Aliso Viejo City Council
December 3, 2025

Proposed Project: The Applicant proposes to demolish the existing office development and redevelop the site as a gated residential community consisting of 405 for-sale units at an overall density of 18 dwelling units per acre. The Project will feature four three-story housing types: 105 duplexes, 108 townhomes, 100 back-to-back units (rear wall attached), and 92 rowtown units (side walls attached), with homes ranging from approximately 1,286 square feet for two-bedroom units to 2,484 square feet for fourbedroom units. Each unit will include an enclosed two-car garage, with rowtown units providing two tandem garage spaces, for a total of 810 private parking spaces. An additional 151 guest parking spaces will be distributed throughout the Site as street parking and in smaller parking lots, resulting in a total of 961 parking spaces for the Project. The Project will provide 6.5 acres of open space, representing 29% of the site, featuring a 56,200-square-foot pool and recreation complex near the primary entry.

Additional amenities include a half-mile perimeter walking trail, multiple courtyards, and common open space areas throughout the community. A 30-foot landscaped buffer is proposed along the entire Aliso Viejo Parkway frontage to complement the existing buffer across the street.

Affordable Housing: The Project includes 405 units, with 21 units (5%) designated as affordable housing for very low-income households. This qualifies the Project for a density bonus along with associated incentives, concessions, waivers, and reduced parking requirements, allowing modified development standards such as lot coverage, heights, setbacks, and parking ratios. Although eligible for additional density under state law, the Applicant is not requesting any increase beyond the proposed 405 units, while certain development standard modifications are anticipated.

Required Entitlements: The Project requires a tentative tract map and amendments to the General Plan land use and zoning designations to Medium Density Residential (greater than 8 to 18 dwelling units per acre), which will permanently change permitted uses to residential. A site development permit will be required for new construction, along with a development agreement.

Environmental:

The Applicant anticipates less than significant environmental impacts with appropriate mitigation measures and is preparing an Initial Study/Mitigated Negative Declaration as part of the formal Project submittal.

Public Notice:

A public notice was published in the Laguna Niguel News and mailed to all property owners within 300 feet of the subject site.

Attachments:

1. Concept Plans

2. Project Description

3. Presentation
2785
No. 888.456.5849 | ktgy.com POLARIS PLACE
20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025

POLARIS PLACE

ALISO VIEJO, CA

LANDSCAPE SHEET INDEX
L-1 Conceptual Landscape Plan
L-2 Recreation Area Enlargement Plan
L-3 Open Space Enlargement Plan
L-4 Primary Entry Enlargement Plan
L-5 Primary Entry Gate Section
L-6 Site Sections Aliso Viejo Parkway
L-7 Site Sections Perimeter
L-8 Site Sections Perimeter
L-9 Site Sections Perimeter
L-10 Site Sections Typical Townhome Paseo
L-11 Site Perimeter Walk System
COVER SHEET & SHEET INDEX A0.0

POLARIS PLACE

ARCHITECTURAL SHEET INDEX
A0.0 COVER SHEET & SHEET INDEX
A1.0 ARCHITECTUAL SITE PLAN
A1.1 PARKING EXHIBIT
A1.2 PERSPECTIVES
A1.7 PERSPECTIVES
A1.6 PERSPECTIVES
A1.5 PERSPECTIVES
A1.4 PERSPECTIVES
A1.3 PERSPECTIVES
AA1 ELEVATIONS
AA2 BUILDING PLANS
AA3 BUILDING PLANS
AA4 UNIT PLANS
AA5 UNIT PLANS
AB1 ELEVATIONS
AB2 ELEVATIONS
AB3 BUILDING PLANS
AB4 BUILDING PLANS
AB5 UNIT PLANS
AB6 UNIT PLANS
AB7 UNIT PLANS
AC1 ELEVATIONS
AC2 ELEVATIONS
AC3 BUILDING PLANS
AC4 BUILDING PLANS
AC5 UNIT PLANS
AC6 UNIT PLANS
AD1 ELEVATIONS
AD2 ELEVATIONS
AD3 BUILDING PLANS
AD4 BUILDING PLANS
AD5 BUILDING PLANS
AD6 UNIT PLANS
AD7 UNIT PLANS
AD8 UNIT PLANS
AR1 ELEVATIONS
AR2 PLAN
2786
R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE 23' 30' 30' 26' 26' R PLAN 1X ACCESSIBLE 50' R40' R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R ACCESSIBLE PLAN 1X R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE R ACCESSIBLE PLAN 1X 26' 26' 26' 26' 24' 42' 42' 35' 15' 35' 26' 26' 26' 26' 24' R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE ADA COMPANION SEATING T ADA COMPANION SEATING T ADA COMPANION SEATING ADA COMPANION SEATING T ADA COMPANION SEATING

ADA COMPANION

SEATING T
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025 ARCHITECTUAL SITE PLAN A1.0

SITE SUMMARY
Gross Site Area: ±22.5 ac
Total Units: 405 du
Density: 18 du/ac
General Plan: Professional Office (PO)
Zoning: Professional Office (PO)
with MU/R Overlay
Proposed Zoning: High Density Residential (RH)
RH Development Standard
Front Setback: n/a
Side Setback: n/a
Rear Setback: n/a
Min. Perimeter Setback: 20'
Max. Building Heights: 45'
Max. Density: 18 - 30 du/ac
Min. Common OS 25%
Parking Requirement
Resident: 2 spaces/du
Guest: 0.5 space/du

UNIT SUMMARY
(A) 4-Story Duplex
P 1 4Bd/4.5Ba - 2,491 gsf = 51 du
P 2 4Bd/4.5Ba - 2,336 gsf = 54 du
Sub-Total = 105 du
(B) 3-Story Townhome (Covera) (3-story)
P 1 3Bd/3.5Ba - 1,768 gsf = 64 du
P 2 3Bd/3.5Ba - 1,931 gsf = 22 du
P 3 4Bd/3.5Ba - 2,101 gsf = 22 du
Sub-Total = 108 du
(C) 3-Story B2B (3-story)
P 1 2Bd/2.5Ba - 1,443 gsf = 13 du (affordable)
P 1 2Bd/2.5Ba - 1,443 gsf = 39 du
P 2 3Bd/2.5Ba - 1,652 gsf = 48 du
Sub-Total = 100 du
(D) 3-Story Rowtowns with tandem (3-story)
P 1 2Bd/2.5Ba - 1,304 gsf = 4 du (affordable)
P 2 2Bd/2.5Ba - 1,286 gsf = 4 du (affordable)
P 3 3Bd/3.0Ba - 1,621 gsf = 44 du
P 4 4Bd/4.0Ba - 1,889 gsf = 40 du
Sub-Total = 92 du
Total = 405 du
Parking Required (State Density Bonus Ratio)
2-3 Beds 238x1.5/du = 357 spaces
4 Beds 167x2.5/du = 418 spaces
Total = 775 spaces
(1.9 spaces/du)
Parking Required (City Code)
Resident 405x2/du = 810 spaces
Guest 405x0.5/du = 203 spaces
Total = 1013 spaces
(2.5 spaces/du)
Parking Provided
Garage: = 810 spaces
Open Parking = 151 spaces
Total = 961 spaces
(2.37 spaces/du) 0 30 60 120 Scale: 1" = 60'-0" 2787
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
R
R
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
23'
30'
30'
26'
26'
R PLAN 1X ACCESSIBLE
50'
R40'
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R
ACCESSIBLE PLAN 1X
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE
R ACCESSIBLE PLAN 1X 26'
26' 26'
26'
24'
42'
42'
35'
15'
35'
26'
26'
26'
26' 24'
R PLAN 1X ACCESSIBLE
R PLAN 1X ACCESSIBLE

ADA COMPANION SEATING T

ADA COMPANION SEATING T

ADA COMPANION SEATING

ADA COMPANION SEATING T

ADA COMPANION

SEATING

ADA COMPANION

SEATING T
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025

PARKING EXHIBIT

SITE SUMMARY
Gross Site Area: ±22.5 ac
Total Units: 405 du
Density: 18 du/ac
General Plan: Professional Office (PO)
Zoning: Professional Office (PO)
with MU/R Overlay
Proposed Zoning: High Density Residential (RH)
RH Development Standard
Front Setback: n/a
Side Setback: n/a
Rear Setback: n/a
Min. Perimeter Setback: 20'
Max. Building Heights: 45'
Max. Density: 18 - 30 du/ac
Min. Common OS 25%
Parking Requirement
Resident: 2 spaces/du
Guest: 0.5 space/du
Parking Required (State Density Bonus Ratio)
2-3 Beds 238x1.5/du = 357 spaces
4 Beds 167x2.5/du = 418 spaces
Total = 775 spaces
(1.9 spaces/du)
Parking Required (City Code)
Resident 405x2/du = 810 spaces
Guest 405x0.5/du = 203 spaces
Total = 1013 spaces
(2.5 spaces/du)
Parking Provided
Garage: = 810 spaces
Open Parking = 151 spaces
Total = 961 spaces
(2.37 spaces/du)
0 30 60 120 Scale: 1" = 60'-0" 2788
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.2 NTS VIEW 1 2789
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.3 NTS VIEW 2 2790
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.4 NTS VIEW 3 2791
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.5 NTS VIEW 4 2792
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.6 NTS VIEW 5 2793
No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 PERSPECTIVES A1.7 NTS VIEW 6 2794
FRONT
REAR
LEFT
RIGHT
Level 1 8'-7"
Level 2
Level 3 9'-1" 9'-1" ±48'-1"
5 2
8 11
1230'-0" Max. Eave Height
Level 3 9'-1"

MATERIAL LEGEND

1. VERTICAL SIDING

2. STUCCO

3. ASPHALT SHINGLE ROOF

4. VINYL WINDOWS

5. FASCIA

6. SMOOTH STUCCO

7. DECORATIVE LIGHTS &

ADDRESS SIGN

8. FIBERGLASS ENTRY DOOR

9. METAL SECTIONAL GARAGE
DOOR

10. STUCCO TRIM

11. METAL AWNING

12. BRICK VENEER

13. LOW WALL

14. PRIVACY WALL
11 1 11
7 8 4
9 10 6 3
patio walls and side yard wall
location varies - see site plan
14 13
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 ELEVATIONS AA1
PRODUCT A | COLOR SCHEME 1 2795
42'-2" 40'-6"

G O R TG T R O
42'-2" 42'-0"
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025

SECOND FLOOR FIRST FLOOR
BUILDING PLANS AA2
0 2 4 8 Scale: 1/4" = 1'-0" PRODUCT A 2796
42'-2" 42'-0"
42'-2" 29'-4"
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025

FOURTH FLOOR THIRD FLOOR
BUILDING PLANS AA3
0 2 4 8 Scale: 1/4" = 1'-0" PRODUCT A 2797
ENTRY 21'-0"
39'-6" GARAGE 20'-5"x22'-10" COATS KITCHEN 21'-0"
41'-0" BEDROOM 3 12'-5"x10'-0" UP P. UP DN LIVING ROOM 15'-2"x17'-0" 21'-0" 41'-0" BEDROOM 2 12'-8"x11'-6" DN BATH 2 W.I.C. LINEN PRIMARY BATH PRIMARY BED 12'-6"x13'-8" PLAN 1 - NET S.F. 4 BD / 4.5 BA FIRST FLOOR 330 SQ. FT. SECOND FLOOR 730 SQ. FT. THIRD FLOOR 800 SQ. FT. FOURTH FLOOR 475 SQ. FT. TOTAL 2335 SQ. FT. ROOF DECK 192 SQ. FT. DECK 79 SQ. FT. GARAGE 466 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR G T R O ROOF PLAN DINING ROOM 10'-11"x18'-1" 21'-0" 41'-0" ROOF DECK 20'-1"x11'-0" DECK 11'-9"x6'-6" PLAN 1 - GROSS S.F. 4 BD / 4.5 BA FIRST FLOOR 353 SQ. FT. SECOND FLOOR 780 SQ. FT. THIRD FLOOR 849 SQ. FT. FOURTH FLOOR 509 SQ. FT. TOTAL 2491 SQ. FT. ROOF DECK 210 SQ. FT. DECK 79 SQ. FT. GARAGE 489 SQ. FT. BATH 3 PDR. W.I.C. UP W.H. LAU. FAU BEDROOM 4 11'-0"x11'-5" BONUS 16'-3"x13'-0" BATH 4 ROOF BELOW DN W.I.C. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 UNIT PLANS AA4 0 2 4 8 Scale 1/4" =1'-0" PRODUCT A | PLAN 1 2798
40'-6" 21'-0" GARAGE 20'-5"x22'-10" COATS UP PDR. ENTRY 21'-0" 42'-0" KITCHEN P. UPDN GREAT ROOM 15'-2"x23'-6" 21'-0"
42'-0" BATH 2 W.I.C. PRIMARY BATH PRIMARY BED 12'-3"x14'-2" DN BEDROOM 2 9'-11"x11'-11" BEDROOM 3 10'-0"x10'-0" PLAN 2 - NET S.F. 4 BD / 4.5 BA FIRST FLOOR 338 SQ. FT. SECOND FLOOR 735 SQ. FT. THIRD FLOOR 832 SQ. FT. FOURTH FLOOR 283 SQ. FT. TOTAL 2187 SQ. FT. ROOF DECK 228 SQ. FT. DECK 95 SQ. FT. GARAGE 464 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR W.I.C. Linen STORAGE G T R O ROOF PLAN 21'-0" 42'-0" UP DN BEDROOM 4 12'-5"x11'-0" DECK 11'-11"x7'-8" ROOF DECK 12'-10"x17'-8" BATH 4 PLAN 2 - GROSS S.F. 4 BD / 4.5 BA FIRST FLOOR 360 SQ. FT. SECOND FLOOR 785 SQ. FT. THIRD FLOOR 882 SQ. FT. FOURTH FLOOR 310 SQ. FT. TOTAL 2336 SQ. FT. ROOF DECK 245 SQ. FT. DECK 95 SQ. FT. GARAGE 489 SQ. FT. W.H. LAU. BONUS 14'-5"x15'-5" FAU No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 UNIT PLANS AA5 0 2 4 8 Scale 1/4" =1'-0" PRODUCT A | PLAN 2 2799

LEFT FRONT RIGHT REAR
± 37'-5" Level 1
8'-1" Level 2 Level 39'-1" 9'-1" MATERIAL LEGEND 1. VERTICAL SIDING 2. STUCCO 3. ASPHALT SHINGLE ROOF 4. VINYL WINDOWS 5. FASCIA 6. SMOOTH STUCCO 7. DECORATIVE LIGHTS & ADDRESS SIGN 8. FIBERGLASS ENTRY DOOR 9. METAL SECTIONAL GARAGE DOOR 10. STUCCO TRIM 11. METAL AWNING 12. BRICK VENEER 13. LOW WALL 3 4 9 11 10 30'-0" Max. Eave Height 1 2 8 8 7 2 6 3 6 11 12 patio walls location varies - see site plan 5 13 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 ELEVATIONS AB1 PRODUCT B | BUILDING B | COLOR SCHEME 2 2800
40'-0" 37'-10"
93'-0" 40'-0" TR O
UP
17 R OTR OTR
UP
17 R OTR
93'-0"
92'-6" THIRD FLOOR SECOND FLOOR FIRST FLOOR METERS & UTILITIES P1 P2P3P1 P1 P2P3P1 P1 P2P3P1 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 BUILDING PLANS AB3 PRODUCT B | BUILDING A 2801
TR O OTR OTR OTR OTR 114'-8" 37'-10"
116'-8" 40'-0"
115'-2" 40'-0" THIRD FLOOR SECOND FLOOR FIRST FLOOR METERS & UTILITIES P1 P2P3P1 P1 P2P3P1 P1 P2P3P1P1 P1 P1 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 BUILDING PLANS AB4 PRODUCT B | BUILDING B 2802
OTR ENTRY 22'-0"
38'-2" GARAGE 21'-5"x20'-2" KITCHEN 22'-0"
38'-6" BEDROOM 3 11'-4"x9'-4" P. UPDN GREAT ROOM 15'-7"x22'-10" 22'-0" 33'-6" BEDROOM 2 11'-7"x12'-2" BATH 2 W.I.C.

