AGENDA
ALISO VIEJO CITY COUNCIL
WEDNESDAY, DECEMBER 4, 2024
7:00 PM REGULAR MEETING
CITY HALL
COUNCIL CHAMBERS
12 JOURNEY
ALISO VIEJO, CA
Mayor Mike Munzing
Mayor Pro Tem Tiffany Ackley
Councilmember Ross Chun
Councilmember Max Duncan
Councilmember Richard Hurt
WELCOME to the City of Aliso Viejo City Council meeting. Those persons wishing to address the City Council are requested to complete and submit to the City Clerk a “Request to Address City Council” form available at the entrance to the City Council Chambers. Speakers will be called at the appropriate time as their interested matter is heard. COMMENTS WILL BE LIMITED TO THREE MINUTES PER SPEAKER. Council proceedings are recorded.
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 on the Thursday preceding a regularly scheduled City Council meeting. All communications received by the City regarding an agenda item have been included in the agenda materials. Supplemental documents relating to specific agenda items, including communications received after agenda delivery, are presented at the dais and in the Public Copy agenda binder at the time of the meeting. Supplemental documents are also 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 attending 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 U -Verse Channel 99, and can be viewed on the internet at www.avcity.org.
MITZI ORTIZ SCOTT C. SMITH LAUREN TORRES
CITY MANAGER CITY ATTORNEY DEPUTY CITY CLERK
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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. POST ELECTION MATTERS:
1.1 CERTIFICATION OF OFFICIAL ELECTIONS RESULTS
Recommended Action: Adopt a Resolution reciting the facts of the General Municipal Election held on November 5, 2024, declaring the result and such other matters as provided by law.
Staff Report
Attachment 1 - Resolution
1.2 RECOGNITION OF OUTGOING COUNCILMEMBER ROSS CHUN
RECESS AND RECONVENE
1.3 OATH OF OFFICE CEREMONY AND INSTALLATION OF DISTRICT 1 COUNCILMEMBER TIM A. ZANDBERGEN
1.4 OATH OF OFFICE CEREMONY AND INSTALLATION OF DISTRICT 3
COUNCILMEMBER RICHARD HURT
1.5 OATH OF OFFICE CEREMONY AND INSTALLATION OF DISTRICT 5
COUNCILMEMBER MIKE MUNZING
2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:
3. COMMUNITY INPUT:
Members of the public wishing to address the City Council are requested to complete and submit to the City Clerk a "Request to Address City Council" form available at the entrance to the City Council Chambers. 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. Comments are limited to three (3) minutes per speaker.
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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 APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the November 20 , 2024 Regular Meeting and the November 21, 2024 Special Meeting.
Draft Minutes - November 20, 2024 Regular Meeting
Draft Minutes - November 21, 2024 Special Meeting
4.3 ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between November 8, 2024, and November 21, 2024, in the amount of $512,690.15.
Staff Report
Attachment 1 - Accounts Payable Report
4.4 TREASURER’S STATEMENT – OCTOBER 2024
Recommended Action: Receive and file the October 2024 Treasurer’s Statement .
Staff Report
Attachment 1 - Oct 2024 Treasurer's Statement
4.5 FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT Recommended Action: Receive and file the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024.
Staff Report
Attachment 1 - FY 2023-24 Annual Comprehensive Report
Attachment 2 - Auditor Communication Letter
Attachment 3 - Report on Internal Controls
Attachment 4 - Report on Appropriations Limit
Attachment 5 - Report on Treasurer's Monthly Statement
5. PUBLIC HEARINGS:
5.1 CONDITIONAL USE PERMIT FOR AN OUTPATIENT MEDICAL USE AT 27141 ALISO CREEK ROAD (USE-2024-00009)
Recommended Action: Adopt a Resolution of the City Council of the City of Aliso Viejo, California, approving a Conditional Use Permit to operate an outpatient medical use at 27141 Aliso Creek Road (USE-2024-00009).
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Staff Report
Attachment 1 - Resolution
Attachment 2 - Project Plans
6. DISCUSSION:
6.1 CITY COUNCIL REORGANIZATION
Recommended Action: Select a Mayor and Mayor Pro Tem in accordance with Ordinance No. 2001-022, for the 2025 calendar year.
Staff Report
6.2 CITY COUNCIL APPOINTMENTS TO SERVE ON REGIONAL BOARDS,
COMMISSIONS AND COMMITTEES
Recommended Action:
1. Review and update Council appointment list to regional boards, commissions, and committees; and
2. Adopt a Resolution designating and appointing the City’s representative to the Orange County Fire Authority Board of Directors.
Staff Report
Attachment 1 - 2024 Appointment List
Attachment 2 - Resolution for OCFA Appointment
7. CITY MANAGER' S REPORT:
8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:
9. ADJOURNMENT:
Adjourn to January 15, 2025. The regularly scheduled City Council meetings of December 18, 2024 and January 1, 2025 have been cancelled.
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City of Aliso Viejo
AGENDA ITEM
DATE: December 4, 2024
TO: Mayor and City Council
FROM: Mitzi Ortiz, City Manager
SUBJECT: CERTIFICATION OF OFFICIAL ELECTIONS RESULTS
Recommended Action:
Adopt a Resolution reciting the facts of the General Municipal Election held on November 5, 2024, declaring the result and such other matters as provided by law.
Fiscal Impact:
Funding for the 2024 General Municipal Election in the amount of $50,000 was included in the FY 2024-25 Budget. The final invoice has not been received from the Orange County Registrar of Voters as of this time.
Background:
On June 5, 2024, the City Council adopted Resolution No. 2024-16 calling the General Municipal Election on November 5, 2024, for the election of three members of the City Council for Districts 1, 3, and 5. The City Council also adopted Resolution No. 2024-17 requesting that the County of Orange consolidate the election with the Statewide General Election held on the same day and authorizing the Registrar of Voters to canvass the returns on behalf of the City.
The election was held for District 1 with two nominees on the ballot: Jennifer Engle and Tim Zandbergen. The election was canceled for District 3, and the nominee, Richard Hurt, was appointed to the seat. The election was held for District 5 with two nominees on the ballot: Ross Chun and Mike Munzing.
Discussion:
California Elections Code Section 10262(b) provides that in consolidated elections, upon receipt of the results following the canvass of the returns, the City elections official shall certify the results to the governing body no later than the next regularly scheduled City Council meeting or at a special meeting called for this purpose. Under Assembly Bill 3184, signed into law September 22, 2024, county elections officials are prohibited from 5
certifying the election results before December 3, 2024; however, Staff has received notification from the Orange County Registrar of Voters that the certification of the results will be available prior to this meeting.
As of 5:00 p.m. on November 26, 2024, the unofficial election results from the Orange County Registrar of Voters indicate the top finishers for each district as follows:
District 1 Mike Munzing
District 3 (election canceled) Richard Hurt (appointed 8/21/24) District 5 Tim Zandbergen
California Elections Code Section 10263 requires the City Council adopt a Resolution reciting the fact of the election and declaring elected the persons for whom the highest number of votes were cast for each office prior to the installation of new officers. Since the City will not receive the certification from the County by the time this agenda report is issued, the final Resolution and certification will be provided to the City Council at the time of the meeting.
Attachment:
1. Draft Resolution
6
RESOLUTION NO. 2024-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO
VIEJO, CALIFORNIA, RECITING THE FACT OF THE GENERAL
MUNICIPAL ELECTION HELD ON NOVEMBER 5, 2024, DECLARING
THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW
WHEREAS, a General Municipal Election was held and conducted in the City of Aliso Viejo, California, on Tuesday, November 5, 2024, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting centers were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and
WHEREAS, the Orange County Registrar of Voters canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part hereof as “Exhibit A.”
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ALISO VIEJO,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That the whole number of ballots cast in the vote centers was _____, and the whole number of vote-by-mail ballots cast in the City was _____, making a total of _____ ballots cast in the City.
Section 2. That the names of persons voted for at the election for Member of the City Council, District 1 are as follows:
Jennifer Engle
Tim Zandbergen
That the names of persons voted for at the election for Member of the City Council, District 5 are as follows:
Ross Chun
Mike Munzing
Section 3. That the number of votes given at vote centers and the number of votes given in the City to each of the persons above named for the respective offices for which the persons were candidates were as listed in “Exhibit A” attached. 7
Section 4. The City Council does declare and determine that ______ was elected as Member of the City Council, District 1 for the full term of four years; and ______ was elected as Member of the City Council, District 5 for the full term of four years.
SECTION 5. The City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election, showing: (1) the whole number of ballots cast in the City; (2) the names of the persons voted for; (3) for what office each person was voted for; (4) the number of votes given at vote centers to each person; and (5) the total number of votes given to each person.
SECTION 6. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.
SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED this 4th day of December, 2024. __________________________
Mike Munzing
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________ __________________________
Scott C. Smith, City Attorney Lauren Torres, Deputy City Clerk 8
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ALISO VIEJO )
I, LAUREN TORRES, Deputy City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 2024-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 4th day of December, 2024, by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
___________________________
LAUREN TORRES
DEPUTY CITY CLERK
(SEAL)
9
Regular Meeting Minutes
CITY OF ALISO VIEJO
CITY COUNCIL MINUTES
REGULAR MEETING
NOVEMBER 20, 2024, 7:00 pm
Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
CALL TO ORDER: Mayor Munzing called the Regular Meeting of the City Council of the City of Aliso Viejo to order at 7:01 p.m.
ROLL CALL
PRESENT: MAYOR MIKE MUNZING
MAYOR PRO TEM TIFFANY ACKLEY
COUNCILMEMBER ROSS CHUN
COUNCILMEMBER MAX DUNCAN
COUNCILMEMBER RICHARD W. HURT
ABSENT: NONE
STAFF PRESENT: MITZI ORTIZ, CITY MANAGER
SCOTT SMITH, CITY ATTORNEY
LAUREN TORRES, DEPUTY CITY CLERK
ANN EIFERT, FINANCIAL SERVICES DIRECTOR
SHAUN PELLETIER, PUBLIC WORKS DIRECTOR
SO KIM, COMMUNITY DEVELOPMENT DIRECTOR
ROSE RIVERA, SENIOR PLANNER
LIZZY MENDOZA, RECREATION & COMMUNITY SERVICES MANAGER
ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER
CAPT. ALAN VILLANUEVA, CHIEF OF POLICE SERVICES
PLEDGE OF ALLEGIANCE: Patsy Freitag 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:
1. Patsy Freitag requested sign regulation exemptions for church services.
2. Tracy Blum expressed gratitude to AVCA for their use of organic pesticide treatments.
3. Mark Angelus commented on Iglesia Park tennis courts.
4. CONSENT CALENDAR:
Unless otherwise indicated below, the following pertains to all items on the Consent Calendar.
Motion: Councilmember Hurt moved and Councilmember Duncan seconded to approve the recommended actions. Motion carried 5-0.
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 APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the November 6 , 2024 Special Meeting and the November 6, 2024 Regular Meeting.
4.3 ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between October 25, 2024, and November 7, 2024, in the amount of $1,114,142.87.
4.4 ANNUAL MEASURE M2 EXPENDITURE REPORT
Recommended Action: Adopt Resolution No. 2024-30 approving the City’s annual Measure M2 expenditure report for fiscal year ending June 30, 2024.
4.5 AGREEMENT WITH CREATIVE AIR MECHANICAL SERVICES FOR CITY HALL
HVAC IMPROVEMENTS
Recommended Action:
1. Approve Contract Documents for City Hall HVAC Improvements;
2. Award an agreement in the amount of $160,840 to Creative Air Mechanical Services as the lowest responsible bidder for the City Hall HVAC Improvements;
3. Authorize the City Manager to execute an agreement with Creative Air Mechanical Services;
11
Regular Meeting Minutes
4. Authorize City staff to make total compensation to Creative Air Mechanical Services up to $160,840 plus $14,000 (8.7% of the agreement amount) to allow for contingencies, totaling $174,840; and
5. Declare this project categorically exempt from the California Environmental Quality Act (CEQA) process Per Title 14 of the California Code of Regulations, Chapter 3, Article 19, Section 15301 (Class 1: Existing Facilities).
4.6 FOURTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR STC TRAFFIC, INC. FOR ON-CALL TRAFFIC ANALYSIS
Recommended Action: Approve and authorize the City Manager to execute a fourth amendment to the professional services agreement with STC Traffic, Inc. to extend the agreement to June 30, 2026.
5. PUBLIC HEARINGS:
None.
6. DISCUSSION:
6.1 STUDY SESSION FOR THE AVALON ALISO VIEJO MIXED-USE PROJECT City Manager Mitzi Ortiz introduced Senior Planner Rose Rivera, who provided an overview. Applicant Mark Janda (AvalonBay Communities) provided additional information. Staff and the applicant responded to questions regarding the proposed building height, structure setbacks, parking, amenities, potential view impacts, story poles, and retail offerings. Mayor Munzing opened for public comment and the following persons provided comment:
1. Eric Hauber expressed support for the project.
2. Jad Bochai expressed support for the project.
3. Tom Merritt expressed opposition to the project.
4. Jeff Merritt expressed opposition to the project.
5. Tom Moran expressed support for the project.
6. Victoria Hernandez expressed support for the project.
7. Mark Van Bloem expressed opposition to the project.
8. Nancy Larimer expressed support for the project.
9. Yan Gendlin expressed opposition to the project.
10. Dan Burgher expressed support for the project.
11. Hillary Seaborn expressed opposition to the project.
12. Robyn Vettraino expressed support for the project.
13. Adam Wood (Building Industry Association) expressed concerns about the project.
14. Brad Romano expressed support for the project.
15. Todd Kirtland expressed opposition to the project.
12
Regular Meeting Minutes
16. Art Camoia expressed opposition to the project.
17.Carmen Cave expressed concerns about the project.
18.Cindy expressed concerns about the project.
There were no other comments.
Recommended Action: Conduct a public hearing to review the concept plans for a mixed-used project, consider public testimony, and provide feedback to the Applicant.
The City Council requested information on a scaled-down version of the project and requested the erection of story poles. No further action was taken.
7. CITY MANAGER' S REPORT:
City Manager Mitzi Ortiz announced the 7 th Annual All is Bright Holiday Celebration and Tree Lighting Ceremony to be held from 5:00 p.m. to 8:00 p.m. on December 5, 2024, at Aliso Viejo Town Center.
8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:
Councilmember Chun:
Attended OCFA Human Resources Committee Meeting
Attended OCFA Budget and Finance Committee Meeting
Attended the United to End Homelessness Table Talk
Announced Giving Guidance to End Homelessness Discussion and Sock Drive Attended the Covington Retirement Community’s Veterans Day Program Attended Veterans Day Observance at El Toro Memorial Park Attended SCAG Policy Committee meeting
Councilmember Duncan: None
Councilmember Hurt:
Commented on friend’s cancer battle
Encouraged the community to foster friendly relationships with neighbors Mayor Pro Tem Ackley:
Commented on Councilmember Duncan’s presentation during Discussion Item 6.1 Mayor Munzing:
Attended Veterans Day Observance at El Toro Memorial Park Announced the State of the City event
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Regular Meeting Minutes
9. ADJOURNMENT: Mayor Munzing adjourned the meeting at 9:37 p.m. to the regularly scheduled City Council meeting of December 4, 2024.
Respectfully submitted: Approved by:
________________________ ________________________
LAUREN TORRES MIKE MUNZING
DEPUTY CITY CLERK MAYOR
14
Special Meeting Minutes
CITY OF ALISO VIEJO
CITY COUNCIL MINUTES
SPECIAL MEETING
NOVEMBER 21, 2024, 7:00 PM
Soka Performing Arts Center, 1 University Drive
Aliso Viejo, California
CALL TO ORDER: Mayor Munzing called the Special Meeting of the City Council of the City of Aliso Viejo to order at 7:10 p.m.
ROLL CALL:
PRESENT: MAYOR MIKE MUNZING
MAYOR PRO TEM TIFFANY ACKLEY
COUNCILMEMBER MAX DUNCAN
ABSENT: COUNCILMEMBER ROSS CHUN
COUNCILMEMBER RICHARD W. HURT
STAFF PRESENT: MITZI ORTIZ, CITY MANAGER
SCOTT C. SMITH, CITY ATTORNEY
1. SPECIAL PRESENTATIONS:
STATE OF THE CITY PRESENTATION
Julie Wright, Aliso Viejo Chamber of Commerce President, welcomed attendees.
Duane Cave, Moulton Niguel Water District President, provided opening remarks and served as the Master of Ceremonies for the remainder of the meeting.
Renee Bodie, Soka Performing Arts Center General Manager, provided information on the Performing Arts Center.
Kelley Lee, Southern California Edison Government Relations Manager, led the pledge of allegiance.
Carin Rodgers-Bronstein, Soka University Community Relations Associate Director, provided an inspirational message.
Duane Cave introduced attending dignitaries and recognized event sponsors.
Mayor Munzing introduced the State of the City video.
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Special Meeting Minutes
Recommended Action: Receive the Mayor’s State of the City address, as presented by the Aliso Viejo Chamber of Commerce.
No further action was taken.
ADJOURNMENT: Mayor Munzing adjourned the meeting at 7:53 p.m.
Respectfully submitted: Approved by:
________________________ ________________________
LAUREN TORRES MIKE MUNZING
DEPUTY CITY CLERK MAYOR
16 City of Aliso Viejo
AGENDA ITEM
DATE: December 4, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services
SUBJECT: ACCOUNTS PAYABLE
Recommended Action:
Ratify accounts payable checks and electronic funds transfers issued between November 8, 2024, and November 21, 2024, in the amount of $512,690.15.
Fiscal Impact:
Expenditures in the amount of $512,690.15.
Background:
The City issues accounts payable checks on a bi-weekly basis and presents it to City Council for ratification at its next regularly scheduled City Council meeting.
Discussion:
The attached registers containing checks and electronic funds transfers issued between November 8, 2024, and November 21, 2024, for $512,690.15, are 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 reviewed and deemed in accordance with the fiscal year budget by the Director of Financial Services.
