327,174 79,856 262,247 560,940 17,969,822 2013-14 13,648,082 377,459 2,858,224 1,029,005 271,644 87,334 244,838 1,123,915 19,640,501 2014-15 14,064,937 676,218 2,189,004 1,190,138 415,671 83,811 204,514 710,036 19,534,329 2015-16 14,629,530 694,054 2,617,535 1,639,479 312,400 150,692 208,225 356,112 20,608,027 2016-17 16,884,140 664,202 2,585,675 2,519,225 282,322 176,274 182,749 924,020 24,218,607 2017-18 17,777,707 957,209 2,963,077 2,864,619 300,988 341,899 182,830 421,734 25,810,063 2018-19 17,704,139 706,763 4,218,803 2,639,775 307,513 903,790 248,340 1,048,252 27,777,375 2019-20 16,270,976 719,720 4,208,995 2,047,978 275,229 997,267 260,842 432,794 25,213,801 2020-21 14,823,926 976,781 3,987,463 2,198,864 310,419 1,068,212 938,836 - 24,304,501 ** Includes General and Special Revenue Funds.

Source: City Finance Department
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Thousands
Fiscal Year
Total General Government Revenues
Other Revenue
Use of Money & Property
Investment Income
Fines & Forfeitures
Charges for Services
Inter- Governmental
Licenses & Permits
Taxes
104
172
Table 7

CITY OF ALISO VIEJO

GENERAL GOVERNMENT - TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
Fiscal
Year Total
2011-12 4,180,373 $ 5,963,627 $ 1,479,666 $ 711,136 $ 15,584 $ 12,350,386 $ 2012-13 4,685,598 6,379,228 1,487,395 780,075 15,968 13,348,264 2013-14 4,814,560 6,441,021 1,511,450 862,294 18,756 13,648,081 2014-15 4,795,433 6,741,164 1,584,358 916,286 27,696 14,064,937 2015-16 4,601,042 7,317,139 1,573,339 1,108,102 29,908 14,629,530 2016-17 6,236,832 7,503,432 1,507,041 1,606,165 30,670 16,884,140 2017-18 6,545,732 7,936,613 1,577,213 1,696,598 21,551 17,777,707 2018-19 6,128,143 8,211,394 1,685,807 1,640,628 38,167 17,704,139 2019-20 4,765,921 8,647,685 1,598,246 1,220,997 38,127 16,270,976 2020-21 3,524,908 8,981,521 1,672,280 723,599 36,704 14,823,926 Source: City Finance Department
Sales Taxes Property Taxes Franchise Taxes
Transient
Occupancy Taxes Other Taxes
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Tax Source
Total General Government Tax Revenues by Source
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
105
173
Table 8

CITY OF ALISO VIEJO

PRINCIPAL SALES TAX PRODUCERS BY CATEGORY (IN THOUSANDS)

LAST TEN CALENDAR YEARS
2011 2012 2013 2014 2015
Food Stores $ 17,853 $ 18,951 $ 19,427 $ 20,207 $ 21,587 Eating and Drinking Places 56,217 61,964 63,977 64,456 66,965 Auto Dealers and Supplies 5,293 6,033 6,158 5,572 5,783 Services Stations 61,892 71,050 68,668 67,240 60,348
Other Retail Stores 153,572 150,222 153,979 157,728 171,341 All Other Outlets 135,400 137,008 146,435 149,105 137,236 Total $ 430,227 $ 445,228 $ 458,644 $ 464,308 $ 463,260 2016 2017 2018 2019 2020
Food Stores $ 22,672 $ 22,453 $ 22,417 $ 21,189 $ 23,953 Eating and Drinking Places 73,680 70,004 68,546 68,415 55,945 Auto Dealers and Supplies 5,778 4,600 5,132 5,175 4,999 Services Stations 55,123 57,190 65,183 64,485 40,561
Other Retail Stores 179,245 163,533 161,056 128,344 101,270 All Other Outlets 255,663 307,956 256,903 232,318 167,024 Total $ 592,161 $ 625,736 $ 579,237 $ 519,926 $ 393,752 Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies $- $100 $200 $300 $400 $500 $600 $700
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Thousands
Fiscal Year
Sales Tax Producers by Category
Food Stores Eating and Drinking Places Auto Dealers and Supplies Services Stations Other Retail Stores All Other Outlets 106
174
Table 9