LOW LINEN PRIMARY BATH PRIMARY BED 12'-1"x13'-6" PLAN 1 - NET S.F. 3 BD / 3 BA FIRST FLOOR 322 SQ. FT. SECOND FLOOR 725 SQ. FT. THIRD FLOOR 628 SQ. FT. TOTAL 1675 SQ. FT. DECK 47 SQ. FT. GARAGE 455 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR UP DECK 10'-8"x4'-4" BATH 3 W.I.C. PLAN 1 - GROSS S.F. 3 BD / 3 BA FIRST FLOOR 341 SQ. FT. SECOND FLOOR 766 SQ. FT. THIRD FLOOR 661 SQ. FT. TOTAL 1768 SQ. FT. DECK 47 SQ. FT. GARAGE 478 SQ. FT. DN COATS POWDER W.H. LAU. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 UNIT PLANS AB5 0 2 4 8 Scale: 1/4" = 1'-0" PRODUCT B | PLAN 1 2803
TR O
39'-0" 24'-0" GARAGE 21'-5"x20'-4" UP PDR. ENTRY 24'-0" 40'-0" KITCHEN P. GREAT ROOM 18'-3"x23'-7" 24'-0"
39'-0" BATH 2 W.I.C. PRIMARY BATH PRIMARY BED 12'-6"x12'-7" DN BEDROOM 2 11'-6"x11'-0" BEDROOM 3 9'-9"x10'-0" PLAN 2 - NET S.F. 3 BD / 3.5 BA FIRST FLOOR 318 SQ. FT. SECOND FLOOR 793 SQ. FT. THIRD FLOOR 707 SQ. FT. TOTAL 1818 SQ. FT. PATIO 50 SQ. FT. DECK 50 SQ. FT. GARAGE 468 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR Linen DECK 11'-1"x4'-6" PATIO 11'-1"x4'-6" BATH 3 PLAN 2 - GROSS S.F. 3 BD / 3.5 BA FIRST FLOOR 341 SQ. FT. SECOND FLOOR 843 SQ. FT. THIRD FLOOR 747 SQ. FT. TOTAL 1931 SQ. FT. PATIO 50 SQ. FT. DECK 50 SQ. FT. GARAGE 495 SQ. FT. UP DN W.H. LAU. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 UNIT PLANS AB6 PRODUCT B | PLAN 2 2804
TRO
36'-0" 24'-0" GARAGE 21'-5"x20'-4" UP PDR. ENTRY 26'-0" 40'-0" KITCHEN P. UP DN LIVING ROOM 16'-11"x16'-5" 24'-0" 40'-0" BATH 2 W.I.C. PRIMARY BATH PRIMARY BED 12'-11"x12'-1" BEDROOM 2 10'-11"x10'-0" BEDROOM 3 10'-0"x10'-0" PLAN 3 - NET S.F. 4 BD / 3.5 BA FIRST FLOOR 353 SQ. FT. SECOND FLOOR 827 SQ. FT. THIRD FLOOR 804 SQ. FT. TOTAL 1984 SQ. FT. DECK 57 SQ. FT. GARAGE 472 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR Linen W.I.C. DINING ROOM 12'-7"x10'-1" DECK 6'-0"x9'-6" BEDROOM 4 10'-0"x12'-0" BATH 3 COAT PLAN 3 - GROSS S.F. 4 BD / 3.5 BA FIRST FLOOR 375 SQ. FT. SECOND FLOOR 878 SQ. FT. THIRD FLOOR 847 SQ. FT. TOTAL 2101 SQ. FT. DECK 57 SQ. FT. GARAGE 500 SQ. FT. DN W.H. LAU. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 UNIT PLANS AB7 0 2 4 8 Scale: 1/4" = 1'-0" PRODUCT B | PLAN 3 2805
± 36'-0" Level 1 Level 2 Level 3 FRONT RIGHT REAR LEFT
8'-1" 9'-1"
30'-0" Max. Eave Height 1 1 1 4 5 9 6 11 9 2 6 8 7 2 2 MATERIAL LEGEND 1. VERTICAL SIDING 2. STUCCO 3. ASPHALT SHINGLES ROOF 4. VINYL WINDOWS 5. FASCIA 6. SMOOTH STUCCO 7. DECORATIVE LIGHTS & ADDRESS SIGN 8. FIBERGLASS ENTRY DOOR 9. METAL SECTIONAL GARAGE DOOR 10. STUCCO TRIM 11. METAL AWNING 12. SLIDING DOOR 13. METAL RAILING 9'-1" 9 9 1 6 1 12 1 5 5 8 3 13 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 ELEVATIONS AC1 0 4 8 16 Scale: 1/8" = 1'-0" PRODUCT C | BUILDING B | COLOR SCHEME 1 2806
T R O T R O T R O O T R T R O TO R O T R TO R P1 THIRD FLOOR SECOND FLOOR FIRST FLOOR P1 P2 P2 P1 P1 P2 P2 P1P2P1P2 P1 P2P1 P2 52'-6" 110'-3 1/2" 57'-6"
110'-6" 57'-6"
110'-6" P1 P1 P2 P2 P1 P1 P2 P2 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 BUILDING PLANS AC3 0 4 8 16 Scale: 1/8" = 1'-0" PRODUCT C | BUILDING A 2807
T R O T R O T R O T R O O T R T R O T R O TO R TO R O T R THIRD FLOOR SECOND FLOOR FIRST FLOOR 52'-6" 136'-5 1/2" 57'-6"
136'-8" 57'-6"
134'-8" P1 P1P2 P1P1 P2P2 P2 P1 P1 P1 P1 P1 P1 P2 P2 P1 P1 P2 P2 P1 P1 P1 P1 P2 P2 P2 P2 P1 P1 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 BUILDING PLANS AC4 0 4 8 16 Scale: 1/8" = 1'-0" PRODUCT C | BUILDING B 2808
T R O GARAGE 20'-4"x24'-4" LIVING ROOM 13'-6"x15'-6" FOYER KITCHEN PDR. COATS W.I.C. BEDROOM 2 12'-4"x10'-7" PRIMARY BEDROOM 12'-10"x12'-3" LAU. P. L. 26'-0" 26'-2" 26'-0"
28'-6" 26'-0"
28'-6" PLAN 1 - NET S.F. 2 BD / 2.5 BA FIRST FLOOR 123 SQ. FT. SECOND FLOOR 632 SQ. FT. THIRD FLOOR 610 SQ. FT. TOTAL 1364 SQ. FT. DECK 56 SQ.FT GARAGE 494 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR DECK 11'-4"x5'-0" 56 SQ. FT. PRIMARY BATH BATH 2 PLAN 1 - GROSS S.F. 2 BD / 2.5 BA FIRST FLOOR 134 SQ. FT. SECOND FLOOR 667 SQ. FT. THIRD FLOOR 642 SQ. FT. TOTAL 1443 SQ. FT. DECK 56 SQ.FT GARAGE 545 SQ. FT. UP DN UP DN W.H. DINING ROOM 11'-11"x11'-1" No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 UNIT PLANS AC5 PRODUCT C | PLAN 1 2809
O T R Garage 20'-2"x20'-8" FOYER KITCHEN PDR. W.I.C. PRIMARY BEDROOM 13'-3"x12'-4" BEDROOM 2 9'-9"x10'-1" LAU. P. L. 28'-6" 25'-2" BEDROOM 3 9'-11"x10'-0" L. 29'-0"
28'-6" 28'-0"
28'-8" PLAN 2 - NET S.F. 3 BD / 2.5 BA FIRST FLOOR 216 SQ. FT. SECOND FLOOR 669 SQ. FT. THIRD FLOOR 667 SQ. FT. TOTAL 1552 SQ. FT. DECK 53 SQ.FT. GARAGE 417 SQ.FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR DECK 5'-0"x10'-8" 53 SQ. FT. PRIMARY BATH BATH 2 LIVING ROOM 13'-3"x16'-10" COATS PLAN 2 - NET S.F. 3 BD / 2.5 BA FIRST FLOOR 239 SQ. FT. SECOND FLOOR 710 SQ. FT. THIRD FLOOR 703 SQ. FT. TOTAL 1652 SQ. FT. DECK 53 SQ.FT. GARAGE 481 SQ. FT. DN DN DN UP W.H. DINING ROOM 9'-2"x10'-11" No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 UNIT PLANS AC6 PRODUCT C | PLAN 2 2810
FRONT RIGHT REAR LEFT 10 9 1 1
30'-0" Max. Eave Height Level 1
8'-1" Level 2 Level 39'-1" 9'-1"
± 35'-0" 8 12 MATERIAL LEGEND 1. VERTICAL SIDING 2. STUCCO 3. ASPHALT SHINGLE ROOF 4. VINYL WINDOWS 5. FASCIA 6. SMOOTH STUCCO 7. DECORATIVE LIGHTS & ADDRESS SIGN 8. FIBERGLASS ENTRY DOOR 9. METAL SECTIONAL GARAGE DOOR 10. STUCCO TRIM 11. METAL AWNING 12. BRICK VENEER 11 48 7 10 3 1 2 6 5 No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 ELEVATIONS AD1 0 4 8 16 Scale: 1/8" = 1'-0" PRODUCT D | BUILDING C | COLOR SCHEME 2 2811
THIRD FLOOR SECOND FLOOR FIRST FLOOR 52'-4"
97'-0" 52'-4"
97'-0" 49'-3"
99'-7" METERS & UTILITIES P4 P3 P4P3P4 P3 P4P3P4P3P4P3 P4P3P4P3P4P3 T O R T R O T O R T R O T O R T R O No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 BUILDING PLANS AD3 PRODUCT D | BUILDING A 2812
THIRD FLOOR SECOND FLOOR FIRST FLOOR P1 P2 P2 P1 P2 P1 METERS & UTILITIES P4 P3P3 P4 P3 P4P3P4P3P3 P4P3P4P3P3 49'-3" 110'-4" 52'-4"
111'-10" 52'-4"
111'-10" T RO T R O T O R T R O T O R T R O T R O No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 BUILDING PLANS AD4 PRODUCT D | BUILDING B 2813
THIRD FLOOR SECOND FLOOR FIRST FLOOR 49'-3"
132'-1 1/2" 52'-4"
129'-4" 52'-4"
129'-4" T O R T R O T O R T R O T O R T R O T O R T R O P4P3 P4P3 P4P3 P4P3 P4P3P4P3P4P3 P4P3P4P3P4P3 P4P3 P4P3 METERS & UTILITIES No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 4 8 16 Scale: 1/8" = 1'-0" NOVEMBER 04, 2025 BUILDING PLANS AD5 PRODUCT D | BUILDING C 2814
T OR GARAGE 20'-1"x20'-3" ENTRY COAT W.H. GREAT ROOM 22'-5"x12'-3"KITCHEN PDR. DECK 6'-3"x7'-5" PRIMARY BED 12'-8"x11'-6" W.I.C. PRIMARY BATH PANTRY BATH 2 BEDROOM 2 10'-2"x11'-0" LINEN PLAN 1 - NET S.F. 2 BD / 2.5 BA FIRST FLOOR 106 SQ. FT. SECOND FLOOR 557 SQ. FT. THIRD FLOOR 551 SQ. FT. TOTAL 1214 SQ. FT. DECK 47 SQ. FT. GARAGE 485 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR 27'-10" 23'-7 1/2" 30'-10"
22'-0" 30'-10"
22'-0" PLAN 1 - GROSS S.F. 2 BD / 2.5 BA FIRST FLOOR 116 SQ. FT. SECOND FLOOR 604 SQ. FT. THIRD FLOOR 584 SQ. FT. TOTAL 1304 SQ. FT. DECK 47 SQ. FT. GARAGE 512 SQ. FT. DN UP DN UP LAU. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 UNIT PLANS AD6 PRODUCT D | PLAN 1 2815
T R O GARAGE 20'-1"x21'-9" ENTRYCOAT LIVING ROOM 13'-10"x12'-0" KITCHEN PDR. DECK 12'-0"x5'-5" P. PRIMARY BED 12'-6"x14'-4" W.I.C. PRIMARY BATH BATH 2 BEDROOM 2 9'-11"x10'-5" PLAN 2 - NET S.F. 2 BD / 2.5 BA FIRST FLOOR 107 SQ. FT. SECOND FLOOR 492 SQ. FT. THIRD FLOOR 604 SQ. FT. TOTAL 1204 SQ. FT. DECK 65 SQ. FT. GARAGE 500 SQ. FT. THIRD FLOOR SECOND FLOOR FIRST FLOOR W.H. 28'-2" 24'-0" 28'-2"
24'-0" 29'-4"
23'-2" PLAN 2 - GROSS S.F. 2 BD / 2.5 BA FIRST FLOOR 122 SQ. FT. SECOND FLOOR 523 SQ. FT. THIRD FLOOR 641 SQ. FT. TOTAL 1286 SQ. FT. DECK 65 SQ. FT. GARAGE 529 SQ. FT. UP UP DN DN LAU. No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA NOVEMBER 04, 2025 UNIT PLANS AD7 0 2 4 8 Scale: 1/4" = 1'-0" PRODUCT D | PLAN 2 2816
T O R T R O PLAN 3 - NET S.F. 3 BD / 3 BA FIRST FLOOR 160 SQ. FT. SECOND FLOOR 705 SQ. FT. THIRD FLOOR 664 SQ. FT. TOTAL 1529 SQ. FT. DECK 82 SQ. FT. GARAGE 443 SQ. FT. PLAN 4 - NET S.F. 3 BD + BONUS / 4 BD, 4 BA FIRST FLOOR 370 SQ. FT. SECOND FLOOR 705 SQ. FT. THIRD FLOOR 710 SQ. FT. TOTAL 1785 SQ. FT. DECK 77 SQ. FT. GARAGE 450 SQ. FT.GARAGE 10'-5"x40'-1" GARAGE 20'-5"x20'-5" COAT ENTRY BEDROOM 3 10'-1"x11'-0" BATH 4
COAT LIVING ROOM 15'-5"x12'-10"KITCHEN DINING ROOM 11'-10"x8'-5" PANTRY LINEN BATH 3 PANTRY LINEN DINING ROOM 11'-9"x8'-5" BEDROOM 3 10'-2"x9'-10" BATH 3 KITCHEN LIVING ROOM PRIMARY BED 15'-5"x12'-10" 15'-5"x15'-10" W.I.C. PRIMARY BATH W.I.C. BATH 2 BEDROOM 2 10'-2"x11'-0" PRIMARY BED 15'-5"x12'-10" W.I.C. PRIMARY BATH W.I.C. BATH 2 BEDROOM 2 10'-2"x11'-0" DN DN THIRD FLOOR SECOND FLOOR FIRST FLOOR W/H W/H PLAN 3 PLAN 4 PLAN 3 PLAN 4 PLAN 3 PLAN 4 BONUS OPT. BED 4 10'-2"x12'-0" DECK 15'-5"x5'-0" 77 SQ. FT. DECK 16'-2"x5'-1" 82 SQ. FT. ENTRY O R T W.I.C. UP UP UP DN UPDN BEDROOM 3 10'-1"x10'-0" BATH 4 ENTRY UP COAT DROP FIRST FLOORPLAN 4 (ACCESSIBLE) 32'-2" 49'-3" 32'-2"
52'-4" 32'-2"
52'-4" 11'-0" 21'-0" 16'-0" 16'-0" 16'-0" 16'-0" PLAN 3 - GROSS S.F. 3 BD / 3 BA FIRST FLOOR 172 SQ. FT. SECOND FLOOR 747 SQ. FT. THIRD FLOOR 702 SQ. FT. TOTAL 1621 SQ. FT. DECK 82 SQ. FT. GARAGE 460 SQ. FT. PLAN 4 - GROSS S.F. 3 BD + BONUS / 4 BD, 4 BA FIRST FLOOR 392 SQ. FT. SECOND FLOOR 747 SQ. FT. THIRD FLOOR 750 SQ. FT. TOTAL 1889 SQ. FT. DECK 77 SQ. FT. GARAGE 466 SQ. FT. LAU. LAU. W/H No. 888.456.5849 | ktgy.com POLARIS PLACE 20250343 LENNAR CONCEPT DESIGN ALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 UNIT PLANS AD8 PRODUCT D | PLAN 3 & 4 2817

RIGHT ELEVATION REAR ELEVATION
LEFT ELEVATION FRONT ELEVATION 13'-1"

MATERIAL LEGEND

1. VERTICAL SIDING

2. STUCCO

3. GATE

4. VINYL WINDOWS

5. ROOF

6. SHOWERS
2 6 3 11 1 4
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA NOVEMBER 04, 2025 ELEVATIONS AR1

POOL BUILDING
0 2 4 8 Scale: 1/4" = 1'-0"
2818
19'-0"
17'-11 1/2"
POOL EQUIP. 16'-7"x16'-11" MEN'S RESTROOM

SHOWERS

JANITOR'S CLOSET
POOL BLDG. GROSS S.F.

TOTAL 681 SQ. FT.

WOMEN'S RESTROOM
3'-0" 17'-6" 5'-0" 3'-0" 27'-0"
51'-0"
9'-6 1/2" 3'-0"
No. 888.456.5849 | ktgy.com POLARIS PLACE20250343 LENNAR CONCEPT DESIGNALISO VIEJO, CA 0 2 4 8 Scale: 1/4" = 1'-0" NOVEMBER 04, 2025 PLAN AR2
POOL BUILDING 2819
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L1
73 Toll Road
Legend 12
2 2
34567
7 7
8 8
9 9
10 10
11 53
154
7 116
Recreation Area (Refer to Enlargement on Sheet L2)
Open Space (Refer to Enlargement on Sheet L3)
Secondary Entry
Primary Entry (Refer to Enlargement on Sheet L4)
Pedestrian Entry Gate
Emergency Vehicular Access
Pedestrian Crossing
Private Patio with Low Wall and Gate
Side Yard with Privacy Fence and Gates
Perimeter Fence
Aliso Viejo Parkway

CONCEPTUAL SITE PLAN
0 20 40 80
Conceptual Tree and Shrub Palette
Agave americana / Century Plant
Agave attenuata / Foxtail Agave
Aloe striata / Coral Aloe
Arbutus unedo ‘Compacta’ / Dwarf Strawberry Tree
Baccharis pilularis ‘Pigeon Point’ / Dwarf Coyote Bush
Buxus m. japonica ‘Green Beauty’ / Green Beauty Japanese Boxwood Callistemon viminalis ‘Little John’ / Little John Weeping Bottlebush Dietes bicolor / Fortnight Lily
Distictis buccinatoria / Blood Red Trumpet Vine
Festuca glauca / Blue Fescue
Festuca mairei / Atlas Fescue
Hesperaloe parviflora / Red Yucca
Laurus nobilis / Sweet Bay
Lavandula angustifolia / English Lavender
Ligustrum japonicum ‘Texanum’ / Texas Japanese Privet
Liriope muscari ‘Big Blue’ / Big Blue Lilyturf
Muhlenbergia rigens / Deer Grass
Myrtus compacta / Compact Myrtle
Nandina domestica ‘Compacta’ / Dwarf Heavenly Bamboo
Podocarpus gracilior ‘Column’ / Fern Pine
Rhaphiolepis indica / Indian Hawthorn
Rosmarinus officinalis / Rosemary
Salvia leucantha / Mexican Bush Sage
Senecio mandraliscae / Blue Fingers
Trachelospermum asiaticum / Asiatic Jasmine
Westringia fruticosa ‘Morning Light’ / Morning Light Coast Rosemary Shrubs and Groundcover
Trees
Olea Europaea ‘Swan Hill’ / Swin Hill Fruitless Olive
Quercus Agrifolia / Coast Live Oak (Multi)
Schinus molle / California Pepper Tree
Geijera Parviflora / Australian Willow
Platanus Racemosa / California Sycamore
Platanus X Acerifolia / London Plane Tree
Quercus Agrifolia / Coast Live Oak
Grevillea robusta / Southern Silk Oak
Handroanthus Chrysotrichus / Golden Trumpet
Lophostemon Confertus / Brisbane Box
Podocarpus Gracilior / Fern Pine
Archontophoenix Cunninghamiana / King Palm
Cercis Occidentalis / Western Redbud
Jacaranda Mimosifolia / Jacaranda
Lagerstroemia Indica / Crape Myrtle
Magnolia Grandiflora / Southern Magnolia
Arbutus X ‘Marina’ / Marina Strawberry Tree (Multi)
Eriobotrya Deflexa / Bronze Loquat
Laurus Nobilis / Sweet Bay
Lophostemon Confertus / Brisbane Box
Cercis Occidentalis / Western Redbud
Geijera Parviflora / Australian Willow
Ginkgo Biloba / Maidenhair Tree
Platanus X Acerifolia / London Plane Tree
Podocarpus Gracilior / Fern Pine
Focal Tree
Parkway / Street Tree
Buffer Tree
Recreation Center Palms
Flowering Accent Trees
Courtyard Trees
Open Space Trees
11 12
Perimeter Wall with Enhanced Finish
Perimeter Walk
* Subject to change at final design with approval by the Planning Department 12 Gross Site Area: 22.5 ac
Open Space Provided: 6.5 ac (29%) + +
2820
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L2
RECREATION AREA ENLARGEMENT PLAN 0 8 16 32
Archontophoenix Cunninghamiana / King Palm
Recreation Center Palms
KEYMAP
NTS
Legend
1 2
3 4
5 6
7 8
9 10
Pool Building
Pool Deck
Enhanced Paving
Pool and Spa
Pool Fence
Enhanced Finish Wall
Concrete Walk
Built-In BBQ with Tables and Chairs
Lounge Seating
Chaise Lounges
Agave americana / Century Plant
Agave attenuata / Foxtail Agave
Aloe striata / Coral Aloe
Arbutus unedo ‘Compacta’ / Dwarf Strawberry Tree
Baccharis pilularis ‘Pigeon Point’ / Dwarf Coyote Bush
Buxus m. japonica ‘Green Beauty’ / Green Beauty Japanese Boxwood
Callistemon viminalis ‘Little John’ / Little John Weeping Bottlebush Dietes bicolor / Fortnight Lily
Distictis buccinatoria / Blood Red Trumpet Vine
Festuca glauca / Blue Fescue
Festuca mairei / Atlas Fescue
Hesperaloe parviflora / Red Yucca
Laurus nobilis / Sweet Bay
Lavandula angustifolia / English Lavender
Shrubs and Groundcover
Ligustrum japonicum ‘Texanum’ / Texas Japanese Privet
Liriope muscari ‘Big Blue’ / Big Blue Lilyturf
Muhlenbergia rigens / Deer Grass
Myrtus compacta / Compact Myrtle
Nandina domestica ‘Compacta’ / Dwarf Heavenly Bamboo
Podocarpus gracilior ‘Column’ / Fern Pine
Rhaphiolepis indica / Indian Hawthorn
Rosmarinus officinalis / Rosemary
Salvia leucantha / Mexican Bush Sage
Senecio mandraliscae / Blue Fingers
Trachelospermum asiaticum / Asiatic Jasmine
Westringia fruticosa ‘Morning Light’ / Morning Light Coast Rosemary Olea Europaea ‘Swan Hill’ / Swin Hill Fruitless Olive
Quercus Agrifolia / Coast Live Oak (Multi)
Schinus molle / California Pepper Tree
Geijera Parviflora / Australian Willow
Platanus Racemosa / California Sycamore
Platanus X Acerifolia / London Plane Tree
Quercus Agrifolia / Coast Live Oak
Focal Tree
Parkway / Street Tree
Cercis Occidentalis / Western Redbud
Jacaranda Mimosifolia / Jacaranda
Lagerstroemia Indica / Crape Myrtle
Magnolia Grandiflora / Southern Magnolia
Arbutus X ‘Marina’ / Marina Strawberry Tree (Multi)
Eriobotrya Deflexa / Bronze Loquat
Laurus Nobilis / Sweet Bay
Lophostemon Confertus / Brisbane Box
Cercis Occidentalis / Western Redbud
Geijera Parviflora / Australian Willow
Ginkgo Biloba / Maidenhair Tree
Platanus X Acerifolia / London Plane Tree
Podocarpus Gracilior / Fern Pine
Flowering Accent Trees
Courtyard Trees
Open Space Trees
Conceptual Tree and Shrub Palette
Trees
11 Pool Side Cabanas with Daybed
12 Overhead Shade Structure
13 Playground with Resilient Play Surface
14 Fire Pit
15 Built-in Seating
* Subject to change at final design with approval by the Planning Department 3 2
14 11
5 1
12 7
9 10
5 15
13 14
7 6 9
8 3
4 6
11 2821
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L3
OPEN SPACE ENLARGEMENT PLANS 0 5 10 20
Legend
1 2
3 Concrete Walk
Amenity Lawn
Private Patios with Gate
A
B
Enlargement A - North Open Space Enlargement B - South Open Space KEYMAP
NTS
3 2
1 1
2 3
Agave americana / Century Plant
Agave attenuata / Foxtail Agave
Aloe striata / Coral Aloe
Arbutus unedo ‘Compacta’ / Dwarf Strawberry Tree
Baccharis pilularis ‘Pigeon Point’ / Dwarf Coyote Bush
Buxus m. japonica ‘Green Beauty’ / Green Beauty Japanese Boxwood
Callistemon viminalis ‘Little John’ / Little John Weeping Bottlebush Dietes bicolor / Fortnight Lily
Distictis buccinatoria / Blood Red Trumpet Vine
Festuca glauca / Blue Fescue
Festuca mairei / Atlas Fescue
Hesperaloe parviflora / Red Yucca
Laurus nobilis / Sweet Bay
Lavandula angustifolia / English Lavender
Shrubs and Groundcover
Ligustrum japonicum ‘Texanum’ / Texas Japanese Privet
Liriope muscari ‘Big Blue’ / Big Blue Lilyturf
Muhlenbergia rigens / Deer Grass
Myrtus compacta / Compact Myrtle
Nandina domestica ‘Compacta’ / Dwarf Heavenly Bamboo
Podocarpus gracilior ‘Column’ / Fern Pine
Rhaphiolepis indica / Indian Hawthorn
Rosmarinus officinalis / Rosemary
Salvia leucantha / Mexican Bush Sage
Senecio mandraliscae / Blue Fingers
Trachelospermum asiaticum / Asiatic Jasmine
Westringia fruticosa ‘Morning Light’ / Morning Light Coast Rosemary Olea Europaea ‘Swan Hill’ / Swin Hill Fruitless Olive
Quercus Agrifolia / Coast Live Oak (Multi)
Schinus molle / California Pepper Tree
Geijera Parviflora / Australian Willow
Platanus Racemosa / California Sycamore
Platanus X Acerifolia / London Plane Tree
Quercus Agrifolia / Coast Live Oak
Focal Tree
Parkway / Street Tree
Cercis Occidentalis / Western Redbud
Jacaranda Mimosifolia / Jacaranda
Lagerstroemia Indica / Crape Myrtle
Magnolia Grandiflora / Southern Magnolia
Arbutus X ‘Marina’ / Marina Strawberry Tree (Multi)
Eriobotrya Deflexa / Bronze Loquat
Laurus Nobilis / Sweet Bay
Lophostemon Confertus / Brisbane Box
Cercis Occidentalis / Western Redbud
Geijera Parviflora / Australian Willow
Ginkgo Biloba / Maidenhair Tree
Platanus X Acerifolia / London Plane Tree
Podocarpus Gracilior / Fern Pine
Flowering Accent Trees
Courtyard Trees
Open Space Trees
Conceptual Tree and Shrub Palette
Trees
* Subject to change at final design with approval by the Planning Department 2822
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L4
PRIMARY ENTRY ENLARGEMENT PLAN 0 5 10 20
Legend
1 2
3 Decorative Metal Vehicular Entry Gate
Decorative Metal Pedestrian Access Gate
Perimeter Wall with Enhanced Finish
KEYMAP
NTS
Conceptual Tree and Shrub Palette
Trees
Agave americana / Century Plant
Agave attenuata / Foxtail Agave
Aloe striata / Coral Aloe
Arbutus unedo ‘Compacta’ / Dwarf Strawberry Tree
Baccharis pilularis ‘Pigeon Point’ / Dwarf Coyote Bush
Buxus m. japonica ‘Green Beauty’ / Green Beauty Japanese Boxwood
Callistemon viminalis ‘Little John’ / Little John Weeping Bottlebush Dietes bicolor / Fortnight Lily
Distictis buccinatoria / Blood Red Trumpet Vine
Festuca glauca / Blue Fescue
Shrubs and Groundcover
Festuca mairei / Atlas Fescue
Hesperaloe parviflora / Red Yucca
Laurus nobilis / Sweet Bay
Lavandula angustifolia / English Lavender
Ligustrum japonicum ‘Texanum’ / Texas Japanese Privet
Liriope muscari ‘Big Blue’ / Big Blue Lilyturf
Muhlenbergia rigens / Deer Grass
Myrtus compacta / Compact Myrtle
Nandina domestica ‘Compacta’ / Dwarf Heavenly Bamboo
Podocarpus gracilior ‘Column’ / Fern Pine
Rhaphiolepis indica / Indian Hawthorn
Rosmarinus officinalis / Rosemary
Salvia leucantha / Mexican Bush Sage
Senecio mandraliscae / Blue Fingers
Trachelospermum asiaticum / Asiatic Jasmine
Westringia fruticosa ‘Morning Light’ / Morning Light
Coast Rosemary
Olea Europaea ‘Swan Hill’ / Swin Hill Fruitless Olive
Quercus Agrifolia / Coast Live Oak (Multi)
Schinus molle / California Pepper Tree
Focal Tree
Cercis Occidentalis / Western Redbud
Jacaranda Mimosifolia / Jacaranda
Lagerstroemia Indica / Crape Myrtle
Magnolia Grandiflora / Southern Magnolia
Flowering Accent Trees
4 5
Enhanced Vehicular Rated Entry Paving
Enhanced Vehicular Concrete Band
* Subject to change at final design with approval by the Planning Department 4 5
1 3
2 1
2823
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L5
A

PRIMARY ENTRY GATE SECTION
KEYMAP
NTS
Section A: Primary Entry Gate
Scale: 1/4” = 1’-0”
2824
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L6
C
B

SITE SECTIONS - PERIMETER
Section B: Aliso Viejo Parkway
Scale: 1/4” = 1’-0”
Section C: Aliso Viejo Parkway
Scale: 1/4” = 1’-0”
KEYMAP
NTS
2825
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L7

SITE SECTIONS - PERIMETER
D
Section D: Perimeter Walk
Scale: 1/4” = 1’-0”
KEYMAP
NTS
2826
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L8
NTS
KEYMAP

SITE SECTIONS - PERIMETER
Section E: Perimeter Walk
Scale: 1/4” = 1’-0”
E
2827
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L9
KEYMAP
NTS

SITE SECTIONS - PERIMETER
F
Section F: Perimeter Walk
Scale: 1/4” = 1’-0”
2828
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L10

SITE SECTIONS - TYPICAL TOWNHOME COURTYARD PASEO
G
KEYMAP
NTS
Section G: Typical Townhome Courtyard Paseo
Scale: 1/4” = 1’-0”
2829
November 5, 2025

POLARIS PLACE - PROJECT ENTITLEMENT
LENNAR
L11
SITE PERIMETER WALK 0 20 40 80
3 Legend
1 2
3 4
Concrete Perimeter Walk -
Total Length: Approximatley 1/2 Mile
Bench with ADA Companion Seating
Trash Receptacle
Pet Waste Bag Dispenser
2 1
4 Respite Locations with
Offsite View Opportunities
Aliso
Viejo
Parkway
Typical Distance Between Respite Locations
1/8 Mile
Respite Locations
73 Toll Road
5’-0”
2830
CARLSON STRATEGIC LAND SOLUTIONS, INC.