Attachment:
1. Accounts Payable Report
17 Accounts Payable
Description (Item)Vendor Name Amount
101 - GENERAL FUND
DEC'24 LIFE INSURANCEUNITED OF OMAHA LIFE INSURANCE CO. 1,489.16 DEC'24 DENTAL - DDCHOICE BUILDER 145.88
DEC'24 VISION - DDCHOICE BUILDER 24.19
DEC'24 DENTAL - RCCHOICE BUILDER 145.88
DEC'24 DENTAL INSURANCECHOICE BUILDER 1,783.75
DEC'24 DENTAL - RHCHOICE BUILDER 96.90
DEC'24 VISION - RCCHOICE BUILDER 24.19
DEC'24 VISION - RHCHOICE BUILDER 15.03
DEC'24 VISION INSURANCECHOICE BUILDER 276.88
REF001169737 - 10/25 IN-CONCEPT REVIEW_95 ARGONAUTCALIFORNIA NEWSPAPERS PARTNERSHIP 289.34 REF001169827 - 10/25 CUP 27141 ALISO CREEK (OCHCA)CALIFORNIA NEWSPAPERS PARTNERSHIP 310.00 DEC'24 CALPERS HEALTH PREMIUMCALPERS HEALTH 21,744.64
DEC'24 HEALTH PREMIUM - RCCALPERS HEALTH 2,195.87
DEC'24 HEALTH PREMIUM PEMHCA MINIMUM - RCCALPERS HEALTH 157.00 OCT'24 BBK CELLULARBEST BEST & KRIEGER 195.00
OCT'24 BBK CEQA & ENVIRONMENTAL (SPECIALIZED)BEST BEST & KRIEGER 10,757.50 OCT'24 BBK CEQA & ENVIRONMENTAL (SPECIALIZED)BEST BEST & KRIEGER 325.00 OCT'24 BBK APPLICANT INITIATED REIMB (AIR)-COMMONSBEST BEST & KRIEGER 35,343.00 OCT'24 BBK GENERAL PLAN TOWN CTR SPECIFIC PLANBEST BEST & KRIEGER 1,156.00 SEP'24 TRAFFIC CONSULTANT SERVICESSTC TRAFFIC, INC 3,520.00 CD-2024-00057_45 ENTERPRISE_DESTINATION WEST BLDRSDESTINATION WEST BUILDERS, LLC 1,000.00 BLDC-2023-00082_130 VANTIS DR #110_V-CORPV-CORP CONTRACTING SERVICES INC 1,034.69 ELEC-2024-00022_130 VANTIS DR #110_V-CORPV-CORP CONTRACTING SERVICES INC 216.94 PLMC-2024-00007_130 VANTIS DR #110_V-CORPV-CORP CONTRACTING SERVICES INC 43.03 MECC-2024-00012_130 VANTIS DR #110_V-CORPV-CORP CONTRACTING SERVICES INC 483.06 BLDC-2023-00082_130 VANTIS DR #110_V-CORPV-CORP CONTRACTING SERVICES INC 126.42 SAPP-2023-00013_21 ELDERBERRY_SUNRUNSUNRUN INSTALLATION SERVICES 153.50 SAPP-2023-00013_21 ELDERBERRY_SUNRUNSUNRUN INSTALLATION SERVICES 43.03 83,095.88
CITY COUNCIL
DL 10/16 WESTIN - LOCC CONF HOTEL RCUS BANK PURCHASING CARD PROGRAM 555.41 CITY COUNCIL TOTAL: 555.41
CITY MANAGER
DEC'24 PG - HEALTH PREMIUMCALPERS HEALTH 157.00
DL 10/10 CITYOFBREA-OCCMA GUEST ATTENDANCE-S.KIMUS BANK PURCHASING CARD PROGRAM 70.00 DL 10/10 CSUF-OCPROGRESS REPORTS-CC COPIESX4US BANK PURCHASING CARD PROGRAM 116.22 CITY MANAGER TOTAL: 343.22
ECONOMIC DEVELOPMENT
ASSESSMENT OF FAIR HOUSINGCITY OF SANTA ANA 2,651.09
ECONOMIC DEVELOPMENT TOTAL: 2,651.09
HUMAN RESOURCES
DL 9/30-10/03 T&E REIMBURSEMENT-NEOGOV CONFERENCEDANA LEUTHAUSER 447.26 PC 10/27-10/30/24 T&E REIMB - PERS ANNUAL ED FORUMPATRICIA CANTONWINE 91.39 DL 9/30 TFK - NEOGOV CONFERENCE-9.30 DINNERUS BANK PURCHASING CARD PROGRAM 33.36 DL 10/04 HARRAHS-NEOGOVCONFERENCE-HOTELUS BANK PURCHASING CARD PROGRAM 505.59 DL 10/02 RPMVEGAS - NEOGOV CONFERENCE-10.1 DINNERUS BANK PURCHASING CARD PROGRAM 49.42 DEC'24 EAP PROGRAMHEALTH AND HUMAN RESOURCE CENTER INC 102.90 HUMAN RESOURCES TOTAL: 1,229.92
CITY CLERK
REF001169501 - 10/2&9 NIB AQTC CTR POOL DECK REHABCALIFORNIA NEWSPAPERS PARTNERSHIP 1,808.54 REF0011696138 - 10/10 NOTICE OF NOMINEES_SPANISHCALIFORNIA NEWSPAPERS PARTNERSHIP 169.77 REF0011696137 - 10/10 NOTICE OF NOMINEES_ENGLISHCALIFORNIA NEWSPAPERS PARTNERSHIP 162.39 MO 10/9-11 CJPIA RISK MGMT FORUM IW REIMB-MILEAGEMITZI ORTIZ 120.47 CITY CLERK TOTAL: 2,261.17
18 Description (Item)Vendor Name Amount
CITY ATTORNEY
OCT'24 BBK GENERAL RETAINER LEGAL SERVICESBEST BEST & KRIEGER 24,150.00 OCT'24 BBK LABOR & EMPLOYMENT (SPECIALIZED)BEST BEST & KRIEGER 701.30 OCT'24 BBK GENERAL LITIGATIONBEST BEST & KRIEGER 520.80 OCT'24 BBK GENERAL PLAN TOWN CTR SPECIFIC PLANBEST BEST & KRIEGER 231.20 CITY ATTORNEY TOTAL: 25,603.30
FINANCE
DEC'24 ADMIN FEECHOICE BUILDER 30.00
DEC'24 CALPERS ADMIN FEECALPERS HEALTH 56.86
DEC'24 CALPERS ADMIN FEECALPERS HEALTH 5.65
FY24-25 SB90 CLAIMS SERVICESMGT IMPACT SOLUTIONS, LLC 1,450.00 FINANCE TOTAL: 1,542.51
INFORMATION TECHNOLOGY
NOV'24 ACCT#0202 CH CABLE TVCOX COMMUNICATIONS, INC 184.96 NOV'24 ACCT#8802 CH INTERNET - FIBER (600MB)COX COMMUNICATIONS, INC 1,500.00 NOV'24 ACCT#9302 LAB INTERNETCOX COMMUNICATIONS, INC 85.39 NOV'24 NETWORK SUPPORT & SECURITYNEXUS IS INC 416.67
OCT'24 ENERGOV ELM AND ASSET MGT SERVICESGO LIVE TECHNOLOGY INC 360.00 AUG'24 ENERGOV & GISJOSE RUEL FABELLA DIRA 1,400.00
SEP'24 ENERGOV & GISJOSE RUEL FABELLA DIRA 1,500.00
OCT'24 ENERGOV & GISJOSE RUEL FABELLA DIRA 1,500.00
10/31/24-10/30/25 CISCO MERAKI ENT. ANNUAL LICENSESHI INTERNATIONAL CORP 10,951.85 IA 9/28 EOC YOUTUBE SUBSCRUS BANK PURCHASING CARD PROGRAM 72.99 IA 10/08 AMAZON - DURACEL AA BATTERIESUS BANK PURCHASING CARD PROGRAM 26.12 IA 10/07 AMAZON - VIVO ADJUSTABLE KEYBOARDUS BANK PURCHASING CARD PROGRAM 107.74 IA 10/16 WAITWHILE SUBSCRIPTIONUS BANK PURCHASING CARD PROGRAM 196.00 IA 9/25 PORTOLLA HOTEL AND SPA - MISAC CONFUS BANK PURCHASING CARD PROGRAM 957.96 IA 10/09 THE HOME DEPOT-TOOLS & CLEANING SUPPLIESUS BANK PURCHASING CARD PROGRAM 444.22 10/23/24-10/22/25 O365 SUPPORTTANGENT COMPUTERS INC 1,500.00 10/23/24-11/22/24 CH O365 LICENSING AND SUPPORTTANGENT COMPUTERS INC 2,234.44 OCT'24 NCE ENT MOBILITY + SECURITY OFFICE 365TANGENT COMPUTERS INC 1,007.00 NOV'24 OFFSITE BACKUP STORAGELUNAVI, INC 604.25
INFORMATION TECHNOLOGY TOTAL: 25,049.59
NON-DEPARTMENTAL
NOV'24 - RECORDS OFF SITE STORAGECERTIFIED RECORDS MANAGEMENT 469.23 10/24 CH BOTTLED WATER SERVICEDS SERVICES OF AMERICA, INC 105.89 BUS CARDS - I AZIZIPROMOTEU.COM INC 63.86
BUS CARDS - M. DELGADILLOIPROMOTEU.COM INC 64.11
NOV'24 RICOH 2504 BACK OFFICE PRINTS (4542)RICOH USA 65.52 NOV'24 CH & STE 200 FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 192.43 AE 10/02 HARBOR STATION HOA DUES - 89 PLAYA-OCT'24US BANK PURCHASING CARD PROGRAM 191.01 DL10/04 OFFICE SIGN CO.-NAMEPLATES&BADGE-M.ORTIZUS BANK PURCHASING CARD PROGRAM 60.56 DL 10/08 DOLLARTREE-OCT'24 STAFF ACTIVITY SUPPLIESUS BANK PURCHASING CARD PROGRAM 6.83 DL 9/26 DOLLARTREE-OCT'24 STAFF ACTIVITY SUPPLIESUS BANK PURCHASING CARD PROGRAM 36.57 DL 10/08 SMART&FINAL-OCT'24STAFF ACTIVITY SUPPLIESUS BANK PURCHASING CARD PROGRAM 41.60 DL 10/08 TARGET-OCT'24 STAFF ACTIVITY SUPPLIESUS BANK PURCHASING CARD PROGRAM 34.55 NOV'24 BANNERS INSTALLATION - VETERANS DAYVIGICABI INC 1,449.00 NON-DEPARTMENTAL TOTAL: 2,781.16
C. S. ADMINISTRATION
DEC'24 DP - HEALTH PREMIUMCALPERS HEALTH 157.00
DEC'24 HW - HEALTH PREMIUMCALPERS HEALTH 157.00
DEP FINAL - 2024 AV HOLIDAY TREE PLATFORMSPECIAL EVENT CONTRACTORS LLC 5,676.36 FINAL PMT - 2024 TREE LIGHTING JOLLY JUMPS RENTALSM&J PAUL ENTERPRISES INC 4,997.50 SNOW QUEEN AND PRINCESS CHARACTERS - TREE LIGHTINGKIMBERLY DOWNEY ESMOND 702.00 2024 AV HOLIDAY TREE FULLY DECORATED-PMT#2 INSTALLJONES FOREST PRODUCTS LLC 14,378.50 12/05/24 TREE LTG STANCHION-TABLES-FENCE-CHAIRSROMAN CHAVEZ 1,433.05 C. S. ADMINISTRATION TOTAL: 27,501.41
IGLESIA PARK
OCT'24 PVM IGLESIA PARK MAINTENANCEPV MAINTENANCE INC 5,035.47 OCT'24 ACCT#7997 IGLESIA PARK ELECTRICITYSO CAL EDISON 270.62 IGLESIA PARK TOTAL: 5,306.09
IGLESIA BUILDING
OCT'24 PVM IGLESIA PARK CC MAINTENANCEPV MAINTENANCE INC 632.00 19 Description (Item)Vendor Name Amount
JUN'24 PEST CONTROL SERVICES - IGLESIA BLDGZAPP PEST MANAGEMENT 75.00 NOV'24 IGLESIA ACCESS CONTROLSONITROL ORANGE COUNTY LLC 109.39 JUL'24 PEST CONTROL SERVICES - IGLESIA BLDGZAPP PEST MANAGEMENT 75.00 AUG'24 PEST CONTROL SERVICES - IGLESIA BLDGZAPP PEST MANAGEMENT 75.00 SEP'24 PEST CONTROL SERVICES - IGLESIA BLDGZAPP PEST MANAGEMENT 75.00 OCT'24 ACCT#7997 IGLESIA BLDG ELECTRICITYSO CAL EDISON 1,292.94 IGLESIA BUILDING TOTAL: 2,334.33
IGLESIA PARK COMMUNITY CENTER
OCT'24 PVM IGLESIA PARK CC-STAFF PARKING SIGNSPV MAINTENANCE INC 1,541.90 AUG'24 ELEMENTARY & TEEN KEYSTONE PROGRAMBOYS & GIRLS CLUB OF CAPISTRANO VALLEY 25,000.00 SEP'24 ELEMENTARY & TEEN KEYSTONE PROGRAMBOYS & GIRLS CLUB OF CAPISTRANO VALLEY 15,000.00 IGLESIA PARK COMMUNITY CENTER TOTAL: 41,541.90
PLANNING
DEC'24 MF - HEALTH PREMIUMCALPERS HEALTH 157.00
OCT'24 SAFETY ELEMENT UPDATEATLAS PLANNING SOLUTIONS 6,210.00 OCT'24 AFFORD. HOUSING CONSULTANT SERVICESREBECCA J CAHA 1,500.00 EXTRA EQUIPMENT - DESK CONVERSIONSTALIMAR SYSTEMS INC 358.65 PLANNING TOTAL: 8,225.65
BUILDING
EXTRA EQUIPMENT - DESK CONVERSIONSTALIMAR SYSTEMS INC 318.89 OCT'24 CAA CONTRACT SERVICES - BUILDING SERVICESCHARLES ABBOTT ASSOC INC 48,596.89 OCT'24 CAA CONTRACT SERVICES - BUILDINGCHARLES ABBOTT ASSOC INC 1,620.00 BUILDING TOTAL: 50,535.78
CODE ENFORCEMENT
OCT'24 CAA CONTRACT SERVICES - CODE ENFORCEMENTCHARLES ABBOTT ASSOC INC 8,415.00 CODE ENFORCEMENT TOTAL: 8,415.00
ENGINEERING (GENERAL)
NOV'24 PVM WAREHOUSE LEASEPV MAINTENANCE INC 1,035.00
NOV'24 SOUTH OCC ENG MEETING REIMB - QL SPQUANG LE 55.65 NOV'24 MURCAL IOT SMARTCOMAND MONITORING SERVICEMURPHY SWITCH OF CA 450.00 OCT'24 LANDSCAPE INSPECTION SERVICESRICHARD FISHER ASSOCIATES 2,350.50 ENGINEERING (GENERAL) TOTAL: 3,891.15
STREET MAINTENANCE
OCT'24 PVM STREET MAINTENANCE MOE TAXPV MAINTENANCE INC 26,118.87 STREET MAINTENANCE TOTAL: 26,118.87
LAW ENFORCEMENT-OTHER
10/13-10/26/24 460 HRS - CROSSING GUARD SERVICESALL CITY MANAGEMENT SERVICES 15,419.20 10/27-11/09/24 414 HRS - CROSSING GUARD SERVICESALL CITY MANAGEMENT SERVICES 13,877.28 LAW ENFORCEMENT-OTHER TOTAL: 29,296.48
EOC
OCT'24 EOP UPDATEATLAS PLANNING SOLUTIONS 6,375.00
DL 10/14 LIFE STORAGE - OFFSITE UNIT #A1554US BANK PURCHASING CARD PROGRAM 290.00 EOC TOTAL: 6,665.00
GENERAL FUND TOTAL: 354,944.91
102 - GEN. FD-CITY HALL
NON-DEPARTMENTAL
JUN'24 PEST CONTROL SERVICES CHZAPP PEST MANAGEMENT 75.00 NOV'24 CH ACCESS CONTROLSONITROL ORANGE COUNTY LLC 609.40 NOV'24 CH INTRUSION DETECTIONSONITROL ORANGE COUNTY LLC 383.54 JUL'24 PEST CONTROL SERVICES CHZAPP PEST MANAGEMENT 75.00 AUG'24 PEST CONTROL SERVICES CHZAPP PEST MANAGEMENT 75.00 SEP'24 PEST CONTROL SERVICES CHZAPP PEST MANAGEMENT 75.00 NOV'24 LOCKSMITH SERVICE-DESK PUSH LOCK KEY CH/MOENTRY CONTROL, INC 45.00 NOV'24 CH ELEVATOR MAINTENANCETHURSTON ELEVATOR CONCEPTS INC 137.00 NON-DEPARTMENTAL TOTAL: 1,474.94
GEN. FD-CITY HALL TOTAL: 1,474.94
103 - GF-AV RECREATION SERVICES
REFUND FACILITY RENTAL_MARCELLA STUPPYMARCELLA STUPPY 1,260.00 20 Description (Item)Vendor Name Amount
REFUND FEE FACILITY RENTAL_MARCELLA STUPPYMARCELLA STUPPY (50.00) 1,210.00
RECREATION SERVICES
OCT'24 CREDIT CARD SERVICE FEES - POSCSG FORTE PAYMENTS, INC 1,073.86 OCT'24 CREDIT CARD SERVICE FEES - WEBCSG FORTE PAYMENTS, INC 997.96 OCT'24 PVM AVR MAINTENANCEPV MAINTENANCE INC 603.10
6/24 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 27.22 FALL2024-FAL307 YOGA - 2 PARTICIPANTSRUIHONG LI 100.80
FALL2024-FAL80 HULA - 5 PARTICIPANTSANGIE DOROTHY ABAD 216.00 FALL2024-FAL061 SPORTS - 3 PARTICIPANTSEPC PLAYTIME 300.60 FALL2024-FAL079 POETRY - 3 PARTICIPANTSKIMBERLY KRANTZ 99.00 FALL2024-FAL082 COOKING - 8 PARTICIPANTSLAURELINDA HAUKSSON 600.00 FALL2024-FAL601 DANCE - 4 PARTICIPANTSSWAY BALLROOM INC 192.00 FALL 2024 - FAL123 PIANO - 10 PARTICIPANTSSOPHI ALBERT 840.00 FALL2024-FAL131 GUITAR/UKULELE-5 PARTICIPANTSRONALD GORMAN 330.00 FALL2024-FAL013 MUSIC-4 PARTICIPANTSFIT FIRST LLC 240.00 FALL2024-FA167/FA163/FAL159/FAL071 TENNIS-24 PARTJOHN DAVID ALLEN JR 816.00 10/21 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 120.96 10/26 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 131.54 10/29 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 495.94 NOV'24 AVR - CASH COURIER SERVICEGARDAWORLD 493.79
FALL2024-FAL077 BIONERDS - 10 PARTICIPANTSBIONERDS 288.00 FALL2024-FAL222 PICKLEBALL-6 PARTICIPANTSL & O ALISO VIEJO, LLC 294.00 FALL2024-FAL219 TAI CHI - 21 PARTICIPANTSRONALD S. COHAN 693.00 FALL2024-FAL099 WATERCOLOR-11 PARTICIPANTSERNA VAN DYK 231.00 FALL2024-FAL023 STORYTIME - 5 PARTICIPANTSJENNIFER BALES 75.00 FALL2024-FAL226 PICKLEBALL-2 PARTICIPANTSL & O ALISO VIEJO, LLC 98.00 OCT'24 AMAZON - HALLOWEEN SKELETON DECOR AVRAMAZON CAPITAL SERVICES INC 50.51 OCT'24 AMAZON - ZIP TIES AVRAMAZON CAPITAL SERVICES INC 8.24 OCT'24 AMAZON - DJI IPHONE STABILIZER AVRAMAZON CAPITAL SERVICES INC 74.18 OCT'24 AMAZON - INOVA HALLOWEEN GHOSTS DECOR AVRAMAZON CAPITAL SERVICES INC 39.76 OCT'24 AMAZON - LOCKPORT BLACK GAFFERS TAPE AVRAMAZON CAPITAL SERVICES INC 38.57 OCT'24 AMAZON-LIGHTED BLK HALLOWEEN TREE DECOR AVRAMAZON CAPITAL SERVICES INC 53.74 OCT'24 AMAZON-FLASH 4-PK FRUITWOOD FOLDING CHAIRSAMAZON CAPITAL SERVICES INC 201.79 JUN'24 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 95.00 NOV'24 AVR ACCESS CONTROLSONITROL ORANGE COUNTY LLC 535.57 NOV'24 AVCENTER AND AQC ACCESS CONTROLSONITROL ORANGE COUNTY LLC 125.20 JUL'24 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 95.00 AUG'24 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 95.00 SEP'24 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 95.00 AVR FIRE EXT WAS DEPLETED/USED - SERVICE CALLORANGE COUNTY FIRE PROTECTION 74.00 OCT'24 AVR EVENT SECURITY SERVICESLYONS SECURITY SERVICE IN 4,803.75 OCT'24 GCF SECURITY SERVICESLYONS SECURITY SERVICE IN 929.25 NOV'24 AVR FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 110.12 FALL2024-FAL201/FAL202 DANCE-2 PARTICIPANTSROXANNE BELL 224.00 FALL2024-FAL901/FAL903 MUSIC - 5 PARTICIPANTSMUSIC MOVES ACADEMY INC 480.00 10/23/24-11/22/24 AVR O365 LICENSING AND SUPPORTTANGENT COMPUTERS INC 394.31 MAY'24-MAY'25 BLINK EV CHRG NETWORK FEE - AVRBLINK CHARGING CO 1,200.00 OCT'24 RENEWABLE FARMSAARON FLORA 27,331.19
RECREATION SERVICES TOTAL: 46,411.95
GF-AV RECREATION SERVICES TOTAL: 47,621.95
203 - GAS TAX
TRAFFIC ENGINEERING
OCT'24 TRAFFIC SIGNAL MONITORINGHARTZOG & CRABILL INC 4,004.12 TRAFFIC ENGINEERING TOTAL: 4,004.12
STREET MAINTENANCE
OCT'24 PVM STREET MAINTENANCE GAS TAXPV MAINTENANCE INC 31,923.07 OCT'24 PVM STREET MAINTENANCE - SINKHOLES REPAIREDPV MAINTENANCE INC 11,228.00 OCT'24 PVM STREET MAINTENANCE- AC REPAIR SINKHOLESPV MAINTENANCE INC 17,500.00 STREET MAINTENANCE TOTAL: 60,651.07
GAS TAX TOTAL: 64,655.19
21 Description (Item)Vendor Name Amount
215 - PUBLIC SAFETY GRANTS
LAW ENFORCEMENT-OTHER
OCT-DEC'24 800 MHZ COST ALLOCATIONCOUNTY OF ORANGE 7,951.64 LAW ENFORCEMENT-OTHER TOTAL: 7,951.64
PUBLIC SAFETY GRANTS TOTAL: 7,951.64
251 - FEDERAL GRANTS
GEN-FEDERAL GRANT
JUL-SEP'24 CDBG FAIR HOUSING SERVICESFAIR HOUSING FOUNDATION 887.18 Q1 FY24-25 CDBG PROF SERVICES-TRANSITIONAL HOUSINGFAMILY ASSISTANCE MINISTRIES 4,401.54 JUL-SEP'24 CDBG HUNGER & HOMELESSNESS PREVENTIONSOUTH COUNTY OUTREACH 1,081.75 JUL-SEP'24 CDBG MEALS ON WHEELSAGE WELL SENIOR SERVICES INC 1,840.00 GEN-FEDERAL GRANT TOTAL: 8,210.47
FEDERAL GRANTS TOTAL: 8,210.47
261 - CITY FAC.-AQUATIC CENTER
NOV'24 - AQC RETENTION FEESPREMIER AQUATIC SERVICES (1,208.30) -1,208.30
GEN-AQUATIC CENTER
NOV'24 ACCT#6701 AQC INTERNETCOX COMMUNICATIONS, INC 510.31 NOV'24 AQC - CASH COURIER SERVICEGARDAWORLD 548.85
JUN'24 PEST CONTROL SERVICES - AQCZAPP PEST MANAGEMENT 75.00 JUL'24 PEST CONTROL SERVICES AQCZAPP PEST MANAGEMENT 75.00 AUG'24 PEST CONTROL SERVICES AQCZAPP PEST MANAGEMENT 75.00 SEP'24 PEST CONTROL SERVICES AQCZAPP PEST MANAGEMENT 75.00 NOV'24 - AQC MANAGEMENT FEESPREMIER AQUATIC SERVICES 12,083.00 OCT '24 REIMB AQC 11/01 JACKRABBIT SYSTEMPREMIER AQUATIC SERVICES 315.00 OCT '24 REIMB AQC 10/25 AMAZON - PARENT WALL EZ UPPREMIER AQUATIC SERVICES 19.38 OCT '24 REIMB AQC 10/28 AMAZON - FOAM LIFE RINGPREMIER AQUATIC SERVICES 88.23 OCT '24 REIMB AQC 10/28 AMAZON-ROPE FOR LIFE RINGPREMIER AQUATIC SERVICES 10.76 OCT '24 REIMB AQC 10/22 AMAZON - FACILITY DECORPREMIER AQUATIC SERVICES 68.90 OCT '24 REIMB AQC 10/24 TRADER JOES-HALLOWEEN SUPPPREMIER AQUATIC SERVICES 28.32 OCT '24 REIMB AQC 10/25 WALMART - EVENT SUPPLIESPREMIER AQUATIC SERVICES 28.52 OCT '24 REIMB AQC 10/31 GOOGLE - AD MARKETINGPREMIER AQUATIC SERVICES 500.00 OCT '24 REIMB AQC 10/19 RALPHS - MARKETINGPREMIER AQUATIC SERVICES 27.96 OCT '24 REIMB AQC 10/01-10/31 INDEED - ADPREMIER AQUATIC SERVICES 400.00 OCT '24 REIMB AQC 10/31 FACEBOOK - AD MARKETINGPREMIER AQUATIC SERVICES 527.12 GEN-AQUATIC CENTER TOTAL: 15,456.35
CITY FAC.-AQUATIC CENTER TOTAL: 14,248.05
311 - STREET IMPROVEMENTS
STREETS & HIGHWAYS
OCT'24 ALISO VIEJO PARKWAY REHAB DESIGNENGINEERING RESOURCES OF SOUTHERN CALIFORNIA 11,055.00 STREETS & HIGHWAYS TOTAL: 11,055.00
STREET IMPROVEMENTS TOTAL: 11,055.00
332 - STORM WATER
DRAINAGE IMPROVEMENTS
OCT'24 PVM WOOD CANYON WETLANDS MAINTENANCEPV MAINTENANCE INC 2,528.00 DRAINAGE IMPROVEMENTS TOTAL: 2,528.00
STORM WATER TOTAL: 2,528.00
GRAND TOTAL: 512,690.15
Fund Summary
Payment AmountFund Expense Amount
101 - GENERAL FUND 354,944.91354,944.91
102 - GEN. FD-CITY HALL 1,474.941,474.94
103 - GF-AV RECREATION SERVICES 47,621.9547,621.95
22 Fund Summary
Payment AmountFund Expense Amount
203 - GAS TAX 64,655.1964,655.19
215 - PUBLIC SAFETY GRANTS 7,951.647,951.64
251 - FEDERAL GRANTS 8,210.478,210.47
261 - CITY FAC.-AQUATIC CENTER 14,248.0514,248.05
311 - STREET IMPROVEMENTS 11,055.0011,055.00
332 - STORM WATER 2,528.002,528.00
512,690.15Grand Total: 512,690.15
23 Accounts Payable Payable Dates: 11/08/2024 - 11/21/2024 11/20/2024 4:23:23 PM Page 7 of 9
Report Summary
Fund Summary
Payment AmountFund
101 - GENERAL FUND 354,944.91
102 - GEN. FD-CITY HALL 1,474.94
103 - GF-AV RECREATION SERVICES 47,621.95
203 - GAS TAX 64,655.19
215 - PUBLIC SAFETY GRANTS 7,951.64
251 - FEDERAL GRANTS 8,210.47
261 - CITY FAC.-AQUATIC CENTER 14,248.05
311 - STREET IMPROVEMENTS 11,055.00
332 - STORM WATER 2,528.00
512,690.15Grand Total:
Account Summary
Payment AmountAccount Number Account Name
101-1203-000 ACCOUNTS RECEIVABLE 2,365.94
101-2505-000 DENTAL INSURANCE PA… 2,026.53
101-2506-000 MEDICAL INSURANCE P… 21,901.64
101-2507-000 LIFE INSURANCE PAYABLE 1,489.16
101-2508-000 VISION INSURANCE PAY… 316.10
101-2602-000 PLANNING DEPOSIT 51,895.84
101-2606-000 C & D DEPOSIT 1,000.00
101-32010 BUILDING PERMITS 1,188.19
101-32020 ELECTRICAL PERMITS 259.97
101-32030 PLUMBING PERMITS 43.03
101-32040 MECHANICAL PERMITS 483.06
101-36350 GENERAL PLAN 126.42
101-4-1101-4520-000 MTGS/CONF./TRNG & D… 555.41
101-4-1501-4206-000 MEDICAL INSURANCE 157.00
101-4-1501-4520-000 MTGS/CONF./TRNG & D… 70.00
101-4-1501-4611-000 PUBLICATIONS/REF MAT… 116.22
101-4-1502-4302-000 ECONOMIC DEVELOPM… 2,651.09
101-4-1503-4309-000 OTHER CONTRACTUAL S… 102.90
101-4-1503-4520-000 MTGS/CONF./TRNG & D… 1,127.02
101-4-1601-4303-000 LEGAL NOTICES 1,808.54
101-4-1601-4520-000 MTGS/CONF./TRNG & D… 120.47
101-4-1601-4525-000 ELECTION 332.16
101-4-2101-4304-000 LEGAL SERVICES 24,150.00
101-4-2101-4532-000 SPECIAL PROJECTS 701.30
101-4-2101-4731-000 GENERAL PLAN 231.20
101-4-2101-4735-000 LITIGATION 520.80
101-4-2501-4301-000 PROFESSIONAL SERVICES 1,450.00
101-4-2501-4309-000 OTHER CONTRACTUAL S… 92.51
101-4-3101-4301-000 PROFESSIONAL SERVICES 5,176.67
101-4-3101-4305-000 TECHNOLOGY SERVICES 1,843.34
101-4-3101-4481-000 COMPUTER EXPENSE 16,627.40
101-4-3101-4520-000 MTGS/CONF./TRNG & D… 957.96
101-4-3101-4601-000 SUPPLIES 444.22
101-4-3501-4431-000 BUILDING & GROUND M… 191.01
101-4-3501-4471-000 RENT 469.23
101-4-3501-4513-000 PRINTING 193.49
101-4-3501-4553-000 COMMUNITY BRANDING 1,449.00
101-4-3501-4601-000 SUPPLIES 358.88
101-4-3501-4612-000 OPERATING SUPPLIES 119.55
101-4-4101-4206-000 MEDICAL INSURANCE 314.00
101-4-4101-4527-000 REC-CITY SPECIAL EVENTS 27,187.41
101-4-4102-4411-000 UTILITIES 270.62
101-4-4102-4431-000 BUILDING & GROUND M… 5,035.47
101-4-4103-4411-000 UTILITIES 1,292.94
24 Accounts Payable Payable Dates: 11/08/2024 - 11/21/2024 11/20/2024 4:23:23 PM Page 8 of 9
Account Summary
Payment AmountAccount Number Account Name
101-4-4103-4431-000 BUILDING & GROUND M… 1,041.39
101-4-4104-4529-000 REC-YOUTH PROGRAMS 41,541.90
101-4-4401-4206-000 MEDICAL INSURANCE 157.00
101-4-4401-4309-000 OTHER CONTRACTUAL S… 1,500.00
101-4-4401-4601-000 SUPPLIES 358.65
101-4-4401-4731-000 GENERAL PLAN 6,210.00
101-4-4402-4601-000 SUPPLIES 318.89
101-4-4402-4751-000 C.S-BUILDING 50,216.89
101-4-4403-4761-000 C.S-CODE ENFORCEMENT 8,415.00
101-4-4501-4471-000 RENT 1,035.00
101-4-4501-4520-000 MTGS/CONF/TRNG & D… 55.65
101-4-4501-4701-000 NPDES 450.00
101-4-4501-4741-000 C.S-CITY ENGINEERING 2,350.50
101-4-4503-4771-000 C.S-STREET MAINTENAN… 26,118.87
101-4-5102-4721-000 C.S-CROSSING GUARDS 29,296.48
101-4-5401-4301-000 PROFESSIONAL SERVICES 6,375.00
101-4-5401-4471-000 RENT 290.00
102-4-3501-4431-000 BUILDING & GROUND M… 1,474.94
103-34130 FACILITY RENTAL 1,260.00
103-34169 REFUNDS -50.00
103-4-4105-4305-000 TECHNOLOGY SERVICES 1,055.08
103-4-4105-4309-000 OTHER CONTRACTUAL S… 6,117.40
103-4-4105-4431-000 BUILDING & GROUND M… 7,060.85
103-4-4105-4451-000 FARM OPERATING EXPE… 28,260.44
103-4-4105-4561-000 TAXES/FEES/PERMITS 2,565.61
103-4-4105-4601-000 SUPPLIES 375.12
103-4-4105-4612-000 OPERATING SUPPLIES 775.66
103-4-4105-4620-000 MINOR EQUIPMENT 201.79
203-4-4502-4301-000 PROFESSIONAL SERVICES 4,004.12
203-4-4503-4771-000 C.S-STREET MAINTENAN… 60,651.07
215-4-5102-4803-000 PUBLIC SAFETY EQUIPM… 7,951.64
251-4-6151-4309-000 OTHER CONTRACTUAL S… 8,210.47
261-2103-000 RETENTIONS PAYABLE -1,208.30
261-4-6161-7402-000 COMPUTER EXPENSE 315.00
261-4-6161-7411-000 UTILITIES 510.31
261-4-6161-7421-000 BUILDING & GROUND M… 300.00
261-4-6161-7432-000 MINOR EQUIPMENT 19.38
261-4-6161-7433-000 OPERATING SUPPLIES 224.73
261-4-6161-7441-000 MARKETING 1,455.08
261-4-6161-7445-000 FEES & PERMITS 548.85
261-4-6161-7451-000 MANAGEMENT FEES 12,083.00
311-4-8301-5501-000 DESIGN 11,055.00
332-4-8601-5911-000 REHABILITATION 2,528.00
Grand Total: 512,690.15
Project Account Summary
Payment AmountProject Account Key
**None** 426,352.09
0305911 2,528.00
1002FALL 6,117.40
10034301 6,375.00
1385501 11,055.00
9264520 555.41
9934527 7,811.41
SDP-2022-0004 50,776.50
SDP-2024-00001 289.34
USE-2024-00003 195.00
USE-2024-00009 635.00
25 Accounts Payable Payable Dates: 11/08/2024 - 11/21/2024 11/20/2024 4:23:23 PM Page 9 of 9
Project Account Summary
Payment AmountProject Account Key
USE-2024-00009
Grand Total: 512,690.15
26 City of Aliso Viejo
AGENDA ITEM
DATE: December 4, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services/City Treasurer SUBJECT: TREASURER’S STATEMENT – OCTOBER 2024
Recommended Action:
Receive and file the October 2024 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. 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, US Treasuries, US Federal Agencies, Corporate Bonds, and Local Agency Investment Fund (LAIF). All funds invested with LAIF are available for withdrawal within 24 hours.