CITY OF ALISO VIEJO

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
Fiscal
Year Amount Amount
2011-12 5,757,757 $ 5,671,091 $ 98.67% 40,073 $ 5,711,164 $ 99.37% 2012-13 5,902,705 5,830,184 98.77% 37,843 5,868,027 99.41% 2013-14 6,139,991 6,109,976 99.51% 26,570 6,136,546 99.94% 2014-15 6,453,445 6,412,710 99.37% 23,671 6,436,381 99.74% 2015-16 6,778,670 6,724,355 99.20% 22,577 6,746,932 99.53% 2016-17 7,167,823 7,103,256 99.10% 21,428 7,124,684 99.40% 2017-18 7,559,194 7,499,294 99.21% 25,595 7,524,890 99.55% 2018-19 7,985,095 7,948,958 99.55% 19,426 7,968,384 99.79% 2019-20 8,269,551 8,233,770 99.57% 20,806 8,254,576 99.82% 2020-21 8,585,769 8,556,212 99.66% 20,806 8,577,018 99.90% 1 Includes amounts received for Property Tax-In Lieu of VLF 3 Total Levy Collections may exceed 100% due to prior years delinquent taxes and delinquent tax penalties collected.

Source: Orange County Auditor/Controller.

Taxes Levied for
the Fiscal Year
Percent of
Levy
Collections in
Subsequent Years 2
Percent of
Levy
Collected within the Fiscal Year
of Levy
Total Levy Collections
to Date 3
2 The column includes the total amount of delinquent taxes collected in each fiscal year. The Orange County Auditor-Controller tax ledger does not provide detailed information regarding the levy year to which delinquent tax collections pertain. $0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Fiscal Year
Property Tax Levies and Collections Taxes Levied
Total Collections
107
175
Table 10

CITY OF ALISO VIEJO

ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
Fiscal Secured Unsecured Nonunitary Percentage Total Direct Year Gross Value Gross Value Utilities Exemptions Total Increase Rate Applied 2011-12 7,553,096,782 $ $ 310,902,332 $ - $ 352,590,770 $ 7,511,408,344 -0.55% 0.02174 2012-13 7,643,633,146 290,218,553 - 328,327,398 7,605,524,301 1.25% 0.02167 2013-14 7,889,773,458 332,701,593 - 344,663,043 7,877,812,008 3.58% 0.02166 2014-15 8,449,701,616 320,520,081 - 329,481,251 8,440,740,446 7.15% 0.02165 2015-16 8,821,939,196 306,239,139 - 362,214,100 8,765,964,235 3.85% 0.02165 2016-17 9,298,401,724 305,313,282 - 341,610,276 9,262,104,730 5.66% 0.02165 2017-18 9,788,791,533 339,021,986 - 370,210,705 9,757,602,814 5.35% 0.02170 2018-19 10,497,372,155 280,375,081 - 457,069,555 10,320,677,681 5.77% 0.02163 2019-20 10,902,480,454 290,597,292 - 486,424,453 10,706,653,293 3.74% 0.02165 2020-21 11,227,375,357 340,871,059 - 504,713,951 11,063,532,465 3.33% 0.02168 Source: The HDL Companies
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
$7,000
$7,500
$8,000
$8,500
$9,000
$9,500
$10,000
$10,500
$11,000
$11,500
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Millions
Fiscal Year
Net Taxable Property Value
108
176
Table 11

CITY OF ALISO VIEJO

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF ASSESSED VALUE)