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 November 4, 2025

So Kim
Community Development Director
City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656
Subject: Polaris Place Residential Development
Dear Ms. Kim,
On behalf of Derek Kegley of Lennar Homes of California, Inc. (Applicant) attached is an application for the Polaris Residential Development project located at 1 – 5 Polaris.

The project site consists of approximately 22.5 acres and is currently developed with office uses and associated infrastructure, as more specifically described below. • 1 Polaris: APN 623-481-49 – approximately 3.081 acres – developed with approximately 26,356 square feet of office space and surface parking. • 2 Polaris: APN 623-481-50 – approximately 4.831 acres – developed with approximately 23,676 square feet of office space and surface parking. • 3 Polaris: APN 623-481-51 – approximately 4.824 acres – developed with approximately 24,794 square feet of office space and surface parking. • 4 Polaris: APN 623-481-53 – approximately 4.832 acres – developed with approximately 23,710 square feet of office space and surface parking. • 5 Polaris: APN 623-481-52 – approximately 4.075 acres – developed with approximately 26,763 square feet of office space and surface parking.

This letter provides a description of the proposed project.

Existing General Plan and Zoning Designations
The Project site has the current designations:
• General Plan – All properties - Professional Office (PO) • Zoning – All properties – Professional Office (PO)

2831
Polaris Residential Development Project Description
November 4, 2025

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 Proposed Entitlements
The project site currently has General Plan land use designation and zoning of Profession Office.

Since the proposed Project consists entirely of residential uses, the following entitlements are requested.
• General Plan Amendment
- PO to Residential High Density (RHD)
• Zone Change
- PO to Residential High Density (RHD)
• Development Agreement
• Vesting Tentative Tract Map
• Site Development Permit
• Initial Study / Mitigated Negative Declaration
In addition, the Project proposes providing affordable housing in accordance with State Density Bonus Law (SDBL) and will be requesting waivers of development standards and concessions as provided by SDBL.

Proposed Project
The proposed project includes the demolition of the existing office buildings and surface parking lots and construction of 405 for-sale residential dwellings at an average density of 18 dwelling units per acre.

Site Plan
Key features of the proposed site plan include:
 Provide a main gated entry into the new community from the middle of the Project site at the same location as the existing driveway from AVP.  Provide a secondary gated entry/exit from AVP at the northern boundary of the Project site.
 Provide a third emergency vehicle access (EVA) only near the southern boundary of the Project site.
 The frontage along AVP includes a 30-foot-wide landscape buffer.  A 32,294 square foot private recreation amenity within an approximately 6.5 acres of open space area is provided at the entry to the community, including a pool, recreation 2832
Polaris Residential Development Project Description
November 4, 2025

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 building, and park area. The recreation amenity will be open to the new residents of the community and privately maintained by the future homeowner’s association.  Internal streets without parking measure 26 feet wide. Streets with parallel parking on one side measure 35 feet wide and streets with parallel parking on both sides measure 42 feet wide. Alley’s serving garages measure 24 feet wide with a minimum of 28 feet separation between garage doors.
 Proposed dwellings fronting onto AVP and Pacific Park will have enhanced architecture.

Housing Types
 Four housing products are being provided in a range of sizes to accommodate a range of buyers.
3-Story Duplex
Floor Plan Sq. Ft. Beds/Baths Garage Spaces No. of Units P1 2484 4Bd/4.5Ba 2 51
P2 2332 4Bd/4.5Ba 2 54
Total 105
3-Story Townhouse
Floor Plan Sq. Ft. Beds/Baths Garage Spaces No. of Units P1 1768 3Bd/3.5Ba 2 64
P2 1931 3Bd/3.5Ba 2 22
P3 2101 4Bd/3.5Ba 2 22
Total 108
3-Story B2B
Floor Plan Sq. Ft. Beds/Baths Garage Spaces No. of Units P1* 1443 2Bd/2.5Ba 2 13
P1 1443 2Bd/2.5Ba 2 39
P2 1652 2Bd/2.5Ba 2 48
Total 100
* The 13 P1 units will be designated affordable
2833
Polaris Residential Development Project Description
November 4, 2025

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 3-Story Rowtowns
Floor Plan Sq. Ft. Beds/Baths Garage Spaces No. of Units P1* 1304 2Bd/2.5Ba 2 4
P2** 1286 2Bd/2.5Ba 2 4
P3 1621 3Bd/3Ba 2 44
P4 1889 4Bd/4Ba 2 40
Total 92
* The 4 P1 units will be designated affordable
** The 4 P2 units will be designated affordable
Recreation
• A pool and recreation complex is located at the front entry to the community. This facility includes a pool, restroom and recreation building, and grass turf park area. This amenity measures approximately 56,200 square feet, within approximately 6.5 acres of open space.
• Access to the front of the townhome and duplex residential units would occur from landscaped paseos. The paseos measure approximately 23 feet between townhomes and 22 feet between duplexes.
• A walking trail of approximately ½ mile in length around the perimeter of the Project site.

Engineering
• The Project proposes to connect to existing sewer, water and storm drain infrastructure within AVP.
• The Project proposes to use underground modular wetland systems as its water quality BMP and discharge storm water into existing storm drain within AVP. • The Project will increase the amount of pervious surface, thereby reducing the amount of storm runoff compared to the existing conditions. Therefore, no detention is required. • All dry utilities (electrical, cable, fiber, etc.) will be underground. • All grading will balance on the Project site and no import or export will be required. • Demolition of existing structures will be hauled off-site to a qualified recycling facility as appropriate.
2834
Polaris Residential Development Project Description
November 4, 2025

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 Affordable Housing
• The Applicant proposes to satisfy its affordable housing requirement by constructing 21 Very Low Income units on the Project site (5%) and deed restricting future sale of those units in accordance with the City’s affordable housing standards. • The Applicant requests waivers and concessions in return for providing affordable housing, such as modifications to parking and setback standards. Waivers and concessions would be processed through SDBL and documented in the proposed Development Agreement.

Parking
• Each dwelling unit contains an enclosed 2-car garage. The 3-story Rowtowns have two tandem garage spaces. All other units have a two-car side by side garage. Enclosed garage parking totals 810 parking spaces.
• Guest parking is provided throughout the proposed community. A total of 151 guest spaces are provided.
• No parking off the Project site on AVP is permitted.
• The Applicant proposes a Parking Management Plan that will include numerous provisions to ensure adequate parking is provided. The CC&Rs will require garages to be kept open and available for parking. Guest and homeowner parking permits will be issued to control the number of guests and ensure residents do not park in guest spaces.

The new homeowner’s association will be responsible for enforcement.

Trash
• Each dwelling will have trash carts.
• Carts will be stored in the enclosed garages. Sufficient space is designed for cart storage within each garage.
• Residents will be responsible for pulling trash carts to the street. Trash trucks will not drive down the alleys, therefore residents would need to place the trash carts on the loop road.

CEQA
• The Applicant would like to begin the CEQA process as soon as possible, including notification under SB 18 and AB 52.
• The Applicant team will prepare all technical studies for City review, including:
- Air Quality
2835
Polaris Residential Development Project Description
November 4, 2025

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 - Cultural
- Geotechnical investigation
- Preliminary Hydrology Report
- Preliminary WQMP
- Phase I Environmental Site Assessment Report
- Noise
- Preliminary Sewer Report
- Preliminary Water Report
- Traffic and VMT Assessment Report
- Tribal Cultural Resources
- Fire Master Plan
- Preliminary Utility Assessment
• The Applicant anticipates the Project will not generate significant unavoidable impacts and will qualify for an Initial Study / Mitigated Negative Declaration. The Applicant Team will prepare a draft IS/MND for City review.

We look forward to working with you on the entitlement of this project. If you have any questions, please contact me at [email protected] or 949-289-3625.

Sincerely,
Peter K. Carlson
President
Attachments
• Site Plan
• Conceptual Architecture and Floorplans
2836
1-5 Polaris
Concept Review
2837
Existing Site
2 2838
Site Layout
3 Existing (Two-Story Offices) Proposed (405 for-sale Townhomes) 2839
Proposed Project
4 2840
City of Aliso Viejo

AGENDA ITEM
DATE: December 3, 2025
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services
SUBJECT: FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT
Recommended Action:

Receive and file the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2025.

Fiscal Impact:

As of June 30, 2025, the City’s combined fund balance for all funds increased by $8.9 million for a total of $54.5 million. Of this amount, $44.4 million is in the General Fund and $10.1 million is restricted (special revenue funds such as gas taxes, Measure M, grants, etc.).

Background:

The Annual Comprehensive Financial Report is 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 in November 2025 and 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, 2025, which provides reasonable assurance that the financial 2841

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 not identify any errors, and no recommendations were provided regarding the City’s internal controls. 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 $39.2 million, while the total cost of all programs and services was $32.0 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, 2025, by $150.5 million. This amount is referred to as the net position of the City.
 The City increased its overall net position by $7.2 million or 5.0% higher compared to FY 2023-24.
 As of June 30, 2025, the City’s overall fund balance increased by $8.9 million for a total of $54.5 million for all funds.

General Fund Highlights
The General Fund is the primary operating fund of the City and is 81.5% of the City’s overall fund balance. General Fund operations include Administration and Support, Community and Economic Development, Recreation and 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 2024-25, General Fund revenues and transfers-in total $32.1 million and exceeded expenditures and transfers-out of $25.5 million, resulting in an increase to the General Fund balance by $6.6 million. Ending fund balance for the year increased by

17.3% to $44.4 million. This balance is comprised of assigned funds of approximately $35.1 million and $9.4 million of unassigned funds. Assigned funds include $4.0 million for contingencies, $1.0 million for insurance and/or benefit obligations, $14.3 million for asset replacement, and $15.7 million for emergencies. The unassigned portion is the part of fund balance that is available for use without constraints established by legal requirements totaling $9.4 million and meets the City’s Fund Balance Policy target of 25- 35% of the operating budget. The total fund balance at June 30, 2025, is equal to 160% of the FY 2025-26 adopted General Fund budget appropriations. 2842

Actual revenues, transfers in, and other financing sources of $32.1 million exceeded the adopted budget projections of $26.8 million by $5.3 million, or 19.9% higher than budget estimates. This is primarily a result of unexpected growth in sales tax from EFuel, LLC, new businesses at The Commons at Aliso Viejo Town Center, and a greater share of the County pool. Investment earnings were higher by $1.6 million; however, this includes $0.6 million for unrealized gains in the City’s portfolio and $0.2 million in accrued interest.

Transfers-in exceeded budget estimates by $0.3 million and is a result of better-thanexpected net income from operations at the Aliso Viejo Center and $0.1 million from grant reimbursements, such as, the Permanent Local Housing Allocation Program, LEAP, and CDBG. Table 1 provides a summary of the City’s General Fund resources compared to FY 2023-24 actuals as well as the FY 2024-25 adopted budget.

Table 1: General Fund Resources
Actual expenditures and transfers out totaled $25.5 million and was $1.7 million under budget due to conservative spending across all departments. Administration and support costs were $0.7 million under budget primarily from salary savings due to new employees and partially vacant positions during the fiscal year. Public Safety costs were $0.9 million lower than budget primarily due to high vacancy levels within the Orange County Sheriff’s Department. Savings of $0.4 million in Recreation and Community Services are from lower-than-expected operating costs at Gold Cost Farms, facility maintenance, instructor fees, and a vacant Recreation Coordinator position. Public Works was also under budget by $0.2 million from savings for permits, environmental compliance, and street maintenance. Lastly, $0.3 million in expected capital improvement costs were not expended due to project delays at the Aquatic Center. Savings across these areas offset the additional $0.6 million in economic development spending from increases in tax subsidy payments to EFuel. Table 2 provides a summary of the City’s General Fund expenditures compared to FY 2023-24 actuals as well as the FY 2024-25 adopted budget.

General Fund Resources
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
Over/(Under)
Property Tax $ 9,911,102 $ 10,179,100 $ 10,287,203 $ 108,103 Sales Tax 8,359,623 8,900,000 11,154,921 2,254,921
TOT 1,570,575 1,600,000 1,699,738 99,738
Franchise Fees 1,793,611 1,661,670 1,738,860 77,190
Recreation 1,593,376 1,685,500 1,525,242 (160,258)
Building & Planning 1,240,630 1,100,000 1,353,812 253,812 Fines & Forfeitures 296,430 185,000 293,289 108,289
Investment Earnings1
708,216 495,000 2,138,091 1,643,091
Other2
2,700,363 944,049 1,870,143 926,094
Total Resources $ 28,173,926 $ 26,750,319 $ 32,061,299 $ 5,310,980 1 FY 24-25 Investment Earnings include $836,004 in accrued interest and market adjustments 2 FY 24-25 Actuals include other financing sources for lease and SBITA acquisition per GASB 87 and 96 in the amount of $365,786
2843

Table 2: General Fund Appropriations
Special Revenue Funds
The City’s special revenue fund balances at the end of FY 2024-25 total $10.1 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 $10.1 million, approximately $7.9 million is restricted for street capital projects, $0.4 million for public safety, and $1.8 million for community development and other projects. Table 3 summarizes the balances for the City’s special revenue funds at June 30, 2025.

Table 3: Special Revenue Funds
General Fund
Appropriations
FY 2023-2024
Actuals
FY 2024-25
Amended
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
(Over)/Under
Admin & Support $ 4,978,006 $ 4,976,449 $ 4,235,385 $ 741,064 Community Services 2,743,811 3,165,132 2,744,808 420,324 Comm & Econ Dev 3,982,795 4,136,826 4,785,189 (648,363) Public Works 1,724,588 1,914,500 1,668,271 246,229
Public Safety 10,005,398 11,332,287 10,462,135 870,152
City Hall 201,147 251,290 195,732 55,558
Debt Service 655,795 658,050 655,369 2,681
Transfers/Other 159,252 201,402 529,411 (328,009)
Total Operating $ 24,450,792 $ 26,635,936 $ 25,276,300 $ 1,359,636 Capital Improvement 267,472 526,000 224,521 301,479
Total General Fund $ 24,718,264 $ 27,161,936 $ 25,500,821 $ 1,661,115 Fund
Beginning
Balance
Total
Revenues
Total
Expenses
Ending
Balance
202 - Traffic Congestion Relief Fund $ 76,068 $ 3,362 $ - $ 79,430 203 - Gas Tax 959,679 1,515,830 1,125,975 1,349,535
204 - Measure M 1,903,028 1,089,672 757,795 2,234,906
205 - SB1-RMRA 1,155,282 1,504,342 84,914 2,574,710
215 - Public Safety Grants 288,518 211,170 125,409 374,279 221 - AQMD (AB2766) 1,480,498 134,120 - 1,614,618
225 - Integrated Waste Management 70,924 66,225 62,347 74,802 231 - Other Grants 44,085 297,672 295,320 46,438
241 - Technology Fund 397,435 91,408 65,853 422,990
245 - Development Impact 1,377,777 - - 1,377,777
251 - Federal Grants (14,062) 126,549 199,515 (87,027)
260 - AV Center - 3,193,144 3,193,144 -
261 - Aquatic Center - 1,003,374 1,003,374 -
411 - Debt Service 546 655,673 655,921 298
511 - AV Ranch Foundation 100 - - 100
TOTAL $ 7,739,880 $ 9,892,542 $ 7,569,565 $ 10,062,857
2844

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

6. Presentation
2845
Annual Comprehensive Financial
Report Fiscal Year Ended June 30, 2025
Aliso Viejo, California
2846
The FY 2024-25 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:
2847

CITY OF ALISO VIEJO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025
Prepared by

DEPARTMENT OF FINANCIAL SERVICES
2848

THIS PAGE INTENTIONALLY LEFT BLANK
2849

CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION:

Letter of Transmittal i
List of Principal Officials vii
Organizational Chart viii
GFOA Certificate of Achievement for Excellence in Financial Reporting ix

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

2850

CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025
Table of Contents (Continued)
Page
Required Supplementary Information:

Budgetary Comparison Information:

Budgetary Comparison Schedule – General Fund 61
Budgetary Comparison Schedule – Aliso Viejo Center 62

Miscellaneous Plan:

Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date 63
Schedule of Plan Contributions 64

Schedule of Changes in the Total OPEB Liability and Related Ratios 65 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
2851

CITY OF ALISO VIEJO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025
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
Top 25 Sales Tax Producers 9 107
Property Tax Levies and Collections 10 108
Assessed Value and Estimated Actual Value of
Taxable Property 11 109
Direct and Overlapping Property Tax Schedules 12 110
Principal Property Taxpayers 13 111
Ratios of Outstanding Debt by Type 14 112
Computation of Direct and Overlapping Bonded Debt 15 113 Legal Debt Margin 16 114
Demographic and Economic Statistics 17 115

Principal Employers 18 116
Operating Indicators by Function 19 117
Full-Time and Part-Time City Employees by Function 20 118 Capital Assets Statistics by Function 21 119
Schedule of Insurance 22 120
Miscellaneous Statistical Information 23 121
2852

THIS PAGE INTENTIONALLY LEFT BLANK
2853
i
November 13, 2025
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, 2025. 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 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 are 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, 2025, 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, 2025, 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-byfund 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. 2854
ii
These statements were prepared using the accrual basis of accounting whereas the fund financial statements were prepared using the modified accrual method. A reconciliation report is provided as a key to understanding the changes between the two reporting methods.

In addition, the Statement 34 standard includes an emphasis on the City’s major funds as shown in the Governmental Fund Statements. These statements, combined with other information, are further analyzed in a narrative section called Management’s Discussion and Analysis (MD&A). The MD&A provides “financial highlights” and interprets the financial reports by analyzing trends and explaining changes, fluctuations, and variances in the financial data. In addition, the MD&A is intended to disclose any known significant events or decisions that affect the financial condition of the City. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

PROFILE OF THE CITY
The City of Aliso Viejo was incorporated on July 1, 2001, as a general law city under the laws of the State of California. The City of Aliso Viejo encompasses approximately seven square miles in south Orange County and has a population of 50,213 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 (AVCA), a Master Homeowners Association for the City of Aliso Viejo, owns and manages 21 parks within the City limits. AVCA also maintains 600 acres of 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.

The legal level of budgetary control is the level at which management may not allocate resources without the City Council’s approval. The level of budgetary control for the City is established at the fund level. 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. Transfers of appropriations within a fund can be made with the approval of the City Manager and Director of Financial Services. The City Council’s approval is required for all budget amendments that result in a change to the total expenditure of a fund. 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 presented to and 2855
iii
reviewed by the City Council and consideration is given to necessary changes for new programs, projects, and other adjustments to ensure that expenditures and revenues are in line with the budgeted projections.

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

ECONOMIC CONDITION AND OUTLOOK
The U.S. economy during the fiscal year outperformed expectations with fears of a recession not materializing despite inflation, higher interest rates, and uncertainty regarding the new U.S. Administration’s policies on tariffs, immigration, and other federal programs. According to the Bureau of Economic Analysis, Real Gross Domestic Product decreased by 0.6% in the first quarter of 2025; however, the second quarter bounced back with a 3.8% increase.

Although the national unemployment rate continues to be low, job growth has slowed in recent months, increasing to 4.3% in August 2025 from 4.0% in January 2025.

Due to continued economic uncertainty, UCLA Anderson’s Forecast in June 2025 expects economic growth to slow to near zero with only modest recovery anticipated through 2027.

The forecast also expects inflation to rise as tariffs begin to affect supply chains, and unemployment is expected to reach 4.6%. UCLA does not anticipate a recession in 2025-26; however, international conflicts, tariffs, the impact of government shutdowns, immigration policy, higher unemployment, 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 6.1% for July 2025, Orange County’s rate has been consistently lower at 4.8%. Aliso Viejo’s unemployment rate is lower than that of the County at 4.3%, according to 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, and is home to Soka University. 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 The Commons at Aliso Viejo Town Center provide new opportunities and funding sources for the City.