The Treasurer’s Statement provides information regarding the City’s investment portfolio and activity during the reporting month. The City’s investment portfolio is in compliance with all government codes as well as the City’s investment policy. Interest is credited to the City’s bank account monthly and allocated among the City’s funds. The current portfolio provides sufficient cash flow liquidity to meet the upcoming operating expenses and spending requirements for the next 6 months.
Attachment:
1. October 2024 Treasurer’s Statement
27 TREASURER'S MONTHLY CASH STATEMENT
BEGINNING TRANSFERS ENDING
BALANCE RECEIPTS DISBURSEMENTS IN (OUT) BALANCE
GENERAL FUND 1,105,578.93$ 3,509,537.35$ 2,233,848.30$ - $ 2,381,267.98$ TCRF 77,955.16 $ 77,955.16
GAS TAX FUND 1,083,336.39$ 142,741.08 132,211.26 1,093,866.21 MEASURE M 2,108,925.82 $ 5,584.00 2,103,341.82 SB1-RMRA 1,300,997.15 $ 118,425.61 1,419,422.76 PUBLIC SAFETY GRANTS 278,082.64$ 120,640.80 9,156.27 389,567.17 (1) AIR QUALITY IMPRVMNT FD 1,534,399.73$ 1,534,399.73 INTEGRATED WASTE MGMT FD 212,900.39$ 212,900.39 OTHER GRANTS 44,085.33 $ 44,085.33
TECHNOLOGY GRANT 389,726.43$ 6,858.44 382,867.99 DEVELOPMENT IMPACT 1,377,777.33$ 1,377,777.33
FEDERAL GRANTS (16,223.66)$ 454.80 8,500.00 (24,268.86) CITY FACILITY - AV CTR 179,758.92$ 179,758.92 CITY FACILITY - AQUATIC CTR 20,852.97$ 56,177.22 109,887.09 (32,856.90) STREET IMPROVEMENTS -$ 2,300.00 (2,300.00) (2) CAPITAL IMPROVEMENTS -$ - (2) STORM WATER - $ - (2) COP CAPITAL - $ - (2) COP (1,550.00) $ (1,550.00)
AV RANCH FOUNDATION 100.00$ 100.00
CFD 2005-01 - $ 2,309.04 (2,309.04) COMMUNITY TRUST 5,562.68$ 5,562.68
TOTALS 9,702,266.21 $ 3,947,976.86$ 2,510,654.40$ - $ 11,139,588.67$ SUMMARY OF CASH:
DEMAND DEPOSITS: GENERAL ACCOUNT 1,208,547.67$
INVESTMENTS: LOCAL AGENCY INVESTMENT FD 5,742,981.28$
MONEY MARKET/SWEEP ACCOUNT 4,188,059.72$
TOTAL CASH 11,139,588.67 $
Years to Maturity for October 2024 1.36
Weighted Average Yield for October 2024 4.000%
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. 35,152,028.01$ Cash With Fiscal Agent COPS/CFD 2005-01 1,300,337.27
Cash With Investment Advisor City Investments 32,113,112.89 AV Center 1,443,664.83
PR Account 292,948.41
Petty Cash 1,964.61
GRAND TOTAL OF CITY FUNDS 46,291,616.68$
(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 City Hall, AV Ranch, and other city facilities.
Storm Water includes the Dairy Fork and Wood Canyon Emergent Wetland Project.
CITY OF ALISO VIEJO
October 31, 2024
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34 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
CITY OF ALISO VIEJO
DIRECTOR OF FINANCIAL SVCS/ CITY TREAS
12 JOURNEY , #100
ALISO VIEJO, CA 92656
Account Number: 98-30-007
October 2024 Statement
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
10/8/2024 10/8/2024 RW 1760115 1720641 ANN EIFERT -750,000.00 10/15/2024 10/14/2024 QRD 1762249 N/A SYSTEM 75,022.04
Account Summary
Total Deposit: 75,022.04 Beginning Balance: 6,417,959.24 Total Withdrawal: -750,000.00 Ending Balance: 5,742,981.28 35 October 4.518
September 4.575
August 4.579
July 4.516
June 4.480
May 4.332
LAIF Apportionment Rate(2): 4.71
LAIF Earnings Ratio(2): 0.00012912073474208
LAIF Administrative Cost(1)*: 0.26
PMIA Average Life(1): 231
LAIF Fair Value Factor(1): 1.002061084
PMIA Daily(1): 4.58
PMIA Quarter to Date(1): 4.56
Treasuries
55.49%
Agencies
25.71%
Certificates of
Deposit/Bank Notes
8.76%
Time
Deposits
3.19%
Commercial
Paper
6.08%
Corporate
Bonds
0.51%
Loans
0.26%
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). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
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 11/06/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/24
Chart does not include $1,343,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
9/30/24
$161.6 billion
36 City of Aliso Viejo
AGENDA ITEM
DATE: December 4, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services
SUBJECT: FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT
Recommended Action:
Receive and file the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024.
Fiscal Impact:
As of June 30, 2024, the City’s fund balance for all funds increased by $6.0 million for a total of $45.6 million. Of this amount, $37.9 million is in the General Fund and $7.7 million is restricted (special revenue funds such as gas taxes, Measure M, grants, etc.) or non- spendable (prepaid costs).
Background:
The Annual Comprehensive Financial Report was prepared in conformity with Generally Accepted Accounting Principles (GAAP) and audited by independent certified public accountants at Davis Farr, LLP. The goal of the audit is to provide reasonable assurance that the City’s financial statements are free from material misstatement.
As part of the audit, Davis Farr, LLP issued the following reports:
Auditor’s Communication With Those Charged With Governance Report on Internal Controls
Report on Agreed-Upon Procedures Applied to the Appropriations Limit Report on Agreed-Upon Procedures for the City’s Treasurer’s Monthly Report Discussion:
The annual audit of the financial statements was completed on November 21, 2024. The financial statements were prepared in accordance with all applicable accounting standards. The independent auditor has issued an unmodified opinion of the City’s financial statements for the fiscal year (FY) ended June 30, 2024, which provides 37
reasonable assurance that the financial statements of the City are presented fairly, in all material respects, in accordance with generally accepted accounting principles.
In addition to reviewing and examining the City’s financial records, the auditors also reviewed the internal control framework of the City. Internal control is a set of activities, rules, and procedures implemented by the City to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. The audit did identify an error in not reporting a receivable from a reimbursement received from another agency in the correct year (FY 2022-23), which resulted in a prior-period adjustment. Attachment 3 details the auditors’ recommendation which includes improving communication between departments and Finance to ensure receivables are recorded in the correct year.
Staff has implemented the auditors’ recommendation and additional procedures to mitigate future errors. The auditors also issued their reports on the agreed upon procedures for the City’s monthly treasurer’s report and the City’s appropriations limit worksheets. These reports are included as attachments 4 and 5.
Government-wide Financials
As presented in the ACFR Statement of Activities, the City’s total revenues from all sources were $36.9 million, while the total cost of all programs and services was $32.4 million. Some of the financial highlights at the government-wide level are:
Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2024 by $143.3 million. This amount is referred to as the net position of the City.
The City increased its overall net position by $4.5 million or 3.3% higher compared to FY 2022-23.
As of June 30, 2024, the City’s overall fund balance increased by $6.0 million for a total of $45.6 million for all funds.
General Fund Highlights
The General Fund is the primary operating fund of the City and is 83.0% of the City’s overall fund balance. General Fund operations include Administration and Support, Community and Economic Development, Community Services, Public Safety, and Public Works. The General Fund also funds the City’s debt service payment on the Certificates of Participation (COP) for the Aliso Viejo Ranch and capital projects at City facilities.
For FY 2023-24, General Fund revenues and transfers-in total $28.2 million and exceeded expenditures and transfers-out of $24.7 million, resulting in an increase to the General Fund balance by $3.5 million. Ending fund balance for the year increased by
10.0% to $37.9 million. This balance is comprised of non-spendable funds of $18,987, assigned funds of $31.2 million and $6.7 million of unassigned funds. Assigned funds include $4.0 million for contingencies, $0.6 million for insurance and/or benefit obligations, $14.0 million for asset replacement, and $12.7 million for emergencies. The unassigned portion is the part of fund balance that is available for use without constraints established 38
by legal requirements and totals $6.7 million. The total fund balance at June 30, 2024, is equal to 140% of the FY 2024-25 adopted General Fund budget appropriations.
The City’s major General Fund revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes (TOT). General fund sources for FY 2023-24 totaled $28.2 million, compared to $27.1 million in the prior year. Property taxes total $9.9 million, an increase of $0.4 million or 4.8% due to higher assessed property values. Transient occupancy taxes remained flat compared to the previous year at $1.6 million. Sales tax revenue saw a significant increase of $2.1 million or 33.9% to $8.4 million and is attributable to the approval of the tax sharing agreement with Hunt and Sons, LLC, which began operating in the City in August 2023. Franchise fees increased by approximately $51,600 or 3.0% from higher utility costs in electricity, gas, and waste collection fees.
Investment income increased by $0.4 million to $0.7 million primarily from higher interest rates.
In addition, the General Fund saw an increase in transfers-in as a result of strong operating results at the Aliso Viejo Center. Net income at the Center totaled $1.4 million from strong demand for facility rentals, an increase of $0.5 million or 51.8% increase from FY 2022-23. Table 1 provides a summary of General Fund resources for FY 2023-24.
Table 1
General Fund expenditures and transfers-out totaled $24.7 million and was $1.5 million higher than FY 2022-23. The increase was primarily in economic development expenditures for additional tax subsidy payments to Hunt and Sons, LLC.
Actual expenditures totaled $24.7 million and was $1.4 million or 5.2% under budget due to conservative spending across all departments. Administration and Support and City Hall costs were $0.2 million under budget from decreases in spending for professional services and supplies. Law enforcement contract costs were $0.3 million lower than budget from unanticipated vacancy credits within the Orange County Sheriff’s General Fund Source
FY 2022-2023
Actuals
FY 2023-2024
Revised
Budget
FY 2023-24
Actuals
FY 2023-24
Variance - Budget
Over/(Under)
Property Tax 9,459,526$ 9,731,500$ 9,911,102$ 179,602$ Sales Tax 6,244,171 8,450,641 8,359,623 (91,018) TOT 1,570,525 1,600,000 1,570,575 (29,425) Franchise Fees 1,741,999 1,740,000 1,793,611 53,611 Recreation 1,656,346 1,550,000 1,593,376 43,376 Building & Planning 1,382,776 1,100,000 1,240,630 140,630 Fines & Forfeitures 227,896 300,000 296,430 (3,570) Investment Earnings 321,058 650,000 708,216 58,216 Other1 4,462,739 1,250,000 2,700,363 1,450,363 Total Resources 27,067,036$ 26,372,141$ 28,173,926$ 1,801,785$ 1 FY 23-24 Actuals include other financing sources for lease and SBITA acquisition per GASB 87 and 96 39
Department. Savings of $0.3 million in Community Services are attributed from lower operating costs at Gold Cost Farms, special events, and facility maintenance costs at community service facilities. Public Works was also under budget by $0.1 million from lower-than-expected costs in environmental compliance consulting and regulatory permits, as well as in street maintenance. Capital improvement was under budget by $0.3 million from the deferral of the City Hall HVAC project and the Aquatic Center pool deck rehabilitation to FY 2024-25. Table 2 provides a summary of expenditures within the General Fund.
Table 2
Special Revenue Funds
The City’s special revenue fund balances at the end of FY 2023-24 total $7.7 million and include transportation and street improvement funding, such as gas taxes, SB1, and Measure M, various federal and state grants, and other funds restricted for a specific purpose. Of the $7.7 million, approximately $4.1 million is restricted for street capital projects, $1.5 million for air quality improvement projects (through the AQMD grant), and $1.4 million in the Development Impact Fund.
Attachments:
1. FY 2024-25 Annual Comprehensive Financial Report
2. Auditor Communication Letter
3. Report on Internal Controls
4. Report on Appropriations Limit
5. Report on Treasurer’s Monthly Statement
General Fund
Appropriations
FY 2022-23
Actuals
FY 2023-2024
Revised
Budget
FY 2023-2024
Actuals
FY 2023-24
Variance
(Over)/Under
Admin & Support
1 4,697,320$ 5,094,506$ 4,978,006$ 116,500$ Community Services 2,802,609 3,029,492 2,743,811 285,681 Comm & Econ Dev 2,495,596 4,083,455 3,982,795 100,660 Public Works 1,664,540 1,874,530 1,724,588 149,942 Public Safety 10,038,157 10,326,047 10,005,398 320,649 City Hall 201,312 233,518 201,147 32,371 Debt Service 658,747 658,250 655,795 2,455 Transfers 217,503 183,840 159,252 24,588 Total Operating 22,775,784$ 25,483,638$ 24,450,792$ 1,032,846$ Capital Improvement 445,321 584,963 267,472 317,491 Total General Fund 23,221,105 26,068,601 24,718,264 1,350,337 1 FY 23-24 Actuals include lease and SBITA adjustments per GASB 87 and 96. 40 Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Aliso Viejo, California
41 The fiscal year 2023-24
Annual Comprehensive Financial Report
cover displays a view of Aliso Viejo
City Hall, located at 12 Journey in the
city of Aliso Viejo.
City Hall provides municipal services for the
residents of Aliso Viejo. The building has
housed the city's government offices and
city council chambers since Aliso Viejo was
incorporated on July 1, 2001 as Orange
County's 34th city.
ABOUT THE COVER:
42 CITY OF ALISO VIEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2024
Prepared by
FINANCIAL SERVICES
43 THIS PAGE INTENTIONALLY LEFT BLANK
44 CITY OF ALISO VIEJO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION:
Letter of Transmittal i
List of Principal Officials vi
Organizational Chart vii
GFOA Certificate of Achievement for Excellence in Financial Reporting viii
FINANCIAL SECTION:
Independent Auditor’s Report 1
Management’s Discussion and Analysis (Required Supplementary Information) 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 20
Statement of Activities 21
Fund Financial Statements:
Balance Sheet – Governmental Funds 23
Reconciliation of the Balance Sheet to the Statement of Net Position 24
Statement of Revenues, Expenditures and Changes in Fund Balances 25
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 26
Fiduciary Funds:
Statement of Fiduciary Net Position 27
Statement of Changes in Fiduciary Net Position 28
Notes to the Basic Financial Statements 29
45 CITY OF ALISO VIEJO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2024
Table of Contents (Continued)
Page
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule – General Fund 62
Budgetary Comparison Schedule – Aliso Viejo Center 63
Miscellaneous Plan:
Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date 64
Schedule of Plan Contributions 65
Schedule of Changes in the Total OPEB Liability and Related Ratios 66
Notes to Required Supplementary Information 67
Supplementary Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 73
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 77
Budgetary Comparison Schedules:
Nonmajor Special Revenue Funds:
Traffic Congestion Relief 81
Gas Tax 82
Measure M 83
SB1-RMRA 84
Public Safety Grants 85
Air Quality Improvement 86
Integrated Waste Management 87
Other Grants 88
Technology Grants 89
Development Impact 90
Federal Grants 91
Aquatic Center 92
Nonmajor Capital Projects Funds:
Capital Improvements 93
Storm Water 94
Street Improvements 95
Nonmajor Debt Service Fund 96
46 CITY OF ALISO VIEJO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2024
Table of Contents (Continued)
STATISTICAL SECTION: Table Page
Net Position by Component 1 99
Changes in Net Position 2 100
Fund Balances of Governmental Funds 3 101
Changes in Fund Balance of Governmental Funds 4 102
General Government – Expenditures by Function 5 103
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 Value and Estimated Actual Value of
Taxable Property 10 108
Direct and Overlapping Property Tax Schedules 11 109
Principal Property Taxpayers 12 110
Ratios of Outstanding Debt by Type 13 111
Computation of Direct and Overlapping Bonded Debt 14 112
Legal Debt Margin 15 113
Demographic and Economic Statistics 16 114
Principal Employers 17 115
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
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48 i
November 2024
Honorable Mayor, Members of the City Council, and Residents 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 (FY) ended June 30, 2024. 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 of Aliso Viejo. 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.
Davis Farr, 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, 2024, 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, 2024, 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 Statement of Activities which shows the cost of providing government services. These statements have been prepared using the accrual basis of accounting whereas the fund financial statements 49 ii
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 50,068 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. In June 2023, the City Council voted to adopt district-based elections, comprising of five districts elected 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 Council also appoints the City Attorney and City Treasurer. 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, fire, street maintenance, building, code enforcement, 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. All governmental funds are annually appropriated. 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 fund balances. The budget is reviewed mid-year in January by the City Manager and the Director of Financial Services to ensure compliance with City Council direction. The midyear budget is then reviewed by the City Council and consideration is given to necessary adjustments for new programs, projects, and other adjustments to ensure that expenditures and revenues are in line with the budgeted projections. 50 iii
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 fiscal management.
ECONOMIC CONDITION AND OUTLOOK
The U.S. economy in 2024 outperformed expectations and fears of a recession have not materialized. According to the Bureau of Economic Analysis, Real Gross Domestic Product in the first two quarters of 2024 saw growth of 1.6% and 3.0% and reflects nine straight quarters of growth. The national unemployment rate also continues to be strong, averaging 4% since the beginning of 2024. Inflation continues to decline from highs of over 8% seen in 2022 to 2.4% in September 2024.
Based on the UCLA Anderson’s Forecast in October 2024, economic growth in the national economy will be weak in the last quarter of 2024 as a result of uncertainty of the election and the effects of Hurricane Helene and Milton. UCLA does not anticipate a recession in 2025; however, international conflicts, new economic policy from the 2024 election results, and continued high costs of insurance and housing, can dampen consumer confidence and push the national economy into a recession.
LOCAL ECONOMY
Although California’s unemployment rate was estimated at 5.8% for July 2024, Orange County’s rate has been consistently lower at 4.4%. Aliso Viejo’s unemployment rate is lower than the County at 4.1%, according to the latest available data by the California Employment Development Department. 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 diverse tax base for the City. Most retail and commercial businesses are oriented toward serving residents and visitors. The City is also home to regional and corporate headquarters in a variety of industries, particularly in the biomedical and healthcare industries. The City is nearly built out, with limited future opportunities for new residential or commercial construction. However, efforts to revitalize existing sites, such as in the Aliso Viejo Town Center and Aliso Viejo Commons 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. General Fund resources, including transfers-in and other financing sources for FY 2023-24, totaled $28.2 million, compared to $27.1 million in the prior year. The revenue increase is primarily attributed to the $1.7 million increase in sales tax revenue attributed to Hunt and Sons, LLC, a new business operating in the City. This increase in sales tax helped offset the loss of federal COVID relief funds received in FY 2022-23 of $2.8 million. Property taxes increased by $0.5 million or 4.8% from growth in assessed values from annual inflationary adjustments and higher housing prices as low housing inventory continues to keep prices high. Transient occupancy taxes and franchise fees remained flat at $1.6 million.
In addition, other revenue highlights in the General Fund include an increase in transfers-in as a result of strong operating results at the Aliso Viejo Center. Net income totaled $1.4 million from strong demand for facility rentals and represents an increase of over 50% from FY 2022-23.
Lastly, an increase of $0.4 million was received from investment earnings from higher interest rates.
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Although revenues were higher compared to FY 2022-23, budgeted revenues for FY 2024-25 are lower than FY 2023-24 actuals by $1.3 million or 4.6%. Property and sales tax increases will have modest growth totaling 4.4% or $0.8 million, which will offset declines in building and construction permits, franchise fees, investment earnings, and net income transfer from the Aliso Viejo Center.
With only two hotels in the City, transient occupancy taxes are anticipated to remain flat. The FY 2024-25 operating budget is balanced with General Fund resources estimated at $26.7 million and operating appropriations totaling $26.6 million. One-time General Fund capital improvement expenditures total $0.5 million and will be funded from City reserves. Budget reductions were made across all departments in an effort to control costs. The City is hopeful that new businesses, such as Tesla, which is scheduled to open in late 2024, will provide much needed new revenue to the City as expenditure growth continues to outpace revenue growth.
LONG TERM FINANCIAL PLANNING
As of June 30, 2024, the City has a General Fund balance of $37.9 million, which represents 140% of total FY 2024-25 General Fund appropriations. The balance includes $4.0 million for contingencies, $0.6 million for insurance and benefit obligations, $13.9 million for future replacement of City infrastructure assets, and $12.7 million for emergencies and unanticipated CIP projects. The unassigned fund balance is $6.7 million and is consistent with the City’s adopted Fund Balance Policy, which strives to maintain an unassigned fund balance of 25-35% of budgeted operational expenditures. This provides a safety net that ensures government services are not impacted in the event of an unanticipated revenue shortfall or emergency.
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%.
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 the next two years, the City anticipates the revitalization of Aliso Viejo Commons. The Commons will be home to the City’s first and only car dealership, Tesla, as well as Daiso, 99 Ranch Market, and other commercial and retail ventures.
In 2016, the City entered into an economic development subsidy agreement with EFUEL, LLC, an on-site mobile fueling business. Under the agreement, the City provides sales tax payments between 50 and 70%. In FY 2023-24, the City abated sales tax in the amount of $0.9 million to EFUEL, resulting in net revenue of $0.3 million to the City.
In August 2023, the City entered into another economic development subsidy agreement with Hunt and Sons, LLC, which has a similar business model to EFUEL. The agreement with similar payment terms provided to EFUEL is estimated to generate approximately $2.4 million in sales tax revenue to the City annually. Payments to Hunt and Sons are estimated at $1.5 million, providing net income to the City of approximately $0.9 million annually, or $13.2 million over the agreement’s 15-year term. The additional net revenue will provide the City with much needed 52 v
resources to fund critical services in the City. In FY 2023-24, the City abated sales tax in the amount of $1.4 million, with net revenue of $0.8 million.
In the coming year, the City will prepare 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 the 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 long- term financial plans are also in accordance with these policies.