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 City Direct Rates
City's Share of 1% Levy per Prop 13(1) 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 Total City Direct Rate (2) 0.02167 0.02166 0.02165 0.02165 0.02165 0.02170 0.02174 0.02163 0.02165 0.02168 Overlapping Rates
Basic Levy(3) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Capistrano Union 0.01101 0.01171 0.00972 0.00900 0.00845 0.00843 0.00800 0.00786 0.00745 0.00756 Laguna Beach Unified 0.01601 0.01694 0.01567 0.01461 0.01396 0.01371 0.01287 0.01285 0.01266 0.01012 Saddleback Valley Unified 0.03163 0.03265 0.03207 0.00350 0.03008 0.02688 0.02365 0.02392 0.02295 0.02336 Moulton Niguel Water District 0.12315 0.13840 0.12977 0.08600 0.09041 0.00815 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00370 0.00350 0.00350 0.02806 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Total Overlapping Rates(4) 1.1855 1.20320 1.19073 1.14117 1.14640 1.06067 1.04802 1.04813 1.04656 1.04454 Total Direct & Overlapping Tax Rates 1.20724 1.22487 1.21239 1.16282 1.16805 1.08232 1.06972 1.06976 1.06821 1.06622 Source: The HDL Companies, Orange County Assessor
(3) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(4) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Fiscal Years
(1) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figues.
(2) Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
109
177
Table 12

CITY OF ALISO VIEJO

PRINCIPAL PROPERTY TAXPAYERS
JUNE 30, 2021 AND 9 YEARS AGO
Taxpayer Primary Use
Moritz Associates LLC Residential $ 212,241,600 1.92%
Barcelona LLC Residential 186,772,607 1.69%
Enterprise Office Owner Commercial 163,342,800 1.48%
Vantis Multifamily LLC Residential 156,294,000 1.41%
Microventon, Inc Commercial 140,118,491 1.27%
City Lights-Aliso Viejo LLC Residential 124,639,832 1.13% Summit Office LLC Commercial 118,866,728 1.07%
Trust Polaris LLC Commercial 91,204,089 0.82%
Sequoia Equities Residential 88,901,816 0.80%
PLC 3 LP Residential 86,975,050 0.79%
Top Ten Totals $ 1,369,357,013 12.38%
Taxpayer Primary Use
City Lights-Aliso Viejo LLC Residential 105,248,809 1.41% Mortiz Associates LLC Residential 104,816,741 1.40%
RREEF America REIT II Corporation Commercial 92,155,000 1.23% Barcelona LLC Residential 90,328,073 1.21%
Sequoia Equities-Alicante Residential $ 73,782,270 0.99% Qlogic Corporation Commerical 71,681,406 0.96%
Sequoia Equities-Alize Residential 70,400,000 0.94%
Pacific Life Insurance Company Commerical 67,235,995 0.90% OC SD Holdings LLC Commerical 64,232,687 0.86%
Aliso-Holly Oaks Partners LP Residential 60,050,295 0.80% Top Ten Totals $ 799,931,276 10.70%
Source: The HDL Companies
Orange County Assessor
2011-12
Percentage of Total
Assessed Valuation Assessed Valuation
2020-21
Percentage of Total
Assessed Valuation Assessed Valuation
110
178
Table 13

CITY OF ALISO VIEJO

RATIOS OF NET DIRECT GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA

LAST TEN FISCAL YEARS
Percentage of General Net General
Fiscal Net Direct General Assessed Obligation Debt to Population Obligation Year Obligation Debt Value Assessed Value Debt per Capita 2011-12 $ 7,490,000 $ 7,511,408,344 0.100% 48,988 0.37% $ 152.89 2012-13 7,335,000 7,605,524,301 0.096% 49,477 0.35% 148.25 2013-14 7,877,812,008 - 0.000% 49,951 - -
2014-15 8,440,740,446 - 0.000% 50,509 - -
2015-16 8,765,964,235 - 0.000% 50,509 - -
2016-17 9,262,104,730 - 0.000% 50,312 - -
2017-18 9,757,602,814 - 0.000% 51,950 - -
2018-19** 10,320,677,681 - 0.000% 51,372 - -
2019-20 10,706,653,293 - 0.000% 50,044 - -
2020-21 11,063,532,465 - 0.000%
Ratios to Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.27%
Total Direct Debt 0.11%
Gross Combined Total Debt 0.59%
Net Combined Total Debt 0.59%
Source: California Municipal Statistics, Inc
HDL Coren & Cone
Percentage of
Personal
Income
** Subsequent Event: On August 13, 2019 the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. This debt will be refelected in the FY 2019-20 financial report. 111
179
Table 14