The City’s major revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes. General Fund resources, including transfers-in and other financing sources for FY 2024-25, totaled $32.1 million, compared to $28.2 million in the prior year. The revenue increase is primarily attributed to sales tax increasing year over year by

33.4%, or $2.8 million. The City benefitted from the unexpected growth of EFuel, LLC, which saw significant increases in sales tax revenue. Also contributing to the increase is the opening of the City’s first and only car dealership, Tesla, along with 99 Ranch Market, and other businesses at The Commons. Furthermore, with the increase in the City’s overall taxbase, the City’s allocation of sales tax from the County Pool also increased by more than

37.0%. Property taxes remain stable, with modest increases of approximately $0.4 million, or 3.8% from growth in assessed values due to annual inflationary adjustments and higher 2856
iv
housing prices as low housing inventory continues to keep prices high. Transient occupancy taxes increased by $0.1 million or 8.2% from the City’s two hotels, Homewood Suites and the Renaissance Clubsport. The Renaissance completed significant renovations, which had resulted in lower occupancy rates in the prior year. Franchise fees remained flat at $1.7 million.

Although revenues were higher compared to FY 2023-24, budgeted revenues for FY 2025- 26 are lower than FY 2024-25 actuals by $5.3 million or 16.6%. Sales tax projections at the time of adoption had not anticipated growth with EFuel and were conservatively estimated to reflect lower consumer spending as consumers grapple with inflation, higher interest rates, and continued increases with housing and insurance costs. Property tax was also conservatively projected at $10.3 million and included only a 2% inflationary increase allowable under Prop 218. Estimates also factored in potential reductions in assessed values from appeals and lower transfer taxes as a result of a potentially slowing housing market.

The reduction in overall revenue is also attributed to investment earnings as it excludes any market adjustments and unrealized gains.

The FY 2025-26 operating budget is balanced with General Fund resources and expenditures estimated at $26.8 million. General Fund reserves will fund $1.0 million in capital improvements at various City facilities. Budget reductions were made across all departments in an effort to control costs.

LONG TERM FINANCIAL PLANNING
As of June 30, 2025, the City has a General Fund balance of $44.4 million, which represents 160% of total FY 2024-25 General Fund appropriations. The balance includes $4.0 million for contingencies, $1.0 million for insurance and benefit obligations, $14.3 million for future replacement of City infrastructure assets, and $15.7 million for emergencies and unanticipated CIP projects. The unassigned fund balance is $9.4 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. In addition, the City has $10.1 million in restricted special revenue funds for street and community development projects.

On August 13, 2019, the City issued $12,250,000 of tax-exempt Certificates of Participation (COP) 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%. As of June 30, 2025, the principal remaining on the COP is $11,035,000.

City Council Goals and Priorities
Over the past few years, the City has undergone significant staffing changes, including directors, the appointment of a new City Manager, and newly elected Council Members. As a result of the changes, Staff considered it prudent to obtain the services of Baker Tilly Advisory Group, LP, to facilitate the development of a short-term strategic plan for the City.

A strategic plan is a vital tool for cities to ensure that the City Council’s goals and priorities are effectively communicated to employees and the community. This will also include the development of an action plan to align City resources towards achieving Council’s goals. 2857
v
On May 21, 2025, the City Council adopted the following three goals:

1. Financial Stability – Continue to ensure the City’s financial stability through careful planning and evaluation of revenue and investment opportunities.

2. Infrastructure Investment – Maintain, replace, and fund the City’s capital assets through infrastructure investment.

3. Aliso Viejo Ranch – Develop a plan to establish the Ranch as a prized community asset.

To accomplish these goals, the City Council also established the following priorities:

1. Identify and pursue alternative funding opportunities to support key City projects, the Capital Improvement Program, and goals.

2. Monitor and routinely review contracts and agreements to ensure the appropriate delivery of services, alignment with procurement policies and procedures, and to identify potential cost savings.

3. Prepare a master schedule to plan and budget future maintenance needs based on the recently completed asset evaluation.

4. Review expenditures and seek opportunities for cost savings at the Aliso Viejo Ranch.

5. Identify services and programs at the Ranch that will increase community participation.

6. Create a projection to increase cost recovery for the Ranch.

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.

During FY 2024-25, the City’s first and only car dealership, Tesla, opened its doors at The Commons at Aliso Viejo Town Center. In addition, 99 Ranch Market, Daiso, MiniSo, and various restaurants also began operations within the City. In the next year, the City anticipates the continued revitalization of The Commons with the opening of new entertainment ventures such as Lucky Strike and Sender One Climbing, as well as additional dining options in Aliso Viejo Town Center. Lastly, new housing development projects are in various stages of development throughout the City.

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 of 50% for the first $800,000 of sales tax received and 70% for amounts above $800,000. EFuel expanded their business during the fiscal year resulting in total sales tax of $2.5 million. As a result, the City abated sales tax in the amount of $1.6 million to EFuel, resulting in net revenue of $0.9 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 contained similar subsidy terms provided to EFuel. Based on reported sales tax revenue generation of approximately $2.8 million, payments to Hunt and Sons was estimated to total $1.8 million during the fiscal year, providing net income to the City of approximately $1.0 million.
2858
vi

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 2023-24 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 2024-25 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
2859
vii

CITY OF ALISO VIEJO

LIST OF PRINCIPAL OFFICALS

COUNCIL-MANAGER FORM OF GOVERNMENT

CITY COUNCIL

TIFFANY ACKLEY
Mayor

MAX DUNCAN
Mayor Pro-Tem

GARRETT DWYER MIKE MUNZING TIM ZANDBERGEN
Councilmember Councilmember Councilmember

CITY ADMINISTRATION

MITZI ORTIZ
City Manager
Scott Smith, City Attorney (Best Best & Krieger)
Ann Eifert, Director of Financial Services/City Treasurer So Kim, Director of Community Development
Shaun Pelletier, City Engineer/Public Works Director
Isaac Aziz, Information Technology Manager
Lizzy Mendoza, Community Services Manager
Kathy Bailor, Interim City Clerk
Captain Ryan Buhr, Chief of Police Services (Orange County Sheriff’s Department) Division Chief Michael Summers, Fire Services (Orange County Fire Authority) 2860
Organization Chart
June 30, 2025
viii
*Contract Services
2861
ix
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, 2024
Executive Director/CEO
2862
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, 2025, 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, 2025, 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
During the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101: Compensated Absences. Our opinion is not modified with respect to this matter.

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.
1 2863
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. 2 2864
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The 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, 2024, financial statements, and we expressed unmodified audit opinions on those audited financial statements in our report dated November 21, 2024. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 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 13, 2025 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 13, 2025
3 2865

THIS PAGE INTENTIONALLY LEFT BLANK
4 2866

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
The purpose of the management’s discussion and analysis (MD&A) is to help City residents and other readers understand what the financial statements and notes in this financial report say about the City’s financial health and why it has changed since last year. It contains information drawn from those other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of the City’s finances. The MD&A also provides an overview of the City’s financial activities for the year ended June 30, 2025. 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.

If you have any questions about this report or require further information, contact the Department of Financial Services at [email protected] or (949) 425-2520.

Financial Highlights
• Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2025, by $150.5 million. This amount is referred to as the net position of the City. Of this amount, $42.3 million is unrestricted. • The City increased its overall net position by $7.2 million or 5.0% for a total net position of $150.5 million.
• General Fund resources, which include revenues, transfers-in, and other financing sources, total $32.1 million, exceeding expenditures and transfers out of $25.5 million, resulting in an increase to the General Fund balance by $6.6 million to $44.4 million. This balance is comprised of assigned funds of approximately $35.0 million and $9.4 million of unassigned funds. The estimated fund balance at the fiscal year ended June 30, 2025, is equal to 160% of the FY 2025-26 Adopted General Fund budget appropriations, including capital and debt service payments.
• As of June 30, 2025, the City’s governmental funds reported combined ending balances of $54.5 million, an increase of $8.9 million from the prior year. Of this amount, $10.2 million is restricted or non-spendable and $44.3 million is unrestricted.

Overview of the Financial Statements
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 5 2867

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
expenses are taken into account, regardless of when cash is received or paid. These two statements report the City’s net position and changes in them. Net position, which is the difference between assets and liabilities, is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. Consideration should also be given to other nonfinancial factors, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.

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

78.1% 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 2868

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

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, 2025, by $150.5 million. Total assets increased by $6.5 million or 4.0% due to increases in cash and investments primarily in the General Fund and street improvement funds, such as Measure M, Gas Tax, and SB1. Total deferred outflows of resources decreased by $0.3 million or 19.9% as a result of lower pension related resources. Total liabilities decreased by $0.7 million or 3.4% due to a decrease in accounts payable and deposits payable. Total deferred inflows of resources decreased by approximately $0.3 million or 29.7% because the prior year included lease receivables for City Hall.

The City increased its overall net position by $7.2 million or 5.0% 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 2024-25 total $98.0 million and represents 65.1% of the City’s total net position. $10.2 million is restricted, representing special revenue resources that are subject to their funding stipulations, such as street improvements, specific public safety expenditures, and community development projects. Unrestricted net position totals $42.3 million and is an increase of $5.9 million, which is largely attributed to an increase in the General Fund balance.
2025 2024
Current and other assets 59,734,443 $ 51,738,117 $
Capital assets, net 110,397,038 111,853,655 Total assets 170,131,481 163,591,772 Total deferred outflows of resources 1,018,488 1,270,778 Current liabilities 6,012,219 6,647,110 Non current liabilities 14,055,457 14,118,971 Total liabilities 20,067,676 20,766,081 Total deferred inflows of resources 586,184 834,081 Net Position:

Net investment in capital assets 97,997,803 99,321,092 Restricted 10,222,546 7,522,162 Unrestricted 42,275,760 36,419,134 Total net position 150,496,109 $ 143,262,388 $ Table 1
Condensed Statement of Net Position
Governmental Activities
7 2869

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024
Revenues
Program Revenues:

Charges for services 7,205,235 $ 7,731,011 $
Operating contributions and grants 4,962,919 5,427,985 General Revenues:

Taxes:

Sales taxes 11,154,921 8,359,623 Property taxes 10,287,203 9,911,103 Franchise taxes 1,813,044 1,875,533
Transient occupancy taxes 1,699,738 1,570,575
Other Intergovernmental, unrestricted 81,644 64,044 Use of money and property 1,621,512 1,207,332 Other 378,730 747,990 Total Revenues 39,204,946 $ 36,895,196 $ Expenses
General government 5,363,026 6,125,440 Public safety 10,585,244 10,147,491 Community development 8,399,470 7,679,606 Community services 2,755,431 2,730,921 Public works 4,500,614 5,310,206
Interest and fiscal charges 367,460 382,504 Total expenses 31,971,245 $ 32,376,168 $ Increase (Decrease in net position) 7,233,701 $ 4,519,028 $ Net position - beginning of year,
as restated (note 18) $ 138,743,360 143,262,388 $
Net position - end of year 150,496,089 $ 143,262,388 $
Table 2
Change in Net Position
8 2870

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Total revenues for governmental activities amounted to $39.2 million during FY 2024-25 and reflect an increase of $2.3 million or 6.3% over the prior year. Significant sales tax increases due to the growth of EFuel, LLC, a fueling company based in Aliso Viejo, largely offset decreases in program revenues due to lower demand for facility rentals at the Aliso Viejo Ranch and Aliso Viejo Center. Functional expenditures totaled $32.0 million and decreased by $0.4 million or 1.3% compared to the prior year from lower expenditures in public works due to the deferral of the Glenwood street improvement project. Total revenues exceeded program expenses by $7.2 million in FY 2024-25.

Revenues
The City’s major general revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes. Property taxes total $10.3 million, an increase of $0.4 million or 3.8% due to higher assessed property values from annual inflationary adjustment of 2%, the maximum allowed under Prop 13.
9 2871

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Transient occupancy taxes totaled $1.7 million, up by $0.1 million or 8.2%. This was primarily due to renovations at the Renaissance ClubSport in the prior year which hampered occupancy rates.

Sales tax revenue saw a significant increase of $2.8 million or 33.4% from growth in one of the City’s highest sales tax producers, EFuel, the opening of Tesla at The Commons at Aliso Viejo Town Center, and a higher allocation of the County’s pool.

Franchise fees decreased by approximately $62,000 or 3.3%, which is attributable to lower receipts from gas and cable fees. The use of money and property, which includes investment and rental income at City Hall, increased by 34.3% to $1.6 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 $1.0 million or 7.5%. Revenue from services decreased approximately $0.5 million or 6.8% from lower demand in facility rentals at the Aliso Viejo Ranch and Aliso Viejo Center. In addition, other contributions and grants decreased by $0.5 million or 8.6% from the end of CDBG-CV funding provided in response to the Covid epidemic.

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 or 1.3%. Expenditures for Community Development increased by $0.7 million due to increases in sales tax subsidy payments for the City’s two sales tax sharing agreements with EFuel and Hunt and Sons, LLC. This was offset by a decrease in public works spending of $0.8 million from the delay of the Glenwood street rehabilitation project, which was rescheduled for FY 2025-26.

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 decreased by $0.8 million or 12.4% as a result of a one-time severance payment in the prior year and salary savings from positions that were vacant for part of FY 2024-

25. The County of Orange approved new labor agreements in 2023 resulting in increased wages and benefits for their employees, which increased costs for public safety by $0.4 million or 4.3%.

Increases from the contract were offset with the freezing of one motor officer position and other vacancy credits within the Sheriff’s Department.

Community Services expenditures were flat at $2.7 million given the effort to offset cost increases from salaries and inflation with various budget reductions. 10 2872

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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 2024-25 was $32.0 million. That cost is financed by program revenues of $12.2 million. Net cost of services is $19.8 million and is funded with general fund resources.

Total Cost of
Services
Program
Revenues
Net
Revenue/Cost
of Services
General government 5,363,026 $ - $ 5,363,026 $
Public safety 10,585,244 (614,500) 9,970,744 Community development 8,399,470 (5,374,046) 3,025,424 Community services 2,755,431 (1,537,901) 1,217,530
Public works 4,500,614 (4,641,707) (141,093)
Interest and fiscal charges 367,460 - 367,460 Total 31,971,245 $ (12,168,154) $ 19,803,091 $ Total Cost of
Services
Program
Revenues
Net
Revenue/Cost
of Services
General government 6,125,440 $ - $ 6,125,440 $
Public safety 10,147,491 (611,869) 9,535,622 Community development 7,679,606 (6,259,786) 1,419,820 Community services 2,730,921 (1,612,114) 1,118,807
Public works 5,310,206 (4,675,227) 634,979
Interest and fiscal charges 382,504 - 382,504
Total 32,376,168 $ (13,158,996) $ 19,217,172 $
Table 3
Net Cost of Governmental Activities
Fiscal Year Ended June 30, 2025
Table 3
Net Cost of Governmental Activities
Fiscal Year Ended June 30, 2024
11 2873

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At year-end, the City’s Governmental Funds reported a combined Fund Balance of $54.5 million, an increase of 19.5% or $8.9 million from the prior year. Increases to the fund balances include $6.6 million in the General Fund and $2.3 million in restricted street improvement funds from gas taxes, SB1, Measure M, and AQMD. The fund balance includes $5,885 in non-spendable funds.

Restricted funds of $10.1 million include approximately $1.9 million for community development projects, $7.8 million for capital projects, and $0.4 million for public safety. $35.1 million or 64.3% of the fund balance is assigned for contingencies, insurance obligations, asset replacement, and emergencies. The remaining $9.3 million or 17.0% 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 81.5% 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, and the Iglesia Park and Community Center.

For FY 2024-25, General Fund revenues, transfers-in, and other financing sources totaled $32.1 million. Total resources exceeded expenditures and transfers out in the amount of $25.5 million, resulting in an increase to the General Fund balance of $6.6 million. Ending fund balance for the year increased by 17.3% to $44.4 million. This balance is comprised of assigned funds of $35.1 million and $9.4 million of unassigned funds. Assigned funds include $4.0 million for contingencies, $1.0 million for insurance and/or benefit obligations, $14.3 million for asset replacement, and $15.7 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 $9.4 million and meets the City’s Fund Balance Policy target of 25-35% of the operating budget.

The total fund balance at the fiscal year ended June 30, 2025, is equal to 160% of the FY 2025- 26 adopted General Fund budget appropriations.

The City’s major revenue sources are property taxes, sales taxes, franchise fees, and transient occupancy taxes. Total General Fund resources for FY 2024-25 totaled $32.1 million, compared to $28.2 million in the prior year. Property taxes total $10.3 million, an increase of $0.4 million or

3.8%, due to higher assessed property values from the maximum 2% annual inflationary adjustment under Prop 13, as well as a continued strong housing market, despite higher interest rates. Transient occupancy taxes totaled $1.7 million, up by $0.1 million or 8.2%. This was primarily due to renovations at the Renaissance ClubSport in the prior year which hampered occupancy rates. Sales tax revenue saw a significant increase of $2.8 million or 33.4% from growth in one of the City’s highest sales tax producers, EFuel, the opening of Tesla at The Commons at Aliso Viejo Town Center, and a higher allocation of the County’s pool. Franchise fees decreased by $55,000 or 3.1%, which is attributable to lower receipts from gas and cable franchise fees. Revenue from Recreation decreased approximately $0.1 million or 4.9% from 12 2874

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
lower demand in facility rentals at the Aliso Viejo Ranch and fewer participants in recreation classes. The use of money and property, which includes investment and rental income at City Hall, increased by $1.4 million primarily as a result of higher interest rates and a market adjustment of $0.6 million.

In addition, the General Fund saw a decrease in transfers in as a result of lower operating results at the Aliso Viejo Center. Net income at the Center totaled $0.8 million compared to $1.4 million in the prior year. Demand for facility rentals have normalized after a couple years of high demand as COVID restrictions ended.

General Fund expenditures and transfers out totaled $25.5 million and was $0.8 million higher than FY 2024-25 from increases in spending for economic development tax subsidy payments to the City’s two tax-sharing agreements to EFuel and public safety.

Aliso Viejo Center
The Aliso Viejo Center provides facility rental and banquet services for large social gatherings, such as conferences and weddings. FY 2024-25 revenue totaled $3.2 million and was 12.8% or $0.5 million lower compared to the prior year. Expenditures increased by $0.1 million and totaled $2.4 million and reflected higher wages and additional marketing efforts to increase reservations.

Although net income of $0.8 million was down from $1.4 million in the prior year, it exceeded budget expectations by $0.2 million.

General Fund Budgetary Highlights
Revenues: Actual revenues, transfers in, and other financing sources of $32.1 million exceeded the adopted budget projections of $26.8 million by $5.3 million, or 19.9% higher than budget estimates. This is primarily a result of unexpected growth in sales tax from EFuel, new businesses at The Commons at Aliso Viejo Town Center, and a greater share of the County pool. Investment earnings was higher by $1.6 million and included a $0.8 million market adjustment.

Transfers-in exceeded budget estimates by $0.3 million. This is primarily a result of better-thanexpected net income from operations at the Aliso Viejo Center and $0.1 million from grant reimbursements, such as from the Permanent Local Housing Allocation Program, LEAP, and CDBG.

Expenditures: Actual expenditures and transfers out totaled $25.5 million and was $1.7 million under budget due to conservative spending across all departments. Administration and support costs were $0.7 million under budget from salary savings due to new employees and partially vacant positions during the fiscal year. Law enforcement contract costs were $0.9 million lower than budget due to high vacancy levels within the Orange County Sheriff’s Department. Savings of $0.4 million in Community Services are from lower operating costs at Gold Cost Farms, facility maintenance costs, instructor fees, and a vacant Recreation Coordinator position. Public Works was also under budget by $0.2 million from lower-than-expected costs in environmental compliance and street maintenance. Lastly, $0.3 million in expected capital improvement costs were not expended due to project delays planned at the Aquatic Center. Savings across these areas offset the additional $0.6 million in economic development spending from increases in the tax subsidy payments to EFuel.
13 2875

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2025, the City had $110.4 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 the purchase and replacement of a new HVAC unit at City Hall, new projectors at the Aliso Viejo Center, playground surface replacement at Vista Park, and renewal of software subscriptions for building and planning. Disposals of $1.4 million included the removal of a median between Aliso Creek and Pacific Park. Depreciation expense in the amount of $1.5 million was incurred in FY 2024-25. For additional information on capital assets, refer to Note 6 of Notes to the Financial Statements.

Overall Pavement Network
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
Condition Level
Minimum Condition
Level
82 80
Asset Type 2025 2024
Land 14,315,978 $ 14,315,978 $
Buildings and improvements 36,046,837 36,627,939 Equipment, furniture and fixtures 162,720 270,940 Other infrastructure 5,274,581 6,201,107 Streets and highways 53,871,430 53,871,430 Construction in progress - - Right-to-use assets 31,084 39,020 Right-to-use subscription assets 694,408 527,241 Total capital assets 110,397,038 $ 111,853,655 $ Table 4
Capital Assets at Year End
(Net of Depreciation)
14 2876

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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, 2025, actual streets and roads maintenance project costs were $2.1 million compared to the estimate of $4.1 million. The amount of underspending was due to the delay of the Glenwood street rehabilitation project, which was rescheduled to be completed in FY 2024-25 but moved to FY 2025-26.

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 approximately $800 on average per year for residents within the CFD.

Non-Current Liabilities
Changes in non-current liabilities for the fiscal year ended June 30, 2025, are provided in Table

5. For additional information on non-current liabilities, refer to Note 7 of the Notes to the Financial Statements.

Balance at
July 1, 2024 Additions Deletions
Balance at
June 30, 2025
Amount due
within one
year
Amount due
beyond one
year
Bonds Payable 11,295,000 $ - $ (260,000) $ 11,035,000 $ 270,000 $ 10,765,000 $ Unamortized premium 838,988 - (32,269) 806,719 32,269 774,450 Lease liability 38,375 - (7,408) 30,967 7,606 23,361 Subscription liability 298,428 365,786 (137,665) 526,549 137,579 388,970 Compensated absences 257,435 105,500 - 362,935 184,214 178,721 Total 12,728,226 $ 471,286 $ (437,342) $ 12,762,170 $ 631,668 $ 12,130,502 $ Table 5
Non-Current Liabilities
June 30, 2025
15 2877

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
ECONOMIC FACTORS AND FISCAL YEAR 2025-26 BUDGET
Although the U.S. economy in FY 2024-25 outperformed expectations, forecasts expect growth to slow due to higher interest rates, inflation, as well as rising national and consumer debt.

Recession forecasts continue to be mixed, with the effects of tariffs not yet fully known.

Furthermore, the rising costs of insurance, food, fuel, consumer goods, and services may exacerbate an already slowing economy.

The FY 2025-26 budget includes appropriations for programs and projects necessary to provide essential services to the community. General Fund revenues are estimated to total $26.8 million.

The General Fund operating budget is balanced totaling approximately $26.8 million. A General Fund operating surplus of approximately $40,000 is projected with General Fund reserves needed to fund $1.0 million in capital improvements, resulting in a net decrease to fund balance in the amount of $1.0 million. The estimated year-end General Fund balance will decrease by approximately $1.0 million to $43.4.