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 an ACFR must satisfy both generally accepted accounting principles and applicable legal requirements. The City submitted its FY 2022-23 ACFR 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 2023-24 ACFR to GFOA for review. We would like to recognize the assistance of the Financial Services staff in the preparation of the ACFR and our independent auditor, Davis Farr, LLP for their expertise and guidance in preparing the 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,
Mitzi Ortiz
City Manager
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CITY OF ALISO VIEJO
LIST OF PRINCIPAL OFFICIALS
Council-Manager Form of Government
ROSS CHUN
Council Member
CITY COUNCIL
MIKE MUNZING
Mayor
TIFFANY ACKLEY
Mayor Pro Tem
MAX DUNCAN
Council Member
RICHARD HURT
Council Member
CITY ADMINISTRATION
Mitzi Ortiz
City Manager
Scott Smith, City Attorney
Ann Eifert, Director of Financial Services/City Treasurer Mitzi Ortiz, Director of Government Services/City Clerk So Kim, Director of Community Development
Shaun Pelletier, City Engineer/Public Works Director
Lizzy Mendoza, Community Services Manager
Isaac Aziz, Information Technology Manager
Captain Alan Villanueva, Chief of Police Services (Orange County Sheriff’s Department) Division Chief Baryic Hunter, Fire Services (Orange County Fire Authority) 54 Organization Chart
June 30, 2024
vii
*Contract Services
55 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Aliso Viejo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
56 Independent Auditor’s Report
City Council
City of Aliso Viejo
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 (the City), as of and for the year June 30, 2024, 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, 2024, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
The financial statements for the year ended June 30, 2024, reflect certain prior period adjustments as described further in note 18 to the financial statements. Our opinion is not modified with respect to these matters.
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.
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.
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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 management’s discussion and analysis, budgetary comparison information, capital assets – modified approach for infrastructure, and pension and other post-employment benefit schedules 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 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.
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S
upplementary 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 combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section 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.
Report on Summarized Comparative Information
We have previously audited the City’s June 30, 2023, financial statements, and we expressed unmodified audit opinions on those audited financial statements in our report dated December 14, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2023 is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated November 21, 2024 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.
Irvine, California
November 21, 2024
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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, 2024. 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
• Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $143.3 million. This amount is referred to as the net position of the City. Of this amount, $36.4 million is unrestricted. • The City increased its overall net position by $4.9 million or 3.6% for a total net position of $143.3 million.
• General Fund resources, which includes revenues and transfers-in, total $28.2 million, exceeding expenditures and transfers out of $24.7 million, resulting in an increase to the General Fund balance by $3.5 million to $37.9 million. This balance is comprised of assigned funds of $31.2 million and $6.7 million of unassigned funds. The estimated fund balance at the fiscal year ended June 30, 2024, is equal to 140% of the FY 2024-25 Adopted General Fund budget appropriations, including capital and debt service payments. • As of June 30, 2024, the City’s overall fund balance increased by $6.0 million for a total of $45.6 million for all funds. Of this amount, $7.8 million is restricted or non-spendable and $37.8 million is unrestricted.
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 non- financial 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.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
A
ll 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 over
67.1% 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, the Aliso Viejo Center is included. Lesser funds are collectively reported as Nonmajor 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.
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. 6 62
CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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.
Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $143.3 million. Total assets increased by $5.8 million or 3.7% due to increases in cash, primarily in the General Fund and street improvement funds, such as Measure M, Gas Tax, and SB1. Total deferred outflows of resources decreased by $0.1 million or 6.2% as a result of lower pension related resources. Total liabilities increased by $0.8 million or 4.2% due to an increase in accounts payable, primarily to account for the City’s addition of a tax-sharing agreement with Hunt and Sons, LLC. Total deferred inflows of resources decreased by approximately $30,000 or 3.5% due to pension and leases, which offset an increase to OPEB related items.
The City increased its overall net position by $4.9 million or 3.5% from the prior year. The largest portion of the City’s net position reflects its investment in its buildings and infrastructure. Net investment in capital assets for FY 2023-24 total $99.3 million and represents 69.3% of the City’s total net position. $7.5 million is restricted, representing special revenue resources that are 7 63
CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
subject to their funding stipulations, such as street improvements, specific public safety expenditures, and community development projects. Unrestricted net position totals $36.4 million and is an increase of $3.1 million, which is attributed to an increase in the general fund balance.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
Total revenues for governmental activities amounted to $36.9 million during FY 2023-24 and reflect an increase of $2.1 million or 5.9% over the prior year. Functional expenditures totaled $32.4 million and decreased by $0.4 million or 1.3% compared to the prior year. Revenues exceeded program expenses by $4.5 million in FY 2023-24.
Revenues
The City’s major general revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes. Property taxes total $9.9 million, an increase of $0.4 million or 4.3% due to higher assessed property values. Transient occupancy taxes remained flat compared to the previous year at $1.6 million. Sales tax revenue saw a significant increase of $2.1 million or 9 65
CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
33.9% to $8.4 million and is attributable to the approval of the tax sharing agreement with Hunt and Sons, LLC, which began operating in the City in August 2023. Franchise fees increased by approximately $40,000 or 2.0% from higher utility costs in electricity, gas, and waste collection fees. Franchise fees from the Gas Company increased by over 87.9% as a result of higher gross receipts; however, this increase largely offset the decrease of 13.9% in cable franchise fees as residents move away from traditional cable television. Revenue from the use of money and property, which includes investment and rental income at City Hall, increased by 84.0% to $1.2 million primarily as a result of higher interest rates.
Program revenues include charges for services, operating grants and contributions, and capital contributions and grants. Overall program revenues decreased by $1.5 million or 17.1% from the loss of public safety funding through the American Rescue Plan Act (ARPA) of $2.9 million received in the prior year. This decrease offset the increase of 25% in funding for street improvements through gas taxes, SB1, and Measure M. The City did not receive any capital contributions and grants during FY 2023-24. Charges for services, which includes fees for building permits and planning, as well as facility rentals and recreation was largely flat at $1.6 million compared to FY 2022-23.
Expenses
Total expenses for all City services, which include law enforcement, animal control, building and planning services, public works, engineering, environmental compliance, and administration decreased by $0.4 million. In an effort to control costs, budget reductions were made across all departments in FY 2023-24.
Public works decreased by $1.9 million as a result of reduced spending on capital street improvement projects during the fiscal year as slurry seal projects are not completed every year.
Major projects for the year include the street rehabilitation of Enterprise between Aliso Creek Road to Aliso Viejo Parkway. Decreased spending in Public Works largely offset the $1.5 million increase in spending in Community Development as a result of higher sales tax subsidy payments with the addition of the Hunt and Sons, LLC tax sharing agreement.
General Government expenses include City Council, City Manager, City Attorney, City Clerk, Human Resources, Financial Services, Information Technology, and other general expenses, such as insurance premiums, maintenance of City Hall, and community outreach. General Government expenses increased slightly by $0.1 million or 1.8% to $6.1 million due to increased salaries and benefits.
Although the County of Orange approved new labor agreements resulting in increased wages and benefits for their employees, costs for law enforcement with the Orange County Sheriff’s Department remained flat compared to the prior year. The contractual increases were offset by high vacancy rates which provided cost savings to the City. In addition, the freezing of one motor officer position was implemented to provide cost savings of approximately $0.3 million. Public safety expenses were down 0.8% and totaled $10.1 million.
Community Services expenditure was down approximately $0.1 million or 3.1% from lower spending for advertising, special events, and Gold Coast Farms.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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). The total cost of all governmental activities in FY 2023-24 was $32.4 million. That cost is financed by program revenues of $13.2 million. Net cost of services is $19.2 million and is funded with general fund resources.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At year-end, the City’s Governmental Funds reported a combined Fund Balance of $45.6 million, an increase of 15.2% or $6.0 million from the prior year. Increases to the fund balances include $3.5 million in the General Fund, $1.8 million in restricted street improvement funds from gas taxes, SB1, and Measure M, $0.3 million in AQMD grant funds, and $0.3 for public safety and other grants. The fund balance includes $25,398 in non-spendable, restricted funds of $7.8 million include approximately $1.9 million for community development projects, $5.6 million for capital projects, and $0.3 million for public safety. $31.2 million or 68.4% of the fund balance is assigned for contingencies, insurance obligations, asset replacement, and emergencies. The remaining $6.7 million or 14.6% of the fund balance is unassigned, which is available for spending at the City’s discretion.
General Fund
The General Fund is the primary operating fund of the City and is 83.0% of the City’s overall fund balance. General fund operations include Administration and Support, Community and Economic Development, Community Services, Public Safety, and Public Works. The General Fund also funds the City’s debt service payment on the Certificates of Participation (COP) for the Aliso Viejo Ranch. General Fund capital improvement includes building improvements at City Hall and Aliso Viejo Ranch, as well as the Aquatic Center, Aliso Viejo Center, Iglesia Park and Community Center.
For FY 2023-24, General Fund revenues and transfers in the amount of $28.2 million exceeded expenditures and transfers out of $24.7 million, resulting in an increase to the General Fund balance by $3.5 million. Ending fund balance for the year increased by 10.1% to $37.9 million.
This balance is comprised of non-spendable funds of $18,987, assigned funds of $31.2 million and $6.7 million of unassigned funds. Assigned funds include $4.0 million for contingencies, $0.6 million for insurance and/or benefit obligations, $14.0 million for asset replacement, and $12.7 million for emergencies. The unassigned portion is the part of fund balance that is available for use without constraints established by legal requirements and totals $6.7 million. The total fund balance at the fiscal year ended June 30, 2024, is equal to 140% of the FY 2024-25 adopted General Fund budget appropriations.
The City’s major revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes. General fund revenue for FY 2023-24 totaled $28.2 million, compared to $27.1 million in the prior year. Property taxes total $9.9 million, an increase of $0.4 million or 4.3% due to higher assessed property values. Transient occupancy taxes remained flat compared to the previous year at $1.6 million. Sales tax revenue saw a significant increase of $2.1 million or
33.9% to $8.4 million and is attributable to the approval of the tax sharing agreement with Hunt and Sons, LLC, which began operating in the City in August 2023. Franchise fees increased by approximately $40,000 or 2.0% from higher utility costs in electricity, gas, and waste collection fees. Notably for FY 2023-24, franchise fees from the Gas Company increased by over 87.9% as a result of higher gross receipts; however, this increase largely offset the decrease of 13.9% in cable franchise fees as residents move away from traditional cable television. Revenue from the
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
use of money and property, which includes investment income, increased by $0.4 million or 67.7% to $0.9 million primarily from higher interest rates.
In addition, the General Fund saw an increase in transfers in as a result of strong operating results at the Aliso Viejo Center. Net income at the Center totaled $1.4 million from strong demand for facility rentals, an increase of $0.5 million or 51.8% increase from FY 2022-23.
General Fund expenditures and transfers out totaled $24.7 million and was $1.5 million higher than FY 2022-23. The increase was primarily in economic development expenditures for additional tax subsidy payments to Hunt and Sons, LLC.
Aliso Viejo Center
The Aliso Viejo Center provides facility rental and banquet services for large social gatherings, such as conferences and weddings. FY 2023-24 revenue is relatively flat compared to the prior year at $3.6 million. Expenditures were lower than the prior year and totaled $2.2 million compared to $2.6 million last year. This resulted in net income of $1.4 million, which is transferred to the General Fund.
General Fund Budgetary Highlights
Revenues: Actual revenues of $28.2 million exceeded the final year-end budget projections of $26.4 million by $1.7 million, or 6.4% higher than budget estimates.
General fund taxes totaled $21.6 million and represent 77.0% of the fund’s resources. Property tax is the largest contributor, followed by sales, franchise fees, and transient occupancy taxes.
Taxes were in line with budget estimates.
Transfers-in exceeded budget estimates by $1.0 million. This is primarily a result of better-than- expected net income from operations at the Aliso Viejo Center and a $0.1 million refund in management fees, totaling $0.8 million over budget estimates. At the time of budget adoption, estimates remained conservative due to the uncertainty of demand for facility rentals post pandemic. In addition, the City received reimbursements from various grants for costs incurred by staff.
Expenditures: Actual expenditures totaled $24.7 million and was $1.5 million under budget due to conservative spending across all departments. Administration and support costs were $0.3 million under budget from decreased in spending for professional services and supplies. Law enforcement contract costs were $0.3 million lower than budget due to high vacancy levels within the Orange County Sheriff’s Department. Savings of $0.3 million in Community Services from lower operating costs at Gold Cost Farms, special events, and facility maintenance costs at recreation facilities. Public Works was also under budget by $0.2 million from lower-than- expected costs in environmental compliance and street maintenance.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, the City had $111.9 million 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 $0.6 million. This amount includes $0.2 million for the purchase and rehabilitation of residential property to be used for low-income housing, $0.2 million at City Hall for landscape improvements, replacement of air conditioning unit, and furniture at City Hall. Other improvements include the fiber project at Aliso Viejo Ranch and new HVAC at Iglesia Park. Depreciation expense in the amount of $1.5 million was incurred in FY 2023-24. For additional information on capital assets, refer to Note 6 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 May 2024, 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 May 2024, 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, 2026.
During the year ended June 30, 2024, actual streets and roads maintenance project costs were $2.5 million compared to the estimate of $3.7 million. The amount of underspending was due to the delay of the Aliso Creek street rehabilitation project, which was rescheduled to be completed in FY 2024-25.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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. Subsequently, in December 2023, staff coordinated the refinancing of the 2014 bonds, providing savings of $814 on average per year.
Non-Current Liabilities
Changes in non-current liabilities for the fiscal year ended June 30, 2024, are provided in Table
5. For additional information on non-current liabilities, refer to Note 7 of the Notes to the Financial Statements.
Asset Type 2024 2023
Land 14,315,978 $ 14,315,978 $
Buildings and improvements 36,627,939 36,831,777 Equipment, furniture and fixtures 270,940 424,013 Other infrastructure 6,201,107 6,680,442
Streets and highways 53,871,430 53,871,430
Construction in progress - -
Right-to-use assets 39,020 6,356
Right-to-use subscription assets 527,241 575,057 Total capital assets 111,853,655 $ 112,705,053 $
Table 4
Capital Assets at Year End
(Net of Depreciation)
Balance at
July 1, 2023 Additions Deletions
Balance at
June 30, 2024
Amount due
within one
year
Amount due
beyond one
year
Bonds Payable 11,545,000 $ - $ (250,000) $ 11,295,000 $ 260,000 $ 11,035,000 $ Unamortized premium 871,257 - (32,269) 838,988 32,269 806,719 Lease liability 5,823 39,681 (7,129) 38,375 7,408 30,967.00 Subscription liability 399,551 85,819 (186,942) 298,428 76,699 221,729 Compensated absences 220,735 321,559 (284,859) 257,435 112,666 144,769 Total 13,042,366 $ 447,059 $ (761,199) $ 12,728,226 $ 489,042 $ 12,239,184 $ Table 5
Non-Current Liabilities
June 30, 2024
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
ECONOMIC FACTORS AND FISCAL YEAR 2024-25 BUDGET
Although the U.S. economy in 2024 outperformed expectations, forecasts expect growth to slow due to higher interest rates, inflation, as well as rising national and consumer debt. Recession forecasts have been mixed. Uncertainty remains high from unrest around the world and potential new economic policies from results of the 2024 election. Although unemployment remains low, the effects on commercial property values due to high vacancy rates for office space as more employees seek telecommuting options are still unknown. Furthermore, the rising costs of insurance, food, fuel, consumer goods, and services may exacerbate an already slowing economy.
The FY 2024-25 budget includes appropriations for programs and projects necessary to provide essential services to the community. General Fund revenues are estimated to total $26.7 million.
The adopted budget includes budget reductions in discretionary spending across all departments to offset increases in essential services. The total expenditure budget is approximately $27.1 million and includes all operating costs, capital improvement expenditures, debt service, and interfund transfers.
A General Fund operating budget surplus is estimated at $0.1 million with General Fund reserves anticipated to fund $0.5 million in capital improvement, resulting in a net decrease to fund balance of $0.4 million. The estimated year-end General Fund balance will decrease by approximately
1.1% to $37.5 million.
General Fund Revenues
Revenue forecasts for FY 2024-25 were prepared using estimates and projections provided by the State, other agencies, and consultants. Anticipated General Fund revenue estimates of $26.7 million is $1.3 million less than FY 2023-24 actuals. The conservative estimates include lower estimated franchise fees, building and planning fees, parking fines, interest earnings, and transfers from the Aliso Viejo Center.
The City receives 84% of its revenue from taxes. This includes property, sales, transient occupancy taxes, as well as franchise fees. Property taxes remain the City’s highest and most stable source of revenue with an estimated increase of $0.5 million over FY 2023-24 actuals to $10.2 million, primarily due to inflationary adjustments by the County’s assessor’s office. Growth from higher property values as a result of changes in ownership is not anticipated to be significant due to low inventory and higher interest rates which impact housing sales. Sales tax revenue forecasts show growth from FY 2023-24 from the addition of Hunt and Sons, LLC operations for a full year. Sales tax is estimated to total $8.9 million, an increase of $0.5 million or 6.4% over FY 2023-24. The current sales tax estimates do not include any potential sales tax revenue from new development scheduled to open during the fiscal year. Projections for the City’s transient occupancy taxes remain flat at $1.6 million. Franchise fees are collected from companies that provide electric, gas, cable, and solid waste collection within the City. Franchise fees are expected to decrease by $0.1 million or 7.0% due to declining cable service revenue.
The remaining 16% of General Fund revenues include other sources such as licenses and permits, fines and forfeitures, investment earnings, fees for services, rental income, and recreation. These sources, with the exception of investment earnings, are expected to remain flat 16 72
CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
compared to current levels. Investment earnings are expected to increase by $0.1 million to $0.4 million from higher interest rates.
General Fund Appropriations
The General Fund operating budget totals $26.6 million and includes $0.2 million in transfers to the Aliso Viejo Aquatic Center Fund to bridge the operating gap at that facility. The operating budget includes salaries and benefits for 29 full-time positions, five elected officials, and part-time positions primarily in recreation. Salaries and benefits expenses include merit-based salary increases and cost-of-living adjustments (COLA) in accordance with the Classification and Compensation Plan approved by Council in 2018, which is based on the Annual Consumer Price Index, Urban Wage Earners and Clerical Workers, Los Angeles-Long Beach-Anaheim (CPI-W) of 2.8%. The estimated cost of the COLA is $0.1 million for FY 2024-25.
In addition, appropriations include CalPERS pension costs and $0.1 million in unfunded pension liability. Total CalPERS payments are estimated at $0.6 million. As of the most recent CalPERS actuarial valuation, the City’s accrued liability’s funded ratio is above the required funding level of 80%, as established by Council policy in 2017.
The FY 2024-25 budget provides the necessary funding to continue essential services throughout the community. Despite reductions in all departments for training, professional services, and supplies, the operating budget reflects an increase of approximately 9.5%, or $2.3 million compared to FY 2023-24 actuals. The year-over-year increase is primarily a result of higher public safety costs due to increases in the law enforcement contract with the Orange County Sheriff’s Department, animal care services with the City of Mission Viejo, and crossing guard services, which increased by $1.3 million or 13.3%.
Administration and support are also expected to increase by approximately $0.1 million or 2.6% compared to FY 2023-24 actuals because of higher labor costs, inflationary adjustments to contract services, and the inclusion of the November 2024 election costs. Community Services and Recreation budget estimates reflect an increase of 14.4% or $0.4 million, for facility rental costs at Gold Coast Farms, city camp expenses, and facility operating costs at the Ranch.
Community and Economic Development expects an increase of $0.2 million, or 3.9% as a result of enhancements to code enforcement, technology, and professional services for the General Plan safety element.
The Public Works budget is increasing by $0.2 million or 12.5% due to expected increases to environmental regulatory permits and consulting costs. City Hall expenses are also expected to increase by 23.4% or approximately $50,000 from higher utility and facility maintenance costs.
Special Funds
In addition to the General Fund, the City uses “Special Revenue Funds” to fund various City expenditures. Special Revenue Funds are typically restricted funds, such as Gas Tax, SB 1, Measure M, Federal Grants, and Other Grants. These funds can only be used for specific purposes. Revenue and appropriations for all Special Revenue Funds for FY 2024-25 are approximately $9.9 million and $9.1 million, respectively. At the end of FY 2024-25 operations, the estimated fund balance for all City funds will be approximately $46.0 million.
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CITY OF ALISO VIEJO
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Department of Financial Services, City of Aliso Viejo, 12 Journey, Suite 100, Aliso Viejo, California, 92656, or call (949) 425-2520.
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19 75
June 30, 2024
(With Comparative Data for Prior Year)
2024 2023
Assets:
Cash and investments (note 2) 48,296,183$ 41,713,181 Receivables:
Accounts 659,525 855,106
Accrued interest 306,708 179,365
Lease (note 4) 214,497 237,492
Due from other funds 7,300 -
Due from other governments 2,228,506 2,033,761
Inventory 6,211 7,279
Prepaid costs 19,187 56,246
Capital assets not being depreciated (note 6) 68,187,408 68,187,408 Capital assets, net of depreciation (note 6) 43,666,247 44,517,645 Total Assets 163,591,772 157,787,483
Deferred Outflows of Resources:
Pension related items (note 9) 1,216,320 1,292,198 OPEB related items (note 10) 54,458 61,913 Total Deferred Outflows of Resources 1,270,778 1,354,111 Liabilities:
Current liabilities:
Accounts payable 3,282,647 2,251,762
Accrued liabilities 251,025 271,784
Deposits payable 2,175,904 2,458,454
Unearned revenue 147,842 -
Compensated absences - current portion (note 7) 112,666 105,207 Long-term liabilities - current portion (note 7) 376,376 356,946 OPEB liability current portion (note 10) 300,650 344,569 Non-current liabilities:
Compensated absences - non-current portion (note 7) 144,769 115,528 Long-term liabilities - non-current portion (note 7) 12,094,415 12,464,685 Net pension liability (note 9) 1,685,168 1,427,310 OPEB liability non-current portion (note 10) 194,619 134,706 Total Liabilities 20,766,081 19,930,951
Deferred Inflows of Resources:
Pension related items (note 9) 58,112 94,063 OPEB related items (note 10) 549,950 527,530 Leases (note 4) 226,019 242,308
Total Deferred Inflows of Resources 834,081 863,901 Net Position:
Net investment in capital assets (note 15) 99,321,092 99,883,422 Restricted for:
Community development projects 1,890,321 1,756,357 Public works 5,343,323 3,258,360
Public safety 288,518 171,447
Unrestricted 36,419,134 33,277,156
Total Net Position 143,262,388$ 138,346,742
CITY OF ALISO VIEJO
STATEMENT OF NET POSITION
Governmental Activities
See notes to financial statements
20 76
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Operating Capital
Charges for Contributions Contributions
Functions/ Programs Expenses Services and Grants and Grants 2024 2023 Primary Government:
Governmental activities:
General government 6,125,440$ - - - (6,125,440) (6,019,844) Public safety 10,147,491 296,430 752,758 - (9,098,303) (6,681,127) Community development 7,679,606 5,822,467 437,319 - (1,419,820) (394,896) Community services 2,730,921 1,612,114 - - (1,118,807) (1,147,044) Public works 5,310,206 - 4,237,908 - (1,072,298) (3,544,912) Interest 382,504 - - - (382,504) (387,579) Total governmental activities 32,376,168$ 7,731,011 5,427,985 - (19,217,172) (18,175,402) General revenues:
Taxes:
Property taxes, levied for general purpose 9,911,103 9,459,526 Transient occupancy taxes 1,570,575 1,570,525
Sales taxes 8,359,623 6,244,171
Franchise taxes 1,875,533 1,884,639
Other intergovernmental, unrestricted 64,044 53,145 Use of money and property 1,207,332 656,151
Other 747,990 332,325
Total general revenues 23,736,200 20,200,482
Change in net position 4,519,028 2,025,080
Net position, beginning of year,
as restated (note 18) 138,743,360 136,321,662
Net position, end of year 143,262,388$ 138,346,742
STATEMENT OF ACTIVITIES
CITY OF ALISO VIEJO
Program Revenues
Changes in Net Position
Revenue and
Net (Expense)
See notes to financial statements
21 77
Major Governmental Funds
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 fund have been classified as a major fund.
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.
Nonmajor Governmental Funds
Nonmajor 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, Capital Projects Funds and a Debt Service Fund for the City.