CITY OF ALISO VIEJO

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2021
2020-2021 Assessed Valuations $ 11,063,532,465
OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt 6/30/21 % Applicable (1) Debt 6/30/21 Saddleback Valley Unified School District 99,864,969 $ 0.491% 490,337 $ City of Aliso Viejo Community Facilities Disctrict No. 2005-01 28,950,000 100.000% 28,950,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 29,924,454
OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations 208,914,523 1.687% 3,524,388 Orange County Pension Obligation Bonds 116,492,175 1.687% 1,965,223 Orange County Board of Education Certificates of Participation 12,929,994 1.687% 218,129 Capistrano Unified School District Certificates of Participation 25,160,002 10.573% 2,660,167 Moulton-Niguel Water District Certificates of Participation 55,179,999 26.733% 14,751,269 TOTAL NET DIRECT OVERLAPPING GENERAL FUND DEBT 23,119,176 TOTAL NET OVERLAPPING DEBT 53,043,630
DIRECT GENERAL FUND DEBT:

City of Aliso Viejo** 100.000% 12,020,000 12,020,000
TOTAL DIRECT DEBT 12,020,000
GROSS COMBINED TOTAL DEBT 65,063,630 (2)
NET COMBINED TOTAL DEBT $ 65,063,630
(1) Percentage of overlapping agency's assesed valuation located within boundries of the city. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortage revenue and non-bonded capital lease obligations.

Ratios to Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.27%
Total Direct Debt 0.11%
Gross Combined Total Debt 0.59%
Net Combined Total Debt 0.59%
Source: California Municipal Statistics, Inc
** Subsequent Event: On August 13, 2019 the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. This debt will be refelected in the FY 2019-20 financial report. 112
180
Table 15

CITY OF ALISO VIEJO

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
Fiscal Years Legal Debt Margin
2011-12 $ 281,677,813
2012-13 277,872,161
2013-14 296,030,537
2014-15 316,527,767
2015-16 328,567,264
2016-17 347,328,927
2017-18 365,910,106
2018-19 387,025,413
2019-20 388,081,390
2020-21 402,862,467
Assessed Valuations:

Assessed Value $ 11,568,246,416
Add Back: Exempt Property (504,713,951)
Total Assessed Value $ 11,063,532,465
Legal Debt Margin:

Debt limitations-3.75% of Total Assessed Value* $ 414,882,467 Amount of Debt Applicable to Limit** 12,020,000
Legal Debt Margin $ 402,862,467
Note: The general laws of the State of California for muncipalities provide for a legal debt limit of 15% of grossed assessed valuation. However, this provision was enacted when assessed valuation was established based on 25% of market value. Effective with fiscal year 1981-82, taxable property is assessed at 100% of market value. Although the debt limit provision has not been amended by the State since this change, the percentage has been proportionately modified to 3.75% for the purpose of this calculation for consistency with the original intent of the State's debt limit.

Source: City Finance Department
The HDL Companies
Computation Of Legal Debt Margin for Fiscal Year 2020/21 ** Subsequent Event: On August 13, 2019 the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch. This debt will be refelected in the FY 2019-20 financial report. 113
181
Table 16

CITY OF ALISO VIEJO

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Population Total Income
2011 48,988 $ 2,002,825,392 $ 40,884 26,700 2.30% 6.50% 2012 49,477 2,100,001,788 $ 42,444 27,300 2.25% 5.50%
2013 49,951 2,100,839,000 $ 42,058 27,500 0.73% 4.50%
2014 49,939 2,181,535,000 $ 43,684 28,000 1.82% 3.60%
2015 50,509 2,223,991,000 $ 44,032 28,200 0.71% 3.10%
2016 50,312 2,274,460,000 $ 45,207 29,200 3.55% 2.80%
2017 51,950 2,311,366,000 $ 44,492 29,800 2.05% 2.60%
2018 51,372 2,385,153,000 $ 46,429 29,400 -1.34% 2.80%
2019 50,044 2,447,088,000 $ 48,899 26,500 -9.86% 7.80%
2020 49,813 2,559,352,000 $ 51,379 28,000 5.66% 7.50%
#DIV/0!
* Calendar year unemployment data uses December year-over-year averages.