General Fund Revenues
Revenue forecasts for FY 2025-26 were prepared using estimates and projections provided by the State, other agencies, and City consultants. Due to continued uncertainty regarding the economy, General Fund resources were conservatively estimated to total $26.8 million and is approximately $5.2 million less than FY 2024-25 actuals. The conservative estimates at the time did not include any projected growth in sales tax from EFuel and include overall lower franchise fees, building and planning fees, parking fines, interest earnings, and transfers from the Aliso Viejo Center.

The City receives 82.2% of its General Fund revenue from taxes. This includes property tax, sales tax, transient occupancy tax (TOT), and franchise fees. Property tax is estimated at $10.3 million and is projected to remain relatively flat compared to the current year. Although Proposition 13 allows for a maximum of 2% increase annually in a property’s assessed value, the additional revenue gained from the annual adjustment is offset by potential losses from valuation appeals and unpredictable transfer taxes.

Sales tax is conservatively estimated at $8.5 million, a decrease of $2.6 million or 25.3% from FY 2024-25 actuals and did not anticipate any growth that EFuel recently experienced. Mid-year adjustments will be presented to City Council if the growth in sales tax from EFuel is received from the California Department of Tax and Fee Administration and therefore requiring a corresponding budget appropriation for increases to sales tax subsidy payments.

TOT and franchise fees remain consistent year after year at approximately $1.6 million. The City has two hotels and therefore any significant growth is not anticipated. Franchise fees from the City’s utilities and waste hauler are expected to increase slightly, however, these increases are offset by decreases in cable fees and the potential loss of approximately $50,000 annually from the County as a result of a new Waste Disposal Agreement, which is currently being negotiated.

Other revenue sources include recreation fees, building and planning, traffic and parking fines, investments earnings, and net income from the Aliso Viejo Center. Recreation fees total 16 2878

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
approximately $1.6 million and include facility rentals at the Ranch, classes, and camps. Although the current year saw a decline in larger events hosted by non-residents, such as weddings, FY 2025-26 estimates are flat compared to FY 2024-25. Building and planning fees are estimated to decline because the current year includes one-time fees from the expansion of the Kaiser facility.

Investment income is estimated at $0.9 million as a result of higher interest rates. Net income from the Aliso Viejo Center is estimated at $0.7 million and reflects a return to normal demand levels.

General Fund Appropriations
The General Fund operating budget totals $26.8 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 Community Services. Salary and benefit expenses include merit-based 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 3.1%.

In addition, appropriations include CalPERS pension costs of $0.4 million and $0.2 million in unfunded pension liability. 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 2025-26 budget provides the necessary funding to continue essential services throughout the community. The operating budget reflects an increase of approximately 6.0%, or $1.5 million compared to the FY 2024-25 actuals. The year-over-year increase is primarily a result of $1.3 million more for public safety 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.

Budget reductions were made across all departments to offset higher costs and balance the operating budget. Reductions include freezing of a motor officer position within the law enforcement contract and the conversion of a full-time Emergency Management Coordinator to part-time, as well as reductions for professional services in Administration and Support, Public Works, and Community Development. Costs were also reduced for recreation, classes, and training.

FY 2025-26 also includes a re-prioritization of City infrastructure spending and includes over $1.0 million in General Fund capital improvement at City facilities, as well as over $7.2 million in special-revenue funded street improvements.

Special Revenue 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 2025-26 are approximately $9.8 million and $14.1 million, respectively. 17 2879

CITY OF ALISO VIEJO

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
At the end of FY 2025-26 operations, the estimated combined fund balance for all City funds will be approximately $49.2 million.

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. 18 2880

THIS PAGE INTENTIONALLY LEFT BLANK
19 2881
June 30, 2025
(With Comparative Data for Prior Year)
2025 2024
Assets:

Cash and investments (note 2) $ 55,665,590 48,296,183
Receivables:

Accounts 651,908 666,825
Accrued interest 362,069 306,708
Lease (note 4) 59,018 214,497
Due from other governments 2,989,973 2,228,506
Inventory 5,885 6,211
Prepaid costs - 19,187
Capital assets not being depreciated (note 6) 68,187,408 68,187,408 Capital assets, net of depreciation (note 6) 42,209,630 43,666,247 Total Assets 170,131,481 163,591,772
Deferred Outflows of Resources:

Pension related items (note 9) 970,976 1,216,320
OPEB related items (note 10) 47,512 54,458
Total Deferred Outflows of Resources 1,018,488 1,270,778 Liabilities:

Current liabilities:

Accounts payable 2,738,788 3,282,647
Accrued liabilities 298,132 251,025
Deposits payable 1,805,739 2,175,904
Unearned revenue 217,876 147,842
Compensated absences - current portion (note 7) 184,214 112,666 Long-term liabilities - current portion (note 7) 447,454 376,376 OPEB liability current portion (note 10) 320,016 300,650 Non-current liabilities:

Compensated absences - non-current portion (note 7) 178,721 144,769 Long-term liabilities - non-current portion (note 7) 11,951,781 12,094,415 Net pension liability (note 9) 1,682,414 1,685,168
OPEB liability non-current portion (note 10) 242,541 194,619 Total Liabilities 20,067,676 20,766,081
Deferred Inflows of Resources:

Pension related items (note 9) 23,591 58,112
OPEB related items (note 10) 499,779 549,950
Leases (note 4) 62,814 226,019
Total Deferred Inflows of Resources 586,184 834,081
Net Position:

Net investment in capital assets (note 15) 97,997,803 99,321,092 Restricted for:

Community development projects 1,922,107 1,890,321
Public works 7,926,160 5,343,323
Public safety 374,279 288,518
Unrestricted 42,275,760 36,419,134
Total Net Position $ 150,496,109 143,262,388

CITY OF ALISO VIEJO

STATEMENT OF NET POSITION
Governmental Activities
See notes to financial statements
20 2882
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Operating Capital
Charges for Contributions Contributions
Functions/ Programs Expenses Services and Grants and Grants 2025 2024 Primary Government:

Governmental activities:

General government $ 5,363,026 - - - (5,363,026) (6,125,440) Public safety 10,585,244 293,288 321,212 - (9,970,744) (9,098,303) Community development 8,399,470 5,374,046 - - (3,025,424) (1,419,820) Community services 2,755,431 1,537,901 - - (1,217,530) (1,118,807) Public works 4,500,614 - 4,641,707 - 141,093 (1,072,298) Interest 367,460 - - - (367,460) (382,504)
Total governmental activities $ 31,971,245 7,205,235 4,962,919 - (19,803,091) (19,217,172) General revenues:

Taxes:

Property taxes, levied for general purpose 10,287,203 9,911,103 Transient occupancy taxes 1,699,738 1,570,575
Sales taxes 11,154,921 8,359,623
Franchise taxes 1,813,044 1,875,533
Other intergovernmental, unrestricted 81,664 64,044
Use of money and property 1,621,512 1,207,332
Other 378,730 747,990
Total general revenues 27,036,812 23,736,200
Change in net position 7,233,721 4,519,028
Net position, beginning of year 143,262,388 138,743,360 Net position, end of year $ 150,496,109 143,262,388

STATEMENT OF ACTIVITIES

CITY OF ALISO VIEJO
Program Revenues
Changes in Net Position
Revenue and
Net (Expense)
See notes to financial statements
21 2883
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.
22 2884

CITY OF ALISO VIEJO

GOVERNMENTAL FUNDS
June 30, 2025
(With Comparative Data for Prior Year)
Nonmajor
General Aliso Viejo Governmental
Fund Center Funds 2025 2024
Assets:

Cash and investments $ 43,626,689 2,114,237 9,924,664 55,665,590 48,296,183 Receivables:

Accounts 574,817 40,287 25,089 640,193 659,525
Accrued interest 320,282 - 41,787 362,069 306,708
Leases 59,018 - - 59,018 214,497
Due from other governments 2,060,915 - 929,058 2,989,973 2,228,506 Inventory - 5,885 - 5,885 6,211
Prepaid costs - - - - 19,187
Due from other funds (note 5) 945,314 - - 945,314 1,606,790 Total Assets $ 47,587,035 2,160,409 10,920,598 60,668,042 53,337,607 Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable $ 1,965,292 438,586 334,910 2,738,788 3,282,647 Accrued liabilities 266,267 - 31,865 298,132 251,025
Deposits payable 841,576 964,163 - 1,805,739 2,175,904
Due to other funds (note 5) - 757,660 175,939 933,599 1,599,490 Unearned revenue 8,850 - 209,026 217,876 147,842
Total Liabilities 3,081,985 2,160,409 751,740 5,994,134 7,456,908 Deferred Inflows of Resources:

Leases 62,814 - - 62,814 226,019
Unavailable revenue - grants - - 106,001 106,001 33,042 Total Deferred Inflows of Resources 62,814 - 106,001 168,815 259,061 Fund Balances:

Non-Spendable:

Prepaid costs and inventory - 5,885 - 5,885 25,398
Restricted for:

Debt service - - 298 298 546
Community development projects - - 1,922,107 1,922,107 1,890,321 Public works - - 7,853,201 7,853,201 5,574,557
Public safety - - 374,279 374,279 288,518
Assigned to:

Contingencies 4,019,350 - - 4,019,350 3,995,400
Self Insurance/benefit obligations 1,000,000 - - 1,000,000 600,000 Asset replacement 14,318,164 - - 14,318,164 13,953,004
Emergencies and unanticipated traffic projects 15,726,222 - - 15,726,222 12,655,367 Unassigned 9,378,500 (5,885) (87,028) 9,285,587 6,638,527 Total Fund Balances (Deficit) 44,442,236 - 10,062,857 54,505,093 45,621,638 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 47,587,035 2,160,409 10,920,598 60,668,042 53,337,607

BALANCE SHEET
Special Revenue
Totals
See notes to financial statements
23 2885

CITY OF ALISO VIEJO

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS JUNE 30, 2025
Fund Balances of Governmental Funds $ 54,505,093
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 139,013,914
Accumulated depreciation/amortization (28,616,876)
Deferred inflows and outflows of resources related to pension and OPEB have not been reported in the governmental funds:

Deferred outflows - Pension related items 970,976
Deferred outflows - OPEB related items 47,512
Deferred inflows - Pension related (23,591)
Deferred inflows - OPEB related (499,779)
Compensated absences that have not been included in the governmental fund activity. (362,935)
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. (1,682,414)
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. (562,557) 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. 106,001
Long-term liabilities are not due and payable in the current period:

Bonds payable (11,035,000)
Unamortized premium (806,719)
Subscription liability (526,549)
Lease liability (30,967)
Net Position of Governmental Activities $ 150,496,109
Amounts reported for governmental activities in the Statement of Net

TO THE STATEMENT OF NET POSITION
See notes to financial statements
24 2886

CITY OF ALISO VIEJO

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Nonmajor
General Aliso Viejo Governmental
Fund Center Funds 2025 2024
Revenues:

Taxes $ 24,880,722 - - 24,880,722 21,634,913
Licenses and permits 1,227,832 - - 1,227,832 785,623
Intergovernmental 113,190 - 4,691,235 4,804,425 5,144,241 Charges for services 1,328,681 2,723,819 839,745 4,892,245 5,670,987 Use of money and property 2,307,938 - 349,421 2,657,359 1,960,825 Fines and forfeitures 293,288 - - 293,288 296,430
Other 669,748 469,326 - 1,139,074 1,633,393
Total revenues 30,821,399 3,193,145 5,880,401 39,894,945 37,126,412 Expenditures:

Current:

General government 4,744,552 - 110,748 4,855,300 5,172,160 Community development 7,456,643 2,435,485 1,063,896 10,956,024 10,473,857 Public works 1,668,272 - 2,509,950 4,178,222 4,989,699
Public safety 10,462,135 - 125,409 10,587,544 10,126,196 Debt service:

Principal payment 123,057 - 277,400 400,457 444,071
Interest and fiscal charges 2,643 - 397,086 399,729 414,773 Total expenditures 24,457,302 2,435,485 4,484,489 31,377,276 31,620,756 Excess (deficiency) of revenues
over (under) expenditures 6,364,097 757,660 1,395,912 8,517,669 5,505,656 Other Financing Sources (Uses):

Transfers in (note 5) 874,114 - 2,172,424 3,046,538 3,909,076 Transfers out (note 5) (1,043,519) (757,660) (1,245,359) (3,046,538) (3,909,076) Lease acquisition - - - - 39,681
SBITA acquisition 365,786 - - 365,786 85,819
Total other financing sources (uses) 196,381 (757,660) 927,065 365,786 125,500 Net change in fund balances 6,560,478 - 2,322,977 8,883,455 5,631,156 Fund balances, beginning of year 37,881,758 - 7,739,880 45,621,638 39,990,482 Fund balances, end of year $ 44,442,236 - 10,062,857 54,505,093 45,621,638 Special Revenue
Total
See notes to financial statements
25 2887

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, 2025
Net Change in Fund Balances - Total Governmental Funds $ 8,883,455 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 816,222
Disposition of capital assets (762,938)
Depreciation and amortization (1,509,901)
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. (105,500)
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. (208,069)
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.
(24,063)
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. 72,959 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 SBITAs (365,786)
Bonds principal 260,000
Unamortized premium 32,269
Leases principal 7,408
Subscription principal 137,665
Change in Net Position of Governmental Activities $ 7,233,721 Amounts reported for governmental activities in the Statement of Activities See notes to financial statements
26 2888

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
(With Comparative Data for Prior Year)
2025 2024
Assets:

Cash and investments with fiscal agents (note 2) $ 2,831,304 3,236,274 Due from other governments 27,127 21,216
Total assets 2,858,431 3,257,490
Liabilities:

Accounts payable 2,311 2,395
Due to other funds (note 5) 11,715 7,300
Total liabilities 14,026 9,695
Net position:

Restricted for organizations and other governments 2,844,405 3,247,795 Total net position $ 2,844,405 3,247,795

CITY OF ALISO VIEJO

FIDUCIARY FUNDS
Custodial Fund
See notes to financial statements
27 2889

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
JUNE 30, 2025
(With Comparative Data for Prior Year)
2025 2024
Additions:

Assessments $ 2,082,767 2,248,518
Interest income 69,482 84,952
Total additions 2,152,249 2,333,470
Deductions:

Payments to bondholders:

Principal 1,395,000 935,000
Interest and fiscal charges 1,160,639 2,818,111
Total deductions 2,555,639 3,753,111
Net increase (decrease) in fiduciary net position (403,390) (1,419,641) Net position, beginning of year 3,247,795 4,667,436
Net position, end of year $ 2,844,405 3,247,795

CITY OF ALISO VIEJO

FIDUCIARY FUNDS
Custodial Fund
See notes to financial statements
28 2890

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2891

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2892

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 nonexchange 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 longterm 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 2893

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2894

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 subscriptionbased 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 2895

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2896

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023, to June 30, 2024
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, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
35 2897

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2898

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2899

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2025, are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2025, 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 55,665,590 $
Statement of Fiduciary Net Position:

Cash and investments with fiscal agent 2,831,304 Total cash and investments 58,496,894 $ Cash on hand 1,496 $
Deposits with financial institutions 6,555,036 Investments 51,940,362 Total cash and investments 58,496,894 $ 38 2900

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 20% 20% 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 5 years 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 2901

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 36
Months
37 to 60
Months
Negotiable Certificates of Deposit 1,923,240 $ 240,502 1,437,738 245,000 Federal Agency Securities 7,981,290 1,964,865 5,321,880 694,545 U.S. Treasury Securities 25,897,441 10,588,934 11,265,694 4,042,813 Medium-Term Corporate Notes 4,330,497 - 2,806,252 1,524,245 State Investment Pool (LAIF) 9,780,847 9,780,847 - - U.S. Treasury Money Market 2,027,047 2,027,047 - - Total 51,940,362 $ 24,602,195 20,831,564 6,506,603 Remaining Maturity
Investment Type Total
Minimum
Legal Rating AAA AA A Not Rated
Negotiable Certificates of Deposit 1,923,240 $ N/A - - - 1,923,240 Federal Agency Securities 7,981,290 N/A - 7,981,290 - - U.S. Treasury Securities* 25,897,441 N/A - - - - Medium-Term Corporate Notes 4,330,497 A - 2,343,497 1,987,000 - State Investment Pool (LAIF) 9,780,847 N/A - - - 9,780,847 U.S. Treasury Money Market 2,027,047 AAA 2,027,047 - - - Total 51,940,362 $ 2,027,047 10,324,787 1,987,000 11,704,087 Ratings as of Year End
Issuer Investment Type
Reported
amount
Percentage
of portfolio
Federal Home Loan Bank Federal Agency Securities 3,173,390 $ 6% 40 2902

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2903

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 2: Cash and Investments (Continued)
The City has the following recurring fair value measurements as of June 30, 2025:

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, 2025, the total outstanding principal balance was $6,670,000 and interest receivable was $948,159 . An allowance of $7,618,159 has been recorded to reflect the amount of the note and interest 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 lease was extended for an additional 24-months.

During the fiscal year, the City recognized lease revenue of $105,074. The City extended the lease for an additional 36-months on July 1, 2025 which is reported as a subsequent event at June 30, 2025.

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. 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. As of June 30, 2025, the City has total outstanding lease receivables of $59,018 and related deferred inflows of resources of $62,814. The City recognized lease revenue of $58,131 during the fiscal year. The lessee has 1 extension option for 24 months.

Total Level 1 Level 2 Level 3
Negotiable Certificates of Deposit 1,923,240 $ - 1,923,240 - Federal Agency Securities 7,981,290 - 7,981,290 - U.S. Treasury Securities 25,897,441 - 25,897,441 - Medium-Term Corporate Notes 4,330,497 - 4,330,497 - Total investments by fair value level 40,132,468 - 40,132,468 - Investments not subject to fair value:

State Investment Pool 9,780,847 U.S. Treasury Money Market 2,027,047 Total 51,940,362 $
Fair Value Measurement Using
42 2904

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 5: Interfund Receivables, Payables and Transfers
Due To/From Other Funds
Interfund receivables and payables as of June 30, 2025, 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, 2025, 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, LEAP, and the Permanent Local Housing Allocation. Transfers out of the General Fund to Other Governmental Funds includes capital improvement funding at City facilities, stormwater 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 Aliso Creek Road and Aliso Viejo Parkway, as well as CDBG funding for Americans with Disability Act (ADA) sidewalk improvements. Other Grants transfers to other governmental funds include a CalTrans street rehabilitation grant and City Hall improvements with federal funds.

Due From Other Funds
Aliso Viejo
Center
Other
Governmental
Funds
Custodial
Fund Total
General Fund 757,660 $ 175,939 11,715 945,314 Due To Other Funds Transfers In General Fund
Aliso Viejo
Center
Other
Governmental
Funds Total
General Fund - $ 757,660 116,454 874,114 Other Governmental Funds 1,043,519 - 1,128,905 2,172,424 Total 1,043,519 $ 757,660 1,245,359 3,046,538 Transfers Out
43 2905

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 6: Capital Assets
Capital asset activity for the year ended June 30, 2025, 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, 2025, is as follows:

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
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 41,645,017 - (142,979) 41,502,038
Improvements 1,463,415 242,666 - 1,706,081
Equipment 1,179,312 9,000 (47,087) 1,141,225
Furniture 343,880 27,389 - 371,269
Infrastructure - other* 26,136,674 - (1,177,159) 24,959,515 Right-to-use lease assets - equipment 39,681 - - 39,681 Right-to-use subscription assets 764,275 368,486 (26,064) 1,106,697 Total capital assets, being depreciated 71,572,254 647,541 (1,393,289) 70,826,506 Accumulated depreciation/amortization:

Buildings (5,916,083) (561,336) 19,450 (6,457,969)
Improvements (564,410) (138,903) - (703,313)
Equipment (1,005,854) (81,476) 47,087 (1,040,243)
Furniture (246,398) (63,133) - (309,531)
Infrastructure - other* (19,935,567) (455,798) 706,431 (19,684,934) Right-to-use lease assets - equipment (661) (7,936) - (8,597) Right-to-use subscription assets (237,034) (201,319) 26,064 (412,289) Total accumulated depreciation/amortization (27,906,007) (1,509,901) 799,032 (28,616,876) Total capital assets, being depreciated, net 43,666,247 (862,360) (594,257) 42,209,630 Capital assets, net $111,853,655 (862,360) (594,257) 110,397,038 General government 869,729 $
Community development 133,688
Public safety 6,700
Public works 499,784
Total 1,509,901 $
44 2906

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 7: Non-current Liabilities
Compensated Absences
Changes in compensated absences for the fiscal year ended June 30, 2025, were as follows:
* The change in compensated absences liability is presented as a net change under Governmental Accounting Standards Board (GASB) Statement No. 101.

Changes in non-current liabilities for the fiscal year ended June 30, 2025, 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 reentry or re-letting. The annual debt service requirements for the 2019 COPs outstanding at June 30, 2025 are as follows:

Balance Balance
Amount Due
Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Compensated absences 257,435 $ 105,500 * 362,935 - 184,214 Balance Balance Amount Due
Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Bonds payable 11,295,000 $ - (260,000) 11,035,000 270,000 Unamortized premium 838,988 - (32,269) 806,719 32,269 Lease liability 38,375 - (7,408) 30,967 7,606 Subscription liability 298,428 365,786 (137,665) 526,549 137,579 Total 12,470,791 $ 365,786 (437,342) 12,399,235 447,454 Year Ending June 30, Principal Interest Total
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 320,000 339,350 659,350
2031 - 2035 1,785,000 1,495,350 3,280,350 2036 - 2040 2,175,000 1,108,550 3,283,550 2041 - 2045 2,600,000 689,250 3,289,250
2046 - 2050 3,005,000 275,700 3,280,700
Total 11,035,000 $ 5,383,000 16,418,000
45 2907

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 RicohCopiers 2024. An initial lease liability was recorded in the amount of $39,681. As of June 30, 2025, the value of the lease liability is $30,967. 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, 2025 is $39,681 with accumulated amortization of $7,936.

Estimated future debt service requirements are as follows:

Subscription-Based Information Technology Arrangements
In FY 2025, the City entered into 3 subscription-based IT arrangements for various software applications. As of June 30, 2025, the value of the existing lease liability is $526,549. The value of the right to use asset as of June 30, 2025 is $1,106,697 with accumulated amortization of $412,289.

Estimated future debt service requirements are as follows:

Note 8: Debt Without Government Commitment Community Facilities District No. 2005-01
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, 2025 is $22,035,000.

Year Ending June 30, Principal Interest Total
2026 7,606 $ 725 8,331 2027 7,808 522 8,330
2028 8,017 314 8,331
2029 7,536 100 7,636
Total 30,967 $ 1,661 32,628 Year Ending June 30, Principal Interest Total 2026 137,579 $ 3,358 140,937 2027 135,518 10,631 146,149 2028 77,975 6,940 84,915 2029 84,355 4,805 89,160
2030 91,122 2,495 93,617
Total 526,549 $ 28,229 554,778
46 2908

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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.