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CITY OF ALISO VIEJO
GOVERNMENTAL FUNDS
June 30, 2024
(With Comparative Data for Prior Year)
Nonmajor
General Aliso Viejo Governmental
Fund Center Funds 2024 2023
Assets:
Cash and investments 37,736,462$ 2,981,645 7,578,076 48,296,183 41,713,181 Receivables:
Accounts 597,487 42,369 19,669 659,525 855,106 Accrued interest 143,371 - 163,337 306,708 179,365 Leases 214,497 - - 214,497 237,492 Due from other governments 1,434,471 - 794,035 2,228,506 2,033,761 Inventory - 6,211 - 6,211 7,279 Prepaid costs 18,987 200 - 19,187 56,246 Due from other funds (note 5) 1,606,790 - - 1,606,790 1,120,333 Total Assets 41,752,065$ 3,030,425 8,555,117 53,337,607 46,202,763 Liabilities, Deferred Inflows of Resources
and Fund Balances:
Liabilities:
Accounts payable 2,412,047$ 450,241 420,359 3,282,647 2,251,762 Accrued liabilities 229,146 - 21,879 251,025 271,784 Deposits payable 994,799 1,181,105 - 2,175,904 2,458,454 Due to other funds (note 5) - 1,399,079 200,411 1,599,490 1,120,333 Unearned revenue 8,296 - 139,546 147,842 - Total Liabilities 3,644,288 3,030,425 782,195 7,456,908 6,102,333 Deferred Inflows of Resources:
Leases 226,019 - - 226,019 242,308 Unavailable revenue - grants - - 33,042 33,042 264,258 Total Deferred Inflows of Resources 226,019 - 33,042 259,061 506,566 Fund Balances:
Non-Spendable:
Prepaid costs and inventory 18,987 6,411 - 25,398 63,525 Restricted for:
Debt service - - 546 546 178 Community development projects - - 1,890,321 1,890,321 1,756,357 Capital projects - - 5,574,557 5,574,557 3,391,391 Public safety - - 288,518 288,518 171,447 Assigned to:
Contingencies 3,995,400 - - 3,995,400 3,498,990 Self Insurance/benefit obligations 600,000 - - 600,000 600,000 Asset replacement 13,953,004 - - 13,953,004 13,173,633 Emergencies and unanticipated traffic projects 12,655,367 - - 12,655,367 11,266,779 Aliso Viejo Center - - - - 51,759 Unassigned 6,659,000 (6,411) (14,062) 6,638,527 5,619,805 Total Fund Balances (Deficit) 37,881,758 - 7,739,880 45,621,638 39,593,864 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 41,752,065$ 3,030,425 8,555,117 53,337,607 46,202,763
BALANCE SHEET
Special Revenue
Totals
See notes to financial statements
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CITY OF ALISO VIEJO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS JUNE 30, 2024
Fund Balances of Governmental Funds 45,621,638$
Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds:
Capital assets 139,759,662
Accumulated depreciation/amortization (27,906,007)
Deferred inflows and outflows of resources related to pension and OPEB have not been reported in the governmental funds:
Deferred outflows - Pension related items 1,216,320
Deferred outflows - OPEB related items 54,458
Deferred inflows - Pension related (58,112)
Deferred inflows - OPEB related (549,950)
Compensated absences that have not been included in the governmental fund activity. (257,435)
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. (1,685,168)
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 net OPEB liability. (495,269) 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. 33,042
Long-term liabilities are not due and payable in the current period:
Bonds payable (11,295,000)
Unamortized premium (838,988)
Subscription liability (298,428)
Lease liability (38,375)
Net Position of Governmental Activities 143,262,388$
Amounts reported for governmental activities in the Statement of Net
TO THE STATEMENT OF NET POSITION
See notes to financial statements
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CITY OF ALISO VIEJO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Nonmajor
General Aliso Viejo Governmental
Fund Center Funds 2024 2023
Revenues:
Taxes 21,634,913$ - - 21,634,913 19,063,829 Licenses and permits 785,623 - - 785,623 876,079 Intergovernmental 156,612 - 4,987,629 5,144,241 7,192,158 Charges for services 1,797,696 2,934,031 939,260 5,670,987 5,656,340 Use of money and property 918,409 - 1,042,416 1,960,825 689,647 Fines and forfeitures 296,430 - - 296,430 227,896 Other 906,111 727,282 - 1,633,393 1,254,220 Total revenues 26,495,794 3,661,313 6,969,305 37,126,412 34,960,169 Expenditures:
Current:
General government 5,059,500 - 112,660 5,172,160 5,026,792 Community development 6,661,953 2,322,472 1,489,432 10,473,857 9,176,591 Public works 1,724,588 - 3,265,111 4,989,699 6,266,529 Public safety 10,005,398 - 120,798 10,126,196 10,162,083 Debt service:
Principal payment 177,043 - 267,028 444,071 332,486 Interest and fiscal charges 7,262 - 407,511 414,773 419,756 Total expenditures 23,635,744 2,322,472 5,662,540 31,620,756 31,384,237 Excess (deficiency) of revenues
over (under) expenditures 2,860,050 1,338,841 1,306,765 5,505,656 3,575,932 Other Financing Sources (Uses):
Transfers in (note 5) 1,552,629 - 2,356,447 3,909,076 8,062,610 Transfers out (note 5) (1,082,520) (1,399,079) (1,427,477) (3,909,076) (8,062,610) Lease acquisition 39,681 - - 39,681 - SBITA acquisition 85,819 - - 85,819 - Total other financing sources (uses) 595,609 (1,399,079) 928,970 125,500 - Net change in fund balances 3,455,659 (60,238) 2,235,735 5,631,156 3,575,932 Fund balances, beginning of year, as restated (note 18) 34,426,099 60,238 5,504,145 39,990,482 36,017,932 Fund balances, end of year 37,881,758$ - 7,739,880 45,621,638 39,593,864 Special Revenue
Total
See notes to financial statements
25 81
CITY OF ALISO VIEJO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2024
Net Change in Fund Balances - Total Governmental Funds 5,631,156$ 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 620,112
Depreciation and amortization (1,471,510)
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. (36,700)
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. (297,785)
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. (45,869)
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. (231,216) The issuance of long-term debt provides current financial resources in the governmental funds, but issuance of debt increases the long-term liabilities in the Statement of Net Position, while the repayment of long-term liabilities consumes the current financial resources of governmental funds.
Issuance of lease (39,681)
Issuance of SBITAs (85,819)
Bonds principal 250,000
Unamortized premium 32,269
Leases principal 7,129
Subscription principal 186,942
Change in Net Position of Governmental Activities 4,519,028$ Amounts reported for governmental activities in the Statement of Activities See notes to financial statements
26 82
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
(With Comparative Data for Prior Year)
2024 2023
Assets:
Cash and investments with fiscal agents (note 2) 3,236,274$ 4,860,578 Due from other governments 21,216 30,806
Total assets 3,257,490 4,891,384
Liabilities:
Accounts payable 2,395 223,948
Due to other funds (note 5) 7,300 -
Total liabilities 9,695 223,948
Net position:
Restricted for organizations and other governments 3,247,795 4,667,436 Total net position 3,247,795$ 4,667,436
CITY OF ALISO VIEJO
FIDUCIARY FUNDS
Custodial Fund
See notes to financial statements
27 83
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
JUNE 30, 2024
(With Comparative Data for Prior Year)
2024 2023
Additions:
Assessments 2,248,518$ 2,404,521
Interest income 84,952 32,041
Total additions 2,333,470 2,436,562
Deductions:
Payments to bondholders:
Principal 935,000 780,000
Interest and fiscal charges 2,818,111 1,402,073
Total deductions 3,753,111 2,182,073
Net increase (decrease) in fiduciary net position (1,419,641) 254,489 Net position, beginning of year 4,667,436 4,412,947 Net position, end of year 3,247,795$ 4,667,436
CITY OF ALISO VIEJO
FIDUCIARY FUNDS
Custodial Fund
See notes to financial statements
28 84
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
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 component unit as defined by the GASB.
Aliso Viejo Public Facilities Corporation
The Aliso Viejo Public Facilities Corporation (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 (COP) 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.
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
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.
29 85
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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 self-balancing accounts that comprise its assets, liabilities, 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. Custodial funds use the economic resources measurement focus and the accrual basis of accounting.
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
30 86
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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 non-exchange 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.
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.
31 87
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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.
Additionally, the government reports the following fund types:
Special Revenue Funds: These funds are used to account for revenues which are legally restricted to expenditures for special purposes.
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.
Debt Service Funds: These funds 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.
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.
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 unadjusted quoted prices in active markets for identical assets; level 2: quoted prices for similar assets or liabilities in active markets; level 3: inputs to the valuation methodology are unobservable and significant to the fair value measurement.
32 88
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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. Leases
The City is a lessor and lessee for leases as detailed in notes 4 and 7. The City recognizes a lease receivable, a deferred inflow of resources, and a lease payable in the financial statements.
At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received and paid during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received and the lease payable is reduced by the principal portion of lease payments made. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts and payments to present value, lease term and lease receipts.
The City uses the estimated cost of capital rate as the discount rate for leases. The lease term includes the non-cancellable period of the lease.
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
g. Subscription-Based Information (IT) Arrangements
The City is a participant in subscription-based IT arrangements as detailed in note 7. The City recognizes a subscription-based IT payable and right to use IT assets in the financial statements. At the commencement of the arrangement, the City initially measures the payable at the present value of payments expected to be paid during the arrangement term. Subsequently, the payable is reduced by the principal portion of payments made.
The right to use assets are initially measured at the initial amount of the subscription- based IT payable. Subsequently, the right to use assets are amortized over the life of the arrangement term.
h. 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 33 89
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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
Right-to-use assets Life of lease
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 two years.
See the accompanying Required Supplementary Information section for additional information.
i. 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, represent a consumption of net assets that applies to
34 90
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
future periods 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.
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, represent an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City of Aliso Viejo has three types of items. 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 second item is deferred pension and OPEB related items. The third item is deferred inflows related to leases.
j. Pensions
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.
GASB 68 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, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023
k. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense and information about the plan (OPEB Plan), have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023
35 91
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
l. 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.
m. 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
n. 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.
o. 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.
p. 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 36 92
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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.
q. Fund Balance and Net Position
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.
The general fund is the only fund that reports a positive unassigned fund balance amount.
In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
37 93
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
In the government-wide financial statements and fiduciary fund financial statements, net position is reported in three categories: net investment in capital assets, restricted net position and unrestricted. The restricted portion of net position represents net position restricted by parties outside of the City (such as creditors, grantors, contributors, and laws and regulations of over governments) and includes unspent proceeds of bonds issued to acquire or construct capital assets. The City’s other restricted net position is temporarily restricted (ultimately expendable assets). All other net position is considered unrestricted.
r. Prior Year Data
The information included in the accompanying financial statements for the prior year has been presented for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Certain minor reclassifications of prior year data have been made in order to enhance their comparability with current year figures.
Note 2: Cash and Investments
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2024, consists of the following:
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.
Statement of Net Position:
Cash and investments 48,296,183 $
Statement of Fiduciary Net Position:
Cash and investments with fiscal agent 3,236,274
Total cash and investments 51,532,457 $
Cash on hand 2,160 $
Deposits with financial institutions 8,389,878
Investments 43,140,419
Total cash and investments 51,532,457 $
38 94
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 2: Cash and Investments (Continued)
* 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.
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:
Authorized by Maximum Maximum
Investment Types Authorized Investment Maximum Percentage of Investment in by State Law Policy Maturity Portfolio One Issuer*
U.S. Treasury Obligations Yes 5 years 100% None
U.S. Agency Securities Yes 5 years 60% 35% per agency
Supernational Securities Yes 5 years 20% 10% per issuer Banker's Acceptances Yes 180 days 20% 5% per issuer
Commercial Paper Yes 270 days 20% 5%
Certificates of Deposit Yes 5 years 30% 5%
Negotiable Certificates of Deposit Yes 5 years 30% 250,000 Repurchase Agreements Yes 92 days 20% 20%
Medium-Term Notes Yes 5 years 30% 5%
Money Market Mutual Funds Yes None 10% 10% per fund
Local Agency Investment Fund Yes None 100% 75,000,000
Maximum Maximum
Investment Types Authority Maximum Percentage of Investment in by State Law Maturity Portfolio One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Certificates of Deposit None None
Money Market Funds N/A None None
Investment Agreements None None None
Defeasance Obligations None None None
Municipal Obligations None None None
Local Agency Investment Fund None None None
39 95
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 2: Cash and Investments (Continued)
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:
* Exempt from rating
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:
Investment Type Total
12 Months or
Less
13 to 24
Months
25 to 60
Months
Negotiable Certificates of Deposit 3,535,090 $ 1,910,145 1,624,945 - Federal Agency Securities 4,443,665 231,195 4,212,470 - U.S. Treasury Securities 24,791,436 9,764,965 11,853,191 3,173,280 Medium-Term Corporate Notes 1,484,595 1,484,595 - - State Investment Pool (LAIF) 7,349,369 7,349,369 - - U.S. Treasury Money Market 1,536,264 1,536,264 - - Total 43,140,419 $ 22,276,533 17,690,606 3,173,280 Remaining Maturity
Investment Type Total
Minimum
Legal Rating AAA AA A Not Rated
Negotiable Certificates of Deposit 3,535,090 $ N/A - - - 3,535,090 Federal Agency Securities 4,443,665 N/A - 4,443,665 - - U.S. Treasury Securities* 24,791,436 N/A - - - - Medium-Term Corporate Notes 1,484,595 A - 1,484,595 - - State Investment Pool (LAIF) 7,349,369 N/A - - - 7,349,369 U.S. Treasury Money Market 1,536,264 AAA 1,536,264 - - - Total 43,140,419 $ 1,536,264 5,928,260 - 10,884,459 Ratings as of Year End
Issuer Investment Type
Reported
amount
Percentage
of portfolio
Federal Home Loan Bank Federal Agency Securities 1,875,220$ 4% Federal Farm Credit Banks Funding
Corporation
Federal Agency Securities 1,211,385 3%
40 96
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 2: Cash and Investments (Continued)
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 fair 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.
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 16429 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.
41 97
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 2: Cash and Investments (Continued)
The City has the following recurring fair value measurements as of June 30, 2024:
Note 3: Loans Receivable
Aliso Senior Apartments
The City executed a promissory note with a developer to assist in the development of 200 affordable rental units. The entire unpaid principal amount and accrued interest is due 55 years from the date of completion. Prepayment of the note will have no effect on the application of the agreement. As of June 30, 2024, the total outstanding principal balance was $6,670,000. An allowance of $6,670,000 has been recorded to reflect the amount of the note as not expected to be collected.
Note 4: Lease Receivable
City Hall Space - Suite 280
On August 1, 2021, the City entered into a 23-month lease as Lessor for the use of City Hall Space - Suite 280. On June 22, 2023, the City extended the lease for an additional 24-months.
An initial lease receivable was recorded in the amount of $194,481. The lessee is required to make monthly fixed payments of $8,296. The lease has an interest rate of 2.47%. The building’s estimated useful life was 22 months as of the contract commencement. At June 30, 2024, the City has total outstanding lease receivables of $98,238 and related deferred inflows of resources of $105,074. The City recognized lease revenue of $89,407 during the fiscal year.
City Hall Space - Suite 201
On May 1, 2024, Aliso Viejo, CA entered into a 26-month lease as Lessor for the use of Suite 201. An initial lease receivable was recorded in the amount of $125,951. As of June 30, 2024, the value of the lease receivable is $116,259 and the value of the short-term lease receivable is $57,242. The lessee is required to make monthly fixed payments of $5,000. The lease has an interest rate of 3.0590%. The building’s estimated useful life was 0 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2024 was $120,945, and Aliso Viejo, CA recognized lease revenue of $5,006 during the fiscal year.
The lessee has 1 extension option for 24 months.
Total Level 1 Level 2 Level 3
Negotiable Certificates of Deposit 3,535,090 $ - 3,535,090 - Federal Agency Securities 4,443,665 - 4,443,665 - U.S. Treasury Securities 24,791,436 - 24,791,436 - Medium-Term Corporate Notes 1,484,595 - 1,484,595 - Total investments by fair value level 34,254,786 - 34,254,786 - Investments not subject to fair value:
State Investment Pool 7,349,369
U.S. Treasury Money Market 1,536,264
Total 43,140,419 $
Fair Value Measurement Using
42 98
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 5: Interfund Receivables, Payables and Transfers
Due To/From Other Funds
Interfund receivables and payables as of June 30, 2024, consisted of the following:
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. The amount due to the General Fund from the Aliso Viejo Center was to cover the operational profits for the fiscal year.
Transfers In and Out
Interfund transfers for the year ended June 30, 2024, consisted of the following:
Transfers into the General Fund included funds from net income from the Aliso Viejo Center, and reimbursement for staff hours from various grants such as, CDBG, Senior Mobility, SB1383, SolarAPP, LEAP, and Emergency Management Performance Grants. Transfers out of the General Fund to Other Governmental Funds includes capital improvement funding at City Hall, AV Ranch, Aquatic Center, storm drain maintenance, debt service for the 2019 COPS, and funds to the Aquatic Center to cover the center's operating gap. Other Governmental Funds transfers in and out are for street and City Hall capital improvement projects. Street related funding sources include SB1 and Measure M for street rehabilitation projects along Enterprise and Glenwood, and traffic signal synchronization along Aliso Creek. Other Grants transfers to other governmental funds include CIP projects at City Hall with federal funds.
Due From Other Funds
Aliso Viejo
Center
Other
Governmental
Funds
Custodial
Fund Total
General Fund 1,399,079 $ 200,411 7,300 1,606,790 Due To Other Funds
Transfers In General Fund
Aliso Viejo
Center
Other
Governmental
Funds Total
General Fund - $ 1,399,079 153,550 1,552,629 Other Governmental Funds 1,082,520 - 1,273,927 2,356,447 Total 1,082,520 $ 1,399,079 1,427,477 3,909,076 Transfers Out
43 99
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 6: Capital Assets
Capital asset activity for the year ended June 30, 2024, was as follows:
*Other infrastructure consisted of sidewalks, curbs and gutters, medians, traffic signals, street signs, storm drains, and park equipment.
Depreciation expense by function for the fiscal year ending June 30, 2024 is as follows:
Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:
Land $ 14,315,978 - - 14,315,978 Infrastructure - streets 53,871,430 - - 53,871,430 Total capital assets, not
being depreciated 68,187,408 - - 68,187,408 Capital assets, being depreciated:
Buildings 41,402,727 247,901 (5,611) 41,645,017 Improvements 1,234,722 228,693 - 1,463,415 Equipment 1,179,669 3,848 (4,205) 1,179,312 Furniture 329,710 14,170 - 343,880 Infrastructure - other* 26,136,674 - - 26,136,674 Right-to-use lease assets 23,131 39,681 (23,131) 39,681 Right-to-use subscription assets 691,023 85,819 (12,567) 764,275 Total capital assets, being depreciated 70,997,656 620,112 (45,514) 71,572,254 Accumulated depreciation/amortization:
Buildings (5,366,262) (555,432) 5,611 (5,916,083) Improvements (439,410) (125,000) - (564,410) Equipment (896,726) (113,333) 4,205 (1,005,854) Furniture (188,640) (57,758) - (246,398) Infrastructure - other* (19,456,232) (479,335) - (19,935,567) Right-to-use lease assets (16,775) (7,017) 23,131 (661) Right-to-use subscription assets (115,966) (133,635) 12,567 (237,034) Total accumulated depreciation/amortization (26,480,011) (1,471,510) 45,514 (27,906,007) Total capital assets, being depreciated, net 44,517,645 (851,398) - 43,666,247 Capital assets, net $112,705,053 (851,398) - 111,853,655 General government 844,224 $
Community development 84,976
Public safety 20,574
Public works 521,736
Total 1,471,510 $
44 100
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 7: Non-current Liabilities
Compensated Absences
The City’s policies relating to employee leave benefits are described in Note 1. This liability will be paid in future years from future resources primarily from the General Fund.
Changes in compensated absences for the fiscal year ended June 30, 2024, were as follows:
Changes in non-current liabilities for the fiscal year ended June 30, 2024, were as follows:
Bonds Payable – Direct Placement
On July 31, 2019, the City issued the 2019 Certificates of Participation (COP) in the amount of $12,250,000 in order to finance a portion of the construction of improvements to the Aliso Viejo Ranch and pay delivery costs incurred in connection with the execution, delivery and sale of the Certificates. The 2019 COP mature annually on November 1 through 2039 and bear interest ranging from 2.0% to 4.0%. In the event of default, the City waives all rights to any rentals received by the trustee through re-letting of the lease agreement. The City agrees to pay any and all costs, loss, or damage, howsoever occurring, as a result of any re- entry or re-letting. The annual debt service requirements for the 2019 COPs outstanding at June 30, 2024 are as follows:
Balance Balance
Amount Due
Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Compensated absences 220,735$ 321,559 (284,859) 257,435 112,666 Balance Balance
Amount Due
Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Bonds payable 11,545,000 $ - (250,000) 11,295,000 260,000 Unamortized premium 871,257 - (32,269) 838,988 32,269 Lease liability 5,823 39,681 (7,129) 38,375 7,408 Subscription liability 399,551 85,819 (186,942) 298,428 76,699 Total 12,821,631 $ 125,500 (476,340) 12,470,791 376,376 45 101
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 7: Non-current Liabilities (Continued)
Lease Liability
On May 7, 2024, the City entered into a 60-month lease as Lessee for the use of Ricoh- Copiers 2024. An initial lease liability was recorded in the amount of $39,681. As of June 30, 2024, the value of the lease liability is $38,375. The City is required to make monthly fixed payments of $694. The lease has a discount rate of 2.6360%. The Equipment estimated useful life was sixty months as of the contract commencement. The value of the right to use asset as of June 30, 2024 is $39,681 with accumulated amortization of $661.
Estimated future debt service requirements are as follows:
Subscription-Based Information Technology Arrangements
On November 09, 2023, the City entered into 2 subscription-based IT arrangements for various software applications and was required to make one-time fixed payments. As of June 30, 2024, the value of the existing lease liability is $298,428. The value of the right to use asset as of June 30, 2024 is $764,276 with accumulated amortization of $237,034.
Estimated future debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2025 260,000 $ 395,750 655,750
2026 270,000 385,350 655,350
2027 280,000 374,550 654,550
2028 295,000 363,350 658,350
2029 305,000 351,550 656,550
2030 - 2034 1,720,000 1,564,150 3,284,150
2035 - 2039 2,090,000 1,192,150 3,282,150
2040 - 2044 2,520,000 769,550 3,289,550
2045 - 2049 2,920,000 363,300 3,283,300
2050 635,000 19,050 654,050
Total 11,295,000 $ 5,778,750 17,073,750
Year Ending June 30, Principal Interest Total
2025 7,408 $ 922 8,330
2026 7,605 725 8,330
2027 7,808 522 8,330
2028 8,017 314 8,331
2029 7,537 100 7,637
Total 38,375 $ 2,583 40,958
Year Ending June 30, Principal Interest Total
2025 76,698 $ 6,519 83,217
2026 78,374 4,843 83,217
2027 80,086 3,131 83,217
2028 63,270 1,382 64,652
Total 298,428 $ 15,875 314,303
46 102
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 8: Debt Without Government Commitment Community Facilities District No. 2005-01
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, 2023 is $27,460,000.
The City refinanced the Bonds with the issuance of the 2023 special tax bonds.
In December 2023, the City issued $23,430,000 in Special Refunding Bonds for Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo). Interest payments commenced on March 1, 2024, and are paid semiannually thereafter on September 1 and March 1 of each year. Principal payments commence on September 1, 2024, and are paid annually in amounts ranging from $1,395,000 to $2,440,000 until September 1, 2038. The bonds were issued to refinance the outstanding 2007 Special Tax Bonds and the 2014 Special Tax Refunding Bonds and cause early redemption thereof on December 5, 2023. The principal outstanding at June 30, 2024 is $23,430,000.
Note 9: 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 or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. 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 generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in two rate plans (both miscellaneous). 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’ 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.
47 103
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: 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, 2024 are summarized as follows:
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, 2024 were $395,636.
The actual employer payments made to CalPERS by the City during the measurement period ended June 30, 2023 was $370,493.
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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is 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% to 2.418% 1.0% - 2.5% Required employer contribution rates 11.84% 7.68%
48 104
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: Pension Plan (Continued)
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
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 2.30% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality using 80% of Scale MP-2020 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 November 2021 that can be found on the CalPERS website.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
All other actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period from 2001 to 2019, 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. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected rates of return by asset class are as follows:
49 105
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: Pension Plan (Continued)
The expected real rates of return by asset class are as follows:
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.
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.
Asset Class1
Assumed
Asset
Allocation
Real Return
Years 1 - 101,2
Global Equity - Cap-weighted 30% 4.54%
Global Equity - Non-Cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study. 50 106
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: Pension Plan (Continued)
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, 2023 and 2024 measurement dates was as follows:
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 6.90 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 (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
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.
Plan Total
Pension
Liability
Plan Fiduciary
Net Position
Plan Net
Pension
Liability
Balance at 6/30/2022 (Valuation Date) 9,395,055$ 7,967,746 1,427,310 Balance at 6/30/2023 (Measurement Date) 10,152,988 8,467,820 1,685,168 Net changes during 2022 - 2023 757,933$ 500,074 257,858 Proportionate Share - June 30, 2023 0.03050%
Proportionate Share - June 30, 2024 0.03370%
Change - Increase (Decrease) 0.00320%
Discount Rate - 1%
(5.90%)
Current Discount
Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Plan's Net Pension Liability 3,058,317 $ 1,685,168 554,949 51 107
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: Pension Plan (Continued)
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, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (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.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $693,421.
As of June 30, 2024, 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 101,741 $ -
Differences between expected and
actual experience
Differences between projected and
actual investments earnings
Differences between employer's contributions
and proportionate share
Change in employer's proportion 346,401 -
Pension contributions made subsequent to
measurement date 395,636 -
Total 1,216,320 $ 58,112
86,088 13,354
272,844 -
13,610 44,758
52 108
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 9: Pension Plan (Continued)
Contributions subsequent to the measurement date of $400,441 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:
Note 10: Other Post-Employment Benefits (OPEB)
Plan Description
The City has established a Retiree Healthcare Plan (HC Plan) and participates in a single- employer defined benefit retiree healthcare plan. Plan assets are not administered through a trust and there are no assets accumulated in a GASB-compliant trust. 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 $151 per month in 2023 and $157 per month in 2024. A separate financial report is not prepared for the HC Plan.
Fiscal Year Ending
June 30:
Deferred
Outflows/(Inflows)
of Resources
2025 319,518$
2026 204,435
2027 230,790
2028 7,829
Thereafter -
53 109
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 10: Other Post-Employment Benefits (OPEB) (Continued)
Employees Covered
As of the June 30, 2023, actuarial valuation, the following current and former employees were covered by the benefit terms under the HC Plan:
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. For the fiscal year ended June 30, 2024, the City did not make any cash contributions. The City does not have any assets accumulated in a trust or other equivalent arrangement.