Source: California Department of Finance, California Employment Development Department, The HDL Companies Unemployment
Rate*
Calendar
Year
Per Capita
Income
Total
Employment*
Employment
Growth Rate*
-
10,000
20,000
30,000
40,000
50,000
60,000
Calendar Year
Aliso Viejo Total Employment*
Per Capita Income
Population
114
182
Table 17

CITY OF ALISO VIEJO

PRINCIPAL EMPLOYERS
JUNE 20, 2021 AND 9 YEARS AGO
United Parcel Service 1000 4.04%
Pacific Life 811 3.28%
Capistrano Unified School District 679 2.75%
Microvention 650 2.63%
Fluor 630 2.55%
Quest Software 600 2.43%
Renaissance ClubSport 259 1.05%
Pepsi Beverages Company 215 0.87%
Smith Micro Software 200 0.81%
Target 170 0.69%
Total Top Employers 5,214 21.08%
Total Employees in City 24,735
United Parcel Service 1,000 5.67%
Pacific Life Insurance 811 4.59%
Capistrano Unified School District 679 3.85%
Fluor Corporation 630 3.57%
Quest Software 600 3.40%
Qlogic 490 2.78%
Renaissance-Aliso Viejo 259 1.47%
Pepsi Bottling Group Inc 215 1.22%
Smith Micro Software Inc 200 1.13%
Merit Property Management 199 1.13%
Buy.com Inc 185 1.05%
Lennar Corporation 175 0.99%
Target 170 0.96%
Bausch & Lomb 160 0.91%
Ambry Genetics Corp 156 0.88%
The Covington 153 0.87%
Lensx Lasers 150 0.85%
Lowe's 130 0.74%
Total Top Employers 6,362 21.08%
Total Employees in City 17,650
Source: City Finance Department
2012
Employer Number of Employees Percent of Total Employment 2021
Employer Number of Employees Percent of Total Employment 115
183
Table 18

CITY OF ALISO VIEJO

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Public Safety:

Part I Crimes 455 458 340 308 395 440 438 488 460 415
Public Works:

Streets Resurfaced 27 42 63 53 38 29 1 57 1 103
Building Permits Issued 1103 1328 1486 2093 2455 2129 2225 1711 1754 1755 Plan Checks Performed 185 218 185 219 275 205 184 197 234 309 Community Services***:

Recreation
Contract Classes - - - - - - 145 452 999 283
Contract Class Participants - - - - - - 443 1559 2239 1599 Events
City Events 8 8 8 8 7 7 16 26 8 9
City Sponsored Events 6 6 6 6 6 7 26 27 5 2
Senior Programs
Senior Mobility Program Rides - - - 1796 2141 2419 2102 2340 - 0 Finance
Accounts Payable
AP Line Items Entered 3231 3647 3344 3745 4041 4368 4454 4791 4964 4855 Invoices Processed 2222 2412 2309 2560 2852 3012 3069 3271 3216 3166 Payments Processed 1648 1712 1715 2148 2220 2257 2284 2474 2330 2338 Payroll
Payroll Checks Issued 483 490 524 547 622 627 635 748 834 912 ***The Community Services department was restructured in FY 2017-18 Source: City Public Works Department, Community Services Department, Orange County Sheriff's 116
184
Table 19

CITY OF ALISO VIEJO

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
Function 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 General Government 1 8 8 9 9 10 10 10 10 11.3 12.9
Public Safety
Public Works** - - - 1 1 1 233 -
Community Services*** - - - - - - - 5.5 7.30 12.1
Community Development 7 7 7 7.4 7.4 7.4 7.4 5.0 7.3 5.5 Total 15.0 15.0 16.0 16.4 18.4 18.4 18.4 22.5 28.9 33.5 1 Attorney Services were contracted through Best, Best, & Krieger LLP and are not included. * Full Time Equivalent
**Public Works Engineering and Building & Safety were contracted through Charles Abbott and Associates *** Community Services Department was restructured in FY 17-18 Source: City Finance Department
Police Services are contracted through the Orange County Sheriff Department 117
185
Table 20