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, 2025 are summarized as follows:
47 2909

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 9: Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) 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, 2025 were $431,173.

The actual employer payments made to CalPERS by the City during the measurement period ended June 30, 2024 was $395,636.

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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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 11.88% 7.87%
48 2910

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 9: Pension Plan (Continued)
Valuation Date June 30, 2023
Measurement Date June 30, 2024
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, 2024 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 shortterm 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 2911

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2912

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2024 and 2025 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 6/30/2023 (Valuation Date) 10,152,988 $ 8,467,820 1,685,168 Balance at 6/30/2024 (Measurement Date) 11,239,556 9,557,142 1,682,414 Net changes during 2023 - 2024 1,086,568 $ 1,089,322 (2,754) Proportionate Share - June 30, 2024 0.03370% Proportionate Share - June 30, 2025 0.03479%
Change - Increase (Decrease) 0.00109%
Discount Rate - 1%
(5.90%)
Current Discount
Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Plan's Net Pension Liability 3,199,084 $ 1,682,414 433,971 51 2913

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2024 is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (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, 2024 (the measurement date), the City incurred a pension expense of $639,241.

As of June 30, 2025, 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 43,242 $ - 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 222,774 - Pension contributions made subsequent to measurement date 431,173 - Total 970,976 $ 23,591
145,460 5,676
96,854 -
31,473 17,915
52 2914

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 9: Pension Plan (Continued)
Contributions subsequent to the measurement date of $431,173 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 singleemployer 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 $157 per month in 2024 and $158 per month in 2025. A separate financial report is not prepared for the HC Plan.

Fiscal Year Ending
June 30:

Deferred
Outflows/(Inflows)
of Resources
2026 244,262 $
2027 274,241 2028 30,900 2029 (33,191) Thereafter -
53 2915

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
Note 10: Other Post-Employment Benefits (OPEB) (Continued) Employees Covered
As of the June 30, 2024, 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, 2025, 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, 2024 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 3.93% 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 3.65% on June 30, 2023 and 3.93% on June 30, 2024.

Changes of Assumptions
The discount rate increased from 3.65% to 3.93%.

Active employees 34
Inactive employees or beneficiaries currently receiving benefits 4 Inactive employees entitled to but not yet receiving benefits - Total 38
Actuarial Assumptions:

Discount Rate 3.93%
Inflation 2.50%
Salary Increases 2.75%
Mortality Rate 2021 CalPERS Mortality for Miscellaneous and Schools Employees
Healthcare Trend Rate 4.00%
54 2916

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2024:

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, 2024:

Total OPEB
Liability
Balance at June 30, 2024
(Measurement Date June 30, 2023) 495,269 $
Changes recognized for the measurement period:

Service Cost 80,002 Interest 19,402
Changes of assumptions (24,724) Plan experience differences - Benefit payments (7,392) Net Changes 67,288 Balance at June 30, 2025 (Measurement Date June 30, 2024) 562,557 $
Current
1% Decrease Discount Rate 1% Increase

2.93% 3.93% 4.93%
Total OPEB Liability 656,351 $ 562,557 487,471 1% Decrease Current
Healthcare
Cost Trend 1% Increase
Total OPEB Liability 457,320 $ 562,557 699,224
55 2917

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2025, the City recognized OPEB expense of $31,623. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

Contributions subsequent to the measurement date of $7,560 reported with deferred outflows of resources will be recognized as a reduction of the net OPEB liability in the upcoming fiscal year. The amounts reported as deferred outflows and deferred inflow of resources related to OPEB will be recognized in future as expense as follows:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent
to measurement date $ - 7,560 Changes of assumptions 35,829 265,590 Differences between expected and actual experience 4,123 234,189
Total 47,512 $ 499,779
Fiscal Year
Ended June 30
Deferred
Outflows/(Inflows)
of Resources
2026 (67,781) $
2027 (60,193) 2028 (62,425)
2029 (9,124) 2030 (9,118)
Thereafter (251,186)
Assumption changes
and experience
gains/losses
Expected average remaining service
lifetime (EARSL) (12.25 Years)
56 2918

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 selfinsured 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 ninemember 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 2919

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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 2024-25 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 2024-25. 58 2920

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2025, the City abated sales taxes totaling $2,115,743 and $858,588 for abatement agreements entered into on July 1, 2016, and August 1, 2023, respectively.
59 2921

CITY OF ALISO VIEJO

NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2025
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, 2025:

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 : Subsequent Event
On July 1, 2025, the City extended the lease agreement with Red Night Consulting for City Hall Space - Suite 280, for an additional period of 36 months. An initial lease receivable was recorded in the amount of $246,888. The lessee is required to make monthly fixed payments of $6,919 from July 1, 2025, through June 30, 2026, $ 7,126 from July 1, 2026, through June 30, 2027, and $7,342 from July 1, 2027, through June 30, 2028. The lease has an interest rate of 2.643%. The Lessee shall have the option to extend the term of the lease for one additional five-month period.

Capital assets, net 110,397,038 $
Less bonds payable (11,035,000) Less premium on bonds payable (806,719) Less lease liability (30,967) Less subscription liability (526,549) Net investment in capital assets 97,997,803 $ Government Funds:

Non-major Governmental Funds:

Federal Grants (87,028) $
60 2922

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year )
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 37,881,758 37,881,758 37,881,758 - 34,426,099 Resources (Inflows):

Taxes 22,340,771 22,340,771 24,880,722 2,539,951 21,634,913 Licenses and permits 737,900 737,900 1,227,832 489,932 785,623 Intergovernmental 57,500 57,500 113,190 55,690 156,612
Charges for services 1,845,147 1,845,147 1,328,681 (516,466) 1,797,696 Use of money and property 495,000 495,000 2,307,938 1,812,938 918,409 Fines and forfeitures 185,000 185,000 293,288 108,288 296,430 Other 480,149 480,149 669,748 189,599 906,111
Proceeds of leases and SBITA - - 365,786 365,786 125,500 Transfers in 608,853 608,853 874,114 265,261 1,552,629
Total resources 26,750,320 26,750,320 32,061,299 5,310,979 28,173,923 Amounts available
for appropriations 64,632,078 64,632,078 69,943,057 5,310,979 62,600,022 Charges to Appropriations (Outflows):

General government:

City council 208,820 208,820 182,268 26,552 180,467
City manager 798,950 798,950 617,526 181,424 1,008,951
Human resources 193,843 210,684 162,403 48,281 189,435
City clerk 595,128 595,128 465,590 129,538 514,263
City attorney 482,400 465,559 351,977 113,582 486,548
Finance 904,940 904,940 876,747 28,193 776,072
Information technology 1,128,286 1,128,286 951,128 177,158 978,142 General government 912,334 911,334 1,136,913 (225,579) 925,622 Community development:

Community services 3,139,132 3,165,132 2,744,809 420,323 2,743,811 Planning 846,086 840,222 749,024 91,198 686,978
Building 809,540 815,404 865,223 (49,819) 827,552
Code enforcement 155,200 155,200 104,012 51,188 111,242 Economic development 2,326,000 2,326,000 2,993,575 (667,575) 2,292,370 Public works 1,939,500 1,914,500 1,668,272 246,228 1,724,588 Public safety 11,332,287 11,332,287 10,462,135 870,152 10,005,398 Debt service:

Principal payment 9,400 8,675 123,057 (114,382) 177,043 Interest and fiscal charges 200 925 2,643 (1,718) 7,262 Transfers out 1,357,452 1,385,452 1,043,519 341,933 1,082,520 Total charges to Appropriations 27,139,498 27,167,498 25,500,821 1,666,677 24,718,264 Fund Balances - Ending $ 37,492,580 37,464,580 44,442,236 6,977,656 37,881,758 Budget Amounts
See notes to required supplementary information
61 2923

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

ALISO VIEJO CENTER
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ - - - - 60,238
Resources (Inflows):

Charges for services 2,459,064 2,459,064 2,723,819 264,755 2,934,031 Other 525,268 525,268 469,326 (55,942) 727,282
Amounts Available
for Appropriations 2,984,332 2,984,332 3,193,145 208,813 3,721,551 Charges to Appropriations (Outflows):

Community services 2,398,579 2,398,579 2,435,485 (36,906) 2,322,472 Transfers out 585,753 585,753 757,660 (171,907) 1,399,079 Total Charges to Appropriations 2,984,332 2,984,332 3,193,145 (208,813) 3,721,551 Fund Balances - Ending $ - - - - -
Budget Amounts
See notes to required supplementary information
62 2924

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
6/30/2015 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 0.013873% 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%
6/30/2024 0.013900% 1,682,414 3,347,616 50.26% 85.03%
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. 63 2925

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
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%
2024-25 431,173 (431,173) - 3,374,995 12.78%
Notes to Schedule:

Changes in Assumptions: There were no assumption changes in 2023 or 2024. 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 longterm 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, and 7.65% for measurement dates June 30, 2015 through June 30, 2016.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.
64 2926

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
Total OPEB Liability
Service Cost $ 100,385 90,249 97,449 57,648 61,087
Interest on the Total OPEB Liability 17,635 23,007 25,402 11,677 13,141 Actual and expected experience difference - - (308,246) - - Changes in assumptions (73,112) 26,106 (217,431) 9,295 35,505 Difference between expected and actual experience - - - - 6,123 Benefit payments (4,554) (11,378) (11,963) (5,572) (7,597) Net change in Total OPEB Liability 40,354 127,984 (414,789) 73,048 108,259 Total OPEB Liability - Beginning 610,120 650,474 778,458 363,669 436,717 Total OPEB Liability - Ending 650,474 $ 778,458 363,669 436,717 544,976 Plan fiduciary net position as a percentage of the total OPEB liability 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 Net OPEB liability as a percentage of covered-employee payroll 29.20% 31.75% 11.49% 13.01% 19.88% 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 3.93%
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.
65 2927
Measurement Period 2022 2023 2024
Total OPEB Liability
Service Cost 94,853 97,699 80,002
Interest on the Total OPEB Liability 13,866 21,428 19,402 Actual and expected experience difference - - -
Changes in assumptions (166,915) 696 (24,724)
Difference between expected and actual experience - (95,410) - Benefit payments (7,505) (8,419) (7,392)
Net change in Total OPEB Liability (65,701) 15,994 67,288 Total OPEB Liability - Beginning 544,976 479,275 495,269 Total OPEB Liability - Ending 479,275 495,269 562,557
Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% Covered-employee payroll 3,640,478 3,747,616 3,374,995
Net OPEB liability as a percentage of covered-employee payroll 13.17% 13.22% 16.67% 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 3.93%
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 2928

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:

Expenditures that exceeded appropriations for the year ended June 30, 2025 are as follows:

Government Funds: Final Budget Expenditures Excess
Major Government Funds:

Aliso Viejo Center:

Community services 2,398,579 $ 2,435,485 (36,906)
67 2929

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.
68 2930

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 $1,041,848 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, Ac tual Estimated
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
2025 2,070,847 4,058,051
Total 14,149,152 $ 19,779,527 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
69 2931

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.
70 2932
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, 2025.

Federal Grants
The Federal Grants Fund is used to account for Federal Grants received by the City for various projects. Grants vary from year to year depending on funding awards, but include Community Development Block Grant (CDBG), Energy Efficiency and Conservation Block Grants, and Federal Emergency Management Agency (FEMA).

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, 2025.

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 2933

THIS PAGE INTENTIONALLY LEFT BLANK
72 2934

CITY OF ALISO VIEJO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
(With Comparative Data for Prior Year)
Public Safety
Gas Tax Measure M SB1 - RMRA Grants
Assets:

Cash and investments $ 79,039 1,315,131 2,049,730 2,314,172 378,525 Receivables:

Accounts - - - - -
Accrued interest 391 6,517 10,158 11,467 1,874
Due from other governments - 128,082 177,498 249,072 -
Total Assets $ 1,449,730 79,430 2,237,386 2,574,711 380,399 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ - 100,193 2,480 - 6,120
Accrued liabilities - - - - -
Due to other funds - - - - -
Unearned revenue - - - - -
Total Liabilities - 100,193 2,480 - 6,120
Deferred Inflows of Resources:

Unavailable revenues - grants - - - - -
Fund Balances:

Restricted for:

Debt service - - - - -
Community development projects - - - - -
Public works 79,430 1,349,537 2,234,906 2,574,711 -
Public safety - - - - 374,279
Unassigned - - - - -
Total Fund Balances (Deficit) 79,430 1,349,537 2,234,906 2,574,711 374,279 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,449,730 79,430 2,237,386 2,574,711 380,399 Traffic
Congestion
Relief
Special Revenue Funds
73 2935
(91,895)
Integrated
Air Quality Waste Other Technology Development
Improvement Management Grants Grants Impact
Assets:

Cash and investments 1,606,659 166,697 - 404,487 1,377,778 Receivables:

Accounts - - - 17,894 -
Accrued interest 7,958 826 593 2,003 -
Due from other governments 18,240 - 200,703 - -
Total Assets 167,523 1,632,857 201,296 424,384 1,377,778 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable - - 669 1,395 -
Accrued liabilities - - - - -
Due to other funds - - 37,181 - -
Unearned revenue - 92,721 116,305 - -
Total Liabilities - 92,721 154,155 1,395 -
Deferred Inflows of Resources:

Unavailable revenues - grants 18,240 - 703 - -
Fund Balances:

Restricted for:

Debt service - - - - -
Community development projects - 74,802 46,438 422,989 1,377,778 Public works 1,614,617 - - - -
Public safety - - - - -
Unassigned - - - - -
Total Fund Balances (Deficit) 1,614,617 74,802 46,438 422,989 1,377,778 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 167,523 1,632,857 201,296 424,384 1,377,778 Special Revenue Funds
74 2936

CITY OF ALISO VIEJO

COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (Continued)
June 30, 2025
(With Comparative Data for Prior Year)
Federal Aquatic AV Ranch Capital
Grants Center Foundation Improvements Storm Water
Assets:

Cash and investments - 81,979 100 26,691 2,072
Receivables:

Accounts - 7,195 - - -
Accrued interest - - - - -
Due from other governments 150,415 - - - 5,048
Total Assets 89,174 150,415 100 26,691 7,120
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable 11,627 57,309 - 26,691 7,120
Accrued liabilities - 31,865 - - -
Due to other funds 138,758 - - - -
Unearned revenue - - - - -
Total Liabilities 150,385 89,174 - 26,691 7,120
Deferred Inflows of Resources:

Unavailable revenues - grants 87,058 - - - -
Fund Balances:

Restricted for:

Debt service - - - - -
Community development projects - - 100 - -
Public works - - - - -
Public safety - - - - -
Unassigned (87,028) -
-
- -
Total Fund Balances (Deficit) (87,028) - 100 - -
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 89,174 150,415 100 26,691 7,120 Special Revenue Funds Capital Projects Funds
75 2937
Capital
Projects Funds
Debt Service
Funds
Street Debt Service
Improvements Fund 2025 2024
Assets:

Cash and investments 121,306 298 9,924,664 7,578,076
Receivables:

Accounts - - 25,089 19,669
Accrued interest - - 41,787 163,337
Due from other governments - - 794,035 929,058
Total Assets 298 121,306 10,920,598 8,555,117
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable 121,306 - 334,910 420,359
Accrued liabilities - - 31,865 21,879
Due to other funds - - 175,939 200,411
Unearned revenue - - 139,546 209,026
Total Liabilities 121,306 - 751,740 782,195
Deferred Inflows of Resources:

Unavailable revenues - grants - -
33,042 106,001
Fund Balances:

Restricted for:

Debt service - 298 298 546
Community development projects - - 1,922,107 1,890,321
Public works - - 7,853,201 5,574,557
Public safety - - 374,279 288,518
Unassigned - - (87,028) (14,062)
Total Fund Balances (Deficit) - 298 10,062,857 7,739,880 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 298 121,306 10,920,598 8,555,117 Totals
76 2938

CITY OF ALISO VIEJO

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Public Safety
Measure M SB1 - RMRA Grants
Revenues:

Intergovernmental $ - 1,463,265 998,525 1,413,412 194,663 Charges for services - - - - -
Use of money and property 3,362 52,567 91,148 90,930 16,507 Total Revenues 3,362 1,515,832 1,089,673 1,504,342 211,170 Expenditures:

Current:

General government - - - - -
Community development - - - - -
Public works - 1,107,410 33,591 - -
Public safety - - - - 125,409
Debt service:

Principal payment - 17,400 - - -
Interest expense - 1,165 - - -
Total Expenditures - 1,125,975 33,591 - 125,409
Excess (deficiency) of revenues
over (under) expenditures 3,362 389,857 1,056,082 1,504,342 85,761 Other Financing Sources (Uses):

Transfers in - - - - -
Transfers out - - (724,204) (84,914) -
Total Other Financing Sources (Uses) - - (724,204) (84,914) - Net change in fund balances 3,362 389,857 331,878 1,419,428 85,761 Fund balances (deficit), beginning of year 959,680 76,068 1,155,283 1,903,028 288,518 Fund balances (deficit), end of year $ 79,430 1,349,537 2,234,906 2,574,711 374,279 Traffic
Congestion
Relief Gas Tax
Special Revenue Funds
77 2939
Integrated
Air Quality Waste Other Technology Development
Improvement Management Grants Grants Impact
Revenues:

Intergovernmental 66,389 59,632 294,616 74,184 -
Charges for services - - - - -
Use of money and property 67,730 6,593 3,056 17,224 -
Total Revenues 134,119 66,225 297,672 91,408 -
Expenditures:

Current:

General government - 39,557 4,627 65,853 -
Community development - - - - -
Public works - 15,522 - - -
Public safety - - - - -
Debt service:

Principal payment - - - - -
Interest expense - - - - -
Total Expenditures - 55,079 4,627 65,853 -
Excess (deficiency) of revenues
over (under) expenditures 134,119 11,146 293,045 25,555 - Other Financing Sources (Uses):

Transfers in - - - - -
Transfers out - (7,268) (290,692) - -
Total Other Financing Sources (Uses) - (7,268) (290,692) - - Net change in fund balances 134,119 3,878 2,353 25,555 - Fund balances (deficit), beginning of year 1,480,498 70,924 44,085 397,434 1,377,778 Fund balances (deficit), end of year 1,614,617 74,802 46,438 422,989 1,377,778 Special Revenue Funds
78 2940

CITY OF ALISO VIEJO

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Federal Aquatic AV Ranch Capital
Grants Center Foundation Improvements Storm Water
Revenues:

Intergovernmental 126,549 - - - -
Charges for services - 839,745 - - -
Use of money and property - - - - -
Total Revenues 126,549 839,745 - - -
Expenditures:

Current:

General government 711 - - - -
Community development 60,523 1,003,373 - - -
Public works - - - 296,746 14,833
Public safety - - - - -
Debt service:

Principal payment - - - - -
Interest expense - - - - -
Total Expenditures 61,234 1,003,373 - 296,746 14,833
Excess (deficiency) of revenues
over (under) expenditures 65,315 (163,628) - (296,746) (14,833) Other Financing Sources (Uses):

Transfers in - 163,628 - 296,746 14,833
Transfers out (138,281) - - - -
Total Other Financing Sources (Uses) (138,281) 163,628 - 296,746 14,833 Net change in fund balances (72,966) - - - -
Fund balances (deficit), beginning of year (14,062) - 100 - - Fund balances (deficit), end of year (87,028) - 100 - - Special Revenue Funds Capital Projects Funds
79 2941
Capital
Projects Funds
Debt Service
Funds
Street Debt Service
Improvements Fund 2025 2024
Revenues:

Intergovernmental - - 4,691,235 4,987,629
Charges for services - - 839,745 939,260
Use of money and property - 304 1,042,416 349,421
Total Revenues - 304 5,880,401 6,969,305
Expenditures:

Current:

General government - - 110,748 112,660
Community development - - 1,063,896 1,489,432
Public works 1,041,848 - 2,509,950 3,265,111
Public safety - - 125,409 120,798
Debt service:

Principal payment - 260,000 277,400 267,028
Interest expense - 395,921 397,086 407,511
Total Expenditures 1,041,848 655,921 4,484,489 5,662,540 Excess (deficiency) of revenues
over (under) expenditures (1,041,848) (655,617) 1,395,912 1,306,765 Other Financing Sources (Uses):

Transfers in 1,041,848 655,369 2,172,424 2,356,447
Transfers out - - (1,427,477) (1,245,359)
Total Other Financing Sources (Uses) 1,041,848 655,369 927,065 928,970 Net change in fund balances - (248) 2,322,977 2,235,735 Fund balances (deficit), beginning of year - 546 7,739,880 5,504,145 Fund balances, end of year - 298 10,062,857 7,739,880
Totals
80 2942

BUDGETARY COMPARISON SCHEDULE

TRAFFIC CONGESTION RELIEF
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 76,068 76,068 76,068 - 60,982 Resources (Inflows):

Use of money and property 8,600 8,600 3,362 (5,238) 15,086 Amount Available
for Appropriations 84,668 84,668 79,430 (5,238) 76,068
Charges to Appropriations (Outflows):

Transfers out - - - - -
Total Charges to Appropriations - - - - -
Fund Balances - Ending $ 84,668 84,668 79,430 (5,238) 76,068 Budget Amounts

CITY OF ALISO VIEJO
81 2943

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

GAS TAX
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 959,680 959,680 959,680 - 643,272 Resources (Inflows):

Intergovernmental 1,407,500 1,407,500 1,463,265 55,765 1,424,565 Use of money and property 129,200 129,200 52,567 (76,633) 203,094 Amounts Available
for Appropriations 2,496,380 2,496,380 2,475,512 (20,868) 2,270,931 Charges to Appropriations (Outflows):

Public works 1,142,800 1,142,800 1,107,410 35,390 1,292,686 Debt Service:

Principal payment - - 17,400 (17,400) 17,028
Interest payment - - 1,165 (1,165) 1,537
Total Charges to Appropriations 1,142,800 1,142,800 1,125,975 16,825 1,311,251 Fund Balances - Ending $ 1,353,580 1,353,580 1,349,537 (4,043) 959,680 Budget Amounts
(With Comparative Data for Prior Year)
82 2944

BUDGETARY COMPARISON SCHEDULE

MEASURE M
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 1,903,028 1,903,028 1,903,028 - 890,040 Resources (Inflows):

Intergovernmental 1,039,971 1,039,971 998,525 (41,446) 975,467 Use of money and property 179,000 179,000 91,148 (87,852) 244,678 Amount Available
for Appropriations 3,121,999 3,121,999 2,992,701 (129,298) 2,110,185 Charges to Appropriations (Outflows):