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:
Discount Rate
The discount rate used to measure the total OPEB liability was 3.65% 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 4.09% on June 30, 2022 and 3.65% on June 30, 2023.
Changes of Assumptions
The discount rate decreased from 4.09% to 3.65%.
Active employees 29
Inactive employees or beneficiaries currently receiving benefits 4 Inactive employees entitled to but not yet receiving benefits 5 Total 38
Actuarial Assumptions:
Discount Rate 3.65%
Inflation 2.50%
Salary Increases 2.75%
Mortality Rate 2021 CalPERS Mortality for Miscellaneous and Schools Employees
Healthcare Trend Rate 4.00%
54 110
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 10: Other Post-Employment Benefits (OPEB) (Continued)
Changes in the Total OPEB Liability
The changes in the total OPEB liability for the HC Plan are as follows:
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, 2023:
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, 2023:
Total OPEB
Liability
Balance at June 30, 2023
(Measurement Date June 30, 2022) 479,275$
Changes recognized for the measurement period:
Service Cost 97,699
Interest 21,428
Changes of assumptions 696
Plan experience differences (95,410)
Benefit payments (8,419)
Net Changes 15,994
Balance at June 30, 2024
(Measurement Date June 30, 2023) 495,269$
Current
1% Decrease Discount Rate 1% Increase
2.65% 3.65% 4.65%
Total OPEB Liability 578,290$ 495,269 427,910 1% Decrease
Current
Healthcare Cost
Trend Rates 1% Increase
Total OPEB Liability 406,178$ 495,269 612,110 55 111
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 10: Other Post-Employment Benefits (OPEB) (Continued)
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:
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $53,234. As of fiscal year ended June 30, 2024, the City reported deferred outflows of resources related to OPEB from the following sources:
The amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent
to measurement date 7,392$ -
Changes of assumptions 42,443 282,661
Differences between expected
and actual experience 4,623 267,289
Total 54,458 $ 549,950
Fiscal Year
Ended June 30
Deferred
Outflows/(Inflows)
of Resources
2025 (65,893) $
2026 (65,893)
2027 (58,305)
2028 (60,537)
2029 (7,236)
Thereafter (245,020)
Assumption changes
and experience
gains/losses
Expected average remaining service
lifetime (EARSL) (12.25 Years)
56 112
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 11: 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 124 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 Authority 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.
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 $100,000 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 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 $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.
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 $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
57 113
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 11: Risk Management (Continued)
first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2023-24 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.
B. 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 claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
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. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
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.
C. 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 2023-24.
58 114
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 12: 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 (Fire Authority). Since the creation of the Fire Authority, the Cities of Laguna Woods, Rancho Santa Margarita, Garden Grove and Santa Ana joined the Fire Authority as members eligible for fire protection services. The purpose of the Fire 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 Fire Authority’s governing board consists of one representative from each City and two from the County. The operations of the Fire 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, Garden Grove 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, Garden Grove and Santa Ana are considered “cash contract cities” and accordingly, make cash contributions based on the Fire 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 13: 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.
Note 14: Tax Abatements
On July 1, 2016, the City entered into a sales tax abatement agreement under the Economic Development Subsidy under Government Code Section 53083. On August 1, 2023, the City entered into another sales tax abatement agreement under the Economic Development Subsidy under Government Code Section 53083. Under both agreements the City abates Sales Tax Revenue, an amount equal to the sum of fifty percent (50%) of the Sales Tax Revenues attributable to annual taxable sales for the fiscal year which includes such Computation Quarter up to eight hundred thousand dollars ($800,000) as determined on a cumulative basis for such fiscal year, and seventy percent (70%) of the Sales Tax Revenues attributable to annual taxable sales for the fiscal year which includes such Computation Quarter over eight hundred thousand dollars ($800,000) as determined on a cumulative basis for such fiscal year ending June 30. For the fiscal year ended June 30, 2024, the City abated sales taxes totaling $874,718 and $1,395,973 for abatement agreements entered into on July 1, 2016, and August 1, 2023, respectively.
59 115
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 15: Reconciliation of Net Position
The net investment in capital assets as presented in the Statement of Net Position is calculated as follows:
Note 16: Stewardship, Compliance and Accountability
The following governmental funds reported a deficit fund balance at June 30, 2024:
Note 17: Commitments and Contingencies
Renewable Farms
On July 1, 2023, the City entered into a new agreement with Renewable Farms, a non-profit corporation to operate agricultural and special event venue operations. The agreement is for 7 years with two renewal terms of two (2) years each. Each two-year renewal will automatically go into effect unless City or Licensee gives at least 180 days written notice of its intent not to extend. If intent not to extend is timely given, then this Agreement will terminate at the end of the then current term. The City should collect all revenues with the operations of the Farm and pay 90% of gross revenues collected from the preceding month.
All costs incurred by the City in connection with the operation and maintenance of the Farm, including the actual cost of all utilities paid by the City for the Farm and all repair and maintenance work (including labor and materials) performed by the City or by any third party on behalf of the City pursuant to Section 10. 4 will be reimbursed by the Renewable Farms.
Note 18: Prior Period Adjustments
During fiscal year ended June 30, 2024, the City received a reimbursement, which represents a refund for overpayment of capital project expenditures incurred in the previous fiscal year.
This amount should have been recorded as revenue in the previous fiscal year ended June 30, 2023. The following schedule summarizes the net effects on beginning fund balance and net position as follows:
Capital assets, net 111,853,655 $
Capital related payables (61,772)
Less bonds payable (11,295,000)
Less premium on bonds payable (838,988)
Less lease liability (38,375)
Less subscription liability (298,428)
Net investment in capital assets 99,321,092 $
Government Funds:
Non-major Governmental Funds:
Federal Grants (14,062)$
60 116
CITY OF ALISO VIEJO
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2024
Note 18: Prior Period Adjustments (Continued)
Description
Governmental
Activities
Beginning net position, as
previously reported 138,346,742 $
To adjust revenue due to the refund
of overpayment for capital project 396,618
Beginning net position, as restated 138,743,360 $
Description
Capital Projects Fund
Street Improvements
Beginning fund balance, as
previously reported - $
To adjust revenue due to a refund
for overpayment on capital projects 396,618
Beginning net position, as restated 396,618 $
61 117
CITY OF ALISO VIEJO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year )
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 34,426,099$ 34,426,099 34,426,099 - 30,580,168 Resources (Inflows):
Taxes 19,022,316 21,562,316 21,634,913 72,597 19,063,829 Licenses and permits 700,000 700,000 785,623 85,623 876,079 Intergovernmental 47,500 47,500 156,612 109,112 65,302 Charges for services 1,752,000 1,752,000 1,797,696 45,696 1,831,466 Use of money and property 400,000 650,000 918,409 268,409 547,727 Fines and forfeitures 133,800 300,000 296,430 (3,570) 227,896 Other 436,200 775,297 906,111 130,814 651,639 Proceeds of leases and SBITA - - 125,500 125,500 - Transfers in 585,028 585,028 1,552,629 967,601 3,803,096 Total resources 23,076,844 26,372,141 28,173,923 1,801,782 27,067,034 Amounts available
for appropriations 57,502,943 60,798,240 62,600,022 1,801,782 57,647,202 Charges to Appropriations (Outflows):
General government:
City council 205,360 205,360 180,467 24,893 183,014 City manager 784,897 1,054,897 1,008,951 45,946 742,138 Human resources 190,959 219,959 189,435 30,524 184,193 City clerk 508,050 508,050 514,263 (6,213) 532,489 City attorney 487,550 487,550 486,548 1,002 770,165 Finance 852,560 852,560 776,072 76,488 816,049 Information technology 1,106,122 1,096,487 978,142 118,345 917,192 General government 910,123 893,760 925,622 (31,862) 741,898 Community development:
Community services 3,019,857 3,029,492 2,743,811 285,681 2,800,181 Planning 930,935 950,935 686,978 263,957 851,536 Building 782,520 782,520 827,552 (45,032) 769,901 Code enforcement 103,000 108,000 111,242 (3,242) 91,800 Economic development 742,000 2,242,000 2,292,370 (50,370) 717,707 Public works 1,879,531 1,874,531 1,724,588 149,943 1,664,541 Public safety 10,331,047 10,326,047 10,005,398 320,649 10,038,249 Debt service:
Principal payment - 9,200 177,043 (167,843) 76,404 Interest and fiscal charges - 200 7,262 (7,062) 2,073 Transfers out 1,415,090 1,427,053 1,082,520 344,533 1,321,573 Total charges to Appropriations 24,249,601 26,068,601 24,718,264 1,350,337 23,221,103 Fund Balances - Ending 33,253,342$ 34,729,639 37,881,758 3,152,119 34,426,099 Budget Amounts
See notes to required supplementary information
62 118
CITY OF ALISO VIEJO
BUDGETARY COMPARISON SCHEDULE
ALISO VIEJO CENTER
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 60,238$ 60,238 60,238 - - Resources (Inflows):
Charges for services 2,461,926 2,461,926 2,934,031 472,105 2,953,081 Other 494,909 494,909 727,282 232,373 596,284 Amounts Available
for Appropriations 3,017,073 3,017,073 3,721,551 704,478 3,549,365 Charges to Appropriations (Outflows):
Community services 2,371,807 2,371,807 2,322,472 49,335 2,567,314 Transfers out 585,028 585,028 1,399,079 (814,051) 921,813 Total Charges to Appropriations 2,956,835 2,956,835 3,721,551 (764,716) 3,489,127 Fund Balances - Ending 60,238$ 60,238 - (60,238) 60,238 Budget Amounts
See notes to required supplementary information
63 119
CITY OF ALISO VIEJO
REQUIRED SUPPLEMENTARY INFORMATION
MISCELLANEOUS PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
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% 6/30/2021 0.000885% 47,870 2,732,043 1.75% 99.43% 6/30/2022 0.012357% 1,427,310 2,740,729 52.08% 84.81% 6/30/2023 0.013500% 1,685,168 3,083,629 54.65% 83.40% 1Proportion of the 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. 64 120
CITY OF ALISO VIEJO
REQUIRED SUPPLEMENTARY INFORMATION
MISCELLANEOUS PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
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%
2021-22 318,599 (318,599) - 2,740,729 11.62%
2022-23 370,493 (370,493) - 3,083,629 12.01%
2023-24 395,636 (395,636) 3,347,616 11.82%
Notes to Schedule:
Changes in Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.
65 121
CITY OF ALISO VIEJO
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
Measurement Period 2017 2018 2019 2020 2021 2022 2023
Total OPEB Liability
Service Cost 100,385$ 90,249 97,449 57,648 61,087 94,853 97,699 Interest on the Total OPEB Liability 17,635 23,007 25,402 11,677 13,141 13,866 21,428 Actual and expected experience difference - - (308,246) - - - - Changes in assumptions (73,112) 26,106 (217,431) 9,295 35,505 (166,915) 696 Difference between expected and actual experience - - - - 6,123 - (95,410) Benefit payments (4,554) (11,378) (11,963) (5,572) (7,597) (7,505) (8,419) Net change in Total OPEB Liability 40,354 127,984 (414,789) 73,048 108,259 (65,701) 15,994 Total OPEB Liability - Beginning 610,120 650,474 778,458 363,669 436,717 544,976 479,275 Total OPEB Liability - Ending 650,474 $ 778,458 363,669 436,717 544,976 479,275 495,269 Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll 2,227,782$ 2,451,516 3,166,359 3,357,784 2,740,729 3,640,478 3,747,616 Net OPEB liability as a percentage of covered-employee payroll 29.20% 31.75% 11.49% 13.01% 19.88% 13.17% 13.22% 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 6/30/2023
Actuarial cost method Entry Age Normal Level % of Pay
Discount rate 3.65%
Inflation 2.50%
Healthcare cost trend rates 4.00%
Salary increases 2.75%
Retirement age 50 to 75
Mortality 2021 CalPERS Mortality for Miscellaneous and Schools Employees Mortality improvement MW Scale 2023
* Measurement date 6/30/2017 (fiscal year 2018) was the first year of implementation. Additional years will be presented as information becomes available. 66 122
CITY OF ALISO VIEJO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For The Year Ended June 30, 2024
Budgetary Comparison Information
Budget Policies
Annual budgets are legal adopted or amended for all governmental funds on a basis consistent with generally accepted accounting principles, except for the following funds for which annual budgets were not adopted or amended:
Special Revenue Fund:
AV Ranch Foundation Fund
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. The City Council’s approval is required for all budget amendments that result in a change to the fund balances.
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:
No expenditures exceeded appropriations for the year ended June 30, 2024.
67 123
CITY OF ALISO VIEJO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For The Year Ended June 30, 2024
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.
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CITY OF ALISO VIEJO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For The Year Ended June 30, 2024
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:
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 75 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:
The results of the most recent complete condition assessment (performed in fiscal year 2024) reported an average condition rating of 82 which is consistent with the 2022 average. Funding in the amount of $1,500,000 was utilized for the maintenance/rehabilitation to achieve the minimum PCI standard as of June 30, 2024. The estimated funding required to maintain the PCI standard was calculated at $2,100,000. The condition survey will be updated during the fiscal year ended June 30, 2026, for a two-year cycle.
Year Ended
June 30, Actual Estimated
2020 3,135,658 $ 4,308,590
2021 3,425,241 3,779,360
2022 2,641,341 3,432,500
2023 3,480,668 4,824,716
2024 2,531,055 3,684,900
Total 15,213,963 $ 20,030,066 $
2020 Mileage 2022 Mileage 2024 Mileage
86-100 Very good 40.8% 30.5 41.6% 31.2 50.5% 36.4 75-85 Good 36.3% 25.5 34.8% 23.7 23.4% 16.9
60-74 Fair 20.1% 14.1 17.6% 11.5 21.0% 15.2
41-59 Poor 2.1% 1.5 6.0% 4.0 5.1% 3.7
0-40 Very poor 0.7% 0.5 0.0% - 0.0% 0
100.0% 72.1 100.0% 70.4 100.0% 72.2
Conditions
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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.
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.
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.
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
This fund is used to account for state, local, and other grants received such as Prop 10, CalRecycle, and the urban Runoff Grant.
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OTHER GOVERNMENTAL FUNDS (Continued)
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.
Development Impact
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. This fund had no legally adopted budget for fiscal year ending June 30, 2024.
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.
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. This fund had no legally adopted budget for fiscal year ending June 30, 2024.
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.
Street Improvements
This fund is used to account for the City’s street 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. 71 127
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CITY OF ALISO VIEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
(With Comparative Data for Prior Year)
Public Safety
Gas Tax Measure M SB1 - RMRA Grants
Assets:
Cash and investments 74,058$ 1,028,489 1,704,062 897,536 286,678 Receivables:
Accounts - - - - - Accrued interest 2,010 27,855 46,295 24,564 7,773 Due from other governments - 133,122 155,415 233,183 - Total Assets 76,068$ 1,189,466 1,905,772 1,155,283 294,451 Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable -$ 229,786 2,744 - 5,933 Accrued liabilities - - - - - Due to other funds - - - - - Unearned revenue - - - - - Total Liabilities - 229,786 2,744 - 5,933 Deferred Inflows of Resources:
Unavailable revenues - grants - - - - - Fund Balances:
Restricted for:
Debt service - - - - - Community development projects - - - - - Capital projects 76,068 959,680 1,903,028 1,155,283 - Public safety - - - - 288,518 Unassigned - - - - - Total Fund Balances (Deficit) 76,068 959,680 1,903,028 1,155,283 288,518 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 76,068$ 1,189,466 1,905,772 1,155,283 294,451 Traffic
Congestion
Relief
Special Revenue Funds
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(137,320)
Integrated
Air Quality Waste Other Technology Development
Improvement Management Grants Grants Impact
Assets:
Cash and investments 1,441,375 208,244 44,085 368,841 1,377,778 Receivables:
Accounts - - - 19,669 - Accrued interest 39,123 5,709 - 10,008 - Due from other governments 18,950 - - - - Total Assets 1,499,448 213,953 44,085 398,518 1,377,778 Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable - 3,483 - 1,084 - Accrued liabilities - - - - - Due to other funds - - - - - Unearned revenue - 139,546 - - - Total Liabilities - 143,029 - 1,084 - Deferred Inflows of Resources:
Unavailable revenues - grants 18,950 - - - - Fund Balances:
Restricted for:
Debt service - - - - - Community development projects - 70,924 44,085 397,434 1,377,778 Capital projects 1,480,498 - - - - Public safety - - - - - Unassigned - - - - - Total Fund Balances (Deficit) 1,480,498 70,924 44,085 397,434 1,377,778 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,499,448 213,953 44,085 398,518 1,377,778 Special Revenue Funds
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CITY OF ALISO VIEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (Continued)
June 30, 2024
(With Comparative Data for Prior Year)
Federal Aquatic AV Ranch Capital
Grants Center Foundation Improvements Storm Water
Assets:
Cash and investments - 80,362 100 65,014 - Receivables:
Accounts - - - - - Accrued interest - - - - - Due from other governments 248,301 - - - 5,064 Total Assets 248,301 80,362 100 65,014 5,064 Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 51,783 58,483 - 65,014 1,141 Accrued liabilities - 21,879 - - - Due to other funds 196,488 - - - 3,923 Unearned revenue - - - - - Total Liabilities 248,271 80,362 - 65,014 5,064 Deferred Inflows of Resources:
Unavailable revenues - grants 14,092 - - - - Fund Balances:
Restricted for:
Debt service - - - - - Community development projects - - 100 - - Capital projects - - - - - Public safety - - - - - Unassigned (14,062) - - - - Total Fund Balances (Deficit) (14,062) - 100 - - Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 248,301 80,362 100 65,014 5,064 Special Revenue Funds Capital Projects Funds
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Capital
Projects Funds
Debt Service
Funds
Street Debt Service
Improvements Fund 2024 2023
Assets:
Cash and investments 908 546 7,578,076 5,207,534 Receivables:
Accounts - - 19,669 29,163 Accrued interest - - 163,337 - Due from other governments - - 794,035 820,495 Total Assets 908 546 8,555,117 6,057,192 Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 908 - 420,359 477,529 Accrued liabilities - - 21,879 17,654 Due to other funds - - 200,411 198,520 Unearned revenue - - 139,546 - Total Liabilities 908 - 782,195 693,703 Deferred Inflows of Resources:
Unavailable revenues - grants - - 33,042 255,962 Fund Balances:
Restricted for:
Debt service - 546 546 178 Community development projects - - 1,890,321 1,756,357 Capital projects - - 5,574,557 3,391,391 Public safety - - 288,518 171,447 Unassigned - - (14,062) (211,846) Total Fund Balances (Deficit) - 546 7,739,880 5,107,527 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 908 546 8,555,117 6,057,192 Totals
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CITY OF ALISO VIEJO
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Public Safety
Measure M SB1 - RMRA Grants
Revenues:
Intergovernmental -$ 1,424,565 975,467 1,337,992 186,159 Charges for services - - - - - Use of money and property 15,086 203,094 244,678 153,164 51,710 Other - - - - - Total Revenues 15,086 1,627,659 1,220,145 1,491,156 237,869 Expenditures:
Current:
General government - - - - - Community development - - - - - Public works - 1,292,686 27,482 - - Public safety - - - - 120,798 Debt service:
Principal payment - 17,028 - - - Interest expense - 1,537 - - - Total Expenditures - 1,311,251 27,482 - 120,798 Excess (deficiency) of revenues
over (under) expenditures 15,086 316,408 1,192,663 1,491,156 117,071 Other Financing Sources (Uses):
Transfers in - - - - - Transfers out - - (179,675) (987,228) - Total Other Financing Sources (Uses) - - (179,675) (987,228) - Net change in fund balances 15,086 316,408 1,012,988 503,928 117,071 Fund balances (deficit), beginning of year, as restated 60,982 643,272 890,040 651,355 171,447 Fund balances (deficit), end of year 76,068$ 959,680 1,903,028 1,155,283 288,518 Traffic
Congestion
Relief Gas Tax
Special Revenue Funds
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Integrated
Air Quality Waste Other Technology Development
Improvement Management Grants Grants Impact
Revenues:
Intergovernmental 51,207 13,043 350,676 81,921 - Charges for services - - - - - Use of money and property 283,549 20,392 - 70,196 - Other - - - - - Total Revenues 334,756 33,435 350,676 152,117 - Expenditures:
Current:
General government - 17,216 23,793 44,762 - Community development - - - - - Public works - 6,925 - - - Public safety - - - - - Debt service:
Principal payment - - - - - Interest expense - - - - - Total Expenditures - 24,141 23,793 44,762 - Excess (deficiency) of revenues
over (under) expenditures 334,756 9,294 326,883 107,355 - Other Financing Sources (Uses):
Transfers in - - - - - Transfers out - (26,770) (104,552) - - Total Other Financing Sources (Uses) - (26,770) (104,552) - - Net change in fund balances 334,756 (17,476) 222,331 107,355 - Fund balances (deficit), beginning of year, as restated 1,145,742 88,400 (178,246) 290,079 1,377,778 Fund balances (deficit), end of year 1,480,498 70,924 44,085 397,434 1,377,778 Special Revenue Funds
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CITY OF ALISO VIEJO
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Federal Aquatic AV Ranch Capital
Grants Center Foundation Improvements Storm Water
Revenues:
Intergovernmental 566,599 - - - - Charges for services - 939,260 - - - Use of money and property - - - - - Other - - - - - Total Revenues 566,599 939,260 - - - Expenditures:
Current:
General government 26,889 - - - - Community development 390,920 1,098,512 - - - Public works - - - 362,273 9,883 Public safety - - - - - Debt service:
Principal payment - - - - - Interest expense - - - - - Total Expenditures 417,809 1,098,512 - 362,273 9,883 Excess (deficiency) of revenues
over (under) expenditures 148,790 (159,252) - (362,273) (9,883) Other Financing Sources (Uses):
Transfers in - 159,252 - 362,273 9,883 Transfers out (129,252) - - - - Total Other Financing Sources (Uses) (129,252) 159,252 - 362,273 9,883 Net change in fund balances 19,538 - - - - Fund balances (deficit), beginning of year, as restated (33,600) - 100 - - Fund balances (deficit), end of year (14,062) - 100 - - Special Revenue Funds Capital Projects Funds
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Capital
Projects Funds
Debt Service
Funds
Street Debt Service
Improvements Fund 2024 2023
Revenues:
Intergovernmental - - 4,987,629 7,126,856 Charges for services - - 939,260 871,793 Use of money and property - 547 1,042,416 141,915 Other - - - 6,300 Total Revenues - 547 6,969,305 8,146,864 Expenditures:
Current:
General government - - 112,660 142,157 Community development - - 1,489,432 1,375,724 Public works 1,565,862 - 3,265,111 4,601,896 Public safety - - 120,798 123,926 Debt service:
Principal payment - 250,000 267,028 256,080 Interest expense - 405,974 407,511 417,608 Total Expenditures 1,565,862 655,974 5,662,540 6,917,391 Excess (deficiency) of revenues
over (under) expenditures (1,565,862) (655,427) 1,306,765 1,229,473 Other Financing Sources (Uses):
Transfers in 1,169,244 655,795 2,356,447 4,259,514 Transfers out - - (1,427,477) (5,819,224) Total Other Financing Sources (Uses) 1,169,244 655,795 928,970 (1,559,710) Net change in fund balances (396,618) 368 2,235,735 (330,237) Fund balances (deficit), beginning of year, as restated 396,618 178 5,504,145 5,437,764 Fund balances, end of year - 546 7,739,880 5,107,527 Totals
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BUDGETARY COMPARISON SCHEDULE
TRAFFIC CONGESTION RELIEF
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 60,982$ 60,982 60,982 - 76,109 Resources (Inflows):
Use of money and property 1,000 1,000 15,086 14,086 1,440 Amount Available
for Appropriations 61,982 61,982 76,068 14,086 77,549 Charges to Appropriations (Outflows):
Transfers out - - - - 16,567 Total Charges to Appropriations - - - - 16,567 Fund Balances - Ending 61,982$ 61,982 76,068 14,086 60,982 Budget Amounts
CITY OF ALISO VIEJO
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CITY OF ALISO VIEJO
BUDGETARY COMPARISON SCHEDULE
GAS TAX
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 643,272$ 643,272 643,272 - 732,740 Resources (Inflows):
Intergovernmental 1,483,500 1,483,500 1,424,565 (58,935) 1,317,425 Use of money and property 9,400 9,400 203,094 193,694 6,287 Amounts Available
for Appropriations 2,136,172 2,136,172 2,270,931 134,759 2,056,452 Charges to Appropriations (Outflows):
Public works 1,321,800 1,356,800 1,292,686 64,114 1,218,243 Debt Service:
Principal payment - - 17,028 (17,028) 16,080 Interest payment - - 1,537 (1,537) 1,857 Transfers out - - - - 177,000 Total Charges to Appropriations 1,321,800 1,356,800 1,311,251 45,549 1,413,180 Fund Balances - Ending 814,372$ 779,372 959,680 180,308 643,272 Budget Amounts
(With Comparative Data for Prior Year)
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BUDGETARY COMPARISON SCHEDULE
MEASURE M
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 890,040$ 890,040 890,040 - 1,314,964 Resources (Inflows):
Intergovernmental 1,029,512 1,029,512 975,467 (54,045) 953,764 Use of money and property 16,000 16,000 244,678 228,678 36,560 Amount Available
for Appropriations 1,935,552 1,935,552 2,110,185 174,633 2,305,288 Charges to Appropriations (Outflows):
Public works 37,578 37,578 27,482 10,096 20,524 Transfers out 1,045,000 1,045,000 179,675 865,325 1,394,724 Total Charges to Appropriations 1,082,578 1,082,578 207,157 875,421 1,415,248 Fund Balances - Ending 852,974$ 852,974 1,903,028 1,050,054 890,040 Budget Amounts
CITY OF ALISO VIEJO
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BUDGETARY COMPARISON SCHEDULE
SB1 - RMRA
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 651,355$ 651,355 651,355 - 825,560 Resources (Inflows):
Intergovernmental 1,281,695 1,281,695 1,337,992 56,297 1,157,118 Use of money and property 10,000 10,000 153,164 143,164 (8,224) Amount Available
for Appropriations 1,943,050 1,943,050 2,142,511 199,461 1,974,454 Charges to Appropriations (Outflows):
Transfers out 1,495,000 1,587,400 987,228 600,172 1,323,099 Total Charges to Appropriations 1,495,000 1,587,400 987,228 600,172 1,323,099 Fund Balances - Ending 448,050$ 355,650 1,155,283 799,633 651,355
CITY OF ALISO VIEJO
Budget Amounts
(With Comparative Data for Prior Year)
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BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY GRANTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - beginning 171,447$ 171,447 171,447 - 129,019 Resources (Inflows):
Intergovernmental 175,000 175,000 186,159 11,159 165,271 Use of money and property 1,700 1,700 51,710 50,010 1,083 Amount Available
for Appropriations 348,147 348,147 409,316 61,169 295,373 Charges to Appropriations (Outflows):
Public safety 175,043 175,043 120,798 54,245 123,926 Total Charges to Appropriations 175,043 175,043 120,798 54,245 123,926 Fund Balances - Ending 173,104$ 173,104 288,518 115,414 171,447 Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
85 141
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 1,145,742$ 1,145,742 1,145,742 - 1,041,367 Resources (Inflows):
Intergovernmental 60,000 60,000 51,207 (8,793) 100,418 Use of money and property 13,000 13,000 283,549 270,549 3,957 Amount Available
for Appropriations 1,218,742 1,218,742 1,480,498 261,756 1,145,742 Charges to Appropriations (Outflows):
Public safety 50,000 50,000 - 50,000 - Total Charges to Appropriations 50,000 50,000 - 50,000 - Fund Balances - Ending 1,168,742$ 1,168,742 1,480,498 311,756 1,145,742 Budget Amounts
CITY OF ALISO VIEJO
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
86 142
BUDGETARY COMPARISON SCHEDULE
INTEGRATED WASTE MANAGEMENT
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 88,400$ 88,400 88,400 - 83,592 Resources (Inflows):
Intergovernmental 13,000 13,000 13,043 43 12,968 Use of money and property 1,000 1,000 20,392 19,392 120 Amount Available
for Appropriations 102,400 102,400 121,835 19,435 96,680 Charges to Appropriations (Outflows):
General government - - 17,216 (17,216) - Public works 16,000 226,777 6,925 219,852 8,280 Transfers out - - 26,770 (26,770) 8,280 Total Charges to Appropriations 16,000 226,777 50,911 175,866 8,280 Fund Balances - Ending 86,400$ (124,377) 70,924 195,301 88,400 Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
87 143
CITY OF ALISO VIEJO
BUDGETARY COMPARISON SCHEDULE
OTHER GRANTS
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning (178,246)$ (178,246) (178,246) - (314,029) Resources (Inflows):
Intergovernmental - - 350,676 350,676 174,575 Amount Available
for Appropriations (178,246) (178,246) 172,430 350,676 (139,454) Charges to Appropriations (Outflows):
General government - 48,992 23,793 25,199 11,009 Transfers out 1 1 104,552 (104,551) 27,783 Total Charges to Appropriations 1 48,993 128,345 (79,352) 38,792 Fund Balances (Deficit) - Ending (178,247)$ (227,239) 44,085 271,324 (178,246) Budget Amounts
88 144
BUDGETARY COMPARISON SCHEDULE
TECHNOLOGY GRANTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 290,079$ 290,079 290,079 - 226,756 Resources (Inflows):
Intergovernmental 96,000 96,000 81,921 (14,079) 95,137 Use of money and property 2,900 2,900 70,196 67,296 (1,597) Amount Available
for Appropriations 388,979 388,979 442,196 53,217 320,296 Charges to Appropriations (Outflows):
General government 92,880 92,880 44,762 48,118 30,216 Public Safety - - - - 1 Total Charges to Appropriations 92,880 92,880 44,762 48,118 30,217 Fund Balances - Ending 296,099$ 296,099 397,434 101,335 290,079 Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
89 145
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning 1,377,778$ 1,377,778 1,377,778 - 1,410,622 Resources (Inflows):
Use of money and property - - - - 6,250.00 Transfers in - - - - 28,416.00 Amount Available
for Appropriations 1,377,778 1,377,778 1,377,778 - 1,445,288 Charges to Appropriations (Outflows):
General government - - - - 67,510 Total Charges to Appropriations - - - - 67,510 Fund Balances - Ending 1,377,778$ 1,377,778 1,377,778 - 1,377,778
CITY OF ALISO VIEJO
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Budget Amounts
90 146
BUDGETARY COMPARISON SCHEDULE
FEDERAL GRANTS
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning (33,600)$ (33,600) (33,600) - (85,717) Resources (Inflows):
Intergovernmental 877,535 877,535 566,599 (310,936) 3,150,180 Use of money and property - - - - 101,838 Transfer in - - - - 943.00 Amount Available
for Appropriations 843,935 843,935 532,999 (310,936) 3,167,244 Charges to Appropriations (Outflows):
General government 90,060 90,060 26,889 63,171 33,422 Community development 281,027 521,027 390,920 130,107 287,371 Transfer out 506,448 266,448 129,252 137,196 2,880,051 Total Charges to Appropriations 877,535 877,535 547,061 330,474 3,200,844 Fund Balances (Deficit) - Ending (33,600)$ (33,600) (14,062) 19,538 (33,600) Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
91 147
BUDGETARY COMPARISON SCHEDULE
AQUATIC CENTER
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning -$ - - - - Resources (Inflows):
Charges for services 998,000 998,000 939,260 (58,740) 871,793 Transfers in 183,840 183,840 159,252 (24,588) 216,560 Amounts Available
for Appropriations 1,181,840 1,181,840 1,098,512 (83,328) 1,088,353 Charges to Appropriations (Outflows):
Community services 1,181,840 1,181,840 1,098,512 83,328 1,088,353 Total Charges to Appropriations 1,181,840 1,181,840 1,098,512 83,328 1,088,353 Fund Balances - Ending -$ - - - - Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
92 148
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning -$ - - - - Resources (Inflows):
Transfers in 1,064,448 836,411 362,273 (474,138) 439,780 Amount Available
for Appropriations 1,064,448 836,411 362,273 (474,138) 439,780 Charges to Appropriations (Outflows):
Public works 1,064,448 836,411 362,273 474,138 439,780 Total Charges to Appropriations 1,064,448 836,411 362,273 474,138 439,780 Fund Balances - Ending -$ - - - - Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
93 149
BUDGETARY COMPARISON SCHEDULE
STORM WATER
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning -$ - - - - Resources (Inflows):
Transfers in 15,000 15,000 9,883 (5,117) 17,130 Amount Available
for Appropriations 15,000 15,000 9,883 (5,117) 17,130 Charges to Appropriations (Outflows):
Public works 15,000 15,000 9,883 5,117 17,130 Total Charges to Appropriations 15,000 15,000 9,883 5,117 17,130 Fund Balances - Ending -$ - - - - Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
94 150
BUDGETARY COMPARISON SCHEDULE
STREET IMPROVEMENTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning as restated -$ - 396,618 (396,618) - Resources (Inflows):
Transfer in 2,540,000 2,632,400 1,169,244 (1,463,156) 2,897,938 Amount Available
for Appropriations 2,540,000 2,632,400 1,565,862 (1,859,774) 2,897,938 Charges to Appropriations (Outflows):
Public works 2,540,000 2,632,400 1,565,862 1,066,538 2,897,938 Total Charges to Appropriations 2,540,000 2,632,400 1,565,862 1,066,538 2,897,938 Fund Balances - Ending -$ - - - - Budget Amounts
CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2024
95 151
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning 178$ 178 178 - (3,269) Resources (Inflows):
Use of money and property - - 547 547 451 Transfer in 658,250 658,250 655,795 (2,455) 658,747 Amount Available
for Appropriations 658,428 658,428 656,520 (1,908) 655,929 Charges to Appropriations (Outflows):
Principal 250,000 250,000 250,000 - 240,000 Interest 408,250 408,250 405,974 2,276 415,751 Total Charges to Appropriations 658,250 658,250 655,974 2,276 655,751 Fund Balances - Ending 178$ 178 546 368 178
CITY OF ALISO VIEJO
FOR THE YEAR ENDED JUNE 30, 2024
(With Comparative Data for Prior Year)
Budget Amounts
96 152
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 Annual Comprehensive Financial Report (ACFR) 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. 97 153
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98 154
Table 1
CITY OF ALISO VIEJO
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19
Governmental Activities
95,155,183$ 94,579,142 $ 95,000,131 $ 94,791,785 $ 95,555,817 $ Restricted
Community Development 482,242 279,027 (34,396) 203,708 334,190 Community Services - - - Public Works 12,018,986 11,840,453 8,299,848 7,637,647 8,536,428 Public Safety - 12,953 39,957 83,097 105,213 Debt Service - - - - - Unrestricted 21,354,275 23,233,017 26,937,175 29,312,285 30,211,693 Total governmental activities net position 129,010,686$ 129,944,592$ 130,242,715$ 132,028,522$ 134,743,341$ 2019-20 2020-21 2021-22 2022-23 2023-24
Governmental Activities
93,873,835$ 101,009,829$ 100,348,736$ 99,883,422$ 99,321,092$ Restricted
Community Development 2,891,135 1,579,149 1,721,020 1,756,357 1,890,321 Community Services - 19,500 - Public Works 122,819 3,498,519 3,990,740 3,258,360 5,343,323 Public Safety 4,121,343 125,356 129,019 171,447 288,518 Debt Service 4,319,695 - - - - Unrestricted 29,006,434 25,601,465 29,924,478 33,277,156 36,419,134 Total governmental activities net position 134,335,261$ 131,833,818$ 136,113,993$ 138,346,742$ 143,262,388$ Source: City Finance Department
Net Investment in Capital Assets
Net Investment in Capital Assets
Fiscal Years
Fiscal Years
$100,000
$105,000
$110,000
$115,000
$120,000
$125,000
$130,000
$135,000
$140,000
$145,000
Thousands
Fiscal Year
Total Net Position by Component
99 155
Table 2
CITY OF ALISO VIEJO
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenues
Program Revenues
Charges for Services 2,287,957$ 2,654,055$ 3,474,104$ 4,202,366$ 3,836,994$ 3,070,201$ 4,001,459$ 5,742,780$ 7,694,422$ 7,731,011$ Operating Contributions & Grants 2,682,605 2,770,178 3,672,804 2,805,856 5,171,638 4,342,486 4,852,523 6,945,042 6,932,234 5,427,985 Capital Contributions & Grants 99,283 18,875 17,831 - - 9,600 - - - - Taxes
Sales Tax 4,795,433 4,601,042 6,236,832 6,545,732 6,128,143 4,765,921 3,524,908 6,117,932 6,244,171 8,359,623 Property Tax 6,741,164 7,317,139 7,503,432 7,936,613 8,211,394 8,647,685 8,981,521 9,211,738 9,459,526 9,911,103 Franchise Fees 1,584,358 1,573,339 1,507,041 1,577,213 1,829,070 1,729,418 1,672,280 1,744,239 1,884,639 1,875,533 Transient Occupancy Tax 916,286 1,108,102 1,606,165 1,696,598 1,640,628 1,220,997 723,599 1,413,074 1,570,525 1,570,575 Motor Vehicle License Fees 20,470 20,256 22,627 26,483 24,936 40,659 36,704 57,547 53,145 64,044 Investment Income 273,901 328,416 324,781 402,978 790,051 1,053,024 377,709 (153,060) 656,151 1,207,332 Other 132,872 195,831 186,455 191,376 174,274 292,184 292,095 118,665 332,325 747,990 Total Revenues 19,534,329 20,587,233 24,552,072 25,385,215 27,807,128 25,172,175 24,462,798 31,197,957 34,827,138 36,895,196 Expenses
General Government 3,189,090 3,459,012 4,139,974 4,418,462 4,725,232 4,878,395 5,621,731 4,943,476 6,019,844 6,125,440 Community Services 2,221,206 2,982,463 3,433,106 3,771,964 3,878,633 3,433,830 1,754,782 5,264,667 2,817,896 2,730,921 Community Development 1,635,629 1,450,043 3,824,732 1,735,901 1,601,865 1,830,144 3,695,994 1,244,026 6,190,570 7,679,606 Public Works 3,360,251 4,038,360 4,484,898 4,444,500 5,924,079 5,631,039 6,016,332 5,473,152 7,161,695 5,310,206 Public Safety 7,427,581 7,723,449 8,371,239 8,831,639 8,962,500 9,312,287 9,480,235 9,601,888 10,224,474 10,147,491 Interest and Fiscal Charges - - - - - 494,561 395,167 390,573 387,579 382,504 Total Expense 17,833,757 19,653,327 24,253,949 23,202,466 25,092,309 25,580,256 26,964,241 26,917,782 32,802,058 32,376,168 Change in Net Position 1,700,572$ 933,906$ 298,123$ 2,182,749$ 2,714,819$ (408,080)$ (2,501,442)$ 4,280,175$ 2,025,080$ 4,519,028$ Source: City Finance Department
Fiscal Years
-$3,000
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Thousands
Fiscal Year
Changes in Net Position
100
156
Table 3
CITY OF ALISO VIEJO
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19
General Fund Balances
Nonspendable:
Prepaid 146,132 $ 187,681 $ 231,198 $ 206,488 $ 222,029 $ Assigned to:
Contingencies 4,229,500 4,351,653 4,681,192 4,700,000 2,963,795 Self Insurance/benefit obligations 738,900 724,000 1,200,000 1,200,000 900,000 Asset Replacement 9,440,700 9,850,000 10,044,448 10,000,000 9,700,000 Emergencies & Unanticipated Traffic Projects 1,500,000 1,500,000 1,500,000 1,500,000 15,000,000 800 MHZ Upgrade & Replacement 262,000 - - - Long Term Debt - - - - Unassigned: 5,616,888 7,374,518 9,509,904 12,935,238 3,811,349 Total General Fund 21,934,120$ 23,987,852$ 27,166,742$ 30,541,726$ 32,597,173$ All other govenmental funds
Nonspendable:
Prepaid 4,272 $ 14,127 $ 25,041 $ - $ - $ Assigned to:
Emergencies & Unanticipated Traffic Projects - - - - Restricted for:
Community Development Projects 482,242 278,992 19,736 203,708 334,190 Community Services - - - - - Public Safety - - 39,957 83,097 105,213 Capital Projects 12,018,986 11,853,406 8,299,848 7,637,647 8,536,428 Aliso Viejo Center
Debt Service - - - - Unassigned: (19,027) (198,271) (79,173) - - Total All Other Governmental Funds 12,486,473$ 11,948,254$ 8,305,409$ 7,924,452$ 8,975,831$ 2019-20 2020-21 2021-22 2022-23 2023-24
General Fund Balances
Nonspendable:
Prepaid 236,326 $ 76,150 $ 81,267 $ 55,046 $ 18,987 $ Assigned to:
Contingencies 2,860,265 2,649,388 3,500,571 3,498,990 3,995,400 Self Insurance/benefit obligations 1,445,475 1,150,474 600,000 600,000 600,000 Asset Replacement 9,096,430 8,317,710 11,882,444 13,173,633 13,953,003 Emergencies & Unanticipated Traffic Projects 15,000,000 15,000,000 10,000,000 11,266,779 12,655,368 800 MHZ Upgrade & Replacement - - - - Unassigned: 4,332,263 (62,559) 4,515,886 5,831,651 6,659,000 Total General Fund 32,970,759$ 27,131,163$ 30,580,168$ 34,426,099$ 37,881,758$ All other govenmental funds
Nonspendable:
Prepaid - $ - $ - $ 8,479 $ 6,411 $ Assigned to:
Emergencies & Unanticipated Traffic Projects
Restricted for:
Community Development Projects 2,891,135 1,579,149 1,721,020 1,756,357 1,890,321 Community Services - 19,500 - Public Safety 122,819 125,356 129,019 171,447 288,518 Capital Projects 4,121,343 - 3,990,740 3,391,391 5,574,557 Aliso Viejo Center 51,759 -
Debt Service 4,319,695 3,498,519 - 178 546 Unassigned: - (38,333) (403,015) (211,846) (20,473) Total All Other Governmental Funds 11,454,992$ 5,184,191$ 5,437,764$ 5,167,765$ 7,739,880$ Source: City Finance Department
Fiscal Years
Fiscal Years
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fund Balances of Governmental Funds
General Fund Other Govt Funds
101
157
Table 4
CITY OF ALISO VIEJO
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenues
Taxes 14,064,937$ 14,629,530$ 16,884,140$ 17,777,707$ 17,704,139$ 16,270,976$ 14,823,926$ 18,420,699$ 19,063,829$ 21,634,913$ Licenses and Permits 676,218 694,054 664,202 957,209 706,764 719,720 976,781 714,168 876,079 785,623 Intergovernmental 2,189,004 2,617,535 2,585,675 2,963,077 4,218,802 4,208,995 3,987,463 6,674,078 7,192,158 5,144,240 Charges for Services 1,190,138 1,639,479 2,519,225 2,864,619 2,639,775 2,047,978 2,198,864 3,636,265 5,656,340 5,670,987 Use of Money and Property 288,325 358,917 359,023 524,729 1,152,130 1,258,109 1,068,212 867,839 689,647 1,960,825 Fines and Forfeitures 415,671 312,400 282,322 300,988 307,513 275,229 310,419 173,133 227,896 296,431 Developer Fees 521,859 30,500 536,182 - 715,000 9,600 585,000 - - - Contributions 42,894 - - - - - 100,000 50 6,300 - Other 145,283 325,612 387,838 421,734 333,252 423,194 253,836 494,407 1,247,920 1,633,393 Total Revenues 19,534,329 20,608,027 24,218,607 25,810,063 27,777,375 25,213,801 24,304,501 30,980,639 34,960,169 37,126,412 Expeditures
General Government 3,101,820 3,079,528 3,797,104 3,907,504 4,368,307 4,370,213 5,110,883 4,463,657 5,026,792 5,172,310 Community Development 3,821,432 4,485,482 7,267,554 5,479,501 5,504,012 5,177,202 5,381,558 7,654,266 9,176,591 10,473,707 Public Works 2,940,272 3,557,336 3,605,820 3,962,004 5,441,582 5,148,542 5,531,650 4,988,268 6,266,437 4,989,699 Public Safety 7,407,531 7,677,426 8,030,234 8,730,712 8,844,067 9,170,586 9,358,289 9,505,403 10,162,083 10,126,196 Capital Outlay 268,034 292,742 1,981,850 736,315 1,723,775 10,006,820 10,375,082 23,131 92 - Debt Service
Principal - - - - - - 230,000 243,625 332,486 444,071 Interest - - - - - 494,561 427,436 422,842 419,756 414,773 Other Charges - - - - - - - - - - Total Expenditures 17,539,088 19,092,514 24,682,562 22,816,036 25,881,743 34,367,924 36,414,898 27,301,192 31,384,237 31,620,756 1,995,241 1,515,513 (463,955) 2,994,027 1,895,632 (9,154,123) (12,110,397) 3,679,447 3,575,932 5,505,656 Transfers In 1,209,782 2,040,859 3,517,923 2,548,103 3,708,774 13,309,198 14,573,345 6,235,970 8,062,610 3,911,666 Transfers Out (1,209,782) (2,040,859) (3,517,923) (2,548,103) (3,708,774) (13,309,198) (14,573,345) (6,235,970) (8,062,610) (3,911,666) Bonds Issued** - - 1,211,194 12,006,870 - 23,131 - - Lease Acquisition - - - - - - - - - 39,681 SBITA Acquisition 85,819
Total Other Financing - - - - 1,211,194 12,006,870 - 23,131 - 125,500 Sources (Uses)
Net Change in Fund Bal. 1,995,241$ 1,515,513$ (463,955)$ 2,994,027$ 3,106,826$ 2,852,747$ (12,110,397)$ 3,702,578$ 3,575,932$ 5,631,156$
0.00% 0.00% 0.00% 0.00% 0.00% 2.03% 2.52% 2.44% 2.41% 2.73% Source: City Finance Department
**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 Excess of Revenues over
Expeditures
Fiscal Years
Other Financing Sources
(Uses)
Debt Service as a % of
Noncapital Expenditures
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Thousands
Fiscal Year
Changes in Fund Balance
Revenues Expeditures Other Financing
102
158
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 2014-15 3,101,820 3,821,432 2,940,272 7,407,531 268,034 - 17,539,088 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 2021-22 4,463,657 7,654,266 4,988,268 9,505,403 23,131 666,467 27,301,192 2022-23 5,026,792 9,176,591 6,266,437 10,162,083 92 752,242 31,384,237 2023-24 5,172,310 10,473,707 4,989,699 10,126,196 - 858,844 31,620,756 **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
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Thousands
Fiscal Year
Total General Government Expenditures
General Government Community Development Public Works Public Safety Capital Outlay Debt Service *
103
159
Table 6
CITY OF ALISO VIEJO
GENERAL GOVERNMENT - REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Licenses Inter- Charges for Fines & Use of Money Other Year Taxes & Permits Governmental Services Forfeitures & Property Revenue Total 2014-15 14,064,937 676,218 2,189,004 1,190,138 415,671 288,325 710,036 19,534,329 2015-16 14,629,530 694,054 2,617,535 1,639,479 312,400 358,917 356,112 20,608,027 2016-17 16,884,140 664,202 2,585,675 2,519,225 282,322 359,023 924,020 24,218,607 2017-18 17,777,707 957,209 2,963,077 2,864,619 300,988 524,729 421,734 25,810,063 2018-19 17,704,139 706,763 4,218,802 2,639,775 307,513 1,152,130 1,048,252 27,777,374 2019-20 16,270,976 719,720 4,208,995 2,047,978 275,229 1,258,109 432,794 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 2021-22 18,420,699 714,168 6,674,078 3,636,265 173,133 867,839 494,457 30,980,639 2022-23 19,063,829 876,079 7,192,158 5,656,341 227,896 689,647 1,254,220 34,960,170 2023-24 21,634,913 785,623 5,144,241 5,670,987 296,430 1,960,825 1,633,393 37,126,412 ** 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
$40,000
Thousands
Fiscal Year
Total General Government Revenues
Other Revenue
Use of Money & Property
Fines & Forfeitures
Charges for Services
Inter- Governmental
Licenses & Permits
Taxes
104
160
Table 7
CITY OF ALISO VIEJO
GENERAL GOVERNMENT - TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal
Year Total
2014-15 4,795,433 6,741,164 1,584,358 916,286 27,696 14,064,937 2015-16 4,601,042 7,317,139 1,573,339 1,108,102 29,908 14,629,530 2016-17 6,236,832 7,503,432 1,507,041 1,606,165 30,670 16,884,140 2017-18 6,545,732 7,936,613 1,577,213 1,696,598 21,551 17,777,707 2018-19 6,128,143 8,211,394 1,829,070 1,640,628 38,167 17,847,402 2019-20 4,765,921 8,647,685 1,729,418 1,220,997 38,127 16,402,148 2020-21 3,524,908 8,981,521 1,672,280 723,599 41,577 14,943,885 2021-22 6,117,932 9,211,738 1,636,741 1,413,074 41,215 18,420,699 2022-23 6,244,171 9,459,526 1,741,999 1,570,524 47,608 19,063,828 2023-24 8,359,623 9,911,103 1,793,611 1,570,575 - 21,634,914 Source: City Finance Department
Sales Taxes Property Taxes Franchise Taxes
Transient
Occupancy Taxes Other Taxes
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
Tax Source
Total General Government Tax Revenues by Source
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
105
161
Table 8
CITY OF ALISO VIEJO
TAXABLE SALES TAX PRODUCERS BY CATEGORY (IN THOUSANDS)
LAST TEN CALENDAR YEARS
ADJUSTED FOR ECONOMIC DATA
2014 2015 2016 2017 2018
Food Stores 20,207$ 21,587$ 22,672$ 22,453$ 22,417$ Eating and Drinking Places 63,497 66,766 72,600 69,479 69,041 Auto Dealers and Supplies 5,514 6,054 6,033 5,444 5,372 Service Stations 67,240 60,348 55,131 57,190 65,193 Other Retail Stores 157,900 171,625 179,247 163,600 162,951 All Other Outlets 96,959 91,266 184,709 234,637 183,949 Total 411,317$ 417,646$ 520,392$ 552,803$ 508,923$ 2019 2020 2021 2022 2023
Food Stores 21,288$ 23,954$ 22,567$ 23,046$ 23,494$ Eating and Drinking Places 69,391 57,067 69,742 74,519 81,221 Auto Dealers and Supplies 6,470 5,260 5,245 7,487 18,386 Service Stations 64,494 44,813 71,167 76,402 67,758 Other Retail Stores 128,679 102,161 123,655 115,572 111,083 All Other Outlets 153,205 121,642 156,049 326,821 452,232 Total 443,527$ 354,897$ 448,425$ 623,847$ 754,174$ 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 $800
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Thousands
Fiscal Year
Sales Tax Producers by Category
Food Stores Eating and Drinking Places
Auto Dealers and Supplies Service Stations
Other Retail Stores All Other Outlets
106
162
Table 9
CITY OF ALISO VIEJO
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Amount Amount
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 8,585,800 8,549,014 99.57% 28,004 8,577,018 99.90% 2021-22 8,820,915 8,733,020 99.00% 28,433 8,761,453 99.33% 2022-23 9,265,181 9,187,626 99.16% 25,491 9,213,118 99.44% 2023-24 9,596,445 9,524,147 99.25% 28,563 9,552,709 99.54% 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.