CITY OF ALISO VIEJO

CAPITAL ASSETS STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 General Government
City Hall 1 1 1 1 1 1 1 1 1 1
City Owned Property 4 4 4 4 4 4 44 4 4
Public Works:

Streets (Miles) 73 73 73 73 73 73 73 73 73 73
Street Lights ** 1263 1263 1299 1410 1410 1410 1410 1411 1407 1407 Traffic Signals ** 42 42 42 47 47 47 47 47 48 48
Parks & Recreation:

Parks *** 2 2 2 2 2 2 2 2 2 2
Community Facilities 2 2 2 2 2 2 22 2 2
** The City leases 1,230 of the streetlights and shares 3 of the traffic signals with neighboring cities. *** Aliso Viejo Community Association independently owns and manages 21 parks in Aliso Viejo.

Source: City Public Works Department
118
186
Table 21

CITY OF ALISO VIEJO

SCHEDULE OF INSURANCE
JUNE 30, 2021
Type of Coverage Limits/Deductibles Insurer Policy period General and Automobile Liability:

General Liability, Automobile Liability, $50,000,000 limit per occurrence, Self Insured Program/ 07/01/20 - 07/01/21 Bodily Injury, Property Damage, $50,000,000 annual aggregate. California Joint Powers Personal Injury. Insurance Authority.

Pollution & Remediation Legal Liability:

Scheduled property, streets, storm CJPIA Limit $50,000,000 for 3 years. Self Insured Program/ 07/01/20 - 07/01/21 drains, approved underground tanks & $10,000,000 per member. Self insur- California Joint Powers non-owned disposal sites. ed retention $50,000 per occurrence. Insurance Authority.

Property:

All-Risk, including buildings, contents, Limit $500,000,000 per occurrence Self Insured Program/ 07/01/20 - 07/01/21 garaged vehicles, contractor's equip- Coverage is written at replacement California Joint Powers ment, fine arts, rental income and other cost. Insurance Authority. miscellaneous extensions of coverage.

Crime:

Public Employee Blanket
Fidelity Bond-
Faithful Performance Bond $1,000,000 limit per member, Alliant Insurance 07/01/20 - 07/01/21 Coverage 'O' deductible of $2,500 per occurrence Services, Inc.

Depositor's Forgery $1,000,000 limit per member, Alliant Insurance 07/01/20 - 07/01/21 Coverage 'B' deductible of $2,500 per occurrence Services, Inc.

Crime- Money & Securities $1,000,000 limit per member, Alliant Insurance 07/01/20 - 07/01/21 Coverage 'C' deductible of $2,500 per occurrence Services, Inc.

Computer Fraud $1,000,000 limit per member, Alliant Insurance 07/01/20 - 07/01/21 Coverage 'F' deductible of $2,500 per occurrence Services, Inc.

Worker's Compensation:

Work related injury/illness claims for California Statutory Benefits Self Insured Program/ 07/01/20 - 07/01/21 temporary and permanent disability. $10,000,000 per occurrence, California Joint Powers Insurance Authority.

Special Events:

Tenants/Users for Property $1,000,000 per occurrence, Alliant Insurance 07/01/20 - 07/01/21 damage/bodily injury $1,000,000 aggregate per event. Services, Inc. $5,000 medical expense limit.

Source: City Finance Department
119
187
Table 22

CITY OF ALISO VIEJO

MISCELLANEOUS STATISTICAL INFORMATION
JUNE 30, 2021
Date of Incorporation ………………………………………………………………………………………………July 01, 2001 Form of Government ………………………………………………………………………………………………Council-Manager Area ………………………………………………………………………………………………7 Square miles Miles of Streets ………………………………………………………………………………………………72.1 miles Miles of Sidewalks ………………………………………………………………………………………………147 miles Employees ………………………………………………………………………………………………33.5
Public Safety
Police Department ……………………………………Contracted with the Orange County Sheriff's Department Fire Department ……………………………………………Contracted with the Orange County Fire Authority

Recreation & Culture:

Parks - Community & Neighborhood ……………………………………………………………………………………………23 Park Acreage (developed) ………………………………………………………………………………………………260 Acres Education:

Elementary Schools (K-6) ………………………………………………………………………………………………4 Middle Schools (6-8) ………………………………………………………………………………………………2 High Schools (9-12) ………………………………………………………………………………………………1 Charter Schools ………………………………………………………………………………………………1
Private Schools ………………………………………………………………………………………………4
Universities ………………………………………………………………………………………………1
*Source: State of California, Department of Finance
120
188
City of Aliso Viejo

AGENDA ITEM
DATE: January 19, 2022
TO: Mayor and City Council
FROM: Paul Espinoza, Interim Administrative Services Director and Scott C. Smith, City Attorney
SUBJECT: RESOLUTION APPROVING THE ISSUANCE BY THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY OF THE PORTION OF REVENUE

BONDS THE PROCEEDS OF WHICH ARE TO BE LOANED TO QCF/I,
INC., A 501(c)(3) NONPROFIT HEALTHCARE ORGANIZATION, AND USED TO ACQUIRE THE EXISTING FACILITY LOCATED AT 200
FREEDOM LANE, ALISO, VIEJO, CALIFORNIA; AND APPROVING

CERTAIN OTHER MATTERS RELATING THERETO
______________________________________________________________________ Recommended Action:

Adopt a Resolution approving the issuance by the California Municipal Finance Authority of the portion of revenue bonds the proceeds of which are to be loaned to QCF/I, Inc., a 501(c)(3) nonprofit healthcare organization, and used to acquire the existing facility located at 200 Freedom Lane, Aliso, Viejo, California; and approving certain other matters relating thereto.

Fiscal Impact:

There will be no direct costs incurred by the City. Indirect costs incurred include staff time and attorney costs. California Municipal Finance Authority (“CMFA”) through its issuance activities, shares a portion of the issuance fees it receives with its member. If the bonds are issued, the City will receive a portion of the fee paid to the issuer of the bonds to offset any staff or attorney costs incurred to coordinate the City Council approval.

Background:

QCF/I, Inc., a 501(c)(3) nonprofit healthcare organization (“QCF”), has requested that the California Municipal Finance Authority (the “Authority”) participate in the issuance of one or more series of revenue bonds (the “Bonds”), not more than $325,000,000 of which is allocable to the Aliso Viejo Hospital Project described below, the proceeds of which will be loaned to QCF in connection with QCF’s acquisition, construction, expansion, rehabilitation, remodeling, renovation, and/or equipping of several hospital facilities, including the existing Aliso Ridge Behavioral Health and to fund reserves, 189
interest on the Bonds and costs of issuing the Bonds (the portion of the Bonds allocable to the acquisition by QCF of Aliso Ridge Behavioral Health and related facilities and other related purposes is referred to as the “Aliso Viejo Hospital Project”).

Solely for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City, and for no other purpose, the City Council has been requested by the Authority to approve the Aliso Viejo Hospital Project and the issuance by the Authority of the portion of the Bonds allocable to the Aliso Viejo Hospital Project.

QCF will own and operate the Aliso Viejo Hospital Project either directly or through a separate single-member limited liability company or companies. In all events, QCF will be the true beneficial party of interest of the Aliso Viejo Hospital Project because it will be the sole member of each such limited liability company, each of which is a disregarded entity for federal tax purposes.

Discussion:

In order to satisfy the requirements of Section 147(f) of the Code, a telephonic public hearing was held on January 5, 2022 relating to the Borrower and the proposed taxexempt financing. No comments from the public were made at the public hearing.

Adoption of the attached resolution by the City Council would satisfy the requirements of Section 147(f) of the Code and Section 4 of the Agreement. The City shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority’s issuance of the Bonds for the financing of the Aliso Viejo Hospital Project or for any other purpose.

The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing for the Aliso Viejo Hospital Project; (ii) approve any application or request for or take any other action in connection with any planning appraisal, permit or other action necessary for the acquisition, improvement, rehabilitation or operation of the Aliso Viejo Hospital Project; or (iii) make any contribution or advance any funds whatsoever to the Authority.

Attachment:

1. Resolution
190

Page 1 of 2 ends

Aliso Viejo City CouncilJanuary 19, 2022

Aliso Viejo City Council
January 19, 2022