Public works 50,000 50,000 33,591 16,409 27,482
Transfers out 1,000,000 1,252,129 724,204 527,925 179,675 Total Charges to Appropriations 1,050,000 1,302,129 757,795 544,334 207,157 Fund Balances - Ending $ 2,071,999 1,819,870 2,234,906 415,036 1,903,028 Budget Amounts

CITY OF ALISO VIEJO
83 2945

BUDGETARY COMPARISON SCHEDULE
SB1 - RMRA
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 1,155,283 1,155,283 1,155,283 - 651,355 Resources (Inflows):

Intergovernmental 1,326,913 1,326,913 1,413,412 86,499 1,337,992 Use of money and property 139,000 139,000 90,930 (48,070) 153,164 Amount Available
for Appropriations 2,621,196 2,621,196 2,659,625 38,429 2,142,511 Charges to Appropriations (Outflows):

Transfers out 1,270,000 1,270,000 84,914 1,185,086 987,228 Total Charges to Appropriations 1,270,000 1,270,000 84,914 1,185,086 987,228 Fund Balances - Ending $ 1,351,196 1,351,196 2,574,711 1,223,515 1,155,283

CITY OF ALISO VIEJO
Budget Amounts
(With Comparative Data for Prior Year)
84 2946

BUDGETARY COMPARISON SCHEDULE

PUBLIC SAFETY GRANTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - beginning $ 288,518 288,518 288,518 - 171,447 Resources (Inflows):

Intergovernmental 185,000 185,000 194,663 9,663 186,159 Use of money and property 36,000 36,000 16,507 (19,493) 51,710 Amount Available
for Appropriations 509,518 509,518 499,688 (9,830) 409,316 Charges to Appropriations (Outflows):

Public safety 178,743 178,743 125,409 53,334 120,798
Total Charges to Appropriations 178,743 178,743 125,409 53,334 120,798 Fund Balances - Ending $ 330,775 330,775 374,279 43,504 288,518 Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
85 2947

BUDGETARY COMPARISON SCHEDULE

AIR QUALITY IMPROVEMENT
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 1,480,498 1,480,498 1,480,498 - 1,145,742 Resources (Inflows):

Intergovernmental 65,000 65,000 66,389 1,389 51,207
Use of money and property 164,000 164,000 67,730 (96,270) 283,549 Amount Available
for Appropriations 1,709,498 1,709,498 1,614,617 (94,881) 1,480,498 Charges to Appropriations (Outflows):

General government 150,000 150,000 - 150,000 -
Total Charges to Appropriations 150,000 150,000 - - -
Fund Balances - Ending $ 1,559,498 1,559,498 1,614,617 55,119 1,480,498 Budget Amounts

CITY OF ALISO VIEJO
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
86 2948

BUDGETARY COMPARISON SCHEDULE

INTEGRATED WASTE MANAGEMENT
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 70,924 70,924 70,924 - 88,400 Resources (Inflows):

Intergovernmental 13,000 13,000 59,632 46,632 13,043
Use of money and property 7,200 7,200 6,593 (607) 20,392 Amount Available
for Appropriations 91,124 91,124 137,149 46,025 121,835 Charges to Appropriations (Outflows):

General government 139,546 139,546 39,557 99,989 17,216 Public works 16,000 16,000 15,522 478 6,925
Transfers out - - 7,268 (7,268) 26,770
Total Charges to Appropriations 16,000 155,546 62,347 93,199 50,911 Fund Balances - Ending $ 75,124 (64,422) 74,802 139,224 70,924 Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
87 2949

CITY OF ALISO VIEJO

BUDGETARY COMPARISON SCHEDULE

OTHER GRANTS
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning $ 44,085 44,085 44,085 - (178,246) Resources (Inflows):

Intergovernmental 200,000 200,000 294,616 94,616 350,676 Use of money and property - - 3,056 3,056 -
Amount Available
for Appropriations 244,085 244,085 341,757 97,672 172,430 Charges to Appropriations (Outflows):

General government - 5,500 4,627 873 23,793
Transfers out 200,000 270,000 290,692 (20,692) 104,552
Total Charges to Appropriations 275,500 295,319 (19,819) 128,345 200,000 Fund Balances (Deficit) - Ending $ 44,085 (31,415) 46,438 77,853 44,085 Budget Amounts
88 2950

BUDGETARY COMPARISON SCHEDULE

TECHNOLOGY GRANTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ 397,434 397,434 397,434 - 290,079 Resources (Inflows):

Intergovernmental 78,000 78,000 74,184 (3,816) 81,921
Use of money and property 42,000 42,000 17,224 (24,776) 70,196 Amount Available
for Appropriations 517,434 517,434 488,842 (28,592) 442,196 Charges to Appropriations (Outflows):

General government 97,580 97,580 65,853 31,727 44,762
Total Charges to Appropriations 97,580 97,580 65,853 31,727 44,762 Fund Balances - Ending $ 419,854 419,854 422,989 3,135 397,434 Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
89 2951

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 - 1,377,778 Resources (Inflows):

Use of money and property - - - - -
Transfers in - - - - -
Amount Available
for Appropriations 1,377,778 1,377,778 1,377,778 - 1,377,778 Charges to Appropriations (Outflows):

General government - - - - -
Total Charges to Appropriations - - - - -
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, 2025
(With Comparative Data for Prior Year)
Budget Amounts
90 2952

BUDGETARY COMPARISON SCHEDULE

FEDERAL GRANTS
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning $ (14,062) (14,062) (14,062) - (33,600) Resources (Inflows):

Intergovernmental 710,054 710,054 126,549 (583,505) 566,599 Amount Available
for Appropriations 695,992 695,992 112,487 (583,505) 532,999 Charges to Appropriations (Outflows):

General government - - 711 (711) 26,889
Community development 263,373 263,373 60,523 202,850 390,920 Transfer out 446,681 446,681 138,281 308,400 129,252
Total Charges to Appropriations 710,054 710,054 199,515 510,539 547,061 Fund Balances (Deficit) - Ending $ (14,062) (14,062) (87,028) (72,966) (14,062) Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
91 2953

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 1,005,248 1,005,248 839,745 (165,503) 939,260 Transfers in 201,402 201,402 163,628 (37,774) 159,252
Amounts Available
for Appropriations 1,206,650 1,206,650 1,003,373 (203,277) 1,098,512 Charges to Appropriations (Outflows):

Community services 1,206,650 1,206,650 1,003,373 203,277 1,098,512 Total Charges to Appropriations 1,206,650 1,206,650 1,003,373 203,277 1,098,512 Fund Balances - Ending $ - - - - -
Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
92 2954

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 651,000 679,000 296,746 (382,254) 362,273
Amount Available
for Appropriations 651,000 679,000 296,746 (382,254) 362,273 Charges to Appropriations (Outflows):

Public works 651,000 679,000 296,746 382,254 362,273
Total Charges to Appropriations 651,000 679,000 296,746 382,254 362,273 Fund Balances - Ending $ - - - - -
Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
93 2955

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 20,000 20,000 14,833 (5,167) 9,883
Amount Available
for Appropriations 20,000 20,000 14,833 (5,167) 9,883
Charges to Appropriations (Outflows):

Public works 20,000 20,000 14,833 5,167 9,883
Total Charges to Appropriations 20,000 20,000 14,833 5,167 9,883 Fund Balances - Ending $ - - - - -
Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
94 2956

BUDGETARY COMPARISON SCHEDULE

STREET IMPROVEMENTS
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances - Beginning $ - - - - 396,618
Resources (Inflows):

Transfer in 2,720,581 2,972,710 1,041,848 (1,930,862) 1,169,244 Amount Available
for Appropriations 2,720,581 2,972,710 1,041,848 (1,930,862) 1,565,862 Charges to Appropriations (Outflows):

Public works 2,720,581 2,972,710 1,041,848 1,930,862 1,565,862 Total Charges to Appropriations 2,720,581 2,972,710 1,041,848 1,930,862 1,565,862 Fund Balances - Ending $ - - - - -
Budget Amounts

CITY OF ALISO VIEJO
(With Comparative Data for Prior Year)
FOR THE YEAR ENDED JUNE 30, 2025
95 2957

BUDGETARY COMPARISON SCHEDULE

DEBT SERVICE
Variance with
Final Budget
Actual Positive Prior Year
Original Final Amounts (Negative) Actual
Fund Balances (Deficit) - Beginning $ 546 546 546 - 178 Resources (Inflows):

Use of money and property - - 304 304 547
Transfer in 658,050 658,050 655,369 (2,681) 655,795
Amount Available
for Appropriations 658,596 658,596 656,219 (2,377) 656,520 Charges to Appropriations (Outflows):

Principal 260,000 260,000 260,000 - 250,000
Interest 398,050 398,050 395,921 2,129 405,974
Total Charges to Appropriations 658,050 658,050 655,921 2,129 655,974 Fund Balances - Ending $ 546 546 298 (248) 546

CITY OF ALISO VIEJO
FOR THE YEAR ENDED JUNE 30, 2025
(With Comparative Data for Prior Year)
Budget Amounts
96 2958
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
Top 25 Sales Tax Producers 9 107
Property Tax Levies and Collections 10 108
Assessed and Estimated Actual Value of Taxable Property 11 109 Direct and Overlapping Property Tax Schedules 12 110
Principal Property Taxpayers 13 111
Debt Capacity
Ratios of Net General Obligation Debt to Assessed Value and Net General Obligation Debt Per Capita 14 112
Computation of Direct and Overlapping Bonded Debt 15 113 Legal Debt Margin 16 114
Demographic and Economic Information
Demographic and Economic Statistics 17 115
Principal Employers 18 116
Operating Information
Operating Indicators by Function 19 117
Full-Time and Part-Time City Employees by Function 20 118 Capital Assets Statistics by Function 21 119
Schedule of Insurance 22 120
Miscellaneous Statistical Information 23 121
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 2959

THIS PAGE INTENTIONALLY LEFT BLANK
98 2960
Table 1

CITY OF ALISO VIEJO

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20
Governmental Activities
$ 95,000,131 94,579,142 $ 94,791,785 $ 95,555,817 $ 93,873,835 $ Restricted
Community Development 279,027 (34,396) 203,708 334,190 2,891,135 Community Services - - - -
Public Works 11,840,453 8,299,848 7,637,647 8,536,428 122,819 Public Safety 12,953 39,957 83,097 105,213 4,121,343
Debt Service - - - - 4,319,695
Unrestricted 23,233,017 26,937,175 29,312,285 30,211,693 29,006,434 Total governmental activities net position $ 129,944,592 $ 130,242,715 $ 132,028,522 $ 134,743,341 $ 134,335,261 2020-21 2021-22 2022-23 2023-24 2024-25
Governmental Activities
$ 101,009,829 $ 100,348,736 $ 99,883,422 $ 99,321,092 $ 97,997,803 Restricted
Community Development 1,579,149 1,721,020 1,756,357 1,890,321 1,922,107 Community Services 19,500 - - - -
Public Works 3,498,519 3,990,740 3,258,360 5,343,323 7,926,160 Public Safety 125,356 129,019 171,447 288,518 374,279
Debt Service - - - - -
Unrestricted 25,601,465 29,924,478 33,277,156 36,419,134 42,275,760 Total governmental activities net position $ 131,833,818 $ 136,113,993 $ 138,346,742 $ 143,262,388 $ 150,496,109 Source: City Finance Department
Net Investment in Capital Assets
Net Investment in Capital Assets
Fiscal Years
Fiscal Years
$100,000
$110,000
$120,000
$130,000
$140,000
$150,000
$160,000 Thousands
Fiscal Year
Total Net Position by Component
99 2961
Table 2

CITY OF ALISO VIEJO

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Revenues
Program Revenues
Charges for Services $ 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 $ 7,205,235 Operating Contributions & Grants 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 4,962,919 Capital Contributions & Grants 18,875 17,831 - - 9,600 - - - - - Taxes
Sales Tax 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 11,154,921 Property Tax 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 10,287,203 Franchise Fees 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 1,813,044 Transient Occupancy Tax 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 1,699,738 Other Intergovernmental, unrestricted 20,256 22,627 26,483 24,936 40,659 36,704 57,547 53,145 64,044 81,664 Use of Money and Property 328,416 324,781 402,978 790,051 1,053,024 377,709 (153,060) 656,151 1,207,332 1,621,512 Other 195,831 186,455 191,376 174,274 292,184 292,095 118,665 332,325 747,990 378,730 Total Revenues 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 39,204,966 Expenses
General Government 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 5,363,026 Community Services 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 2,755,431 Community Development 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 8,399,470 Public Works 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 4,500,614 Public Safety 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 10,585,244 Interest and Fiscal Charges - - - - 494,561 395,167 390,573 387,579 382,504 367,460 Total Expense 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 31,971,245 Change in Net Position $ 933,906 $ 298,123 $ 2,182,749 $ 2,714,819 $ (408,080) $ (2,501,442) $ 4,280,175 $ 2,025,080 $ 4,519,028 $ 7,233,721 Source: City Finance Department
Fiscal Years
-$4,000
-$2,000
$0
$2,000
$4,000
$6,000
$8,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Thousands Fiscal Year
Change in Net Position
100
2962
Table 3

CITY OF ALISO VIEJO

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20
General Fund Balances
Nonspendable:

Prepaid 187,681 $ 231,198 $ 206,488 $ 222,029 $ 236,326 $ Assigned to:

Contingencies 4,351,653 4,681,192 4,700,000 2,963,795 2,860,265 Self Insurance/benefit obligations 724,000 1,200,000 1,200,000 900,000 1,445,475 Asset Replacement 9,850,000 10,044,448 10,000,000 9,700,000 9,096,430 Emergencies & Unanticipated Traffic Projects 1,500,000 1,500,000 1,500,000 15,000,000 15,000,000 800 MHZ Upgrade & Replacement - - - -
Long Term Debt - - -
Unassigned: 7,374,518 9,509,904 12,935,238 3,811,349 4,332,263 Total General Fund $ 23,987,852 $ 27,166,742 $ 30,541,726 $ 32,597,173 $ 32,970,759 All other governmental funds
Nonspendable:

Prepaid 14,127 $ 25,041 $ - $ - $ - $
Assigned to:

Emergencies & Unanticipated Traffic Projects - - -
Restricted for:

Community Development Projects 278,992 19,736 203,708 334,190 2,891,135 Community Services - - - - -
Public Safety - 39,957 83,097 105,213 122,819
Capital Projects 11,853,406 8,299,848 7,637,647 8,536,428 4,121,343 Aliso Viejo Center
Debt Service - - - 4,319,695
Unassigned: (198,271) (79,173) - - -
Total All Other Governmental Funds $ 11,948,254 $ 8,305,409 $ 7,924,452 $ 8,975,831 $ 11,454,992 2020-21 2021-22 2022-23 2023-24 2024-25
General Fund Balances
Nonspendable:

Prepaid 76,150 $ 81,267 $ 55,046 $ 18,987 $ - $
Assigned to:

Contingencies 2,649,388 3,500,571 3,498,990 3,995,400 4,019,350 Self Insurance/benefit obligations 1,150,474 600,000 600,000 600,000 1,000,000 Asset Replacement 8,317,710 11,882,444 13,173,633 13,953,003 14,318,164 Emergencies & Unanticipated Traffic Projects 15,000,000 10,000,000 11,266,779 12,655,368 15,726,222 800 MHZ Upgrade & Replacement - - -
Unassigned: (62,559) 4,515,886 5,831,651 6,659,000 9,378,500 Total General Fund $ 27,131,163 $ 30,580,168 $ 34,426,099 $ 37,881,758 $ 44,442,236 All other governmental funds
Nonspendable:

Prepaid - $ - $ 8,479 $ 6,411 $ 5,885 $
Assigned to:

Emergencies & Unanticipated Traffic Projects
Restricted for:

Community Development Projects 1,579,149 1,721,020 1,756,357 1,890,321 1,922,107 Community Services 19,500 - - - -
Public Safety 125,356 129,019 171,447 288,518 374,279
Public Works - 3,990,740 3,391,391 5,574,557 7,853,201
Aliso Viejo Center 51,759 -
Debt Service 3,498,519 - 178 546 298
Unassigned: (38,333) (403,015) (211,846) (20,473) (92,913) Total All Other Governmental Funds $ 5,184,191 $ 5,437,764 $ 5,167,765 $ 7,739,880 $ 10,062,857 Source: City Finance Department
Fiscal Years
Fiscal Years
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Thousands Fund Balances of Governmental Funds
General Fund Other Govt Funds
101
2963
Table 4

CITY OF ALISO VIEJO

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Revenues
Taxes $ 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 $ 24,880,722 Licenses and Permits 694,054 664,202 957,209 706,764 719,720 976,781 714,168 876,079 785,623 1,227,832 Intergovernmental 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 4,804,425 Charges for Services 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 4,892,245 Use of Money and Property 358,917 359,023 524,729 1,152,130 1,258,109 1,068,212 867,839 689,647 1,960,825 2,657,359 Fines and Forfeitures 312,400 282,322 300,988 307,513 275,229 310,419 173,133 227,896 296,431 293,288 Developer Fees 30,500 536,182 - 715,000 9,600 585,000 - - - - Contributions - - - - - 100,000 50 6,300 - -
Other 325,612 387,838 421,734 333,252 423,194 253,836 494,407 1,247,920 1,633,393 1,139,074 Total Revenues 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 39,894,945 Expenditures
General Government 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 4,855,300 Community Development 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 10,956,024 Public Works 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 4,178,222 Public Safety 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 10,587,544 Capital Outlay 292,742 1,981,850 736,315 1,723,775 10,006,820 10,375,082 23,131 92 - Debt Service
Principal - - - - - 230,000 243,625 332,486 444,071 400,457 Interest - - - - 494,561 427,436 422,842 419,756 414,773 399,729 Other Charges - - - - - - - - - -
Total Expenditures 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 31,377,276 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 8,517,669 Transfers In 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 3,046,538 Transfers Out (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) (3,046,538) Bonds Issued** - 1,211,194 12,006,870 - 23,131 - -
Lease Acquisition - - - - - - - - 39,681 -
SBITA Acquisition 85,819 365,786
Total Other Financing - - - 1,211,194 12,006,870 - 23,131 - 125,500 365,786 Sources (Uses)
Net Change in Fund Bal. $ 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 $ 8,883,455

0.00% 0.00% 0.00% 0.00% 2.03% 2.52% 2.44% 2.41% 2.73% 2.56% 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 Excess of Revenues over
Expenditures
Fiscal Years
Other Financing Sources
(Uses)
Debt Service as a % of
Noncapital Expenditures
(20,000)
(10,000)
-
10,000
20,000
30,000
40,000
50,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Thousands Fiscal Year
Changes in Fund Balance Revenues Expenditures Net Change 102
2964
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 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 2024-25 4,855,300 10,956,024 4,178,222 10,587,544 800,186 31,377,276 Source: City Finance Department
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Thousands Fiscal Year
Total General Government Expenditures
General Government Community Development Public Works Public Safety Capital Outlay Debt Service 103
2965
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 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 2024-25 24,880,722 1,227,832 4,804,425 4,892,245 293,288 2,657,359 1,139,074 39,894,945 ** 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
$45,000 Thousands
Fiscal Year
Total General Government Revenues
Other Revenue
Use of Money & Property
Fines & Forfeitures
Charges for Services
Inter- Governmental
Licenses & Permits
Taxes
104
2966
Table 7

CITY OF ALISO VIEJO

GENERAL GOVERNMENT - TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
Fiscal
Year Total
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 18,420,700 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 2024-25 11,154,921 10,287,202 1,738,861 1,699,738 24,880,722 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
12,000,000
Tax Source
Total General Government Tax Revenues by Source
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
105
2967
Table 8

CITY OF ALISO VIEJO

TAXABLE SALES TAX PRODUCERS BY CATEGORY (IN THOUSANDS)

LAST TEN CALENDAR YEARS

ADJUSTED FOR ECONOMIC DATA
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Food Stores 21,587 $ 22,672 $ 22,453 $ 22,417 $ 21,288 $ 23,954 $ 22,567 $ 23,046 $ 23,494 $ 22,644 $ Eating and Drinking Places 66,137 72,600 69,534 69,064 69,455 57,067 69,742 74,551 83,334 83,996 Auto Dealers and Supplies 6,053 6,033 5,448 5,433 6,528 5,259 5,192 27,383 16,969 27,264 Service Stations 60,348 52,608 57,190 65,193 64,494 44,967 71,167 78,034 67,735 63,199 Other Retail Stores 171,471 179,085 163,417 163,108 129,681 102,070 123,703 115,311 111,582 106,570 All Other Outlets 138,184 256,150 309,236 259,056 234,612 175,858 245,737 325,395 450,913 649,598 Total $ 463,780 $ 589,148 $ 627,278 $ 584,271 $ 526,058 $ 409,175 $ 538,108 $ 643,720 $ 754,027 $ 953,271 Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Taxable Sales By Category
Food Stores Eating and Drinking Places Auto Dealers and Supplies Service Stations Other Retail Stores All Other Outlets 106
2968
Table 9

CITY OF ALISO VIEJO
TOP 25 SALES TAX PRODUCERS

LAST TEN CALENDAR YEARS
Business Name Business Category
76 Service Stations
Barnes & Noble Stationery/Book Stores
Chevron Service Stations
Chevron Service Stations
Chevron Service Stations
Chick Fil A Quick Service Restaurants
Circle K/Mobil Service Stations
CVS Pharmacy Drug Stores
Efuel Petroleum Prod/Equipment
Hunt & Sons Petroleum Prod/Equipment
KR Services 76 Service Stations
Metagenics Drugs/Chemicals
Microvention Medical/Biotech
Pepsico Beverage Sales Food Service Equip./Supplies
Petsmart Specialty Stores
Raising Cane's Quick Service Restaurants
Ralphs Grocery Stores
Rxsight Medical/Biotech
Shell Services Stations
Stater Bros Grocery Stores
Target Discount Dept Stores
Tesla Collision Aliso Viejo New Motor Vehicle Dealers
TJ Maxx Family Apparel
Trader Joe's Grocery Stores
Trucker Tire Automotive Supply Stores
Business Name Business Category
Barnes & Noble Stationery/Book Stores
Chevron Service Stations
Chevron Service Stations
Chevron Service Stations
Circle K/76 Service Stations
Circle K/Mobil Service Stations
CVS Pharmacy Drug Stores
Dell Software Office Supplies/Furniture
Digital River Business Services
Lowes Building Materials
Metagenics Drugs/Chemicals
Michaels Arts and Crafts Art/Gift/Novelty Stores
Petsmart Specialty Stores
Qlogic Office Equipment
Ralphs Grocery Stores
Renaissance Clubsport Leisure/Entertainment
Restaurants on the Run Casual Dining
Shell Service Stations
Stadium Brewing Company Casual Dining
Staples Office Supplies/Furniture
Stater Bros Grocery Stores
Target Discount Dept Stores
TJ Maxx Family Apparel
Trader Joe's Grocery Stores
Vintners Shell Stations Service Stations
Source: State Board of Equalization, CDTFA, State Controller's Office, The HDL Companies Orange County Assessor
2024
2015
107
2969
Table 10