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.
Taxes Levied for the
Fiscal Year1
Percent of
Levy
Collections in
Subsequent Years 2
Percent of
Levy
Fiscal
Year
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
Property Tax Levies and Collections
Taxes Levied Total Collections
107
163
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 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 11,227,375,357 335,321,001 - 504,713,951 11,057,982,407 3.28% 0.02168 2021-22 11,546,139,848 349,456,510 - 537,926,777 11,357,669,581 2.71% 0.02167 2022-23 12,018,958,043 382,216,615 548,219,355 11,852,955,303 4.36% 0.02168 2023-24 12,515,584,998 401,890,511 576,563,521 12,340,911,988 4.12% 0.02173 Source: The HDL Companies; County of Orange Auditor-Controller $8,000
$8,500
$9,000
$9,500
$10,000
$10,500
$11,000
$11,500
$12,000
$12,500
$13,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Millions
Fiscal Year
Net Taxable Property Value
108
164
Table 11
CITY OF ALISO VIEJO
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Basic Levy(1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Capistrano Union 0.00900 0.00845 0.00843 0.00800 0.00786 0.00745 0.00756 0.00727 0.00691 0.00633 Laguna Beach Unified 0.01461 0.01396 0.01371 0.01287 0.01285 0.01266 0.01012 0.01018 0.00971 0.00883 Saddleback Valley Unified 0.00350 0.03008 0.02688 0.02365 0.02392 0.02295 0.02336 0.02200 0.02227 0.02037 Moulton Niguel Water District 0.08600 0.09041 0.00815 - - - - - - - Metropolitan Water District 0.02806 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Total Direct & Overlapping Tax Rates2 1.14117 1.14640 1.06067 1.04802 1.04813 1.04656 1.04454 1.04295 1.04239 1.03903 City's Share of 1% Levy per Prop 13(3) 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 0.02134 Total Direct Rate (4) 0.02165 0.02165 0.02165 0.02170 0.02163 0.02165 0.02165 0.02167 0.02168 0.02173 ²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
Source: The HDL Companies, Orange County Assessor
Fiscal Years
¹In 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.
³City'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. The ERAF portion of the City's Levy has been subtracted where known.
4Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency 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/Agency in the same proportions as general fund revenue. 109
165
Table 12
CITY OF ALISO VIEJO
PRINCIPAL PROPERTY TAXPAYERS
JUNE 30, 2024 AND 10 YEARS AGO
Taxpayer Primary Use
Microvention Commercial 244,812,084$ 1.98% St Moritz Property Owner LLC Residential 223,103,814 1.81% Barcelona LLC Residential 196,331,354 1.59% Vantis Multifamily LLC Residential 164,346,271 1.33% City Lights-Aliso Viejo LLC Residential 131,245,382 1.06% Summit IV LLC Commercial 95,716,800 0.78% TGA 26600-26700 Aliso Viejo Parkway LLC Commerical 94,350,000 0.76% Sequoia Equities Alize Residential 93,466,865 0.76% PLC 3 LP Residential 91,426,304 0.74% 20 30 Enterprise JV LLC Commercial 90,401,352 0.73% Top Ten Totals 1,425,200,226$ 11.54% Taxpayer Primary Use
Sequoia Equities Residential 156,766,973$ 1.86% City Lights - Aliso Viejo LLC Residential 110,826,276 1.31% Moritz Associates LLC Residential 110,002,626 1.30% RREEF America Reit II Corporation Commercial 106,888,943 1.27% Barcelona, LLC Residential 94,826,930 1.12% Qlogic Corporation Commerical 83,602,608 0.99% Aliso Viejo RP-V1 LLC Commercial 65,489,950 0.78% Aliso - Holly Oaks Partners LP Residential 63,176,472 0.75% Summit Office Partners Holding Co LLC Commercial 59,172,428 0.70% Aventine Apartments LLC Residential 59,098,490 0.70% Top Ten Totals 909,851,696$ 10.78% Source: The HDL Companies
Orange County Assessor
2014-15
Percentage of Total
Assessed ValuationAssessed Valuation
2023-24
Percentage of Total
Assessed ValuationAssessed Valuation
110
166
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 Bonds Unamortized Lease Subscription Assessed Obligation Debt to Population Obligation Year Payable Premium Liability Liability Total Value Assessed Value Debt per Capita 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 12,250,000 10,706,653,293 0.114% 50,044 0.501% 244.78 2020-21 12,020,000 11,057,982,407 0.109% 49,813 0.470% 241.30 2021-22 11,785,000 11,357,669,581 0.104% 50,782 0.459% 232.07 2022-23 11,545,000 871,257 5,823 399,551 12,821,631 11,852,955,303 0.108% 50,766 0.460% 252.56 2023-24 11,295,000 838,988 38,375 298,428 12,470,792 12,340,911,988 0.101% 50,068 0.401% 249.08 Ratios to Assessed Valuation:
Total Overlapping Tax and Assessment Debt 0.19%
Total Direct Debt 0.10%
Combined Total Debt 0.47%
HDL Coren & Cone
Percentage of
Personal
Income
Net Direct General Obligation Debt
111
167
Table 14
CITY OF ALISO VIEJO
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2024
2023-24 Assessed Valuation 12,340,911,988$
OVERLAPPING TAX AND ASSESSMENT DEBT:
Total Debt
6/30/24 % Applicable (1)
City's Share of
Debt 6/30/24
Metropolitan Water District 18,210,000$ 0.319% 58,090$ Capistrano USD School Facilities Improvement District No 1 6,712,860 0.737% 49,474 Laguna Beach Unified School District, 9,940,000 1.616% 160,630 Saddleback Valley Unified School District 74,370,000 0.472% 351,026 City of Aliso Viejo Community Facilities Disctrict No. 2005-01 23,430,000 100.000% 23,430,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 24,049,220$
OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations 440,385,000$ 1.603% 7,059,372$ Orange County Board of Education General Fund Obligations 10,030,000 1.603% 160,781 Capistrano Unified School District Certificates of Participation 19,365,000 10.155% 1,966,516 Moulton-Niguel Water District Certificates of Participation 48,605,000 26.231% 12,749,578 TOTAL NET DIRECT OVERLAPPING GENERAL FUND DEBT 21,936,246$ TOTAL NET OVERLAPPING DEBT 45,985,466$
DIRECT GENERAL FUND DEBT:
City of Aliso Viejo3 11,295,000$ 100.000% 11,295,000$ Unamortized premium 838,988 100.000% 838,988 Lease Liability 38,375 100.000% 38,375 Subscription Liability 298,429 100.000% 298,429 TOTAL DIRECT DEBT 12,470,792$
NET COMBINED TOTAL DEBT 58,456,258$ (2)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortage revenue and non-bonded capital lease obligations.
Ratios to 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 0.19%
Total Direct Debt ($12,470,792) 0.10%
Combined Total Debt 0.47%
Source: HDL, California Municipal Statistics, Inc, City Finance Department (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district’s assessed value that is within the boundaries of the city divided by the district’s total taxable assessed value.
(3) On August 13, 2019 the City issued $12,250,000 of tax-exempt Certificates of Participation to provide financing for the construction of the Aliso Viejo Ranch.
112
168
Table 15
CITY OF ALISO VIEJO
LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19
Assessed Valuation 8,440,740,446$ 8,765,964,235$ 9,262,104,730$ 9,757,602,814$ 10,320,677,681$ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 2,110,185,112 2,191,491,059 2,315,526,183 2,439,400,704 2,580,169,420 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 316,527,767 328,723,659 347,328,927 365,910,106 387,025,413 Total Debt Applicable to Limit - - - - - Legal Debt Margin 316,527,767$ 328,723,659 $ 347,328,927 $ 365,910,106 $ 387,025,413 $ Total Net Debt Applicable to Limit as
Percentage of Debt Limit - - - - - 2019-20 2020-21 2021-22 2022-23 2023-24
Assessed Valuation 10,706,653,293$ 11,057,982,407$ 11,357,669,581$ 11,852,955,303$ 12,340,911,988$ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 2,676,663,323 2,764,495,602 2,839,417,395 2,963,238,826 3,085,227,997 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 401,499,498 414,674,340 425,912,609 444,485,824 462,784,200 Total Debt Applicable to Limit 12,250,000 12,020,000 11,785,000 11,545,000 11,295,000 Legal Debt Margin 389,249,498$ 402,654,340 $ 414,127,609 $ 432,940,824 $ 451,489,200 $ Total Net Debt Applicable to Limit as
Percentage of Debt Limit 3.1% 2.9% 2.8% 2.6% 2.4%
Note: The general laws of the State of California for muncipalities provide for a legal debt limit of 15% of gross 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.
Fiscal Year
Fiscal Year
Source: City Finance Department
Orange County Auditor-Controller
113
169
Table 16
CITY OF ALISO VIEJO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Population Total Income
Median
Age
% of Pop 25+
High School
Degree
% of Pop 25+
Bachelor's
Degree
2014 49,939 2,181,535,000 43,684 4.3% 35.8 95.2% 57.4% 2015 50,509 2,223,991,000 44,031 3.5% 36.1 95.4% 56.9% 2016 50,312 2,274,460,000 45,207 3.1% 36.6 96.4% 56.9% 2017 51,950 2,311,366,000 44,492 3.0% 36.5 96.8% 57.5% 2018 51,372 2,385,153,000 46,429 2.6% 36.6 96.1% 55.6% 2019 50,044 2,447,088,000 48,898 2.5% 36.8 95.9% 55.5% 2020 49,813 2,559,352,000 51,379 7.5% 37.8 96.4% 56.2% 2021 50,782 2,566,572,000 50,540 5.1% 37.4 96.2% 56.3% 2022 50,766 2,785,309,000 54,865 3.0% 37.4 96.2% 56.2% 2023 50,068 3,106,090,000 62,037 3.3% 37.9 96.4% 56.5% Source: California Department of Finance, California Employment Development Department, The HDL Companies, US Census Bureau Unemployment
Rate*
Calendar
Year
Per Capita
Income
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Aliso Viejo Demographic and Economic Statistics
Per Capita Income Population
114
170
Table 17
CITY OF ALISO VIEJO
PRINCIPAL EMPLOYERS
LAST TEN FISCAL YEARS
MicroVention, Inc 1700 6.03%
United Parcel Service 1200 4.26%
Glaukos Corporation 907 3.22%
Ambry Genetics Corporation 706 2.50%
Orange County Sheriff's Department 450 1.60%
RxSight, Inc 374 1.33%
Flour Corporation 350 1.24%
UST Global, Inc 349 1.24%
Quest Software, Inc 305 1.08%
NeoGenomics 300 1.06%
Total Top Employers 6,641 23.55% Total Employees in City 28,200
Fluor Corporation 1,400 7.57% Pacific Life Insurance 700 3.79% UPS 600 3.25%
Dell Software 600 3.25% Capistrano Unified School District 531 2.87% Qlogic 500 2.70% Clarient 450 2.43% Renaissance-Aliso Viejo 300 1.62% Microsemi 278 1.50% Metagenics 250 1.35% Total Top Employers 5,609 30.34% Total Employees in City 18,488
Source: Employment Development Department, Kosmont Companies, CoStar, Data Axle, ESRI, company websites and filings 2014
Employer Number of Employees Percent of Total Employment 2024
Employer Number of Employees Percent of Total Employment 115
171
Table 18
CITY OF ALISO VIEJO
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Public Safety:
Part I Crimes 308 395 440 438 488 460 415 424 479 563 Public Works:
Streets Resurfaced 53 38 29 1 57 1 103 47 30 1 Community Development
Building Permits Issued 2,093 2,455 2,129 2,225 1,711 1,754 1,755 2,105 2,525 1,747 Plan Checks Performed 219 275 205 184 197 234 309 686 783 829 Community Services***:
Recreation
Contract Classes - - - 145 452 999 283 934 976 639 Contract Class Participants - - - 443 1,559 2,239 1,599 4,352 5,137 4,613 Events
City Events 8 7 7 16 26 8 9 17 9 12 City Sponsored Events 6 6 7 26 27 5 2 8 16 21 Senior Programs
Senior Mobility Program Rides - 1,796 2,141 2,419 2,102 2,340 - 345 1,626 1,803 Finance
Accounts Payable
AP Line Items Entered 3,745 4,041 4,368 4,454 4,791 4,964 4,855 5,947 5,581 5,113 Invoices Processed 2,560 2,852 3,012 3,069 3,271 3,216 3,166 3,698 3,787 3,309 Payments Processed 2,148 2,220 2,257 2,284 2,474 2,330 2,338 2,699 2,611 2,207 Payroll
Payroll Checks Issued 547 622 627 635 748 834 912 1,069 1,134 1,208 ***The Community Services department was restructured in FY 2017-18 Source: City Public Works Department, Community
116
172
Table 19
CITY OF ALISO VIEJO
FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Government 1 9.0 10.0 10.0 10.0 10.0 11.3 13.5 14.0 13.5 13.5 Public Safety 2 0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.0 0.2 0.2 Public Works 0.0 1.0 1.0 1.0 2.0 3.0 3.0 3.0 4.0 4.0
Community Services 3 0.0 0.0 0.0 2.6 5.5 7.3 8.0 9.8 12.0 12.0 Community Development 7.4 7.4 7.4 5.0 5.0 6.0 5.5 5.5 5.3 5.0 Total 16.4 18.4 18.4 18.6 22.5 27.7 30.2 32.3 35.0 34.7 1 Attorney Services are contracted through Best, Best, & Krieger LLP and are not included. 2 Public Safety is provided under contract with the Orange County Sheriff's Department 3 Community Services Department was restructured in FY 17-18 Source: City Finance Department
117
173
Table 20
CITY OF ALISO VIEJO
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Government
City Hall 1 1 1 1 1 1 1 1 1 1 Public Works:
Streets (Miles) 73 73 73 73 73 73 73 73 73 73 Street Lights ** 1,410 1,410 1,410 1,410 1,411 1,407 1,407 1,407 1,407 1,407 Traffic Signals ** 47 47 47 47 47 48 48 48 48 48 Parks & Recreation:
Parks *** 2 2 2 2 2 2 2 2 2 2 Community Facilities 4 4 4 4 4 4 4 4 4 4 Community Development
Housing - - - - - - - 1 2 3 ** 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
Fiscal Year
118
174
Table 21
CITY OF ALISO VIEJO
SCHEDULE OF INSURANCE
JUNE 30, 2024
Type of Coverage Limits/Deductibles Insurer Policy period General and Automobile Liability:
General Liability, Automobile Liability, $50,000,000 combined single limit California Joint Powers 07/01/23 - 07/01/24 Bodily Injury, Property Damage, per occurrence Insurance Authority.
Personal Injury.
Pollution & Remediation Legal Liability:
Scheduled property, streets, storm $5,000,000 per member Self Insured Program/ 07/01/23 - 07/01/24 drains, approved underground tanks & $250,000 per occurrence deductible. California Joint Powers non-owned disposal sites. Insurance Authority.
Property:
All-Risk, including buildings, contents, $25,000,000 per occurrence Self Insured Program/ 07/01/23 - 07/01/24 garaged vehicles, contractor's equipment, $10,000 deductible per occurrence California Joint Powers fine arts, rental income and other $5,000 deductible for mechanical Insurance Authority miscellaneous extensions of coverage. breakdown; $2,500 deductible for vehicles Crime:
Crime Insurance Program
(Blanket Fidelity Bond)
Faithful Performance $1,000,000 limit per member, Alliant Insurance 07/01/23 - 07/01/24 deductible of $2,500 per occurrence Services, Inc.
Depositor's Forgery $1,000,000 limit per member, Alliant Insurance 07/01/23 - 07/01/24 deductible of $2,500 per occurrence Services, Inc.
Crime- Money & Securities $1,000,000 limit per member, Alliant Insurance 07/01/23 - 07/01/24 deductible of $2,500 per occurrence Services, Inc.
Computer Fraud $1,000,000 limit per member, Alliant Insurance 07/01/23 - 07/01/24 deductible of $2,500 per occurrence Services, Inc.
Worker's Compensation:
Work related injury/illness claims for California Statutory Benefits for Self Insured Program/ 07/01/23 - 07/01/24 temporary and permanent disability, and workers' compensation California Joint Powers Employer's Liability $10,000,000 per occurrence for Insurance Authority Employer's Liability
Special Events:
Tenants/Users for Property $1,000,000 per occurrence, Alliant Insurance 07/01/23 - 07/01/24 damage/bodily injury $1,000,000 aggregate per event. Services, Inc. $5,000 medical expense limit.
Source: City Finance Department
119
175
Table 22
CITY OF ALISO VIEJO
MISCELLANEOUS STATISTICAL INFORMATION
JUNE 30, 2024
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
Full -Time …………………………………………………………………………………………………29
Part-Time (FTEs) …………………………………………………………………………………………………6.0 Elected Officials 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 …………………………………………………………………………………………………3
Universities …………………………………………………………………………………………………1
*Source: State of California, Department of Finance
120
176
The Honorable Mayor and City Council
City of Aliso Viejo, California
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 (“City”) as of and for the year ended June 30, 2024, and have issued our report thereon dated November 21, 2024. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 20, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated in our letter to you dated July 17, 2024.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
We identified self-review threats to independence as a result of non-attest services provided. Those non-attest services included recording journal entries detected during the audit process and preparing the financial statements. To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate.
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Significant Risks Identified
We have identified the following significant risks:
Accounting for commitments related to the Renewable Farms License Agreement: We obtained Farm operation revenue and expenditure support and reviewed the City’s accounting for the transactions. We ensured the City has properly reflected the arrangements in the footnote disclosures.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements include:
Management’s estimate of transactions related to net pension and OPEB liabilities based on actuarial information.
We evaluated the key factors and assumptions used to develop the estimates and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of investment fair value in note 2 to the financial statements The disclosure of pensions in note 9 to the financial statements The disclosure of OPEB in note 10 to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
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Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no such misstatements noted as a result of the audit.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The City recorded a prior period adjustment for reimbursement received in the current fiscal year for expenditures incurred in the prior fiscal year. Revenue and a receivable should have been recorded in the prior year.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report.
No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management in a letter dated November 21, 2024.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Information Included in the Annual Comprehensive Financial Report
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and 179
considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Irvine, California
November 21, 2024
180
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
Independent Auditor’s Report
The Honorable Mayor and City Council
City of Aliso Viejo, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Aliso Viejo (the ‘City’), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 21,2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered The City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.
However, as described in the accompanying finding, we identified certain deficiency in internal control that we consider to be material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. We consider the deficienc y described below to be material weakness.
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(2024-001) Prior Period Adjustment
The City received a material payment from another government agency to reimburse the City for capital project costs incurred in the prior year. At June 30, 2023, the City should have recorded a receivable and revenue for this transaction. As a result, a prior period restatement was recorded for the year ended June 30, 2024.
Recommendation
The City should work towards improving communication with the City departments regarding capital projects that are reimbursed by other agencies.
The Public Works department should communicate funding and reimbursement agreements, whether formal or informal, to the Finance Department so they can properly record receivables from other governments in the correct fiscal year, which is also important information for budgeting purposes.
Management Response
Management agrees with the Auditors’ recommendation to improve communication between City departments regarding capital projects that are reimbursed by other agencies to ensure that receivables are recorded in the appropriate year. Finance staff has implemented additional procedures to properly document reimbursements at the time the capital project is awarded.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether The City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Management’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the management’s response to the finding identified in our engagement and described in the accompanying finding. Management’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
November 21, 2024
182
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Aliso Viejo, California
We have performed the procedures enumerated below on the City of Aliso Viejo, California (City) appropriations limit worksheets for compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2024. The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.
The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution and the League of California Cities publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2024. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical computations reflected in the City’s worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year limit and agreed it to worksheets prepared by the City and to information provided by the State Department of Finance.
Results: No exceptions were noted as a result of our procedures.
4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.
Results: No exceptions were noted as a result of our procedures.
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The Honorable Mayor and City Council
City of Aliso Viejo, California
Page Two
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the worksheets referred to above. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Management of the City of Aliso Viejo, California and is not intended to be, and should not be, used by anyone other than the specified party.
Irvine, California
November 21, 2024
184
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Aliso Viejo, California
We have performed the procedures enumerated below on the City of Aliso Viejo, California (City) Treasurer’s Monthly Cash Statement for the month ended June 30, 2024 for compliance with the provisions of the California Government Code and with the City’s investment policy dated September 7, 2022. The City’s management is responsible for the Treasurer’s Monthly Cash Statement for the month ended June 30, 2024.
The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of the California Government Code and with the City’s investment policy dated September 7, 2022. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained a copy of the City’s Treasurer’s Report for the month ended June 30, 2024 and reconciled individual investments/deposits to supporting documentation obtained from City staff. We also traced total funds reported on the Treasurer’s Report to the City’s General Ledger at June 30, 2024.
Results: No exceptions were noted as a result of our procedures.
2. We compared the investments listed on the City’s Treasurer’s Report for the month ended June 30, 2024 to the type of investments authorized by the City’s Investment Policy and Government Code Section 53601.
Results: No exceptions were noted as a result of our procedures.
3. We compared the market value of the investments listed on the Treasurer's Report for the month ended June 30, 2024 to the City's copies of investment statements.
Results: No exceptions were noted as a result of our procedures.
4. We read the City Treasurer's Report for the month ended June 30, 2024 to ascertain that it contains all the information/data required by Government Code Section 53646 and meets the timing requirements of Government Code Section 53646 as follows:
a. Was submitted within 45 days following the end of the quarter 185
The Honorable Mayor and City Council
City of Aliso Viejo, California
b. Included the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and monies held by the City
c. Included those funds under management of contracted parties (fiscal agents, trustee, deferred compensation, plan administrators, etc.)
d. Included market value (and source) as of the date of the report for all securities held by the City or under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund
e. Stated compliance of the portfolio to the investment policy of the City
f. Included a statement addressing the ability of the City to meet the pool's expenditure requirements for the next six months
g. Included the most recent statements from the Local Agency Investment Fund in lieu of the information required by (b) and (d) above, for City investments that have been placed in those pools
Results: No exceptions were noted as a result of our procedures, except for step 4a, the Treasurer’s report was approved by the Council on August 21, 2024 as per minutes of the meeting.
5. We compared the investments listed in the City Treasurer's Report for the month ended June 30, 2024 to the prohibited investments listed in the City's Investment Policy and Government Code Section 53601.6.
Results: No exceptions were noted as a result of our procedures.
6. We calculated the totals (cost basis) for the investments listed in the City Treasurer's Report for the month ended June 30, 2024 and compared those totals to the limitations imposed by the City's Investment Policy and Government Code Section 53601 for specified investment types
Results: No exceptions were noted as a result of our procedures.
7. We agreed individual investment maturity dates listed on the City Treasurer's Report for the month ended June 30, 2024 to the City's copies of the investment statements, to determine if they conformed to the maturity requirements of the City's Investment Policy and Government Code Section 53601.
Results: No exceptions were noted as a result of our procedures.
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The Honorable Mayor and City Council
City of Aliso Viejo, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the Treasurer’s Monthly Cash Statement dated June 30, 2024.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Management of the City of Aliso Viejo, California and is not intended to be, and should not be, used by anyone other than the specified party.
Irvine, California
November 21, 2024
187
City of Aliso Viejo
AGENDA ITEM
DATE: December 4, 2024
TO: Mayor and City Council
FROM: So Kim, Community Development Director
SUBJECT: CONDITIONAL USE PERMIT FOR AN OUTPATIENT MEDICAL USE AT 27141 ALISO CREEK ROAD (USE-2024-00009)
Recommended Action:
Adopt a Resolution of the City Council of the City of Aliso Viejo, California, approving a Conditional Use Permit to operate an outpatient medical use at 27141 Aliso Creek Road (USE-2024-00009).
Fiscal Impact:
None.
Background:
On October 15, 2024, SAA, an interior design and architectural firm, submitted a conditional use permit application (“CUP”) on behalf of the County of Orange to operate an outpatient medical facility at 27141 Aliso Creek Road.
On October 24, 2024, a public notice announcing the public hearing was published in the Laguna Niguel News and mailed to all property owners within 300 feet of the subject site, according to the Aliso Viejo Municipal Code (“AVMC”).
On November 6, 2024, the City Council held a duly noticed public hearing and considered public testimony. During the meeting, a tenant from the subject shopping center mentioned she did not receive notice of the hearing. Consequently, the City Council continued the public hearing and directed Staff to provide notice to all tenants of the subject business park.
Discussion:
On November 14th and 15th, Staff hand delivered public notices for this meeting to all tenants within the subject center. Additionally, the same notice was mailed to all owners 188