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% 2024-25 10,037,135 9,956,296 99.19% 32,509 9,988,806 99.52% 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 AuditorController 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
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Fiscal Year Property Tax Levies and Collections
Taxes Levied Total Collections
108
2970
Table 11

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 2024-25 13,036,920,662 460,127,807 586,350,833 12,910,697,636 4.62% 0.02169 Source: The HDL Companies; County of Orange Auditor-Controller $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Millions Fiscal Year
Net Taxable Property Value
109
2971
Table 12

CITY OF ALISO VIEJO

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

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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 0.00845 0.00843 0.00800 0.00786 0.00745 0.00756 0.00727 0.00691 0.00633 0.00446 Laguna Beach Unified 0.01396 0.01371 0.01287 0.01285 0.01266 0.01012 0.01018 0.00971 0.00883 0.00876 Saddleback Valley Unified 0.03008 0.02688 0.02365 0.02392 0.02295 0.02336 0.02200 0.02227 0.02037 0.02108 Moulton Niguel Water District 0.09041 0.00815 - - - - - - - - Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00700 Total Direct & Overlapping Tax Rates2 1.14640 1.06067 1.04802 1.04813 1.04656 1.04454 1.04295 1.04239 1.03903 1.04130 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 0.02170 0.02163 0.02165 0.02165 0.02167 0.02168 0.02173 0.02169 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. 110
2972
Table 13

CITY OF ALISO VIEJO

PRINCIPAL PROPERTY TAXPAYERS
JUNE 30, 2024 AND 10 YEARS AGO
Taxpayer Primary Use
St Moritz Property Owner LLC Residential $ 345,526,640 2.68% Microvention Inc Commercial 246,942,223 1.91%
Barcelona LLC Residential 200,257,980 1.55%
Vantis Multifamily LLC Residential 147,430,546 1.14%
City Lights-Aliso Viejo LLC Residential 133,968,464 1.04% Taghkanic Real Estate Holdings I LLC Commercial 120,000,000 0.93% TGA 26600-26700 Aliso Viejo Parkway LLC Commerical 99,939,600 0.77% Summit IV LLC Commercial 97,639,536 0.76%
Sequoia Equities Alize Residential 95,345,066 0.74%
PLC 3 LP Residential 93,254,829 0.72%
Top Ten Totals $ 1,580,304,884 12.24%
Taxpayer Primary Use
Sequoia Equities Residential $ 159,919,686 1.83%
City Lights - Aliso Viejo LLC Residential 113,564,290 1.30% RREEF America Reit II Corporation Commercial 113,116,096 1.29% Moritz Associates LLC Residential 112,200,478 1.28%
Barcelona, LLC Residential 96,721,571 1.10%
Qlogic Corporation Commerical 76,431,839 0.87%
Aliso Viejo RP-V1 LLC Commercial 66,798,438 0.76%
Aliso Creek Apartment Partners LLC Residential 64,462,507 0.74% Pacific Life Insurance Company Commercial 62,782,294 0.72% Summit Office LLC Commercial 60,368,441 0.69%
Top Ten Totals $ 926,365,640 10.57%
Source: The HDL Companies
Orange County Assessor
2015-16
Percentage of Total
Assessed Valuation Assessed Valuation
2024-25
Percentage of Total
Assessed Valuation Assessed Valuation
111
2973
Table 14

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 Per Capita Net General
Fiscal Bonds Unamortized Lease Subscription Assessed Obligation Debt to Population Personal Obligation Year Payable Premium Liability Liability Total Value Assessed Value Income 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 48,898 0.501% 244.78 2020-21 - - - - 12,020,000 11,057,982,407 0.109% 49,813 51,379 0.470% 241.30 2021-22 - - - - 11,785,000 11,357,669,581 0.104% 50,782 50,540 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 54,865 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 62,037 0.401% 249.08 2024-25 11,035,000 806,719 30,967 526,550 12,399,236 12,910,697,636 0.096% 50,213 66,115 0.373% 246.93 Ratios to Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.17%
Total Overlapping General Fund Debt 0.16%
Total Direct Debt ($12,399,236) 0.10%
Combined Total Debt 0.43%
Source: California Municipal Statistics, Inc
HDL Coren & Cone
Percentage of
Personal
Income
Net Direct General Obligation Debt
112
2974
Table 15

CITY OF ALISO VIEJO

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2025
2024-25 Assessed Valuation $ 12,910,697,636
OVERLAPPING TAX AND ASSESSMENT DEBT:

Total Debt
6/30/2025 % Applicable (1)
City's Share of
Debt 6/30/25
Metropolitan Water District $ 17,155,000 0.317% $ 54,381 Capistrano USD School Facilities Improvement District No 1 3,327,455 0.730% 24,290 Laguna Beach Unified School District, 7,690,000 1.614% 124,117 Saddleback Valley Unified School District 64,475,000 0.463% 298,519 City of Aliso Viejo Community Facilities Disctrict No. 2005-01 22,035,000 100.000% 22,035,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 22,536,307
OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $ 429,065,000 1.593% $ 6,835,005 Orange County Board of Education General Fund Obligations 9,120,000 1.593% 145,282 Capistrano Unified School District Certificates of Participation 19,365,000 9.738% 1,740,584 Moulton-Niguel Water District Certificates of Participation 48,605,000 26.261% 12,224,496 TOTAL NET DIRECT OVERLAPPING GENERAL FUND DEBT $ 20,945,367 TOTAL NET OVERLAPPING DEBT $ 43,481,674
DIRECT GENERAL FUND DEBT:

Total Debt
6/30/25
City of Aliso Viejo Certificates of Participation3 $ 11,035,000 100.000% $ 11,035,000 Unamortized premium 806,719 100.000% 806,719
Lease Liability 30,967 100.000% 30,967
Subscription Liability 526,550 100.000% 526,550
TOTAL DIRECT DEBT $ 12,399,236
NET COMBINED TOTAL DEBT $ 55,880,910 (2)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.17%
Total Overlapping General Fund Debt 0.16%
Total Direct Debt ($12,399,236) 0.10%
Combined Total Debt 0.43%
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.
113
2975
Table 16

CITY OF ALISO VIEJO

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20
Assessed Valuation $ 8,765,964,235 $ 9,262,104,730 $ 9,757,602,814 $ 10,320,677,681 $ 10,706,653,293 Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 2,191,491,059 2,315,526,183 2,439,400,704 2,580,169,420 2,676,663,323 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 328,723,659 347,328,927 365,910,106 387,025,413 401,499,498 Total Debt Applicable to Limit - - - - 12,250,000
Legal Debt Margin $ 347,328,927 328,723,659 $ 365,910,106 $ 387,025,413 $ 389,249,498 $ Total Net Debt Applicable to Limit as
Percentage of Debt Limit - - - - 0.03
2020-21 2021-22 2022-23 2023-24 2024-25
Assessed Valuation $ 11,057,982,407 $ 11,357,669,581 $ 11,852,955,303 $ 12,340,911,988 $ 12,910,697,636 Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 2,764,495,602 2,839,417,395 2,963,238,826 3,085,227,997 3,227,674,409 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 414,674,340 425,912,609 444,485,824 462,784,200 484,151,161 Total Debt Applicable to Limit 12,020,000 11,785,000 11,545,000 11,295,000 11,035,000 Legal Debt Margin $ 414,127,609 402,654,340 $ 432,940,824 $ 451,489,200 $ 473,116,161 $ Total Net Debt Applicable to Limit as
Percentage of Debt Limit 2.9% 2.8% 2.6% 2.4% 2.3%
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 since this change, the percentage has been proportionately modified to 3.75% for the purpose of this amended by the State 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
114
2976
Table 17

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
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%
2024 50,213 3,319,857,000 66,115 3.8% 38.6 96.4% 57.1%
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
115
2977
Table 18

CITY OF ALISO VIEJO

PRINCIPAL EMPLOYERS

LAST TEN YEARS
MicroVention, Inc 1700 6.05%
United Parcel Service 1200 4.27%
Glaukos Corporation 995 3.54%
RxSight, Inc 943 3.36%
Ambry Genetics Corporation 706 2.51%
Capistrano Unified School District 540 1.92%
Orange County Sheriff's Department 450 1.60%
UST Global, Inc 349 1.24%
Metagenics 280 1.00%
Avanir Pharmaceuticals, Inc 195 0.69%
Total Top Employers 7,358 26.19%
Total Employees in City 28,100
United Parcel Service 1,000 4.08%
Pacific Life Insurance 811 3.31%
Capistrano Unified School District 679 2.77%
Flour 630 2.57%
Quest Software 600 2.45%
Qlogic 490 2.00%
Renaissance ClubSport 259 1.06%
Pepsi Beverages Company 215 0.88%
Smith Micro Software 200 0.82%
Merit Property Management 199 0.81%
Total Top Employers 5,083 20.72%
Total Employees in City 24,531
Source: City Finance Department; Employment Development Department, Kosmont Companies, CoStar, Data Axle, ESRI, company websites and filings 2016
Employer Number of Employees Percent of Total Employment 2025
Employer Number of Employees Percent of Total Employment 116
2978
Table 19

CITY OF ALISO VIEJO

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Public Safety:

Part I Crimes 395 440 438 488 460 415 424 479 563 292
Public Works:

Streets Resurfaced 38 29 1 57 1 103 47 30 1 1
Lane Miles* 1.5
Community Development
Building Permits Issued 2,455 2,129 2,225 1,711 1,754 1,755 2,105 2,525 1,747 2,725 Plan Checks Performed 275 205 184 197 234 309 686 783 829 757 Community Services***:

Recreation
Contract Classes - - 145 452 999 283 934 976 639 996
Contract Class Participants - - 443 1,559 2,239 1,599 4,352 5,137 4,613 3,727 Events
City Events 7 7 16 26 8 9 17 9 12 9
City Sponsored Events 6 7 26 27 5 2 8 16 21 23
Senior Programs
Senior Mobility Program Rides 1,796 2,141 2,419 2,102 2,340 - 345 1,626 1,803 2,130 Finance
Accounts Payable
AP Line Items Entered 4,041 4,368 4,454 4,791 4,964 4,855 5,947 5,581 5,113 4,934 Invoices Processed 2,852 3,012 3,069 3,271 3,216 3,166 3,698 3,787 3,309 3,018 Payments Processed 2,220 2,257 2,284 2,474 2,330 2,338 2,699 2,611 2,207 2,076 Payroll
Payroll Checks Issued 622 627 635 748 834 912 1,069 1,134 1,208 1,156 * Lane Miles provided beginning in FY 2024-25
***The Community Services department was restructured in FY 2017-18 Source: City Public Works Department,
117
2979
Table 20

CITY OF ALISO VIEJO

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 General Government 1 10.0 10.0 10.0 10.0 11.3 13.5 14.0 13.5 13.5 13.5 Public Safety 2 0.0 0.0 0.0 0.0 0.1 0.2 0.0 0.2 0.2 0.0 Public Works 1.0 1.0 1.0 2.0 3.0 3.0 3.0 4.0 4.0 4.0
Community Services 3 0.0 0.0 2.6 5.5 7.3 8.0 9.8 12.0 12.0 12.5 Community Development 7.4 7.4 5.0 5.0 6.0 5.5 5.5 5.3 5.0 5.0 Total 18.4 18.4 18.6 22.5 27.7 30.2 32.3 35.0 34.7 35.0 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
118
2980
Table 21

CITY OF ALISO VIEJO

CAPITAL ASSETS STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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 1,411 1,407 1,407 1,407 1,407 1,407 1,429 Traffic Signals ** 47 47 47 47 48 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 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
119
2981
Table 22

CITY OF ALISO VIEJO

SCHEDULE OF INSURANCE
JUNE 30, 2025
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 07/01/24 - 07/01/25 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/ 07/01/24 - 07/01/25 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/ 07/01/24 - 07/01/25 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 07/01/24 - 07/01/25 deductible of $2,500 per occurrence Services, Inc.

Depositor's Forgery $1,000,000 limit per member, Alliant Insurance 07/01/24 - 07/01/25 deductible of $2,500 per occurrence Services, Inc.

Crime- Money & Securities $1,000,000 limit per member, Alliant Insurance 07/01/24 - 07/01/25 deductible of $2,500 per occurrence Services, Inc.

Computer Fraud $1,000,000 limit per member, Alliant Insurance 07/01/24 - 07/01/25 deductible of $2,500 per occurrence Services, Inc.

Worker's Compensation:

Work related injury/illness claims for California Statutory Benefits for Self Insured Program/ 07/01/24 - 07/01/25 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 07/01/24 - 07/01/25 damage/bodily injury $1,000,000 aggregate per event. Services, Inc. $5,000 medical expense limit.

Source: City Finance Department
120
2982
Table 23

CITY OF ALISO VIEJO

MISCELLANEOUS STATISTICAL INFORMATION
JUNE 30, 2025
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 (Budgeted Positions) …………………………………………………………………………………………………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
121
2983
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, 2025, and have issued our report thereon dated November 13, 2025. 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 23, 2025, 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 to you in our engagement letter.

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. 2984
Significant Risks Identified
We have identified the following significant risks:

Implementation of Governmental Accounting Standards Board (GASB) No. 101 – Compensated Absences due to the complexity of the standard and being the first year of implementation.

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. There have been no initial selection of accounting policies and the City changed the accounting policies related to compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, and risk disclosures related to government vulnerabilities due to concentrations and constraints by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 102, Certain Risk Disclosures, in the fiscal year ended June 30, 2025. 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. 2985
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 was one adjustment not recorded by management because it was not material to the financial statements. This was a passed adjustment to record the disposal of a median, as the asset did not exist at year-end.

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. There were no material misstatements noted as a result of our audit procedures.

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 13, 2025.

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 2986
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 13, 2025
2987

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, 2025, 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 13, 2025.

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.

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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.
2988

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.

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 13, 2025
2989
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, 2025. 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, 2025. 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. 2990
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 13, 2025
2991
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, 2025, for compliance with the provisions of the California Government Code and with the City’s investment policy dated July 17, 2024. The City’s management is responsible for the Treasurer’s Monthly Cash Statement for the month ended June 30, 2025.

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 July 17, 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 a copy of the City’s Treasurer’s Report for the month ended June 30, 2025, 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, 2025.

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, 2025, 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, 2025, 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, 2025, 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 2992
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 20, 2025 as per minutes of the meeting.

5. We compared the investments listed in the City Treasurer's Report for the month ended June 30, 2025, 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, 2025, 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, 2025, 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. 2993
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 13, 2025
2994
FY 2024-25
Annual Comprehensive Financial Report
City Council Meeting
December 3, 2025
2995
General Fund Resources
• Sales Tax
• EFuel, LLC Growth
• The Commons
• Growth in County Pool
• TOT
• Occupancy Rates
• Recreation
• Lower than expected rentals and classes
• Building and Planning
• Kaiser Expansion
2 General Fund Resources
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
Over/(Under)
Property Tax $ 9,911,102 $ 10,179,100 $ 10,287,203 $ 108,103 Sales Tax 8,359,623 8,900,000 11,154,921 2,254,921
TOT 1,570,575 1,600,000 1,699,738 99,738
Franchise Fees 1,793,611 1,661,670 1,738,860 77,190
Recreation 1,593,376 1,685,500 1,525,242 (160,258)
Building & Planning 1,240,630 1,100,000 1,353,812 253,812 Fines & Forfeitures 296,430 185,000 293,289 108,289
Investment Earnings1 708,216 495,000 2,138,091 1,643,091 Other2 2,700,363 944,049 1,870,143 926,094
Total Resources $ 28,173,926 $ 26,750,319 $ 32,061,299 $ 5,310,980 1 FY 24-25 Investment Earnings include $836,004 in accrued interest and market adjustments 2 FY 24-25 Actuals include other financing sources for lease and SBITA acquisition per GASB 87 and 96 in the amount of $365,786
2996
General Fund Resources (cont.)
• Investment Earnings
• Market Adjustments
• Accrued Interest
• Other
• AV Center Operating Results
• Misc Reimbursements
• Accounting Adjustments
3 General Fund Resources
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
Over/(Under)
Property Tax $ 9,911,102 $ 10,179,100 $ 10,287,203 $ 108,103 Sales Tax 8,359,623 8,900,000 11,154,921 2,254,921
TOT 1,570,575 1,600,000 1,699,738 99,738
Franchise Fees 1,793,611 1,661,670 1,738,860 77,190
Recreation 1,593,376 1,685,500 1,525,242 (160,258)
Building & Planning 1,240,630 1,100,000 1,353,812 253,812 Fines & Forfeitures 296,430 185,000 293,289 108,289
Investment Earnings1 708,216 495,000 2,138,091 1,643,091 Other2 2,700,363 944,049 1,870,143 926,094
Total Resources $ 28,173,926 $ 26,750,319 $ 32,061,299 $ 5,310,980 1 FY 24-25 Investment Earnings include $836,004 in accrued interest and market adjustments 2 FY 24-25 Actuals include other financing sources for lease and SBITA acquisition per GASB 87 and 96 in the amount of $365,786
2997
General Fund Expenditures
• Admin & Support
• Labor Savings
• Community Services
• Full-time vacancy
• Operating Expenses
• Comm & Econ Dev
• Sales Tax Subsidies
4 General Fund
Appropriations
FY 2023-2024
Actuals
FY 2024-25
Amended
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
(Over)/Under
Admin & Support $ 4,978,006 $ 4,976,449 $ 4,235,385 $ 741,064 Community Services 2,743,811 3,165,132 2,744,808 420,324 Comm & Econ Dev 3,982,795 4,136,826 4,785,189 (648,363) Public Works 1,724,588 1,914,500 1,668,271 246,229
Public Safety 10,005,398 11,332,287 10,462,135 870,152
City Hall 201,147 251,290 195,732 55,558
Debt Service 655,795 658,050 655,369 2,681
Transfers/Other 159,252 201,402 529,411 (328,009)
Total Operating $ 24,450,792 $ 26,635,936 $ 25,276,300 $ 1,359,636 Capital Improvement 267,472 526,000 224,521 301,479
Total General Fund $ 24,718,264 $ 27,161,936 $ 25,500,821 $ 1,661,115 2998
General Fund Expenditures (cont.)
• Public Works
• NPDES Permits
• Environmental Compliance
• Public Safety
• OCSD Vacancies
• Other
• Accounting Adjustments
• CIP
• Deferred Pool Deck Project
5 General Fund
Appropriations
FY 2023-2024
Actuals
FY 2024-25
Amended
Budget
FY 2024-25
Actuals
FY 2024-25
Budget Variance
(Over)/Under
Admin & Support $ 4,978,006 $ 4,976,449 $ 4,235,385 $ 741,064 Community Services 2,743,811 3,165,132 2,744,808 420,324 Comm & Econ Dev 3,982,795 4,136,826 4,785,189 (648,363) Public Works 1,724,588 1,914,500 1,668,271 246,229
Public Safety 10,005,398 11,332,287 10,462,135 870,152
City Hall 201,147 251,290 195,732 55,558
Debt Service 655,795 658,050 655,369 2,681
Transfers/Other 159,252 201,402 529,411 (328,009)
Total Operating $ 24,450,792 $ 26,635,936 $ 25,276,300 $ 1,359,636 Capital Improvement 267,472 526,000 224,521 301,479
Total General Fund $ 24,718,264 $ 27,161,936 $ 25,500,821 $ 1,661,115 2999
General Fund Balance
6 Resources $ 32,061,299
Expenditures (25,500,821)
Net Change in Fund Balance $ 6,560,478
Beginning Fund Balance $ 37,881,758
Year-End Fund Balance $ 44,442,236
% Change in Fund Balance 17.3%
FY 2024-25 General Fund
Year Ending June 30, 2025
3000
General Fund Balance
Council Policy
• Reserves
• Contingencies – Unexpected
Shortfalls or Expenses
• Self Insurance/Benefit Obligations
• Asset Replacement - 50% of
Accumulated Depreciation
• 15% for Emergencies/Catastrophic
Impacts
• Unassigned Fund Balance
• 25-35% Operating Budget
Fund Balance
7 3001
Special Revenue Funds
8 FY 2024-25 Year-End Balances
Fund
Beginning
Balance
Total
Revenues
Total
Expenses
Ending
Balance
202 - Traffic Congestion Relief Fund $ 76,068 $ 3,362 $ - $ 79,430 203 - Gas Tax 959,679 1,515,830 1,125,975 1,349,535
204 - Measure M 1,903,028 1,089,672 757,795 2,234,906
205 - SB1-RMRA 1,155,282 1,504,342 84,914 2,574,710
215 - Public Safety Grants 288,518 211,170 125,409 374,279 221 - AQMD (AB2766) 1,480,498 134,120 - 1,614,618
225 - Integrated Waste Management 70,924 66,225 62,347 74,802 231 - Other Grants 44,085 297,672 295,320 46,438
241 - Technology Fund 397,435 91,408 65,853 422,990
245 - Development Impact 1,377,777 - - 1,377,777
251 - Federal Grants (14,062) 126,549 199,515 (87,027)
260 - AV Center - 3,193,144 3,193,144 -
261 - Aquatic Center - 1,003,374 1,003,374 -
411 - Debt Service 546 655,673 655,921 298
511 - AV Ranch Foundation 100 - - 100
TOTAL $ 7,739,880 $ 9,892,542 $ 7,569,565 $ 10,062,857
3002
Questions?
3003
City of Aliso Viejo

AGENDA ITEM
DATE: December 3, 2025
TO: Mayor and City Council
FROM: Mitzi Ortiz, City Manager
SUBJECT: CITY COUNCIL REORGANIZATION
Recommended Action:

Select a Mayor and Mayor Pro Tem in accordance with Ordinance No. 2001-022, for the 2026 calendar year.

Fiscal Impact:

There is no fiscal impact to this action.

Background:

Ordinance No. 2001-022 provides for the selection of the Mayor and Mayor Pro Tem on an annual basis at the first meeting of the City Council in December of each year with their terms commencing on January 1st the following year.

Discussion:

To conduct the selection of the next Mayor and Mayor Pro Tem, the following steps are recommended:
 The City Clerk calls for a motion to nominate a member of the City Council to serve as Mayor for 2026.
 The City Clerk requests any additional nominations.
 Nominations are closed.
 A roll call vote is taken by the City Clerk for each nominee until a successful nominee receives a majority vote and is declared Mayor.

The process is then repeated for the position of Mayor Pro Tem.

Additionally, Council Policy 400-2 states that the Council seating order shall be at the discretion of the Mayor.
3004